Geely’s Methanol Vehicles: A New Wave in Green Energy

At the 21st Shanghai International Automobile Industry Exhibition, Geely Holding Group’s methanol-hydrogen technology booth made a stunning debut as the first global platform to fully showcase the methanol industry chain. Through advanced technology and immersive interactive experiences, it vividly demonstrated the potential of a green methanol circular economy, outlining new pathways for green energy and electric vehicles against the backdrop of global carbon neutrality.
In an exclusive interview with Economic Reference, Geely Holding Group’s Senior Vice President, Yang Xueliang, emphasized that the presentation of the entire Geely methanol-hydrogen technology family not only showcased concentrated technical achievements but also reflected a deep contemplation on the synergistic development of future energy systems and the automotive industry. The closed-loop ecosystem of the methanol industry chain proves that a green methanol circular economy is not only a feasible technical path but also an economically viable and sustainable industrial model with promising prospects.

Accelerating Global Energy Transition: Methanol as a Key Player in Carbon Neutrality

As the industry continues to debate the choice between electric and fuel vehicles, methanol vehicles are quietly redefining the fundamental logic of energy utilization with their unique “third way.” Yang Xueliang noted that under the pressures of carbon neutrality goals, decarbonization in the transportation sector has become a focal point for many countries. Beyond lithium batteries and hydrogen technologies, methanol vehicles have emerged as a crucial variable and breakthrough solution, thanks to their unique advantages of fuel diversity, industry compatibility, and cost control.
Data indicates that methanol is a low-carbon, oxygen-containing fuel that boasts high combustion efficiency, clean and environmentally friendly emissions, and renewability. Notably, methanol remains in liquid form at normal temperature and pressure, which provides economic, safe, and convenient advantages in storage, transportation, and usage. Consequently, there is widespread agreement in the global industry regarding methanol’s status as a low-carbon clean fuel.
Many industry giants have keenly recognized the immense potential of the methanol sector and are ramping up their investments. Porsche, for instance, is collaborating with Siemens Energy, ExxonMobil, and others to promote the research and application of e-Fuels (synthetic methanol fuel). Its eFuels project in Chile has entered industrial production, becoming the world’s first e-Fuel pilot project with an annual capacity of approximately 130,000 liters. In 2024, the Porsche Mobil 1 Supercup will be the first to completely utilize synthetic e-Fuels, allowing the participating 911 GT3 Cup racing cars to nearly achieve zero carbon emissions.

Policy and Technology Synergy: Accelerating Methanol Energy Development in China

Yang Xueliang stated that, driven by powerful policies and active industry responses, the development of methanol energy in China has entered a crucial phase of rapid acceleration.
China is rich in coal, but has limited natural gas and oil resources, with over 70% of crude oil imported and nearly 43% dependence on natural gas. The automotive sector accounts for over 90% of gasoline consumption. In contrast, China is the world’s largest producer and consumer of methanol, with capacities and outputs exceeding half of the global total and mature, low-cost production technologies capable of large-scale supply. Promoting the development of methanol vehicles aligns with China’s national conditions, leveraging coal resources to effectively ensure energy security.
Statistics show that of the 700 million tons of oil consumed in China each year, the transportation sector accounts for over 70%, with 51% used by trucks, amounting to 250 million tons annually. If half of the nation’s truck fuel were replaced by methanol, oil imports could be reduced by 125 million tons each year.
In this context, policies have provided clear guidance. The document titled Opinions on Accelerating Comprehensive Green Transformation of Economic and Social Development, issued in August 2024, calls for the improvement of infrastructure networks such as charging and hydrogen (methanol) stations, and the acceleration of smart urban traffic management systems. Additionally, green methanol has been incorporated into the 2024 Edition of the Guidance Catalogue for Industrial Structure Adjustment as an encouraged new energy industry, serving as an important lever for achieving carbon neutrality and building a modern energy system.
On the usage side, a recent joint directive from the Ministry of Transport and nine other departments outlined plans to promote new energy and clean energy transportation equipment. This includes the elimination of high-energy consumption and high-emission transportation equipment, promoting the large-scale application of new energy heavy trucks, and developing zero-emission freight solutions.
Local initiatives are also flourishing, with nearly 20 provinces across the country implementing policies to promote methanol-hydrogen vehicles. For example, in February of this year, Shenyang City issued measures to accelerate the production and promotion of methanol vehicles, outlining ten specific strategies, including the construction of production bases and the development of a methanol refueling infrastructure.

