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Shares of Jovo Energy surged to the daily trading limit after the company announced a plan to invest CNY300 million (approximately USD42.7 million) to expand its production of commercial aerospace fuel. The company’s stock closed up 10% at CNY40.37 (around USD5.75) in Shanghai trading today.
Jovo struck a deal with the Wenchang International Aerospace City Administration and the Wenchang Municipal Government to advance its second phase of the aerospace liquid rocket propellant and specialized gases project in the city. This expansion will increase its capacity for production, storage, and transportation, according to a statement released yesterday.
The upcoming phase will focus on manufacturing liquid nitrogen, liquid oxygen, green hydrogen, helium, krypton, xenon, light hydrocarbons, and jet fuel, although specific annual production figures have not been disclosed. In comparison, the initial phase of the project produced liquid hydrogen, liquid oxygen, liquid nitrogen, helium, and high-purity liquid methane.
The project aims to address rising demand for fuel gases and other specialized gases needed for launches, especially as the third and fourth launch pads at the Hainan Commercial Space Launch Site become operational for high-frequency launch schedules. It will also support various gases required by the Satellite Super Factory located within the Wenchang Aerospace City.
Construction of the first phase, which was funded with an investment of CNY493 million, began in April last year. The project was completed and became operational in February, with its products—liquid hydrogen, liquid oxygen, liquid nitrogen, and helium—used in multiple satellite launches involving Long March rockets. High-purity liquid methane production equipment has also been installed, intended for use as fuel in methane-powered rocket engines.
Some of the produced gases are slated to be supplied to the Oriental Maritime Space Port in Shandong Province and the Jiuquan Satellite Launch Center in Gansu Province. The supply arrangements with these launch sites are now moving toward operational implementation.
Looking ahead, China is expected to see significant growth in demand for commercial low Earth orbit satellite constellations over the next decade. Jovo’s products stand to benefit from this trend, especially as recent advancements in rocket recovery technology and high-density satellite deployment are yielding promising results.
The nearby Hainan Commercial Space Launch Site, which shares proximity with the Wenchang Launch Center, completed its first launch late last November. It is currently China’s only land-based commercial space launch facility. The site’s third and fourth launch pads, still under construction, are projected to be operational by the end of next year, potentially enabling more than 60 launches annually.
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