Construction begins on Shanxi Fengsheng Energy’s project to produce 480,000 tons of LNG per year, with helium extraction and hydrogen production as part of the process

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The construction of Shanxi Fengsheng Energy Technology Co., Ltd.’s project for producing hydrogen by extracting helium from 480,000 tons of LNG per year has begun. On June 26, 2023, the construction of Shanxi Fengsheng Energy Technology Co., Ltd.’s project for producing helium and hydrogen through the liquefaction of LNG at an annual capacity of 480,000 tons, began. It is reported that Fengbai Phase II’s Fengsheng Energy Company is the result of efforts by the Yonghe County Party Committee and the county government to attract investment, through which Xi’an Jihai Company and Fengbai Company collaborated on this project; it has been designated as a key project in Shanxi Province. The total investment in the project is 2.23 billion yuan, covering an area of 317 mu, and it will be constructed in two phases. The initial investment amounts to 1.23 billion yuan; it will enable the construction of an LNG liquefaction plant with an annual production capacity of 482,000 tons, along with the necessary infrastructure and helium extraction facilities. A double-metal tank with a capacity of 40,000 cubic meters will also be built, and 65.5 kilometers of direct supply pipelines will be laid. The construction period is ten months. A second-phase investment of 1 billion yuan will be made to build a hydrogen production facility with an annual output of 56,000 tons and a carbon black production facility with an annual output of 175,000 tons. Once completed, the entire project will operate in parallel with Fengbai, enabling it to process 3 million cubic meters of raw natural gas per day. It will produce 720,000 tons of LNG per year, as well as 56,000 tons of liquid hydrogen, along with by-products such as helium and carbon black. This will generate sales revenue of 4.5 billion yuan, tax revenues of 480 million yuan, and provide employment for over 300 people.