June 17, 2025
Shanghai Electric has announced that its integrated green methanol demonstration project in Taonan, Jilin province, is set to be completed and deliver its first batch of green methanol by July 2025.
The fuel will be transported to Shanghai Port for bunkering, marking China’s first full-cycle commercial green methanol project, from research and development through production to application.
Launched in March 2024, the project is the country’s first commercial-scale green methanol initiative, backed by a total investment of 5.6 billion yuan ($779.8 million).
The project has been developing in two phases aiming for a total production capacity of 250,000 tons. The first phase, with a 50,000-ton output, is on schedule to produce its initial batch in July while full capacity is targeted for 2027.
Green methanol is a synthetic fuel produced from green hydrogen and non-fossil carbon, captured from the atmosphere or generated from agricultural and forestry waste. In sea transportation, it’s being considered as one of the renewable fuels of the future. Its use will require the construction of new ships or the adaptation of existing engines, as well as modifying storage and distribution systems in ports.
As reported, overall, Chinese enterprises have collectively planned for more than 10 million metric tons of green methanol production annually, signaling significant growth in the sector.
