Linde’s first investment in the coal gasification industry in China is looming, after the Dahua Group and Linde Greater China signed a Letter of Intent (LOI) in Dalian to kick-off their cooperation in this area.
Under the LOI, Dahua and Linde will invest RMB 1.1bn (€140m) to establish a joint venture to operate and manage the gasification facilities in Songmu Island, Dalian.
By leveraging Linde’s broad knowledge in operating industrial gas plants, cutting-edge technologies and solutions, the production site will achieve a higher operational efficiency and stability of gas supply.
Prof. Dr Aldo Belloni, Member of the Executive Board of Linde AG, attended the signing ceremony and said, “This is the first coal gasification project for us in China. As the global leading gas and engineering company, Linde has over 20 years’ experience in coal gasification industry worldwide. By leveraging the synergy with Dahua Group, we will be more supportive for China’s clean energy development and emission reduction policy.”
“We are very delighted to launch this project with our long-term partner, Dahua Group in coal gasification industry. Coal gasification provides significant economic and environmental benefits which can help meet the growing demand for clean energy nowadays,” he added.
Dahua Group is wholly-owned by Dalian State Assets Administration Committee, with 33 subsidiaries in China. Set up in 1933, it is the earliest, biggest basic chemical material, fertiliser production basin in China.
Mr Yu Hong, General Manager of Dahua Group, said of the deal, “Our cooperation with Linde starts from the year of 1993 when Linde provided us with the first air separation unit. Over the past decades, we built up a very reliable relationship and keep growing hand-in-hand as strategic partners.”
“The newly signed LOI is another exciting milestone for both of us and we look forward to having new breakthroughs in gasification field in the near future.”