The global challenge ofclimate change has escalated significantly, with the shipping industry emergingas a significant contributor to greenhouse gas emissions. According toprojections by the International Maritime Organization (IMO), global carbonemissions from maritime activities are expected to surge by 150% to 250% by theyear 2050, thereby constituting 18% of the total global carbon emissions.Countries around the world are actively pursuing the development of clean fuelalternatives for maritime use.

Green methanol plays apivotal role in green shipping. It can be produced through biomass gasificationor an electrochemical process. In a project spearheaded by the Green TechnologyBank (GTB), the biomass-to-methanol approach has been adopted. This approachgenerates synthetic gas via biomass gasification, which is then converted intogreen methanol. Throughout this process, stringent measures are in place totightly control greenhouse gas emissions during both production and transport.Green electricity is employed to ensure compliance with the carbon reductionrate requirements for renewable fuels as outlined in the European Union'sRenewable Energy Directive II (RED II).

In March 2022, the GTBentered into a strategic cooperation agreement with Maersk to supply greenmethanol. After months of rigorous technical assessments and partner selection,both parties formalized their commitment in November 2022 through a Letter ofIntent (Long-Term Supply). The first batch of green methanol is scheduled fordelivery in 2024. The inaugural project is planned in Nanjing and will beestablished as a joint venture with the China National Chemical EngineeringGroup Corporation, with a total investment of RMB 3.4 billion. Phase I of theproject aims to produce 80,000 tons of methanol per year, while Phase IItargets an annual production capacity of 300,000 tons.

Simultaneously, the GTB hasstrategically positioned itself to advance the industrialization of greenmethanol in various regions, including Shandong, Shanghai, and Zhejiang. Thisstrategic deployment encompasses comprehensive local assessments, technicalfeasibility evaluations, and partner selections. As the Nanjing projectmaterializes, green methanol production facilities will continue to expandacross the country, with an estimated supply capacity of one million tons in thefuture

Methanol Preparation Route