China’s first mass-production bio-methanol facility has begun operations, a development that could support the growing fleet of methanol-fuelled ships.

The plant, developed by CIMC Enric, uses a fully enclosed production line and will initially produce about 50,000 mt/year of bio-methanol, the firm said in a recent LinkedIn post.

The fuel is intended for use as bunker fuel for dual-fuel methanol vessels, with demand expected to rise as more methanol-fuelled ships enter service.

CIMC Enric claims bio-methanol can reduce life-cycle carbon emissions by more than 85% compared with conventional marine fuels and can be supplied through existing fuel infrastructure.

“The successful launch of CIMC Enric’s project represents a significant milestone in China’s low-carbon development journey,” it added.

China has been ramping up efforts to build green methanol production and supply.

During the IBIA Annual Convention 2025 industry event last month, delegates appeared to be confident that China would become a primary hub for green bunker fuel production.