Frost & Sullivan Frost & Sullivan China successfully listed on the main board of the Hong Kong capital market on June 3, 2026. The company is a leading enterprise in the China carbon capture, utilization, and storage industry (also known as CCUS industry). It is committed to producing low-carbon products such as ethanol and microbial protein through carbon capture and utilization technologies, and providing comprehensive low-carbon solutions. Frost & Sullivan provided exclusive industry consulting services for Frost & Sullivan Frost & Sullivan China’s listing, and we extend our warm congratulations on this successful listing.
Frost & Sullivan Frost & Sullivan China successfully went public on June 3, 2026. The company plans to issue 40 million H-share shares, with 90% being international offerings and 10% being public offerings. The highest offering price per share is HK$17.1, resulting in a net fundraising amount of approximately HK$680 million.
During the process of going public in Hong Kong, Frost & Sullivan performed the following tasks: helping the issuer accurately and objectively understand its position in the target market, using objective market data to identify, support, and highlight the issuer’s competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing important sections of the prospectus such as overview, competitive advantages and strategy, industry overview, and business, helping the issuer communicate with the Stock Exchange and investors, and assisting the issuer in responding to various questions regarding the industry from the Stock Exchange.
Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport Big Data (statistical data as of March 31, 2026), in the past 36 months and 12 months, and from January to March 2026, Frost & Sullivan provided listing industry consulting services for 195, 101, and 30 HK IPO companies respectively, ranking first in terms of number of services provided. Frost & Sullivan has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and related organizations.
Part.01
Investment Highlights
•The company is the first in the CCUS industry to commercialize and scale up low-carbon products using validated synthetic biotechnology;
•The company focuses on producing low-carbon products such as ethanol and microbial protein through carbon capture and utilization technologies, and provides comprehensive low-carbon solutions.
According to Frost & Sullivan report, based on 2025 revenue:
•Based on 2025 revenue, the company is the largest enterprise in the CCUS industry using synthetic biotechnology globally;
•Based on 2025 fuel ethanol revenue, the company is the sixth largest market participant in China.
Part.02
Overview of the China CCUS Industry Market
Driven by efforts to address climate change and the "Dual Carbon" goal, CCUS is evolving from a single carbon capture approach to a systematic solution for comprehensive utilization and storage as an important technology for deep emission reduction.
CCUS refers to a technical system that captures carbon emissions from industrial processes, energy utilization, or the atmosphere, and achieves emission reduction through utilization or storage. Among them, carbon capture is the basic step, which mainly involves separating and enriching carbon dioxide from industrial emissions or the environment through absorption, adsorption, membrane separation, and synthetic biotechnology. Carbon utilization refers to converting captured carbon emissions into economically valuable products such as fuels and chemicals. Carbon storage is to inject captured carbon emissions into geological reservoirs for long-term storage and emission reduction.
According to Frost & Sullivan report, the China carbon capture, utilization, and storage (CCUS) industry is experiencing rapid development, and the demand for low-carbon fuels and bio-based materials is continuously rising. The report indicates that niche areas such as fuel ethanol, sustainable aviation fuel (SAF), and microbial protein will see strong growth in the next five years, providing key support for China to achieve its carbon neutrality goal.
The number of CCUS projects continues to increase, driven by both policy and environmental awareness
According to Frost & Sullivan report, CCUS projects in China have developed rapidly in recent years. In 2021, 16 new CCUS projects were added, and by 2025, the number of new projects had increased to 20, with a compound annual growth rate of approximately 5.7%. This growth is mainly due to the following factors: (i) continuous policy support, where CCUS becomes a key pillar for achieving carbon neutrality under the "Dual Carbon" goal, such as the "2024-2025 Energy Conservation and Carbon Reduction Action Plan" setting a target of reducing approximately 130 million tons of carbon dioxide emissions each year; (ii) emerging technologies accelerating industrial progress, where synthetic biotechnology combines carbon capture and utilization, improving conversion efficiency and expanding application scenarios; (iii) steadily increasing industrial capabilities, through strain iteration and process optimization, effectively expanding production volume, reducing costs, and enhancing scale competitiveness. It is expected that the number of CCUS projects and individual investment amounts in China will continue to grow in the future, promoting the vigorous development of the CCUS industry.
The following table shows the market size of China’s CCUS technology industry in terms of incremental project numbers from 2021 to 2030.
The fuel ethanol market recovers after short-term adjustments, and prices are expected to rise steadily
Fuel ethanol is a clean, renewable biobased fuel with significantly lower carbon emissions than gasoline, and it has high octane value, which can improve combustion efficiency and reduce pollution. According to Frost & Sullivan report, the market size of fuel ethanol in China decreased from RMB 19.6 billion in 2021 to RMB 18.3 billion in 2025, with a compound annual growth rate of -1.7%, mainly affected by corn production methods. Despite the rapid growth of electric vehicles, data from the China Association of Automobile Manufacturers shows that in 2025, fuel vehicle sales accounted for 46.1% of total passenger car sales; Frost & Sullivan expects the number of fuel vehicles to exceed 2 million in the next five years, and fuel vehicles are unlikely to be replaced on a large scale in the short term. During the same period, the average annual compound growth rates of 92nd and 95th octane gasoline prices are 1.9% and 2.0% respectively, increasing attention to alternative fuels. Frost & Sullivan expects the sales volume of fuel ethanol in China to reach RMB 22.9 billion by 2030, with a compound annual growth rate of 4.6% from 2025 to 2030.
