Two giant renewable hydrogen-based methanol plants in China to start construction within months
The Inner Mongolia regional government has approved 1.7 million tonnes of methanol production capacity, including a facility proposed by wind turbine developer Mingyang
Two green hydrogen-based methanol plants, with a combined capacity of 1.7 million tonnes a year, have received approval from the Chinese autonomous region of Inner Mongolia’s government — and are set to start construction in the coming months.
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Chinese wind turbine giant Mingyang Smart Energy’s green chemicals subsidiary will develop the larger of the two projects, due to start construction this December and be completed by November 2025.
However, although Mingyang had reportedly started developing its first electrolysers in October 2022, it is unclear whether the firm will supply its own electrolysis equipment or upstream renewables for the project.
Meanwhile, Yuanbao Energy has proposed a facility with an annual production of 700,000 tonnes of methanol a year, built in two 350,000 tonnes-a-year phases between January 2024 and December 2027.
Neither facility has a firm figure for annual hydrogen production or electrolyser capacity attached.
Mingyang is reportedly set to self-fund its entire 6.75bn-yuan ($922m) project cost, while Yuanbao Energy’s 2.45bn-yuan cost will be split between a 1.96bn-yuan bank loan and 490m-yuan stumped up by the developer.
But both of these projects’ cost estimates appear extremely low compared to the largest green hydrogen-based chemical plants that have started construction in China to date.
It is thus unclear whether this massive drop in estimated costs is due to significant economies of scale for electrolyser, wind turbine and solar panel manufacturing in China, or if the cost put forward for each facility only covers the initial phases.
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