Construction begins on wharf project for hydrogen hub in Dalian Changxing Island

Updated: Sep 3, 2024 Official WeChat account of Changxing Island

[Photo/Official WeChat account of Changxing Island]

Construction has officially begun on a significant wharf project at Dalian Changxing Island (Xizhong Island), marking the full-scale launch of the hydrogen-based energy center in the Dalian Changxing Island Economic and Technological Development Zone (the “Zone”), which is strategically aimed at serving the Northeast Asian market.

The project, funded jointly by Dalian Xizhong Island Development Group, COSCO SHIPPING Investment Dalian Co Ltd, and Dalian Menglian Petrochemical Co Ltd, includes berths for large-scale green methanol, other liquid chemicals, green ammonia, and liquefied hydrocarbons, as well as supporting auxiliary facilities.

At the groundbreaking ceremony, the administrative committee of the Zone signed a strategic cooperation agreement with Royal Vopak, the Netherlands-based global leader in independent tank storage. The partnership will leverage each party’s resources and expertise to develop terminal and storage facilities within the Xizhong Island Petrochemical Park.

This collaboration aims to enhance port functionality and establish a comprehensive green petrochemical industry base that features an integrated upstream and downstream supply chain, efficient material supply, and robust infrastructure.

To implement national strategies such as "Revitalization of Northeast China", "Five Major Securities" (covering political, economic, military, cultural, and social securities), and the "Dual Carbon Goals", Changxing Island is seizing the trillion-dollar hydrogen energy market opportunity.

The island is actively planning the production, storage, transportation, trade, and refueling chains for green methanol, green ammonia, and sustainable aviation fuel,  along with the innovation chain, equipment chain, and green certification and testing within the new energy service system. These efforts aim to establish a hydrogen-based energy hub in the Zone.

In June, COSCO SHIPPING Investment Dalian Co Ltd signed an agreement with the city government and the administrative committee of the Zone for an integrated chemical and hydrogen-based energy warehousing and logistics hub, including a chemical fleet. The total investment for this project is 24 billion yuan ($3.31 billion).

Following the agreement, Changxing Island and COSCO Shipping have rapidly advanced the project, with construction of the green methanol and liquid chemical berth, as well as the green ammonia and liquefied hydrocarbon berth, now underway. This marks the full-scale development of the hydrogen-based energy center.

The wharf project plans include a 10,000-ton liquefied hydrocarbon berth and a 10,000-ton liquid chemical and oil berth, with a total length of 396 meters. The facility is expected to be completed and operational by June 30, 2025. Designed to handle approximately 1.4 million tons annually and support a throughput of around 1.58 million tons per year, the terminal will accommodate ten types of cargo, including gasoline, aviation fuel, acetic acid, methanol, liquid ammonia, and liquefied petroleum gas.

Once operational, the terminal will support COSCO Shipping’s integrated logistics projects, the Dingjide project, and China General Nuclear Power Group’s projects, addressing the maritime needs of enterprises in the Xizhong Island Petrochemical Park. This development is strategically significant for positioning Changxing Island as a key hub for green hydrogen energy transshipment, storage, and refueling in Northeast Asia.

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