Shanghai has commenced construction of a new green methanol production facility at the Shanghai Chemical Industry Park. Scheduled for completion by the end of this year, this project will enable Shanghai Port to offer refueling services using locally produced green methanol for the first time.
The facility will convert wet waste and animal manure into biomethane, which will then be fed into the city's gas pipeline. Natural gas extracted from the pipeline will subsequently be transformed into green methanol for use by ships.
This initiative aligns with Shanghai's October 2024 plan to accelerate the green transformation of maritime fuels. By 2030, the city aims to establish a comprehensive green fuel supply system for shipping, catering to both domestic and international markets.
Shanghai Port is expected to boast 1 million cubic meters of bonded LNG bunkering capacity, while bunkering capacities for green methanol and ammonia are also projected to reach 1 million metric tons.
Last April, a significant milestone was achieved when Maersk's methanol-powered vessel, the Astrid Mærsk, berthed at Shanghai's Yangshan Port, marking the first green methanol bunkering operation with simultaneous cargo and bunkering activities in China. Maersk has been a pioneer in the adoption of methanol as an alternative fuel for large container ships, inspiring many other companies to place orders for methanol-powered vessels in 2023.
However, concerns over the limited availability of green methanol at scale have led some owners, including Maersk, to revert to ordering LNG dual-fuel newbuildings, despite their reliance on fossil fuels.