1million ton E-methanol plant to begin construction in Inner Mongolia

(Inner Mongolia, China) Regulatory authority has given green light to Mingyang’s 1 million ton E-methanol project on Oct 26^th, construction to begin by Dec 2023. This plant, located at Chifeng, Inner Mongolia, is scheduled to commission by Nov 2025, making it the biggest E-methanol capacity then.

This E-methanol project will be developed by Mingyang Green Chemical Co., a subsidiary of Mingyang Smart Energy, which is the world 6^th largest wind turbine producer. Mingyang said this plant will have two phases and the total investment is 6.75 billion Rmb ($920 million).

Methanol (CH₃OH) is a liquid chemical used in thousands of everyday products, including plastics, paints, cosmetics and fuels. Liquid methanol is made from synthesis gas, a mix of hydrogen, carbon dioxide and carbon monoxide. These simple ingredients can be sourced from a wide range of feedstocks and using different technology approaches.

Compared to conventional fuels, renewable methanol cuts carbon dioxide emissions by up to 95%, reduces nitrogen oxide emissions by up to 80%, and completely eliminates sulfur oxide and particulate matter emissions.

Demand for green methanol, a more sustainable and functionally equivalent alternative to conventional methanol, is projected to grow substantially on the back of its growing popularity primarily as a marine fuel as the world focuses on cutting down carbon emissions. See chart below for the exist and upcoming green methanol project:

Source: Methanol Institute, S&P Global Commodity Insights

Renewable methanol, however, comes with a higher production cost over its conventional counterpart, and quick adoption for energy transition would require stricter regulatory measures and strong government and institutional support. Methanol Institute forecasts that production of renewable methanol will exceed 8 million ton by 2027.

However, even these forecasts may underestimate the development of renewable methanol for a number of projects in China are not counted in, according to our China Hydrogen Database.