China launches green methanol production project in Alxa

Shanghai (Gasgoo)- On October 27, the Alxa green methanol production project officially commenced, starting with a 100,000-tonne demonstration initiative as part of a larger goal to achieve an annual output of 500,000 tonnes, according to a post on Geely Holding's WeChat account. This marks China's first green methanol project in this scale, utilizing electrolyzed water for hydrogen production coupled with industrial carbon capture.

Photo credit: Geely Holding

The project is a collaborative effort involving Zhejiang Methanol Hydrogen Green Energy Technology Co., Ltd. Under Geely's Farizon New Energy Commercial Vehicle Group ("Farizon"), Windey Energy Technology Group ("Windey"), China South-to-North Water Diversion Group, and Inner Mongolia Alxa Energy Company, with implementation by Inner Mongolia Liquid Sunshine Energy Technology Co., Ltd. It aims to synthesize green methanol by combining hydrogen produced from renewable energy with carbon dioxide captured from local industrial emissions, effectively utilizing carbon dioxide resources.

Leveraging Geely's technology for green methanol production, the project integrates an innovative full-process method for synthesizing methanol from carbon dioxide and hydrogen, ensuring complete independent intellectual property rights. Once fully operational, the 500,000-tonne project is expected to reduce carbon emissions by 750,000 tonnes annually, contributing significantly to China's energy conservation and emission reduction efforts while generating substantial social and economic benefits.

With an abundant renewable energy resource of 1.3 billion kilowatts in wind and solar power, the Alxa green methanol energy base could produce 200 to 300 million tonnes of green methanol each year. If this green methanol is used as a substitute for gasoline and diesel, it could equate to the output of five Daqing oilfields, potentially reducing crude oil imports by over 200 million tonnes annually.

Photo credit: Geely Holding

Located in the far western region of Inner Mongolia, Alxa boasts one of the richest wind and solar resource areas in the northwest of China, with usable resources of approximately 1.3 billion kilowatts and potential resources exceeding 3 billion kilowatts. This unique advantage positions the region for substantial development in clean methanol energy. On October 25, the Alxa League Administrative Office issued a development plan aimed at establishing Alxa as a global leader in green methanol production while promoting methanol vehicles throughout the region. The project represents a practical approach to industrializing the hydrogenation of CO2, significantly driving local resource development and enhancing the capacity for renewable energy absorption. It also plays a vital role in accelerating the traditional energy structure transition and achieving green, low-carbon development.