On January 2, 2025,SHANGHAI HUAYI HOLDINGS GROUP Co.,Ltd. launched its groundbreaking 100,000-ton/year
green methanol project in the Shanghai Chemical Zone.
The project is expected to be completed by the end of 2025, positioning Shanghai to offer its first locally-produced green methanol to ships, which will not only meet growing demand in the shipping industry but also bolster Shanghai’s position as an international shipping hub.
According to statistics, in 2023, the global annual methanol production capacity was approximately 180 million tons, with green methanol accounting for only 500,000 tons. In China, the production capacity of green methanol was about 300,000 tons, with 70% of green methanol projects concentrated in regions with rich wind and solar energy resources, such as the northwest and northeast.
However, with technological breakthroughs in biomass-based green methanol production, China is set to become a major global producer of green methanol. The country’s planned capacity now exceeds 10 million tons per year.
According to current project timelines, 2026 will mark a rapid growth phase for green methanol production, and by 2028, China's green methanol production capacity is expected to reach 8 million tons per year.
The project leverages Shanghai’s rich resources, integrating waste-to-energy technologies, including the purification of biogas from municipal waste and agricultural waste, and utilizing wind power for electricity generation.
Green methanol production close to the port reduces transportation carbon emissions, providing a cost-effective and sustainable fuel for the region’s maritime industry.
Shanghai Port is now equipped with both LNG and green methanol fueling stations, providing vital infrastructure for the maritime industry to transition to cleaner fuels.
With global shipping giants like Maersk and CMA CGM investing in methanol-powered ships, Shanghai’s green methanol project is positioned to meet the needs of this rapidly evolving market, driving forward the "green shipping" resolution.
by Xinde Marine News Pang Kai
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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