The following table shows the market size of China’s fuel ethanol industry in terms of sales in 2021 to 2030.
Regarding the market price of fuel ethanol in China, affected by the COVID-19 pandemic and disruption of the supply chain, the price reached a record high of RMB 6,104.5 per ton in 2022. From 2022 to the end of 2023, affected by low-cost coal-based ethanol, the quarterly prices of fuel ethanol in China generally declined. In the future, as environmental policies become stricter and the demand for sustainable aviation fuel and green polyethylene increases, it is expected that the demand for fuel ethanol will recover steadily, driving price increases, and by 2030, it is expected to reach RMB 5,237.7 per ton.
The SAF market is growing rapidly, with both global and Chinese demand rising simultaneously
Sustainable aviation fuel (SAF) is widely regarded as a key path for the aviation industry to achieve carbon neutrality. According to data from the International Air Transport Association (IATA)it is expected that by 2050, SAF will contribute 65% to the carbon reduction goals of the aviation industry. According to Frost & Sullivan report, the market size of SAF consumption in China in 2025 was approximately RMB 800 million, and it is expected to reach RMB 17.5 billion by 2030, with a compound annual growth rate of 87.0%. The global SAF consumption market size increased from RMB 1.4 billion in 2021 to RMB 34.2 billion in 2025, with a compound annual growth rate of 124.1%. It is expected that the global SAF market will continue to grow, reaching RMB 194.6 billion by 2030, with a compound annual growth rate of 41.6% from 2025 to 2030.
The China polyethylene market continues to grow
Green polyethylene uses non-traditional fossil fuels as raw materials, with significantly reduced carbon footprint, making it a key material for low-carbon transformation in packaging, consumer goods, and automotive industries. According to Frost & Sullivan report, the global polyethylene output market size decreased from RMB 86.62 billion in 2021 to RMB 74.32 billion in 2025, with a compound annual growth rate of -3.8%, mainly due to overcapacity caused by the release of new production capacity. As emerging economies develop, it is expected that the global market size will return to RMB 92.07 billion by 2030, with a compound annual growth rate of 4.4% from 2025 to 2030. The China polyethylene market performs well, with output increasing from RMB 221.4 billion in 2021 to RMB 234.3 billion in 2025, with a compound annual growth rate of 1.4%, benefiting from increased demand for alternative materials and recovery in the downstream packaging industry. It is expected that the China market size will reach RMB 34.09 billion by 2030, with a compound annual growth rate of 7.8% from 2025 to 2030.
The feed protein raw material market expands steadily, with significant growth in microbial protein
According to Frost & Sullivan report, the market size of China’s feed protein raw material market increased from RMB 254.9 billion in 2021 to RMB 268.3 billion in 2025, with a compound annual growth rate of 1.3%. Future growth is attributed to the livestock industry’s recognition of high-quality feed formulations and increased demand for high-quality protein raw materials. It is expected that the China feed protein raw material market will reach RMB 352.1 billion by 2030, with a compound annual growth rate of 5.6% from 2025 to 2030. Among them, the microbial protein market has particularly strong growth, with a compound annual growth rate of 44.9%, far exceeding the overall market.
Part.03
Future Development Trends of the China CCUS Market
●Synthetic biotechnology accelerates the diversification of carbon utilization
At the level of technological integration, CCUS is evolving from traditional capture and storage to an integrated "capture + carbon utilization" approach, especially with the application of synthetic biotechnology, which can efficiently convert captured carbon emissions into high-value-added products such as ethanol, microbial protein, and green polyethylene. With strain iteration and improved industrial capabilities, the conversion efficiency and economics of carbon utilization will continue to improve, enabling CCUS to transform from a cost center to a value creation center, thereby expanding its commercial applications in chemical, fuel, and feed industries.
●Policy-driven and market mechanisms together promote large-scale development
Under the guidance of the "Dual Carbon" goal, China has continuously introduced favorable policies such as energy conservation and carbon reduction action plans, providing institutional support for CCUS projects. At the same time, the maturity of the carbon trading market and the increased willingness of downstream enterprises to purchase low-carbon products will form a dual-driven pattern of "policy incentives + market demand". In the future, the number of CCUS projects and individual investment scales are expected to grow simultaneously, and the upstream and downstream industries will work more closely together, gradually building a low-carbon industry ecosystem centered on carbon utilization, helping to achieve deep emission reduction and resource recycling.
