Green Methanol is transforming China’s landlocked Xing’an League into a major hub for clean shipping fuel. The initiative powers the world’s largest cargo ships and cuts carbon emissions significantly. This development highlights China’s growing influence in global energy innovation.
Located in Inner Mongolia, Xing’an League boasts abundant renewable resources, including wind, sunlight, and biomass. These resources now drive large-scale green methanol production, positioning the region as a key player in the shipping industry’s energy transition.
The International Maritime Organization plans to vote on a historic net-zero framework this month. If approved, it will impose mandatory emission limits and a carbon pricing system on roughly 90,000 large ocean-going vessels starting in 2027. This push motivates shipping giants such as Maersk and Hapag-Lloyd to secure alternative fuels.
Goldwind, a leading Chinese energy company, taps Xing’an League’s unique resources. The region produces 6 million tonnes of corn annually, yielding over 7 million tonnes of collectable corn stalks. Its wind power potential reaches 40 million kilowatts, ensuring a reliable supply of renewable energy for methanol production.
In April 2024, Goldwind launched a 500,000-tonne wind-powered green methanol project in the region. Shortly afterward, the company signed a long-term agreement with Maersk to supply 500,000 tonnes annually. Goldwind expects production to start in 2026, marking the shipping industry’s first large-scale green methanol deal.
Hapag-Lloyd later contracted Goldwind for 250,000 tonnes per year, aiming to cut greenhouse gas emissions by at least 70 percent. This move showcases the rising commercial potential of China’s green methanol industry.
China’s green methanol sector expanded rapidly, with 173 projects nationwide as of August 2025. Together, these projects produce 53.46 million tonnes annually. Chinese ships now use green methanol derived from municipal waste. For instance, 200 tonnes applied to a container ship in Hainan reduced carbon dioxide emissions by roughly 325 tonnes.
Experts say green methanol reduces carbon footprints and strengthens China’s strategic advantage in global shipping. Analysts predict continued growth as regulations tighten and demand for clean fuel rises.
Looking forward, Xing’an League is set to strengthen its influence in global maritime energy. Moreover, sustainable methanol output will grow, advancing China’s clean energy targets and transforming the future of shipping.
