An Indispensable Link in the Rise of Great Powers: The AI Race and the Accelerated Development of a New Green Energy System

Although there have been recent doubts in the capital markets about whether the AI boom in U.S. stocks might repeat the internet bubble of the past, the competition among countries in AI is evidently irreversible. Along with investments in AI data centers, the underlying support – stable, clean, and low-cost power supply – has become an essential issue. Simply put, the race for AI development will also evolve into a contest among nations to secure a sustainable, reliable, and clean energy system. Therefore, companies that can seize and contribute to their country's transition towards green energy are likely to be viewed as having a brighter future.

The rise of the artificial intelligence (AI) wave has not only spurred demand for computing power across various industries (with many companies accelerating investment in expanding AI data centers), but also positioned tech giants like Microsoft (MSFT.US) and Google (GOOG.US) as some of the largest buyers in both the spot and long-term contract markets for high-quality carbon removal credits. This indicates that these giants have recognized the concurrent surge in energy consumption and carbon emissions associated with their AI computing demands.

Notably, the situation at the 30th United Nations Climate Change Conference (COP30), held last week in Belém, a city adjacent to the Amazon rainforest, shows that China has shifted from its previously low-profile stance in international engagements. Delegates and enterprises attending the conference are actively showcasing the country's stature as a major exporter of clean energy.

On October 28, the "Proposals of the Central Committee of the Communist Party of China for Formulating the Fifteenth Five-Year Plan for National Economic and Social Development" was officially released. The proposal outlines that quantum technology, biomanufacturing, hydrogen energy and nuclear fusion, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communications should become new drivers of economic growth. It emphasizes the vigorous development of new energy storage and the acceleration of constructing a new energy system.

As the state designates hydrogen energy as a strategic industry in the fifteenth five-year plan, China is stepping into a new era of green energy. Hydrogen energy is expected to become a significant area for international energy cooperation and is moving toward the mainstream.

At the same time, green hydrogen-ammonia-alcohol projects dominate the first batch of hydrogen pilot projects recently announced by the National Energy Administration. Similarly, such projects constitute the majority of the first batch of technological breakthroughs and industrialization pilots for green liquid fuels published earlier. This signals that the industry is in a critical phase of transitioning from demonstration applications to scaled promotion. As an innovative energy model that deeply integrates renewable energy with green chemical engineering, the rise of green hydrogen-ammonia-alcohol—the 'green oil'—not only provides a new pathway for China’s energy transition but also injects strong momentum into achieving the 'dual carbon' goals, quietly reshaping the landscape of the new energy industry.

In addition, as the world’s largest shipping nation, under the framework of legally binding net-zero emission regulations promoted in international maritime transport, China's shipping sector is expected to witness explosive growth in demand for green methanol over the next five years, which will drive a corresponding surge in the production of green hydrogen, a key raw material for producing green methanol.

CIMC Enric, together with China Merchants Group and Sinopec, jointly promote the realization of green methanol bunkering in Hong Kong's shipping sector.

Taking CIMC Enric (03899.HK), regarded by the market as a provider of green energy transition solutions, as an example, $CIMC ENRIC (03899.HK)$on November 17, the company announced a strategic partnership with China Merchants Group and Sinopec to promote green methanol bunkering in Hong Kong. This marks a key step forward in Hong Kong’s shipping industry towards a green and low-carbon transition.

Since the release of the Hong Kong Special Administrative Region Government’s "Action Plan for Green Marine Fuel Bunkering" in November 2024, CIMC Enric has responded proactively and signed a memorandum of cooperation with the Hong Kong Transport and Logistics Bureau on June 25, 2025, continuing to pragmatically advance collaboration with upstream and downstream stakeholders along the industrial chain. As the guarantor of green fuel resources, CIMC Enric’s first commercial renewable methanol project, located in Zhanjiang, Guangdong, with an annual design capacity of 5+20 million tons, began planning in 2022. The project complies with the International Sustainability and Carbon Certification (ISCC EU) standards under the European Union Renewable Energy Directive (REDIII) and has received full-chain sustainability certification. The initial phase, with an annual capacity of 50,000 tons, is set to commence operations in the fourth quarter of this year, providing stable and reliable green methanol supply to Hong Kong and the Greater Bay Area, further solidifying Hong Kong’s resource foundation as a regional green fuel bunkering hub.

