China’s first full-cycle commercial green methanol project is operational

The integrated green methanol demonstration project of Shanghai Electric, a Chinese power generation and electrical equipment manufacturing company, has completed the first delivery of green methanol.

The country’s first large-scale commercial wind power-biomass green methanol integrated demonstration project was put into production in Taonan, Jilin Province, northeastern China, during a ceremony held on July 15, 2025.

The milestone event is said to mark “a major breakthrough” in China’s vision to start producing green hydrogen-based fuels.

The inaugural batch of green methanol is to be transported to the Port of Shanghai via sea and land and bunkered onto methanol-powered containerships of French shipping and logistics giant CMA CGM, the company said.

To remind, CMA CGM took delivery of its first-ever methanol-powered dual-fuel containership, CMA CGM Iron, earlier this year. With a container capacity of 13,000 TEUs, it is the first of twelve new dual-fuel methanol vessels planned by CMA CGM.

In late March 2025, CMA CGM, Shanghai Electric and Shanghai International Port Group (SIPG) joined forces to create a sustainable green methanol supply chain. CMA CGM signed a long-term supply cooperation agreement under which Shanghai Electric will provide mid-to-long-term green methanol fuel supply for CMA CGM boxships. In partnership with SIPG, green methanol is to be transported via land-sea combined logistics from the production base in Taonan to Shanghai Yangshan Port, the world’s largest container port.

Based on the abundant renewable resources of wind power and biomass energy in Taonan, the project aims to build a “green new energy + green chemicals” industrial chain. With a total investment of CNY 5.6 billion, the project entails a 250,000-ton wind power-biomass integrated facility for green methanol production, with a supporting construction of 680,000 kilowatts of new energy, for self-use and light grid connection.

Launched in March 2024, the project will be implemented in two phases. The first phase establishes a green methanol production capacity of 50,000 tons. The production capacity is expected to reach 250,000 tons by 2027. It is the first green methanol project in China to pass the EU ISCC full-process certification, and has successfully won the “pass” to the international market.

Wu Lei, Chairman of Shanghai Electric Group, emphasized that Taonan project is an important ‘practice’ for Shanghai Electric to serve the national strategy, develop new productivity, build core competitiveness, and achieve high-quality development. It will help the company promote large-scale application of green fuels in shipping and other sectors and provide solutions for global industrial decarbonization.

In related news, China presented its first large methanol dual-fuel boxship earlier this year. The naming ceremony for the 16,136 TEU COSCO Shipping Yangpu took place on February 18, 2025.

The successful ship construction is said to represent ‘a significant advancement’ in COSCO Shipping Lines’ development of green and low-carbon strategies and the construction of an alternative fuels-powered fleet.

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