Asia/Pacific News
Shanghai Electric to Deliver First-Batch of Green Methanol in July
China's Shanghai Electric is set to deliver its first batch of domestically produced green methanol for bunkering in July, marking a key milestone in the country's push toward cleaner shipping fuels.
The fuel will be transported from the firm's integrated green methanol demonstration project in Taonan, Jilin province, to Shanghai Port, the Shanghai Municipal Authority said last week in a statement on its website.
This marks the completion of what is being hailed as China's first full-cycle commercial green methanol project - from research and production to application.
Launched in March 2024, the 5.6-billion-yuan ($779.9 million) project is China's first commercial-scale green methanol initiative. Its initial phase, with a production capacity of 50,000 mt/year, is expected to scale up to 250,000 mt/year by 2027.
Green methanol, produced using renewable electricity and captured carbon, is gaining momentum as a cleaner alternative to fossil-based marine fuels. Several major shipping lines, including AP Moller-Maersk, are already deploying dual-fuel methanol-powered vessels capable of using green variants.
The project's development highlights China's growing role in the global green fuels market, with planned national production capacity already exceeding 10 million mt/year.
The company is also exploring the future production of green ammonia and sustainable aviation fuel.
