On December 2nd, CIMC Enric Holdings Limited (CIMC Enric) announced that since the implementation of the domestic subsidy policy for the scrapping and renewal of old operational vessels in August this year, the company has secured orders for 100 sets of LNG power packages for coastal ships and inland river vessels within three months, with a total value exceeding RMB 200 million.
In August this year, the Ministry of Transport and the National Development and Reform Commission jointly issued the “Implementation Rules for Subsidies for the Scrapping and Renewal of Old Operational Ships in Transportation”. From the date of the release of the policy to December 31, 2028, relevant departments will provide corresponding subsidies for the scrapping and renewal of old and used domestic ships in order to promote the rapid increase in the share of green-powered ships.
Currently, there are approximately 110,000 inland river transport ships in China. Industry forecasts predict that over the next four years, the annual number of newly added or retrofitted ships will be between 1,500 and 2,000 per year, with a cumulative total of 6,000 to 8,000 ships over four years.
Driven by this favorable policy, CIMC Enric signed an order for 50 new energy powered ship gas supply systems with four Anhui companies in November, including LNG marine fuel tanks, LNG engines, security gas supply systems, gearboxes, auxiliary power systems, etc., to achieve clean energy power transformation of ships.
Shortly after the signing of this order, CIMC Enric also obtained a supply agreement for gas and power packages for 50 LNG ships from China Yangtze Shipping Group. This order is part of the in-depth cooperation between CIMC Enric and China Yangtze Shipping Group on “gasification of the Yangtze River”.
In June 2023, China Yangtze Shipping Group and CIMC Enric’s Nantong CIMC Sinopacific Offshore & Engineering Co.,Ltd.(CIMC SOE) signed a contract in Shanghai to build four 12,500-ton clean energy river-sea direct dry bulk carriers, with a total contract value of more than RMB 250 million. It is also understood that CIMC Enric also plans to deliver power packages for 100 LNG ships to Jining Energy Development Group in 2025.
Inland waterway and coastal shipping are crucial channels for promoting domestic circulation and serve as the primary means for long-distance transportation of bulk goods in China.
As a global leader in clean energy, CIMC Enric has deployed multiple businesses in the supply of clean energy for inland waterway and coastal shipping, realized the ability to build inland LNG-powered ships, and participated in the layout of inland LNG bunkering and LNG tank exchange networks to meet the growing green upgrade needs of inland waterway and coastal shipping.
In the field of inland LNG-powered ships in China, CIMC Enric already has the “manufacturing + equipment + intelligence + service” full industry chain intelligent manufacturing service capabilities.