(Yicai) Dec. 24 -- Shares of Jovo Energy soared by the exchange-imposed daily trading limit after the Chinese importer and wholesaler of liquefied natural gas said it plans to spend CNY300 million (USD42.7 million) to expand its production capacity of commercial aerospace fuel.

Jovo [SHA: 605090] closed 10 percent up at CNY40.37 (USD5.75) in Shanghai today.

Jovo has reached an agreement with the Wenchang International Aerospace City Administration and the Wenchang Municipal Government for the second phase of its aerospace liquid rocket propellant and special gas project in the city, raising its production, storage, and transportation capacity, the Jiangxi province-based firm announced yesterday.

The second phase will produce liquid nitrogen, liquid oxygen, green hydrogen, helium, krypton, xenon, light hydrocarbons, and jet fuel, Jovo noted, without unveiling the planned annual production capacity. In comparison, the first phase only produces liquid hydrogen, liquid oxygen, liquid nitrogen, helium, and high-purity liquid methane.

The project aims to meet new demand for fuel gases and special gases for launches when the third and fourth launch pads of the Hainan Commercial Space Launch Site will be operational on a regular and high-density basis, as well as meet demand for various special gases from the Satellite Super Factory in the Wenchang International Aerospace City, Jovo pointed out.

With an investment of CNY493 million, the first phase started construction in April last year and was completed and put into operation in February this year. The liquid hydrogen, liquid oxygen, liquid nitrogen, and helium it produces have been used multiple times in satellite launches featuring the Long March rockets.

The production equipment for high-purity liquid methane has been installed, and this product will be used as the propellant for liquid oxygen methane rocket engines.

Some of this project’s products will also be supplied to the Oriental Maritime Space Port in Shandong province and the Jiuquan Satellite Launch Center in Gansu province, according to Jovo. The supply cooperation between the company and these two launch bases has now entered the implementation stage.

There will be a huge demand for commercial low-orbit satellite constellations in China in the next decade, and the potential for Jovo’s products is enormous, with breakthroughs and improvements made in rocket recovery technology and high-density satellite launches already being implemented.

The Hainan Commercial Space Launch Site, adjacent to the Wenchang Space Launch Site, completed its first launch at the end of November last year, becoming China’s only land-based space launch center for pure commercial use. Its third and fourth launch pads, which are still under construction, are expected to start operation by the end of next year, with an estimated annual launch capacity of over 60 launches.

Editor: Futura Costaglione