Green Methanol Gains Ground as China Commissions First Large-Scale Bio-Based Facility

HONG KONG / ZHANJIANG, China, December 17, 2025 — CIMC Enric Holdings Limited has commissioned China’s first large-scale bio-based green methanol facility in Zhanjiang, Guangdong Province, marking a major step forward in the decarbonisation of global shipping and clean fuel supply chains.

The project, developed by CIMC Enric and its subsidiaries, is designed as a fully integrated closed-loop system converting agroforestry residues into green methanol for use as marine fuel. With an initial annual capacity of 50,000 tonnes, it is the country’s first commercially scaled bio-based green methanol plant and a notable addition to the global pool of low-carbon maritime fuel infrastructure.

Delivering Deep Lifecycle Emissions Reductions

Shipping contributes approximately 3 per cent of global carbon emissions, and the International Maritime Organization has committed the sector to net-zero emissions by 2050. Bio-based green methanol is increasingly recognised as a scalable solution capable of delivering immediate emissions reductions while supporting long-term climate goals.

According to CIMC Enric, the Zhanjiang facility achieves more than an 83 per cent reduction in lifecycle greenhouse gas emissions, measured across feedstock sourcing, production, storage and delivery. The entire value chain has been certified under the ISCC EU sustainability standard, while independent C-14 testing by Beta Analytic (USA) confirms full carbon traceability from biomass feedstock to final product.

The project is aligned with international climate and regulatory frameworks, including the IMO’s net-zero roadmap, the EU Renewable Energy Directive (RED) and the Carbon Border Adjustment Mechanism (CBAM), reinforcing its relevance for global shipping operators facing tightening emissions regulations.

Circular Use of Biomass and Regional Impact

Zhanjiang’s warm climate and abundant agroforestry residues provide a strong foundation for circular biomass utilisation. Through proprietary gasification and process integration technologies, the project transforms agricultural and forestry waste into clean fuel, supporting rural revitalisation while avoiding competition with food crops.

Beyond emissions reductions, the project contributes to China’s broader “Dual Carbon” targets by creating a localised, low-emissions energy value chain and reducing reliance on fossil-based marine fuels.

Building a Low-Carbon Fuel Hub for Asia and Beyond

The facility benefits from direct access to Zhanjiang Deepwater Port, with 30,000 cubic metres of methanol storage capacity and a dedicated loading berth enabling rapid production-to-transport cycles. CIMC Enric has also established a same-day bunkering network across the Greater Bay Area, reducing secondary transport emissions and strengthening the project’s overall climate performance.

From Zhanjiang, green methanol supplies will reach key maritime hubs, including Hong Kong, Singapore and international ports across Asia and Europe, positioning South China as a strategic node in the global green shipping transition.

Global Partnerships Accelerating Green Shipping

The commissioning ceremony was attended by senior representatives from major shipping and fuel companies, including Maersk, CMA CGM, BASF, China Marine Bunker (PetroChina) and Sinopec Fuel Oil Sales, reflecting growing industry momentum behind methanol-based decarbonisation pathways.

Addressing the event, CIMC Group President Gao Xiang said the project demonstrated how industrial innovation, policy alignment and cross-sector collaboration can accelerate maritime decarbonisation at scale. CIMC Enric, he added, plans to work closely with global partners to expand the supply of bio-based green methanol to Southeast Asia, Europe and other key shipping corridors.

As the shipping industry searches for practical, scalable alternatives to conventional fuels, the Zhanjiang green methanol project underscores how bio-based solutions can play a central role in delivering near-term emissions reductions while laying the groundwork for a zero-carbon maritime future.