CDT Environmental Technology Investment Holding Co., Ltd., an environmental company focused on urban and rural organic waste treatment, announced a new strategic growth initiative with its official entry into the green hydrogen sector. The Company, building upon its initial R&D investments and collaborations with leading scientific organizations and government regulatory bodies, is positioning itself to become a "provider of urban and rural organic waste resource utilization solutions and clean energy.”

CDT’s strategic plan is anchored in four core ambitions: to strengthen the Company's relationship with strong academic and industry partners, along with the relevant regulatory agencies, to enhance its opportunity for success in the rapidly growing industry of hydrogen energy; to commercialize operations of organic solid waste-to-hydrogen production facilities in China; to maintain the Company's leadership in safety, sustainability and innovation; and, to drive long-term value creation.

CDT’s new strategic growth initiative aims to address the enormous demand for resource utilization of urban and rural organic waste in China. According to a January 2025 report from the Ministry of Agriculture and Rural Affairs, China generates over 3.9 billion tons of crop straw and livestock manure annually. The National Development and Reform Commission projects that municipal sludge production will exceed 100 million tons in 2025. Meanwhile, China's hydrogen energy industry is developing rapidly, with industry analysis indicating the sector reached several hundred billion RMB (USD 40+ billion) in scale in 2024. The Company's strategic upgrade seeks to establish commercial connections between the rigid demand for waste treatment and opportunities in the green hydrogen market.

"This strategic upgrade is a natural extension of our years of accumulated expertise in the environmental sector," said Mr. Li Yunwu, Chief Executive Officer of the Company. "We see an opportunity to combine environmental governance with clean energy. Through technological innovation, we hope to provide our clients with solutions that deliver both environmental and economic value."

To support the development of its new business, the Company has begun establishing core technical capabilities. In May 2025, the Company appointed a senior expert from the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, as Chief Scientist, establishing a technical collaboration relationship. The Company employs high-temperature gasification technology that can convert organic waste into syngas—primarily composed of hydrogen and carbon monoxide—in an oxygen-deficient environment at temperatures of 700-900°C.

Additionally, a subsidiary of the Company participated in drafting the group standard "Technical Requirements for Waste-to-Hydrogen Based on High-Temperature Pyrolysis and Gasification," led by the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences. This standard was published and implemented by the China Association for Testing and Inspection in January 2025. The Company believes these collaborations will contribute to the continuous optimization of its technical approach.

The Company plans to adopt an "EPC engineering + long-term operation" business model. In project operations, the core focus is on resource utilization of syngas to create diversified revenue sources:

• Hydrogen production pathway: After purification through Pressure Swing Adsorption (PSA), syngas can produce high-purity hydrogen meeting requirements for industrial or fuel cell applications.
• Heat supply pathway: Syngas can also be directly combusted to supply clean industrial steam to surrounding industrial parks.
• Synergistic benefits: Residual syngas after hydrogen extraction can be used for grid-connected power generation, achieving cascading energy utilization.

Throughout this process, the Company also collects waste treatment service fees from waste generators. The Company believes this model has the potential to transform traditional environmental expenditure into a composite revenue structure of "treatment fees + energy product sales."

Mr. Li added: "The distinctive feature of our technical solution is that it provides multiple potential commercialization pathways for the same syngas stream—whether purified into green hydrogen or converted into steam or electricity. This flexibility enables us to optimize project configurations based on different regional market conditions and customer needs. We are currently conducting project evaluation and filing work and look forward to reporting progress to the market at the appropriate time."