China has started the construction of its first full-chain green methanol facility dedicated to the maritime sector. The project, located in Lishu County in Jilin Province, combines renewable power generation, hydrogen production and the use of CO2 derived from biomass gasification in what the developers intend as a replicable model for sustainable fuel production.
The venture is a collaboration between three major state-owned enterprises: Jilin Electric Power, Cosco Shipping and Shanghai International Port Group. Once operational, the plant is expected to produce approximately 197,200 tonnes of green methanol per year. The fuel will be synthesised using hydrogen generated from 150MW of wind and solar-powered electrolysers, alongside carbon dioxide derived from biomass gasification.
Yang Yufeng, chairman of Jilin Electric Power, said: ‘This project not only opens up the vast green energy market in maritime transportation for us, but also explores a new path of integrated development, one where renewable energy empowers traditional industries and agricultural resources contribute to the energy transition.’
The Lishu facility will operate in two phases, beginning with twelve 1,000 normal cubic metre (Nm3) alkaline electrolysers and later expanding with sixteen additional units and a single 2,000 Nm3 electrolyser stack. Together, these will provide around 150MW of installed capacity. Jilin Electric Power has launched a tender for this equipment, with deliveries due before August 2026. The company will finance 20 per cent of the capital investment directly, while the remainder will be funded through bank loans.
Developers estimate that the project will reduce carbon emissions by about 300,000 tonnes annually while creating more than 500 local jobs. The plant will use waste straw to produce syngas, supplying the CO2 feedstock for methanol synthesis, and providing what Jilin Electric Power describes as a ‘closed-loop solution’ for sustainable fuel production.
Jilin Electric Power recently became the first in the world to achieve certification under the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) framework, in late 2025, for a separate green hydrogen and ammonia project in Da’an, also in Jilin Province.
While offtake and export routes are yet to be confirmed, Cosco is expected to manage exports or act as an anchor customer. Although Shanghai, home to Shanghai International Port Group, is nearly 2,000 kilometres from the site, the city plans to develop a major green fuel hub by 2030 with capacity for up to one million tonnes of methanol and ammonia per year. However, exporting via Dalian, around 580 kilometres away, may offer a more cost-effective route.
For China, the Lishu project signals the emergence of a new industrial model combining renewable power, agricultural by-products and shipping sector demand. It also reflects a broader national trend towards establishing domestic supply chains for alternative fuels that could play a pivotal role in decarbonising global maritime transport. The plant’s backers see it as both an export opportunity and a demonstration of the country’s capacity to integrate clean energy technologies into established heavy industries.
