Shanghai (ZXZC)- Geely's Farizon New Energy Commercial Vehicle Group ("Farizon") and Galaxy Capital Management Co., Ltd. recently signed a cooperation agreement to establish the first industrial FOF (fund of funds) focused on methanol-hydrogen electric vehicles, according to a post on Farizon's WeChat account.

The new fund, with a total scale of 2 billion yuan, will primarily invest in methanol production, refueling infrastructure, and the promotion of methanol-hydrogen electric vehicles, as well as the development of the associated industrial ecosystem.

Photo credit: Farizon Auto

This initiative comes on the heels of Farizon's first round of private equity financing for its methanol-hydrogen technology arm in January 2024, marking another significant milestone in the company's capital expansion. Galaxy Capital Management, a wholly-owned subsidiary of China Galaxy Securities, is a key partner in this fund. China Galaxy Securities, known for its deep industry expertise and robust sales network, is the largest capital-backed securities holding company under Central Huijin Investment Ltd.

Farizon said the collaboration highlights growing recognition and investment in its unique methanol-hydrogen electric vehicle strategy. Central to this approach is its "1.2.3.3" ecosystem strategy, which combines vehicle promotion with dual-driven capital and product markets, supported by a green methanol supply chain, methanol refueling network, and methanol-hydrogen vehicles. This strategy continues to attract significant attention and backing from capital markets.

Farizon's methanol-hydrogen electric technology, built on nearly 20 years of Geely's experience in the methanol sector, is designed to serve a range of transportation needs, including long-haul logistics, short-distance transport, urban delivery, construction vehicles, and public transportation. On the production side, Farizon has developed a unique green methanol preparation model in China. In February 2023, its 100,000-tonne green methanol plant began operation in Anyang, which consumes 1.375 tonnes of carbon dioxide for every tonne of methanol produced. Additionally, in Alxa, Farizon is contributing to the development of a green methanol energy base with an annual production capacity of 300 million tonnes, leveraging the region's vast renewable energy resources.

On the refueling side, Farizon aims to establish more than 400 standard methanol refueling stations across China by the end of 2024, with the goal of covering all major commercial vehicle scenarios and supporting the growth of the methanol-hydrogen ecosystem.