Shanghai (Gasgoo)- On October 29, Zhejiang Geely Holding Group ("Geely Holding") signed a strategic framework agreement with Bao Gang Group to drive collaborative efforts across green methanol production, methanol-hydrogen electric vehicle promotion, construction of methanol storage and transport infrastructures, and development of sustainable automotive steel supply chains, according to a post on the WeChat account of Geely's Farizon New Energy Commercial Vehicle Group ("Farizon").
Bao Gang Group, a major steel production hub in China and the world's largest rare earths processing base, is also one of the country's designated green design demonstration enterprises. This partnership leverages Inner Mongolia's rich resources and advanced technologies to expand green energy development, fostering a sustainable industrial ecosystem and building a solid foundation for Inner Mongolia's economic growth aligned with China's "dual-carbon" goals.
Methanol, known globally as a clean, renewable energy source, is efficient, low-emission, and a viable alternative to gasoline and diesel fuels. Expanding green methanol applications is critical to China's energy transition and achieving its "dual-carbon" targets. Inner Mongolia's abundant renewable resources and vast green transportation potential, combined with Geely's 20-year leadership in methanol-powered vehicle technology, mark a breakthrough in the green methanol industry.
Under the agreement, the companies will draw on their respective strengths in resources and technology to develop a national methanol production hub in Inner Mongolia, using Geely's proprietary "CO₂ + H₂" green methanol technology. The collaboration will focus on expanding methanol-hydrogen electric commercial vehicles for use in steel production, mining, and logistics, creating a comprehensive green transport solution that integrates sustainable energy into the local economy, enhancing Inner Mongolia's industrial chain with green innovations.
Methanol refueling is a crucial prerequisite for methanol-hydrogen electric vehicle adoption. In line with directives from the Chinese government's recent policy, issued in August 2024, to accelerate the development of green infrastructure, Geely and Bao Gang Group will also establish an extensive network of methanol refueling, electric vehicle charging, and battery swap stations. This infrastructure will support the storage, transport, and trade of green methanol, while facilitating the construction of new energy supplement stations across Inner Mongolia. Additionally, the companies will collaborate on developing low-carbon automotive steel and integrating green materials into electric motors for new energy vehicles and automotive lighting, further advancing green technology in vehicle manufacturing.
