Methanol gains ground in China's green transport transition

China's green transport transition is moving toward a more diversified energy mix, with battery electric vehicles being complemented by alternative fuels such as methanol, particularly in commercial and long-haul applications.

Future mobility systems should be understood as an integrated energy and transport network rather than a stand-alone automotive transformation, said Chan Ching-Chuen, an academician of the Chinese Academy of Engineering, at a recent industry forum.

China's rapid adoption of electric vehicles over the past decade has laid a strong foundation for transport decarbonization, but structural challenges remain in commercial transport, heavy-duty logistics and regions with complex operating conditions.

New energy vehicles accounted for over 50 percent of China's overall vehicle market in the first five months of this year, while penetration in the commercial vehicle segment stood at 28.2 percent, according to Zhang Yongwei, president of the China EV100 think tank.

He said the segment faces challenges in achieving rapid electrification and suggested that a diversified technology pathway — including battery electric, hybrid, fuel cell and methanol — is likely to prove more effective.

Fang Haifeng, chief expert at the China Automotive Technology and Research Center, said commercial vehicles account for a disproportionately large share of transport emissions despite their relatively smaller fleet size, making them a key focus for alternative fuel deployment.

He said China's policy framework is increasingly supportive of multi-path technologies, including battery electric, hydrogen and methanol systems, particularly in heavy-duty and industrial transport segments.

Fang added that methanol offers advantages in energy storage, logistics and low-temperature performance, and can be integrated into existing fuel distribution infrastructure at a relatively low cost.

Methanol can be produced from coal, biomass, captured carbon dioxide and green hydrogen, positioning it as a flexible energy carrier within China's emerging low-carbon energy system, he said.

China's methanol vehicle sector has entered a steady growth phase, with clear industrial momentum, Fang said.

Last year, national methanol vehicle ownership exceeded 60,000 units, of which roughly two-thirds were commercial vehicles.

Supported by policy incentives and rising demand, the sector is expected to surpass 80,000 units this year.

Over the longer term, Fang said the industry is expected to build a more complete ecosystem and move toward large-scale commercialization by 2030.

He said the sector is likely to become an important component of China's broader transport decarbonization strategy over the next five years.

Fang also called for a more structured policy framework, including national-level implementation plans for methanol vehicles, expansion of refueling infrastructure and coordinated systems for methanol production, storage and distribution.

He suggested expanding pilot applications across public transport, taxis, ride-hailing fleets, municipal services and heavy-duty logistics.

Farizon New Energy Commercial Vehicle, a subsidiary of China's Geely Holding Group, is one of the key players in methanolelectric technology.

CEO Fan Xianjun said methanol-electric systems can reduce particulate emissions by up to 98 percent compared with diesel engines and lower operating costs by about 32-52 percent, depending on application scenarios.

In heavy-duty logistics, certain models have achieved real-world driving ranges exceeding 1,500 kilometers per refueling cycle, addressing a key limitation of battery-only systems in long-haul operations.

Fan also cited a long-distance test involving a light commercial vehicle that traveled nearly 1,700 kilometers on a single methanolelectric refueling cycle, describing it as evidence of improving operational maturity.

Fan said Geely's methanol-electric vehicles have been deployed at scale, with more than 60,000 units in operation globally and cumulative mileage exceeding 25 billion kilometers.

Emerging markets including China's Hong Kong are showing interest in the technology.

Farizon's U12M methanol-electric bus, developed specifically for the Hong Kong market, has recently received emissions exemption approval from the city's environmental authorities and is expected to enter full commercial operation soon.

Chan, the academician of the Chinese Academy of Engineering, said methanol-powered commercial vehicles are a fitting choice for Southeast Asia as well, a region with a large population and massive logistics demand.