Methanol and Hydrogen: A New Investment Frontier in New Energy

“Methanol-hydrogen vehicles effectively reduce carbon emissions, especially in the commercial vehicle sector,” Yang Xueliang explained. Commercial vehicles are significant contributors to carbon emissions, accounting for 56% of total CO2 emissions from automobiles. Using methanol as a liquid hydrogen alternative to traditional hydrogen fuel cell systems for power generation provides a more convenient and cost-effective solution compared to pure electric vehicles.
Data shows that compared to National VI diesel vehicles, methanol-hydrogen electric vehicles significantly reduce emissions, with PM pollutants reduced by 98%, carbon monoxide down by 88%, and nitrogen oxides reduced by 82%, making them an effective pathway for commercial vehicles to achieve carbon neutrality. At the auto show, Geely’s in-vehicle carbon capture system, the “Geely Carbon Vault,” attracted considerable attention. A demonstration showcased how the system captures CO2 emissions in real time and uses Geely’s CO2 hydrogenation technology to synthesize green low-carbon methanol for recycling in methanol vehicles, achieving near-zero emissions.
“From an energy cost perspective, the currently deployed methanol-hydrogen electric systems have shown a cost reduction of 32%-52% compared to fuel vehicles, earning widespread acclaim from drivers and transport companies,” Yang Xueliang added.
“Geely has established a comprehensive green ecological chain covering CO2 capture, methanol preparation, transportation, refueling, and vehicle integration.” Yang Xueliang revealed that Geely has partnered with upstream and downstream companies to create a circular ecosystem of “methanol-transport-station-vehicle-capture,” aiming to build a closed-loop carbon neutrality solution across the methanol value chain.
Currently, the world’s first methanol-hydrogen electric large van, the Remote Methanol-Hydrogen Electric Super VAN, has made its debut, utilizing Geely’s closed-loop methanol technology to achieve zero carbon emissions throughout its lifecycle. The Remote Xinghan H methanol-hydrogen electric heavy truck was also unveiled, boasting an extraordinary range of over 1500 kilometers on a single refueling, successfully setting a Guinness World Record and redefining the benchmark for new energy heavy trucks.
Geely’s Methanol Vehicle Development Center General Manager, Lu Yukai, indicated that with the world’s first methanol engine, Geely’s new generation “Super Methanol Electric Hybrid” achieves flexible blending of methanol and gasoline in the same fuel tank, with engine thermal efficiency reaching a world-leading 48.15%. It has also achieved breakthrough cold-start capabilities for methanol fuel at temperatures as low as -40°C, thoroughly addressing the inherent issues of electric vehicles regarding low-temperature range and refueling efficiency. This innovation enables a new green power mode where a vehicle can utilize methanol, electricity, or gasoline.
As the energy transformation and demand for green transportation converge, the application of hydrogen-methanol energy is expected to expand beyond traditional commercial vehicle sectors into the passenger car market. Lu Yukai revealed that Geely plans to launch cars and SUVs equipped with the next-generation “Super Methanol Electric Hybrid” technology in the fourth quarter of 2025. This move signifies the official entry of methanol power into the family vehicle market, heralding a new era of large-scale application of hydrogen-methanol energy in passenger vehicles.
Not only Geely, but many companies are also eager to invest in the upstream and downstream methanol-hydrogen energy industry chain. To date, major state-owned energy enterprises, including China Energy Construction, China General Nuclear Power Group, China Coal, State Power Investment Corporation, China Energy Group, Three Gorges Corporation, and Huadian Corporation, have all entered this field. For instance, China Energy Construction’s “Harbin Double City Wind-Solar-Hydrogen-Ammonia-Methanol Integrated Project,” signed in 2024, has an investment budget of 30 billion yuan, while the total investment for the biomass green methanol and green aviation fuel integrated project in Shuangyashan is approximately 20.8 billion yuan.
Private enterprises such as Geely Holding, Envision Energy, Mingyang Group, and Goldwind Technology are also actively participating. In February 2023, a globally pioneering 100,000-ton green low-carbon methanol plant jointly invested by Geely Holding Group and Henan Shuncheng Group began operations in Anyang, marking China’s first and the world’s largest carbon capture hydrogenation facility for producing green low-carbon methanol. In October 2024, the first phase of a 500,000-ton green methanol project, co-built by Geely Holding’s methanol-hydrogen ecological technology, commenced construction in Inner Mongolia’s Alxa League, representing China’s first 500,000-ton green methanol project coupling industrial capture with electrolyzed water for hydrogen production.
As the concept of a “methanol economy” gradually becomes a common language in the global energy transition, China stands at the forefront of this historical change, ready to leverage its unique advantages. As one seasoned industry expert noted, the strategic value of methanol vehicles transcends that of a single vehicle or fuel type. It serves as a strategic key to addressing energy security challenges, transforming China’s coal-rich but oil- and gas-poor resource endowment into industrial advantages, and acts as a critical link connecting clean coal utilization, large-scale renewable energy consumption, and low-carbon transportation across the entire industry chain. With a complete industrial system, leading technological reserves, and vast application scenarios, China is poised to gain a competitive edge in this transformative journey of reshaping the global energy landscape.