China‘s Shanghai Electric has started green methanol production at its Taonan facility in Jilin province.

The facility currently has a capacity of 50,000 mt/year of ISCC-certified green methanol, with plans to scale up to 250,000 mt/year in 2027, the firm said in a LinkedIn post on Tuesday.

Green methanol is produced by combining green hydrogen, produced via electrolysis using renewable power, with captured carbon dioxide.

The output is intended to support growing demand from the shipping sector.

The plant is integrated with 67.2 MW of off-grid wind power.

In March 2025, Shanghai Electric signed an agreement with CMA CGM and SIPG Energy to explore green methanol supply to power its dual-fuel ships.