Alternative Fuels

Shanghai Electric starts biomethanol production in China

July 16, 2025

Chinese utility company Shanghai Electric has started biomethanol production at its Taonan facility in Jilin province.

IMAGE: Shanghai Electric's biomethanol plant in China. Shanghai Electric


Bio-methanol is produced using sustainable biomass as a feedstock. Organic biomass is used to produce synthesis gas, which primarily consists of carbon monoxide, hydrogen and carbon dioxide (CO2), through a process called gasification.

The syngas is upgraded to bio-methanol by further combining it with green hydrogen.

In this case, green hydrogen will be generated using wind power as renewable input and syngas will be derived from the gasification of biomass.

Currently, the plant produces 50,000 mt/year of biomethanol. It is expected to reach full capacity of 250,000 mt/year by 2027.

French shipping firm CMA CGM intends to offtake a portion of the output for methanol bunkering at Shanghai Port.

By Konica Bhatt

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