Green methanol route to nation's carbon goal

China's energy experts and business leaders are calling for accelerated development of green methanol, underscoring its potential as a renewable fuel to support the country's goal of achieving carbon neutrality before 2060.

Li Shufu, chairman of Geely Holding Group, emphasized green methanol's transformative potential within China's renewable energy landscape.

"Developing green methanol is not only crucial for China's energy security and green growth but also an effective pathway for achieving carbon neutrality and energy self-sufficiency," Li said at the Green Methanol Energy Industry Development Forum held on Tuesday in Hohhot, Inner Mongolia autonomous region.

He noted that Geely has been exploring methanol as an energy source for more than 20 years, viewing it as a sustainable solution that can be produced from surplus wind and solar power, reducing dependence on fossil fuels.

Li also outlined Geely's plans to leverage methanol in various sectors, including commercial and maritime applications, where it provides an efficient, low-emission alternative to conventional fuels.

Highlighting recent advances, Li said that Geely's methanol-powered vehicles offer "significant reductions in emissions compared to traditional diesel trucks", which has positioned them as a viable choice for high-emission sectors such as logistics and public transportation.

Compared with diesel trucks that meet the National VI standards, which are the strictest in China, Geely's methanol-hydrogen EVs significantly reduce emissions. They have achieved a 98 percent reduction in particulate matter, an 88 percent decrease in carbon monoxide, and an 82 percent reduction in nitrogen oxides.

Geely has just kicked off a green methanol project in Alxa League, Inner Mongolia, with an annual production capacity of 500,000 metric tons, starting with a first phase of 100,000 tons.

Li said the project is expected to reduce carbon dioxide emissions by approximately 150,000 tons per year, equivalent to reforesting 150,000 acres of land.

Shi Jianhua, deputy secretary-general of the China EV100, an automotive think tank, argued that methanol as a fuel is particularly suited for commercial vehicles, where cost-effectiveness and reliability are paramount.

According to Shi, methanol-based solutions "can meet the operational demands of commercial vehicle users better than battery-electric technology, especially for long-haul routes".

He advocated a diversified approach to vehicle electrification, including methanol, hydrogen and hybrids, to meet China's extensive logistics needs.

Yao Chunde, deputy director of the Methanol Vehicle Expert Advisory Committee under the Ministry of Industry and Information Technology, pointed out China's strategic advantage as the world's largest methanol producer.

He emphasized methanol's potential as a replacement for petroleum-based fuels, particularly in transportation. Yao said that "expanding methanol's role in vehicle fuels will drive China's energy transition and reduce reliance on imported oil".

China currently accounts for two-thirds of global methanol demand and its shipyards are building 70 percent of the world's methanol-powered vessels.

"With three-quarters of new renewable methanol capacity expected to be added in China by 2026, the next few years will be pivotal for the methanol industry," said Greg Dolan, CEO of the Methanol Institute.