The first large methanol dual-fuel container ship in China has been delivered

On July 1, the "COSCO Shipping Yangpu" completed its first bunkering of domestically produced green methanol at Yangpu Port in Hainan. This marked the delivery of China's first large-scale methanol dual-fuel container ship, signaling a crucial step forward in the green transformation of China's shipping industry. Meanwhile, international shipping giant Maersk has also begun using gray methanol, deploying 12 methanol dual-fuel container ships with a capacity of 16,000 TEUs each. Green methanol is playing a highly efficient role in today's global energy transition.

The International Renewable Energy Agency (IRENA) has proposed a classification method for methanol, categorizing it into green, blue, gray, and brown methanol based on the source of its raw materials. Green methanol refers to methanol produced from hydrogen and carbon dioxide both derived from renewable resources. Renewable hydrogen can be produced through methods such as electrolysis of water using clean electricity and biomass conversion, while renewable carbon dioxide primarily comes from biomass decomposition or direct air capture. There are two main technological routes for producing green methanol: 1) Biomass gasification to produce methanol, using agricultural waste and forestry residues as raw materials, which are converted into synthesis gas through gasification and then into methanol. 2) Electrolysis of water to produce hydrogen, combined with carbon dioxide to produce methanol, using renewable resources (such as solar and wind energy) to electrolyze water for hydrogen production.

Why do shipping giants choose to use green methanol? Green methanol can reduce carbon dioxide emissions by 60% to 90%, making it a key pathway to achieving the IMO's decarbonization goals. Additionally, there is the issue of price. Currently, the price of green methanol ranges from 6,000 to 8,000 yuan/mt, which is highly competitive compared to diesel and gasoline. However, there are several challenges in choosing green methanol. Firstly, the current supply scale of green methanol is very small, leading to undersupply. Green methanol accounts for less than 1% of global methanol production and is mainly distributed in China, Northern Europe, and North America, far from core bunkering hubs like Singapore. As a major producer of green methanol, many projects in China are still in the planning and implementation stages, with production requiring a certain amount of time, along with considerations for technological maturity and economic viability. Another issue is the lengthy certification process for the EU's ISCC system for green methanol. Currently, there are very few green methanol projects worldwide that can supply methanol compliant with ISCC certification, and further improvements are needed to enhance the entire supply chain.

As of June 6, the operating rate of methanol plants nationwide was 74.5%, with coal-to-methanol plants operating at 80.3%, coke oven gas-to-methanol plants at 58.3%, and natural gas-to-methanol plants at 49.5%. The methanol industry has entered a period of low-speed capacity growth, with plans to commission 7.55 million mt of methanol production capacity in 2025, representing a capacity growth rate of less than 1%. Huaxia Hydrogen Valley Energy Technology (Xiamen) Co., Ltd. is an enterprise integrating R&D and production. The company's R&D products include methanol fuel cells, methanol-to-hydrogen production, hydrogen health, nickel-metal hydride power batteries, and biomass R&D. It also faces challenges related to methanol usage and quality after the commissioning of methanol fuel cells. The company's senior management and technical team are rigorously planning methanol production to ensure market demand after commissioning. The planning of Huaxia Hydrogen Valley Energy Technology (Xiamen) Co., Ltd.'s industry chain has entered the implementation phase.