Henan Shuncheng and Geely Launch RMB 2.55 Billion Biomass Green Alcohol Megaproject as China's Green Fuel Sector Reaches Scaling Inflection Point

ANYANG, Henan — Henan Shuncheng Methanol Hydrogen Energy Co., Ltd. issued a bidding announcement on July 16, initiating competitive procurement for engineering supervision services covering its power generation, biomass gasification, and green methanol synthesis facilities. Located in the Coal Chemical Industrial Park of Yindu District, Anyang, the RMB 2.55 billion ($350 million) development targets an annual output of 314,000 metric tons of biomass-based green alcohols, comprising 70,000 tons of non-grain cellulosic bio-ethanol and 244,000 tons of green methanol.

Having secured energy consumption clearance from the Henan Provincial Development and Reform Commission in May, the project is poised to become the largest biomass-to-green alcohol production hub in Central China upon completion, abating over 500,000 tons of carbon emissions annually. Initial construction will commence with the RMB 120 million raw material pretreatment sub-project, with engineering supervision scheduled from August 2026 through July 2027.

The initiative represents a expanded joint venture between Henan Shuncheng Group and Geely Technology Group, building on their 2023 milestone—the commissioning of the world’s first 100,000-ton-level industrial CO₂ hydrogenation-to-green methanol facility. This next-generation project upgrades the technical pathway by integrating biological fermentation with lignin slurry gasification synthesis, achieving both technology iteration and capacity scaling. To mitigate feedstock supply chain risks, the partners are concurrently establishing a demonstration base for agricultural and forestry waste collection, densification, and pelletization—ensuring upstream feedstock infrastructure precedes downstream refining operations.

This expansion comes amid a highly supportive macro environment for green fuels, which were officially incorporated into China's “2026 Government Work Report”, signaling heightened policy backing. The international maritime sector remains the anchor market for green methanol demand. As shipping is formally integrated into the EU Emissions Trading System (EU ETS), rising carbon compliance costs are eroding the cost-competitiveness of conventional marine fuels, rapidly widening the market space for green alternatives.

Collectively, converging policy drivers make “2026 a pivotal watershed year for the commercial-scale deployment of green fuels”. By leveraging Henan’s abundant local agricultural and forestry waste streams, Shuncheng and Geely are strategically positioning production near raw material sources to minimize transport logistics costs. Adopting a pragmatic "demonstrate-and-validate before scaling" growth framework, the partners continue to iterate green alcohol synthesis technologies at a steady pace, offering a benchmark model for industrial-scale biomass decarbonization.