Inner Mongolia government give green light to world largest green methanol project

On May 16^th, Bayannyur 500,000 ton per annum green hydrogen to methanol project got the permission from Inner Mongolia government, which will become the largest green methanol project globally so far.

The project also includes 2GW wind power and solar power capacity to provide renewable power to green hydrogen manufacture. The total investment of this power-chemical complex is estimated to be 14 bn Rmb ($2 bn).

Methanol is a clear liquid chemical used in thousands of everyday products, including plastics, paints, cosmetics, and fuels. Methanol is also an energy resource used in the marine, automotive, and electricity sectors and an emerging renewable energy resource. Methanol is primarily produced through a process called methanol synthesis. There are several methods for producing methanol, but the most common industrial method is based on the catalytic reaction between carbon monoxide (CO) and hydrogen (H2), known as the "syngas" (synthesis gas) using natural gas, coal, biomass as feedstock. Natural gas is the most common feedstock due to its abundance and low cost.

Compared to conventional fuels, green methanol, use green hydrogen and captured CO₂ as feedstock, cuts carbon dioxide emissions by up to 95%, reduces nitrogen oxide emissions by up to 80%, and eliminates sulfur oxide and particulate matter emissions.

China is the world biggest methanol production and consumption country, it produced 83 mn tons methanol in 2022, over 80% are made from coal as feedstock. Methanol production emits 290 mn tons CO₂ annually, accounting for about 2.6% of China’s total emission.

Since the beginning of 2023, green methanol has become a hot spot of green investment in China. Besides Bayannyur 500,000 ton projects, there are several mega green methanol projects have emerged:

State Power Investment Corporation Limited (SPIC) plans to establish a 500,000 tons green methanol project in Shandong (for Phase 1, it’s 200,000 tons);

Goldwind, China’s largest wind power generator producer, plans to build a 500,000 tons green methanol complex in Inner Mongolia;

CRRC Wind Power, another major wind power equipment producer and EPC contractor, plans to build 450,000 tons green methanol project in Xinjiang (3 phases)

Should these projects be developed smoothly, China will become world largest green methanol in a few years.

image: first 100,000 tons green methanol plant in China, Henan province, Anyang