Shanghai Electric has successfully produced its first barrels of green methanol using hydrogen derived from renewable sources. The achievement is part of the initial phase of the company’s large-scale green hydrogen-to-methanol project located in Taonan, Jilin province, northeastern China.
Once fully operational in 2027, the facility is projected to produce 250,000 tonnes of green methanol annually. The milestone marks a significant step in China’s efforts to scale up clean fuel alternatives and reduce carbon emissions from industrial processes.
The first phase of the Taonan project is a demonstration unit, expected to generate 50,000 tonnes of e-methanol per year by the second half of 2025. This stage integrates wind power with biomass gasification to power electrolysers that generate green hydrogen. Based on current efficiency estimates, the demonstration phase operates with a 39 MW electrolyser, producing around 8,200 normal cubic metres of hydrogen per hour.
This development represents China’s first commercial project producing e-methanol using an integrated system of renewable wind energy and biomass. As demand rises for low-carbon fuels in sectors like shipping, chemicals, and heavy industries, such projects are seen as critical to decarbonising supply chains.
Shanghai Electric’s advancement in green fuel technologies positions the company as a key player in the global shift towards sustainable energy systems. The initiative may also support China’s broader national targets for reducing carbon intensity and achieving peak emissions before 2030.
With the successful rollout of this pilot, industry watchers expect further investment and replication across other regions in China, potentially establishing the country as a global leader in green methanol production.