Tellus Materials Energy Technology Perspective
Green Hydrogen as Chemical Feedstock: From Power Generation to Fuel Synthesis
Northeast China's green methanol projects mark hydrogen energy's formal entry into the fuel chemicals sector. Hydrogen is no longer just a medium for power generation — it is becoming a core feedstock for synthesizing low-carbon fuels. For Tellus Materials, this trend reinforces the strategic value of on-site hydrogen production capability. Whether supplying fuel cells for power generation or serving as a hydrogen source for chemical synthesis, the autonomous hydrogen supply that RenelX on-site hydrogen generators provide is indispensable infrastructure for scaling hydrogen applications in industry.
Green Hydrogen Beyond Power Generation — It Can Also Become Fuel
In most people's understanding, hydrogen energy is primarily associated with electricity generation: fuel cells convert hydrogen into power to drive vehicles or supply the grid. But hydrogen has another important application pathway in today's global energy transition — using it as a chemical feedstock to synthesize new low-carbon fuels.
Green methanol is one of the most prominent products to emerge from this pathway. Its production process combines green hydrogen with syngas derived from gasifying biomass (primarily a mixture of hydrogen and carbon monoxide) to produce methanol. Unlike methanol from petrochemical sources, green methanol is made from renewable electricity and biogenic carbon, resulting in an extremely low carbon footprint across its full lifecycle.
More significantly, green methanol can be further processed into synthetic aviation fuel (e-SAF), making it a critical solution for decarbonizing aviation. The aviation sector remains heavily dependent on conventional fossil fuels, and e-SAF is currently one of the most technically mature options capable of directly replacing existing jet fuel.
Jiaze New Energy in Heilongjiang: 240,000 Tonnes of Green Methanol Now Under Construction
In April 2026, Jiaze New Energy held the groundbreaking ceremony for its "300,000-tonne Green Hydrogen Alcohol Aviation Fuel Chemical Co-Production Project" in Jixi City, Heilongjiang province, officially commencing construction on a facility with total investment of approximately 3.5 billion yuan (around USD 524 million).
Phase one of the project targets annual production of 240,000 tonnes of green methanol, which can be further processed into either 50,000 tonnes of e-SAF or 80,000 tonnes of green ethanol per year. The production process combines wind-powered green hydrogen with syngas derived from gasifying locally collected straw (agricultural waste) and corn-cob resources, forming a low-carbon fuel production chain built on the region's own renewable resources.
Notably, Jiaze has engaged Bureau Veritas to provide international certification for the project's output. Once certified, the methanol and e-SAF could qualify under the EU's Renewable Fuels of Non-Biological Origin (RFNBO) classification, helping European companies meet their compliance obligations by 2030.
Same Day, Same Region: China Energy Engineering Corporation Also Breaks Ground
On the same day as the Jiaze groundbreaking, state-owned China Energy Engineering Corporation (CEEC) commenced construction on its "Shenyang Wind-Solar-Hydrogen Fusion Biomass Green Methanol Demonstration Project" in neighboring Liaoning province. Phase one of that project targets annual production of 100,000 tonnes of green methanol, with phase two plans to scale up to 300,000 tonnes of e-SAF per year.
Two projects launching on the same day in the same region of northeast China is no coincidence. It reflects the area's natural resource advantages: abundant wind energy, large volumes of agricultural waste, and relatively low land and construction costs, which together make northeast China an increasingly important base for green fuel chemical production.
In terms of scale, the combined phase-one capacity of the two projects already exceeds 340,000 tonnes of green methanol per year — a significant contribution to the global green methanol supply chain.
EU Regulation Drives Demand: e-SAF Is a Mandatory Market
Part of the market rationale for both projects stems from regulatory pressure in Europe. Under the EU's ReFuelEU Aviation directive, flights departing from EU airports must use at least 1.2% e-SAF from 2030 onwards. While this percentage may appear modest, global e-SAF production capacity is currently extremely limited, creating a substantial supply gap.
Jiaze's decision to engage Bureau Veritas for RFNBO certification is clearly a strategic move to access the European market. Once certified, the project's output can serve as a compliance instrument for European airlines, creating a stable source of cross-border procurement demand.
This also illustrates that China's green fuel projects are not solely serving the domestic market. Against a backdrop of severe global e-SAF supply shortfalls, Chinese producers with scale advantages are well-positioned to become significant international suppliers.
Shipping Decarbonization Also in Scope: Methanol's Multiple End Markets
Beyond aviation, green methanol is receiving growing attention in the maritime sector as well. Qin Ling, General Manager of China Marine Bunker (a subsidiary of state-owned PetroChina), stated at the Jiaze groundbreaking ceremony that the project was "an important example of shipping decarbonization" and would "support global shipping."
Methanol's advantages as a marine fuel lie in its liquid state at ambient conditions, making it relatively straightforward to store and transport, and some existing vessels can already be retrofitted to use methanol as fuel. Compared to liquid hydrogen or ammonia, methanol presents a lower infrastructure barrier, and the industry widely regards it as one of the most practical near- to medium-term options for maritime decarbonization.
From aviation to shipping, Jiaze's green methanol has identified two end markets with strong and growing decarbonization imperatives. This "one fuel, multiple outlets" commercial design is also a key pillar of the project's financial viability.
