PETALING JAYA: Hengyuan Refining Company Bhd has approved the full fund release of US$66.4 million (RM272.17 million) for its H2GEN project to be executed within its refining complex in Port Dickson.
A hydrogen manufacturing unit (HMU) will be developed and constructed under the project.
The H2GEN project is expected to start in September 2020 to coincide with the Euro5 gasoil legislated date, according to its filing with the stock exchange today.
“The H2GEN Project is undertaken to supply the refinery with 30 tonnes/day of hydrogen for hydro desulfurization unit 2 and the extractive desulfurization hydro-treating process to meet the 10ppmw (parts per million by weight) sulphur specification. The refinery will be short of hydrogen upon Euro5 gasoil specification implementation in September 2020.”
Hengyuan said the project will be financed using a mix of cash flow generated from operations and further drawdowns of existing loans.
“Hengyuan refinery currently relies solely on our platformer unit for the manufacturing of hydrogen. The installation of the HMU is crucial to expand our hydrogen production capacity and also provides a second source of hydrogen, thus improving our resilience and reliability as a key supplier of products to the Malaysian market,” said its chairman Wang YouDe in a statement.
“The H2GEN project is part of our ongoing capital expenditure programme to enhance our production processes to fulfil domestic demand while upgrading to the new product quality specifications.”
“From a broader perspective, we believe that improving the reliability of our refinery and ensuring the sustainability of our refinery’s operations for the long-term will enable Hengyuan to further enhance and sustain profitability in the future,” he added.
