"China Green Fuel Development Report (2026)" Officially Released

Recently, the "China Green Fuel Development Report (2026)", jointly compiled by the Department of Energy Conservation and Technology Equipment of the National Energy Administration, the China Industrial Development Promotion Association, the Electric Power Planning & Design Institute, and the Petroleum and Chemical Industry Planning Institute, was officially released. As China's first green fuel development report, it provides a comprehensive overview of the current status, policy framework, and standards governing the entire green fuel industry chain.

I. Report Background

In 2025, the CPC Central Committee highlighted the need to cultivate new growth drivers such as hydrogen energy and green fuels during the Central Economic Work Conference. The 2012 Government Work Report marked the first time specific plans were laid out for the development of green fuels. Green fuels refer to low-carbon emission fuels that meet environmental protection requirements throughout their lifecycle, including green methanol, green synthetic ammonia, sustainable aviation fuel, bio-ethanol, biodiesel, and biomethane.

II. Global Development of Green Fuels

The International Maritime Organization (IMO) has approved the draft Net Zero Framework (NZF), while the International Civil Aviation Organization (ICAO) is accelerating the adoption of sustainable aviation fuel. In 2025, there were 22 operational green methanol projects worldwide, with a combined capacity of approximately 63 million tons per year; China's capacity was about 38 million tons per year, accounting for roughly 60.3% of the global total. Global operational green ammonia production capacity reached approximately 88 million tons per year, with China contributing about 70 million tons per year. Global green aviation fuel production hit 190 million tons, representing an 90% year-over-year increase.

III. Development of Green Fuels in China

By the end of 2025, China had established a total green fuel production capacity of approximately 800 million tons per year oil equivalent, with the industry reaching initial scale. Specifically, green methanol comprises 6 projects with a capacity of about 38 million tons per year; green synthetic ammonia includes 3 projects with a capacity of about 70 million tons per year; green aviation fuel has a capacity of about 170 million tons per year; biofuel ethanol reaches about 530 million tons per year; biodiesel stands at about 300 million tons per year; and biogas consists of 146 projects with a capacity of about 10 billion cubic meters per year.

4. Expanding Application Scenarios

In the shipping sector, China has established a comprehensive model for green fuel bunkering across all categories. Zhoushan and Guangzhou ports have implemented B24 biodiesel bunkering, while Shanghai, Qingdao, and Tianjin ports are advancing green methanol bunkering. Dalian port achieved the world's first green synthetic ammonia fuel bunkering for ships. In aviation, sustainable aviation fuel (SAF) bunkering pilots are underway at Beijing Daxing, Chengdu Shuangliu, and other airports. The ten key airports now possess the capability to blend and bunker green aviation fuels.

V. Outlook for 2026

The "15th Five-Year Plan" period is a phase for cultivating and developing China's green fuel industry. The report proposes five key directions: systematic planning, pilot-first implementation, innovation-led development, optimized business environment, and demand-driven growth. It emphasizes strengthening top-level design and strategic layout, exploring scientifically sound industrial development models, continuously enhancing the industry's competitiveness, coordinating both domestic and international markets, accelerating the cultivation of new growth points in green fuels, and supporting the construction of a new energy system.

Shanyao New Energy will continue to monitor green fuel policies and standards. Leveraging the advantages of integrated wind-solar hydrogen production projects, we are actively exploring coupling pathways for green hydrogen with green methanol, green ammonia, and other green fuel industries.