Facilitating the Green Transformation of Traditional Steel Enterprises ── Coke and Steel Integration Project

The coke oven gas comprehensive utilization project jointly invested in and constructed by CIMC Enric and Ansteel Energy Technology, the second coke and steel integration project in Liaoning Province: 'Lingyuan Iron and Steel Group's Coke Oven Equipment Upgrade Green Development Transformation Project' with an associated coke oven gas to LNG and hydrogen (ammonia-based hydrogen storage control) project, has officially commenced operations. The project is capable of producing 147,000 tons of LNG, 20,000 tons of blue hydrogen, or 60,000 tons of synthetic ammonia annually to meet green fuel demands for local transportation and industrial production scenarios. It is the first project nationwide to achieve a 100% conversion rate of coke oven gas. The first coke and steel integration project, located in Bayuquan, Yingkou City, Liaoning Province, successfully operated for one year after its commissioning last year. Similar projects are currently planned in four locations. The success of such projects reflects that CIMC Enric’s model for supporting the green transformation of traditional steel enterprises demonstrates strong replicability.

In fact, benefiting from the profit release in the waterborne clean energy business, incremental profit contributions from coke oven gas hydrogen and LNG production projects, and steady deliveries of overseas high-end cryogenic tank containers, CIMC Enric’s Clean Energy Division also saw substantial profit growth this year. Revenue for the first three quarters increased by 19.4% year-on-year to approximately RMB 15.04 billion. Sales of liquefied gas carriers (marine), liquid tanks, spherical tanks, and industrial gas cryogenic tanks continued to rise. As of the nine months ended September 30, 2025, new orders for the waterborne clean energy business amounted to approximately RMB 8.646 billion, up 16.2% year-on-year, while the backlog of orders reached RMB 19.953 billion, a year-on-year increase of 39.5%, setting a new historical record. Shipbuilding orders have been scheduled until 2028.

Gas and Coal Expansion in Hong Kong’s Green Methanol and Hydrogen Applications

Even Hong Kong's major energy companies are actively positioning themselves within this essential segment of the emerging energy system framework, capturing a significant share of the green energy market. The Hong Kong and China Gas Company Limited (00003.HK) $HK & CHINA GAS (00003.HK)$In July this year, it also entered into a strategic cooperation agreement with CIMC Enric to jointly develop green methanol and hydrogen energy, promoting Hong Kong’s green energy transition. The Hong Kong and China Gas Company will collaborate with CIMC Enric on hydrogen energy project development and applications in Hong Kong, conducting comprehensive cooperation across hydrogen extraction, purification, storage, and utilization.

It is worth noting that market attention towards hydrogen energy has not diminished, with some hydrogen-related stocks already showing clear signs of consolidation and rebound. Key subsectors include hydrogen fuel cell company Refire Technology (02402.HK) $SINOHYTEC (02402.HK)$and hydrogen storage and transportation company Guofu Hydrogen Energy (02582.HK), both of which rebounded by over 10% in the past week. Even leading hydrogen fuel cell companies like Refire Technology, which holds a dominant market position through its proprietary stack technology, were once affected by their Q3 earnings report – revenue for the first three quarters decreased by 67.31% year-on-year – as well as market expectations of an overall decline in medium-term demand for the fuel cell industry. However, its stock price has stabilized ahead of others.

Bullish on Future Prospects, CIMC Enric Plans to Initiate Share Repurchase

Since the second half of the year, CIMC Enric's share price has risen significantly. The clean energy sector in which the company operates has garnered considerable attention. Statistical data shows that the number of newly built hydrogen refueling stations in China increased notably by 12.5% in the first half of the year. Additionally, countries such as Germany, Australia, and Uruguay have raised trade expectations for hydrogen energy and related industries, indicating substantial global industry growth potential.

On November 17, the company announced that, based on its firm confidence in the future development prospects and high recognition of the intrinsic value of the company, it plans to repurchase shares from the open market. The number of shares to be repurchased will not exceed 1.5% of the total number of currently issued shares (i.e., no more than 30,438,213 shares), with a repurchase amount not exceeding HKD 200 million. This highlights the management and board's confidence in future development prospects and their high recognition of the company's value.

It is recommended to focus on hydrogen energy equipment suppliers.

BOC International’s earlier research report stated that the substitution of electricity has the potential to unlock demand for green hydrogen. Attention should be paid to the increasing penetration rate of downstream hydrogen-based energy applications. The industrial relationship between green electricity, green hydrogen, and green fuels is gradually being rationalized. In the early stages of industry development, green fuels are expected to enjoy premium pricing. It is recommended to pay attention to hydrogen energy equipment and green fuel operation segments.

The performance of the Hang Seng HSI-HK Hydrogen Energy Theme Index (800925.HK) shows that the index has retreated from its high of 9,982.08 points on November 7. The index has recently consolidated at the resistance level seen in October. Yesterday (the 27th), it closed at 9,028.54 points, representing a decline of less than 10% from its peak, highlighting the sector's potential for another wave of activity and opportunities.

As an indispensable piece of the broader strategy to establish a complete, sustainable, stable, reliable, and clean energy framework, the hydrogen energy industry is set to experience rapid growth. Under this solid developmental logic, related enterprises—especially those capable of collaborative win-win outcomes within the hydrogen energy sector—are poised to achieve long-term success.

Author: Philip

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