Shanghai's first locally developed green methanol production project has officially begun operations.

Situated in the Shanghai Chemical Industry Park in Jinshan district, the facility has an annual production capacity of 100,000 metric tons of green methanol.

It is expected to complete its first ship-fuel bunkering at Shanghai Port ahead of the Spring Festival, which falls on Feb 17 this year.

The project is Shanghai's first homegrown green methanol initiative and the largest of its kind in China. It converts biogas into methanol and is also the world's largest facility to produce methanol using urban food waste.

Until now, green methanol supplied to vessels at Shanghai Port had been sourced from outside the city.

Construction of the project began on Jan 2, 2025, and commercial operations started on Dec 29.

In September, the facility obtained both the International Sustainability and Carbon Certification for the EU (ISCC EU) and the ISCC PLUS, clearing the way for access to the European market.

The project is expected to significantly reduce carbon emissions and logistics costs, enhancing Shanghai Port's efficiency in serving international shipping lines.

Looking ahead, the facility is set to serve as a pricing benchmark for green methanol in Shanghai, helping stabilize market rates and contributing to the city's goal of supplying 1 million tons of green methanol and biofuel by 2030.

Source: Xinmin Evening News