(Yicai) Sept. 17 -- Shares of CSSC Science & Technology jumped after the Chinese supplier of wind power equipment said it has secured a client for green methanol from its planned projects, with the deal worth up to USD120 million per year.

After jumping by as much as 5.1 percent in Shanghai earlier today, CSSC Science [SHA: 600072] finished 2.4 percent higher at CNY12.67 (USD1.78) a share. The stock has declined almost 10 percent since the end of last year.

CSSC Science and affiliate China Shipbuilding Trading have inked a contract to start supplying green methanol to an unidentified buyer in 2028 after the projects go live, the Shanghai-based unit of China State Shipbuilding Corporation, the country's largest shipbuilder, said late yesterday.

The contract is for up to 12 years, with an average annual supply value of about USD40 million. Depending on the customer’s needs, this could rise to as much as USD120 million. Payments will be made in either US dollars or Chinese yuan.

CSSC Science will supply the green methanol from wind-powered projects in northern China. It plans to build three facilities in Tongliao, Inner Mongolia Autonomous Region, and Cangzhou, Hebei province, with the first already under construction and expected to begin operations in 2027.

As a key way for shipping companies to cut their carbon emissions, green methanol is increasing alongside the growth in orders from leading firms.

CSSC Science's wind power business, including turbine manufacturing and wind farm development and operations, has become its main source of revenue, accounting for 56 percent of the total last year, according to its annual financial report.

Editor: Martin Kadiev