ECO Environmental Investments Limited Established in 2000, ECO Environmental Investments Limited (ECO) is a wholly-owned subsidiary of Towngas. Over the years, ECO has grown into a market leader specialising in new energy businesses. Committed to protecting the environment, ECO not only develops a wide range of environmentally-friendly energy businesses but also dedicates itself to driving innovation in related technologies.
In view of the rapidly increasing global demand for energy, ECO is focusing on the development of new energy projects in China that are low in emissions and pollution, covering resource exploitation, coal-based chemicals, liquefaction of methane, vehicular fuels and related areas. In Hong Kong, ECO operates LPG filling stations and is developing landfill gas utilisation projects and an aviation fuel storage facility for the Hong Kong International Airport.
In collaboration with research and development institutions, ECO is actively engaged in the research and development as well as the application of new technologies for clean energy.
 Methane Liquefaction
A further development in December 2009 was the signing of an agreement for a coal mine methane (CMM) project in Chongqing, due for completion in 2011. Using breakthrough technology developed in conjunction with a mainland research institute to remove the oxygen present in CMM through a catalytic process, and adopting cryogenic technology similar to that used in the Shanxi LCBM project, this Chongqing project will produce 90 million m3 of liquefied coal mine methane (LCMM) annually in its first phase of operation. Yet again, this project is the first of its kind in mainland China. Looking forward, we will be pushing these frontiers.
Coal-based Chemicals
As China's domestic supply of petroleum and natural gas is relatively insufficient, the country has to rely heavily on imported resources to meet the needs for its rapid development. With abundant coal resources, China can make up for the inadequate supply of petroleum and natural gas by speeding up its development of coal-based chemical technology, laying a foundation for the development of a petroleum substitute fuel industry in the long run.
ECO is currently exploring coal resources and carrying out a coal-based chemical project in Erdos, Inner Mongolia. The first phase of this project, which is in Zhungeer Qi, has an annual production capacity of 200,000 tonnes of methanol, and development of its second phase is now underway. The methanol produced from coal resources has high economic value as it can be used as clean vehicular fuel and as raw material for numerous chemical products.
In addition, ECO has invested in a coal mining project and a coking project in Fengcheng, Jiangxi province. The Company has begun to study the feasibility of utilising tail gas emitted during the coking process as a feedstock for producing methane.
 Vehicular Fuel
In support of the HKSAR Government's initiative to improve urban air quality, ECO has been designing, constructing and operating LPG filling stations in Hong Kong since 2000. ECO's five designated LPG filling stations provide 18,000 LPG taxis and 2,800 LPG minibuses in Hong Kong with 24-hour gas filling services. Annual sales of the stations account for about 30% of Hong Kong's auto LPG market.
 With a wealth of experience in operation and safety management, together with its technical expertise and a reputation for excellent customer services, ECO extended its gas filling station business into the mainland market. In 2006, ECO joined hands with Maanshan Hong Kong and China Gas Company Limited and Maanshan Zhongbei Bus Limited to establish Maanshan ECO Auto Fuel Company Limited, which operates a compressed natural gas (CNG) filling station. The station has become a model for the industry in Eastern China. In 2008, ECO commissioned a gas filling station for heavy duty trucks in Xianyang, Shaanxi province. The station has the capacity to supply up to 40,000 m3 of gas per day, contributing further to fuel-cost saving and environmental protection. Plans are underway for a similar service model in other provinces where there is high traffic in heavy duty trucks and a network of stations is now being mapped out.
Landfill Gas Utilisation
Some organic substances in rubbish decompose and produce significant amount of landfill gas. If emitted directly into the air, landfill gas, with methane as its major component, can aggravate the greenhouse effect which is already seriously threatening the environment. On the other hand, treated landfill gas can be converted into clean energy and utilised as fuel for production of town gas. In 2004, ECO designed and constructed a landfill gas treatment plant at the North East New Territories (NENT) landfill. By separating carbon dioxide from landfill gas through Pressure Swing Absorption (PSA), the proportion of methane in the landfill gas can be increased from 50% to 85%. Treated landfill gas, or synthetic natural gas (SNG), is transported to Towngas' production plant in Tai Po via a pipeline and utilised as fuel for town gas production.
The treatment plant, which started operation in 2007, is now supplying an average of 1,800 m3 of SNG per hour. It is expected that by 2015, the generation of landfill gas will peak at 15,000 m3 per hour, enabling the supply of 8,000 m3 of SNG per hour. As a result, the consumption of naphtha at the town gas production plant in Tai Po can be reduced by 40,000 tonnes per annum.
 Hong Kong Aviation Fuel Facility
In 2002, ECO signed a 40-year franchise agreement with the Airport Authority Hong Kong to design, construct and operate an Aviation Fuel Facility (AFF) supplying fuel for aircraft at the Hong Kong International Airport (HKIA). This project consists of eight tanks with a gross aviation fuel storage capacity of 264,000 m3, and a jetty with two berths, which can each accommodate vessels from 10,000 to 80,000 dwt. The aviation fuel is transported from Tuen Mun to the HKIA through two undersea pipelines.
The first phase of the project has commenced operation and the next phase comes on stream by the end of 2010, by which time the AFF will become a major logistics base for the supply of aviation fuel in Hong Kong.
Research and Development of Clean Energy
ECO Environmental Energy Research Institute
ECO Environmental Energy Research Institute, a wholly-owned subsidiary of ECO, was established in 2009. Situated in the Hong Kong Science and Technology Park, the research institute serves as a platform for the development of advanced technology in the new energy industry and provides strong technical support for ECO's mainland and overseas business development. The institute is involved in a number of mainland projects in cooperation with scientific research institutions on the mainland. These projects include research into the application and development of advanced technology in the areas of coal chemicals, petroleum chemicals, environmentally-friendly new energy and the effective use of energy.
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