China Starts Building Its First Full-Chain Green Methanol Plant For The Maritime Sector

Three Chinese-owned entities, namely Jilin Electric Power, Cosco Shipping and Shanghai International Port Group, have begun the construction of the nation’s first full-chain green methanol facility for the maritime industry.

There are plans to export the produced fuel to global maritime markets.

Situated in Lishu, the plant is estimated to generate 197,200 tonnes of green methanol annually by combining renewable hydrogen from 150MW of wind and solar-powered electrolysis with carbon dioxide sourced from biomass gasification.

Jilin Electric Power Chairman Yang Yufeng said that the project would open up a green energy market in maritime for the company and enable integrated development where traditional industries and agricultural resources would further hasten energy transition.

The facility will utilise waste straw to generate syngas and also produce the carbon dioxide required for methanol synthesis.

Alkaline electrolysers would take the green hydrogen in 2 phases, totalling about 150MW.

Jilin Electric Power has issued a tender for the equipment, and it is expected that the material will be delivered before August 2026.

Even though Shanghai is 2000 km away from Siping, the aim of producing a million tonnes of green marine fuels annually by 2030 could make it a major node in the supply chain.

Jilin Electric Power also received a certification under the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) scheme for another green hydrogen-ammonia project in Da’an.

The Lishu site will cut 300,000 tonnes of carbon dioxide annually and create more than 500 jobs, while offering a closed-loop solution to decarbonise shipping.

Project leaders emphasise that green methanol offers major benefits over ammonia or hydrogen gas due to its liquid form at ambient temperature and its compatibility with existing infrastructure.

The project has drawn many skilled chemical engineers back to Jilin from coastal provinces, reinforcing the northeast’s industrial revival plan.