In the context of a global energy transformation, the recent emergence of methanol as a viable energy source in methanol-based hydrogen-electric technology is paving new paths for electric vehicle advancementsThis innovation not only diversifies the technological routes for electric vehicles but also presents a fresh approach to address China’s energy security and emission reduction issues in the transportation sector.

According to recent reports, several regions including Liaoning, Shanxi, and Tianjin are actively promoting policies designed to accelerate the development of the methanol-hydrogen electric vehicle industryAutomobile manufacturers, especially those led by companies like Geely, are rapidly adapting their strategies to seize this emerging sectorIndustry experts affirm that methanol-hydrogen electric vehicles hold several advantages and possess significant growth potential for the future.

The methanol-hydrogen electric technology is expected to enrich the existing technological landscapes of electric vehicles

Over the past few years, China has witnessed remarkable growth in the development of new energy vehicles (NEVs). According to data from the China Association of Automobile Manufacturers, by October 2024, the domestic sales of NEVs reached approximately 1.302 million units, marking a 56.5% year-on-year increase and accounting for 51.8% of total vehicle sales in the countryThis includes about 54,000 sales of new energy commercial vehicles, which represent a 26.6% increase year-on-year.

Despite the steady development of NEVs, the cold weather in northern China presents new challengesLow winter temperatures significantly reduce the performance of lithium batteries, directly impacting the range capabilities of battery electric vehiclesFor instance, in 2023, the penetration rate of new energy commercial vehicles in the northeastern provinces of China was only 1.8%, considerably lower than the national average.

Methanol, as an important bulk chemical product, is increasingly recognized globally as a clean, renewable energy source

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It can effectively store and utilize intermittent wind and solar energy, earning nicknames such as "liquid electricity" and "liquid hydrogen." The growing usage of methanol as an alternative fuel contributes positively to transportation, overcoming the performance weaknesses faced by traditional electric vehicles in extremely cold conditionsThus, methanol-hydrogen electric technology emerges as a viable solution to enhance the practicality and efficiency of vehicles in northern climates, filling the gaps present in lithium and hydrogen fuel applications and thereby supporting China's goals of energy security and emission reduction.

Following the recent development conference on methanol-hydrogen electric industries held in Shenyang, Zhou Jianqun, chairman of Geely Remote New Energy Commercial Vehicle Group, highlighted that this technology substitutes traditional hydrogen fuel cell systems with methanol, making the method of charging and re-energizing pure electric vehicles more convenient and cost-effective.

Furthermore, a research report by Guoxin Securities underscores the potential of methanol fuel as a significant measure to reduce carbon emissions and alleviate pressures on oil and gas supply in the automotive sector

Comprehensive carbon emissions from similar methanol, gasoline, and electric vehicles have been reported as 4 kg, 21.2 kg, and 12.1 kg per 100 km, respectivelyAdditionally, the infrastructure costs to modify refueling stations for methanol are relatively low, reducing barriers to promoting methanol vehiclesThe recycling and disposal of methanol vehicles are simpler and less costly due to their structural similarities with conventional gasoline vehicles, avoiding issues related to secondary pollution.

Ye Shengji, the chief engineer of the China Automobile Industry Association, pointed out that the current scenario makes pure electric technology insufficient in fully meet the demands for new energy and sustainability in commercial vehiclesTherefore, it's crucial to explore diverse technological pathways, including hybrid systems, methanol-hydrogen electric technologies, and hydrogen-ammonia combustion engines, while encouraging these developments with supportive policies

It seems likely that diverse technological approaches will coexist alongside pure electric vehicles for an extended period in the future.

Ye further noted that the local generation of hydrogen and methanol using wind and solar energy can effectively address the stability issues of renewable energy utilizationThe development of green methanol and methanol-hydrogen electric vehicles emerges as one of the optimal solutions capable of fostering comprehensive benefits across the entire industry chain.

To further facilitate the growth of methanol-hydrogen electric vehicles, government entities at both national and local levels are implementing supportive measures and policiesThese initiatives encompass a wide array of strategies, including the construction of infrastructure, the provision of financial support, and the overall development of the methanol energy sector.

Multiple regions are proactively rolling out various programs to establish a methanol ecosystem

Initiatives aimed at creating new growth points in the commercial vehicle sector include pathways to incorporate methanol into electric commercial vehicle technologiesThis includes constructing dedicated facilities for methanol vehicles, setting up support frameworks for methanol passenger cars, heavy-duty exchanges for battery changes, and establishing green methanol production facilities to enhance logistics and efficiency of distribution within the supply chain.

One such example is the establishment of a special fund by the government of Jinzhong City, allocated to support the growth of the methanol vehicle industryThis fund covers aspects like consumer incentives for methanol vehicles, subsidies for upgrading existing refueling stations, and depreciation allowances for early retirement or modification of methanol-powered taxis, driving schools, and driving training vehicles.

On December 2, a pivotal policy framework was introduced in Shenyang, designed to enhance the industrial capabilities of methanol production and improve component support for methanol vehicles

This policy also promises equal road rights for methanol vehicles during implementation of traffic restrictions, which underscores the commitment to boost the adoption of these vehicles in the Northeast region.

Industry insiders indicate that practical examples across various regions reveal a robust engagement in developing the methanol vehicle industrial system, fostering technical innovation, and pilot applicationsThis holistic approach is significantly propelling the overall growth of the methanol vehicle sector while establishing a firm foundation for its favorable evolution.

As the methanol vehicle industry flourishes, car manufacturers are increasing their investmentsFor instance, Beiben Heavy Truck signed a cooperation agreement with Yulin Mining Group to jointly develop hybrid traction vehicles powered by methanol-hydrogen technologyAdditionally, FAW Group is pursuing patent applications for innovative designs related to methanol engine startups, tackling challenges within this technological space.

Geely, recognized as a global leader in methanol ecosystems and carbon neutrality, has dedicated two decades to developing this sector genuinely

They have made substantial investments in personnel, resources, and finance, transitioning the use of methanol vehicles from pilot projects to widespread applications, operating nearly 40,000 units while covering over 20 billion kilometers on the road.

Moreover, Zhou Jianqun elaborated on how Geely’s technical accumulation in methanol has led to the design of a unique methanol-hydrogen electric system, which synergizes methanol with electric drive technologies, leading to the creation of a seamless integration of green methanol production, refueling, and vehicle development that caters to diverse commercial vehicle needs.

With the rapid expansion of green methanol ecosystems globally, a coherent methanol-hydrogen ecological network is beginning to take shapeAs local governments provide more support and the market responds positively, the future of methanol-hydrogen electric vehicles looks promising, ready to contribute to the national green development agenda and unlock novel growth potentials.