Biomethanol will lead CPEC’s multi-fuel complex in China – Xinhua
China Power Engineering Consulting (CPEC) has started the construction of a 500,000 mt/year low- and zero-emission fuel plant in Shenyang, state-owned media outlet Xinhua reported.
IMAGE: Aerial view of Yangshan port in China. China Communications Construction Company
China Power Engineering Consulting is a subsidiary of China’s state-owned energy conglomerate China Energy Engineering.
The first phase of the “demonstration” plant is expected to start by 2028 with 100,000 mt/year of biomethanol production, Xinhua said.
The second phase will include 300,000 mt/year of sustainable aviation fuel (SAF) and the third phase will comprise 100,000 mt/year of green ammonia production.
Green hydrogen will be produced using wind power, while biomethanol and SAF production is estimated to consume around 3 million mt/year of biomass for gasification. Timelines for the second and third phases have not yet been disclosed.
CPEC has not confirmed whether biomethanol or green ammonia output will be allocated specifically towards bunkering. But the Chinese government has been pushing to scale bio- and e-methanol supply to meet expected growth in shipping demand.
Last year, the government outlined plans to expand Shanghai’s methanol bunkering capacity to 1 million mt/year by 2030. Separately, three firms, including SIPG Energy, also plan to develop a green methanol supply and bunkering network in the city.
Methanol bunkering activity has also picked up in China in recent months.
SIPG Energy delivered a 3,643 mt bio-methanol stem to a CMA CGM dual-fuel container ship at Yangshan port last month. Yantian Port in Shenzhen also hosted its first ship-to-ship green methanol bunkering earlier this year.
The Zhoushan area of the China (Zhejiang) Pilot Free Trade Zone also issued its first licence for methanol bunkering of international vessels to Zhejiang Free Trade Zone PetroChina Fuel Oil in January.
By Konica Bhatt
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