China bets big on biomethanol, but challenges loom

In Singapore, Manifold Times reports Chinese green energy firms have announced over 100 biomethanol projects totaling 30 million t/yr to supply the maritime sector, but high investment costs and a slowing economy pose challenges, according to speakers at the Argus Green Marine Fuels Asia conference in Singapore held February 18-19. “Securing long-term offtake agreements with reputable end-users is often needed to progress green fuel production projects at scale,” said Swire Shipping and Bulk’s chief sustainability officer, Susana Germino.

CIMC Enric is constructing a 50,000 t/yr biomethanol plant in Zhanjiang, Guangdong, set for completion in late 2025, with plans to expand to 200,000 t/yr by 2027, said the company’s director, David Wang. GoldWind will start up two 250,000 t/yr biomethanol plants, with the first operational by the end of 2025 and the second in late 2026, said vice president Chen Shi.

Despite momentum, suppliers need final investment decisions to advance projects. GoldWind secured a long-term offtake deal with Maersk in 2023 and reached an FID on its Inner Mongolia plant the following year, Chen said. Biomethanol’s growth potential outweighs e-methanol due to lower costs and established technology, but its future hinges on securing buyers.

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