A landmark project, Shanghai's first 100,000-ton green methanol facility, jointly developed by four major municipal state-owned enterprises—Shanghai Chengtou Group, Shenergy Group, Huayi Group, and Shanghai International Port Group—has recently commenced operations. As the raw material supply end of the green methanol industrial chain, the third phase of the Shanghai Bio-Energy Reutilization Project, invested in, constructed, and operated by Shanghai Chengtou Group, provides robust raw material support, adding "green power" to the construction of the international shipping hub.
The Shanghai 100,000-ton green methanol project is a significant initiative collaboratively promoted with the full force of the city. In September 2024, at the project's cooperation signing ceremony, Chengtou Environment's Laogang Development Company, a subsidiary of Shanghai Chengtou Group, participated as a project stakeholder, signing a raw material procurement contract for the locally produced green methanol project, officially launching the Shanghai local green methanol initiative.
This project is not only the largest in China in terms of production capacity for green methanol derived from bio-natural gas but also represents the world's largest single facility producing green methanol from urban wet waste and other refuse sourced from a single city. Located in Laogang, the third phase of the Shanghai Bio-Energy Reutilization Project is a crucial initiative to address gaps and enhance capabilities within Shanghai's comprehensive household waste classification system and is one of the key projects during Shanghai's 14th Five-Year Plan period.
In June 2025, the third phase of the Shanghai Bio-Energy Reutilization Project initiated trial operations with materials. Chengtou Environment coordinated with various construction and operating units to form a specialized team, which continuously optimized processes and equipment operational conditions based on equipment performance data and process line treatment efficiency analysis, gradually increasing wet waste processing capacity in stages and batches.
Upon reaching full operational capacity, the wet waste resource utilization capability within the Laogang base will reach 4,500 tons per day, making it the world's largest facility for the deep resource utilization of wet waste, with an estimated annual supply of bio-natural gas reaching 24 million cubic meters. The planning and construction of Shanghai's independent green methanol production capacity is an important measure to implement the national "dual carbon" goals and a vital support for Shanghai's promotion of green energy transformation and its international shipping hub development.
Led by Shenergy Group, the Shanghai green methanol project involves integrating the bio-natural gas produced at the Shanghai Chengtou Group's Laogang Eco-Environmental Base into the Shanghai natural gas pipeline network. This gas is then delivered to Huayi Group for centralized production of green methanol in the chemical industry park, finally being supplied to bunkering vessels owned by Shanghai International Port Group at the park's wharf, establishing a complete green closed-loop chain from "waste to raw material to production to bunkering."
As the raw material source for green methanol, the third phase of the Shanghai Bio-Energy Reutilization Project utilizes technological innovation to purify biogas generated from the anaerobic digestion of wet waste into high-quality bio-natural gas. Compared to conventional methanol production routes using fossil fuels, this method achieves an average carbon emission reduction rate of up to 80%, truly realizing the concept of "turning waste into treasure."
In August 2025, the bio-natural gas from the third phase of the Shanghai Bio-Energy Reutilization Project was formally integrated into the Shanghai municipal gas pipeline network. The raw material not only complies with China's stringent GB17820-2018 Class I gas standards but has also passed rigorous international sustainability audits, obtaining both ISCC EU and PLUS certifications.
Once the Shanghai green methanol project reaches full production capacity, it will fundamentally alter the previous passive situation where Shanghai Port relied on green methanol production capacity from outside the city, ensuring a stable supply for core shipping demands.
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