China's Geely Group invests $45.5 mn in renewable methanol fuel producer CRI

China-based automotive company Zhejiang Geely Holding Group on July 3, 2015 announced plans to invest a total of $45.5 million in Iceland’s Carbon Recycling International (CRI). The investment consists of an initial investment and additional purchases of CRI equity over a three-year period. Geely Group will become a major shareholder of CRI and will gain representation on the company's Board of Directors.
 
CRI, was founded in 2006 in Reykjavik (Iceland), has quickly become the world leader in developing technology to produce renewable methanol fuel from clean energy and recycled CO2 emissions. It operates the world's first renewable methanol plant.
 
Geely Group consists of a number of automotive brands, including world-renowned Swedish automaker Volvo Car Corporation, the UK’s iconic London Taxi Company, and the Geely Auto brand, which markets cars in 35 countries across the world.
 
Geely Group and CRI intend to collaborate on the deployment of renewable methanol fuel production technology in China and explore the development and deployment of 100-percent methanol-fuelled vehicles in China, Iceland and other countries. The companies share a vision for a larger role for methanol as a clean and sustainable fuel in China, Europe and the world.
 
Li Shufu, chairman of Geely Group, said, “Geely Auto has invested significant resources in the development and promotion of methanol-fuelled engines and vehicles over a long period and has already made progress with this technology in China. This investment will build on our existing methanol technology, facilitating even more valuable solutions and helping to propel this part of our business in China. It will also allow us to promote advanced methanol technology in Europe. CRI have a proven track record in renewable methanol, working up and down the value chain.”
 
Geely Auto became the first auto manufacturer in China to conduct research and development into methanol vehicle solutions in 2005. The company is proactively working with partners across China to expand the use of methanol-fuelled vehicles and has already deployed fleets of methanol-fuelled taxis in cities all over the country.
 
KC Tran, chief executive and co-founder of CRI, said, “Amid increasing global demand for low carbon intensity fuels, as the first company in the world to develop renewable methanol technology and operate a CO2-methanol plant, CRI is building a pipeline of projects with clients from the power, chemical and steel industries in Europe and China. Geely Group's investment represents another validation of our business model and efforts and will strengthen our ability to develop and promote methanol as a sustainable transport fuel."
 
CRI markets its renewable methanol in Europe, under the registered brand name Vulcanol, where it is blended with gasoline and used for production of biofuel.