Core Viewpoint - The report from Dongwu Securities highlights that green methanol is one of the preferred fuels for achieving near-zero emissions in the shipping industry, with companies that first release products or have cost advantages likely to dominate the competition [1] Group 1: Industry Insights - The International Maritime Organization aims to reduce the carbon intensity of global shipping by 40% by 2030, 70% by 2040, and achieve net-zero emissions by 2050 compared to 2008 levels [1] - Major shipping companies like Maersk and CMA CGM are adopting green methanol as a primary fuel choice [1] - The Shanghai Old Port Ecological Environmental Base will launch its first batch of green methanol products on January 31, 2026, marking a significant milestone in the project [1] Group 2: Technological Advancements - The innovative technology for producing green methanol has achieved a carbon utilization rate of 100%, reducing costs by over 30% compared to traditional methods [2] - The cost of green methanol is approximately 5000 to 6000 RMB per ton, which is 2 to 3 times that of conventional methanol, but the new method can lower the cost to over 3000 RMB per ton [2] - The project utilizes a unique process that combines anaerobic fermentation, gas purification, and methanol synthesis, significantly enhancing efficiency and reducing costs [2] Group 3: Market Potential - Shanghai generates about 3.5 million tons of wet waste annually, which can produce over 400,000 tons of green methanol, with the Old Port base expected to contribute half of this amount [2] - The local capacity for processing wet waste is approximately 11,000 tons per day, with the Old Port base handling 4,500 tons per day, providing a substantial biomass carbon source for green methanol production [2] - The theoretical annual production potential for green methanol at the Old Port base could reach 200,000 tons [2] Group 4: Investment Recommendations - Companies that are first to market or lead in reducing costs for green methanol are expected to gain a competitive edge, with specific companies recommended for attention including Ruijie Technology, CIMC Enric, Fuan Energy, Jiaz Renewable Energy, Jidian Co., and China Tianying [3]

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1] Core Insights - Significant breakthroughs in the technology for biogas carbon-oriented conversion to green methanol have been achieved, reducing costs by over 30%, which supports the large-scale application of green methanol [1] - The project led by Shanghai Fuzhi Technology Co., Ltd. has successfully produced the first batch of green methanol products, marking a key milestone in the pilot project [1] - The technology has achieved a carbon utilization rate of 100%, significantly lowering production costs to around 3,000 RMB per ton, compared to traditional methods [1] - The Shanghai wet waste generation is approximately 3.5 million tons per year, with the potential to synthesize over 400,000 tons of green methanol, making it a critical resource for achieving local green fuel supply goals [1] - High-quality green methanol is considered a core currency in the international shipping industry for addressing climate change and achieving carbon reduction targets [1] Summary by Sections Industry Trends - The report highlights the increasing importance of green methanol as a clean fuel alternative in the shipping sector, with major shipping companies adopting it as a preferred fuel choice [1] - The global shipping industry's carbon emission intensity is targeted to be reduced by 40% by 2030 and aims for net-zero emissions by 2050 [1] Technological Advancements - The innovative biogas carbon-oriented conversion technology integrates multiple processes, achieving a carbon emission reduction rate exceeding 95%, surpassing EU certification standards [1] - The pilot project has received dual certifications (ISCC-EU and ISCC-PLUS), indicating its compliance with international sustainability standards [1] Investment Recommendations - Companies that are early adopters or have cost advantages in green methanol production are expected to gain a competitive edge in the market [1] - Suggested companies to watch include Fuzhi Technology, CIMC Enric, Fuzhou Energy, Jiazhe New Energy, Jidian Co., and China Tianying [1]