National Policy Paves the Way for Methanol Vehicle Application

SCI99

2019-03-26

National Policy Paves the Way for Application of Methanol Vehicle in China

On March 19, 2019, China’s Ministry of Industry and Information Technology (MIIT), along with the National Development and Reform Commission (NDRC), Ministry of Science and Technology (MOST), Ministry of Public Security (MOPS), Ministry of Ecology and Environment, Ministry of Transportation (MOT), National Health Commission (NHC) and State Administration for Market Regulation (SAMR) issued Guidance on the Promotion of Methanol Vehicle Application in Some Regions (hereinafter referred to as the Guidance), which officially put forward methanol vehicles in front of the automobile industry and the consumers.

Policy Background

China is rich in coal, but short in oil and gas. The energy structure is dominated by coal, and the external dependence of crude oil and natural gas is relatively high, which reached 70% and 43% respectively in 2018. However, over 40% of China’s coal resources are high-sulfur coal which is not suitable for power generation or industrial fuel, but can be used to produce methanol. According to SCI, by the end of 2018, China’s methanol capacity reached 84,520kt/a, and over 70% of which was coal-based methanol capacity. The total methanol output was 55,760kt in 2018 with the effective operating rate of about 70%.

Based on the characteristics of China's resource endowment and the development status of methanol vehicles, promoting the regional development of methanol vehicles is in accord with China's national conditions. It is not only conducive to giving full play to China's advantages in coal resources and promoting the transformation and upgrading of traditional industries, but also in favor of boosting green and circular development, realizing energy diversification and ensuring national energy security.

Pilot Work

The release of the Guidance has made methanol vehicles highly concerned by public opinions. However, methanol vehicle is still a new thing after several years of pilot promotion. It is learned that the methanol pilot work led by the MIIT took nearly 10 years from the investigation and survey to the final summary of the pilot promotion and acceptance. The MIIT has carried out a five-year methanol vehicle pilot program in 10 cities since 2012, including Jinzhong, Changzhi, Shanghai, Xi’an, Baoji, Yulin, Hanzhong, Lanzhou, Pingliang and Guiyang in Shanxi, Shanghai, Shaanxi, Gansu and Guizhou. A total of 1,024 methanol passenger cars, buses, multi-purpose minivans and heavy trucks have been put into operation, with a total transport mileage of 184 million km and the maximum mileage of a single vehicle exceeding 350,000km. A total of 20 methanol fuel filling stations have been put into operation, with accumulative consumption of over 24kt of methanol fuel.

In 2018, the pilot work of methanol vehicles implemented for five years was completed comprehensively, forming practical experience that can be utilized. Meanwhile, it also means that the promotion and application of methanol vehicles will start in the round. The Guidance is drafted by eight departments on the basis of the summary report of methanol vehicle pilot work. In the opinion of market players, this heralds that methanol vehicles, as emerging mobile transport equipment and vehicles, will become a member of the big family of diversified energy vehicles in China and enter the market officially.

Guidance Outline

The Guidance clearly points out that it is necessary to develop methanol vehicles in regions with suitable application conditions by taking measures in accordance with local conditions, actively yet prudently; to enhance the reasonable layout of the methanol vehicle industry; to speed up the improvement in industrial policy, technical standards and market application security system; to lift the level of market application and maintain the international leading position of China’s methanol vehicles and related industries in the fields of products, technology and special equipment; to accelerate the development of diversified energy and clean energy vehicles; to promote the transformation and upgrading of traditional industries; to cultivate new economic growth point and to boost the green and low carbon development.

In addition, the Guidance puts forward clear requirements from the aspects of methanol vehicle manufacturing system construction, methanol fuel production and refueling system construction, and strengthening the supervision of methanol vehicle. At the same time, the Guidance also points that the application of M100 methanol vehicles should be accelerated in Shanxi, Shaanxi, Guizhou, Gansu and other regions with good resource endowment conditions and methanol vehicle operation experience, and that methanol vehicles should be encouraged for official business, rental, short-distance passenger transport and other fields in areas with conditions.