China is set to mark a major milestone in its clean energy transition with the nation’s first batch of large-scale green methanol to be used for bunkering a commercial vessel in July 2025. This move establishes a closed-loop clean fuel chain, from research and production to application, showcasing China’s growing influence in maritime decarbonization.
Taonan Project to Deliver First Green Methanol Batch
The Taonan demonstration project, located in Jilin Province, is expected to produce its first barrel of green methanol in July. The fuel will then be transported to Shanghai Port to bunker a CMA CGM commercial logistics vessel.
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Annual Capacity: 50,000 metric tons
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Operator: Shanghai Boiler Works Co. Ltd. (Shanghai Electric Group)
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Technology: Entirely domestically developed, including all core tech and equipment
Ni Jianjun, Deputy GM of Shanghai Boiler Works, confirmed plans for further expansion to meet soaring market demand, noting that the Taonan project is just the beginning.
Soaring Global Demand vs. Limited Supply
Despite a global push for greener shipping solutions, supply remains tight:
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2023 Methanol Production (Global): 180 million tons
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Green Methanol Share: ~500,000 tons (300,000 tons in China)
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2024 Orders: 515 alt-fuel ships (166 methanol-powered)
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Expected Global Demand by 2030: >10 million tons
“CMA CGM’s demand for green methanol is much bigger than the 50,000 tons we are going to provide. In fact, there is a supply shortage in terms of green methanol globally,” said Ni. A new 200,000-ton facility is already under development to help meet this demand.
Green Bunkering Expands at Shanghai Port
Shanghai is becoming a hub for green fuel bunkering:
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In March 2024, the HMM Green container ship was bunkered with domestically produced green methanol at Yangshan Port.
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The Hai Gang Zhi Yuan—China’s first and largest methanol bunkering vessel—handled the operation.
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In April 2024, the vessel also bunkered Maersk’s Astrid Maersk, marking a historic moment for green fuel bunkering in China.
The latest operation bunkered 2,900 tons of green methanol sourced from Inner Mongolia, a notable increase from previous volumes.
Shanghai Electric Eyes Broader Green Fuel Applications
Beyond maritime use, Shanghai Electric is actively developing:
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Sustainable aviation fuel
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Integrated green fuel solutions for other industrial sectors
This aligns with Shanghai’s broader ambition to position itself as a global green shipping hub.
With its clean-burning properties, high energy efficiency, and ease of storage and transport, green methanol is emerging as a top alternative fuel for global shipping. As production ramps up in China, initiatives like the Taonan project and large-scale bunkering at Shanghai Port represent a significant leap forward in maritime decarbonization.
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Source: CHINA DAILY
