In recent times, Geely has made significant strides in the automotive sector, quietly extending its reach with methanol-hydrogen vehicles across thousands of kilometers from Northeast to Northwest ChinaThe first batch of methanol-hydrogen commercial vehicles rolled off the production line in Daqing, marking an expansion into the cold northern regions following earlier developments in the Southwest, Northwest, and North China.

Liu Hanru, the Chief Scientist of Geely's Remote New Energy Commercial Vehicle Group, commented on this expansion, pointing out the challenges electric vehicles face in cold climates, including diminished battery lifeHe asserts that methanol-hydrogen vehicles are more suited for colder regions, thus justifying this new direction

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By establishing Daqing as a strategic hub, Geely aims to not only serve the Northeast region but also expand further, especially into overseas markets like the Russian Far East.

However, industry experts who spoke to reporters contend that while methanol-hydrogen vehicles are primarily focused on commercial applications, the technology for passenger vehicles exists, challenges in promotion remain significant.

01 The Promising Future of Green Methanol Fuel

Recently, the first hydrogen refueling station in Shenyang officially commenced operations, with Brilliance BMW becoming the first user

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Prior to this, the BMW Group announced plans to launch its first market-ready hydrogen fuel cell vehicle (FCEV) by 2028.

The promotion of pure hydrogen vehicles in China faces numerous challenges, especially regarding high fuel costs and safety issuesIn contrast, the development of methanol-hydrogen vehicles brings a glimmer of hope.

Professor Shuai Shijin, the Director of the Tsinghua-Shell Clean Transportation Energy Center, stated that the irreversible trends of low-carbonization and electrification are undeniableGreen methanol, as a liquid fuel, presents very attractive possibilitiesThe future market for new energy vehicles may feature a 50-50 balance between pure electric and plug-in hybrids, showcasing a uniquely Chinese development path.

Liu Hanru elaborated that methanol-hydrogen technology involves using methanol as a liquid hydrogen substitute to supplant traditional hydrogen fuel cell systems for power generation

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This results in a more convenient and economically viable way to recharge electric vehicles.

Methanol is an oxygenated fuel that demonstrates greater adaptability in high-altitude settings compared to traditional fuels like diesel and natural gasMethanol-hydrogen powered trucks have logged over 2.1 million hours of operational time and nearly 30 million kilometers in Xinjiang’s mining regions, providing substantial economic and environmental benefits to mining companies and operators.

Huang Hansheng, Director of the Lightweight Truck R&D Institute at XCMG Mining Machinery Co., remarked in an interview that based on practical operations in Xinjiang, methanol vehicles possess notable advantages such as environmental cleanliness and fuel economy, enhancing transport capacity and operational efficiency by over 20%. Their resilience allows stable performance in low and high temperatures as well as at high altitudes while making use of regenerative energy for cycling.

Opinions have emerged suggesting that methanol acts as an optimal carrier for hydrogen, with one cubic meter of liquid hydrogen containing 70 kilograms of hydrogen while one cubic meter of methanol holds 148.3 kilograms

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Utilizing discarded wind and solar energy to produce 'green hydrogen' and subsequently producing 'green methanol' combines hydrogen and carbon dioxide effectivelyOne ton of inferior coal can yield 0.66 tons of methanol, producing 1.67 tons of carbon dioxide, and hydrogenation can produce 1.21 tons of methanol, totaling 1.87 tons—enough to fuel 49 tons of methanol heavy trucks for approximately 2400 kilometers.

In the passenger transport sector, 2023 has witnessed the operational launch of methanol-hydrogen electric city buses within public transport systems in Tianjin and DaqingAccording to practical calculations by the Tianjin Binhai Public Transport Company, the energy consumption cost per 100 kilometers is reduced by 37.9 yuan, saving approximately one-third compared to previous pure electric buses.

China stands as the largest methanol producer and consumer globally, currently accounting for 60% of the world's methanol production capacity

This provides China with a self-controlled supply of methanol energySimultaneously, modern coal chemical technologies coupled with renewable energy sources for producing green hydrogen and oxygen enable effective carbon capture, producing green methanol that meets 'carbon neutrality' standardsIn this field, China is taking a leading position globally.

Shi Jianhua, the Deputy Secretary-General of the China Electric Vehicle Hundred People's Association, expressed the view that methanol-hydrogen technology effectively compensates for the shortcomings of other new energy technologies, making it an important path for the electrification of commercial vehicles.

02 Is Methanol-Hydrogen Technology the Industry of the Future?

When discussing the application of methanol-hydrogen technology in the passenger vehicle sector, Guo Haitao, head of the Energy Economics and Finance Research Institute at China University of Petroleum (Beijing), stated that while the technology is feasible for methanol-hydrogen vehicles, the substantial national investment in and subsidies for electric vehicles cast doubt on the ability and financial capability to expand into a new market segment

The challenges surrounding this shift are considerable.

Indeed, the research and application of methanol fuel and vehicles have received considerable support from relevant ministries, with several standards and supportive policies introducedThis backing has spurred companies, including China National Heavy Duty Truck Group, Shaanxi Automobile Group, FAW Jiefang, Weichai Power, and Yuchai, into entering the methanol energy sector, exploring developments in methanol heavy trucks and related powertrain fieldsIt appears that methanol vehicles are experiencing a pivotal moment in their development.

Sun Maojian, a director and partner at Jingneng New Energy, reported that while the energy conversion efficiency of methanol-hydrogen technology requires improvement, its costs remain comparatively high

Geely is currently a key player aggressively pursuing advancements in this area, with very few other companies investing resources significantlyFurthermore, the infrastructure, including methanol refueling stations, is still inadequate.

A representative from Ideal Auto pointed out that the current methanol-hydrogen vehicle market is still relatively small, requiring several years for adequate cultivation, with little market buzz expected in the foreseeable futureIt’s worth noting that methanol-hydrogen technology struggles to match the benefits and cost effectiveness of lithium battery technology; thus, electric vehicles are currently still holding the advantage due to their superior maturity, lower costs, and outstanding performance.

“If I were to buy a methanol-hydrogen vehicle right now, which brand would you recommend? It doesn’t have to be as well-known as BYD, but are there any in the ‘Weilian’ or ‘Xiaoli’ tier? How much does one cost? What are the operating expenses? How convenient and safe is hydrogen refueling? Confidence in the technology only builds with substantial sales volume,” said the represented party, expressing doubts on the overall market's readiness for methanol-hydrogen vehicles.

Meanwhile, an insider at Aodong New Energy expressed that the company currently has no plans for entering the methanol-hydrogen market due to the high safety and transport management requirements inherent in methanol use

Implementing it within passenger vehicles demands a widespread urban framework, which is presently challengingThough methanol is considered a clean energy source, its physical properties present inherent safety risks, making city-level deployment daunting when compared to conventional fuel stations, given its relative lack of safety.

More than 300 methanol refueling stations have been established nationwide, with plans to construct over 400 more by the end of 2024. Regarding safety at hydrogen refueling stations, Chen Bo, head of the Standard Quota Research Institute of the Ministry of Housing and Urban-Rural Development, indicated that relevant safety regulations have been put in place for constructing such stations, enhancing their overall safety and reliability from the outset.

Shuai Shijin expressed to reporters that while the technological pathways for pure electric and plug-in hybrid models are well-established, pure green methanol passenger vehicles are less likely to gain traction due to their substantial operational costs compared to electric vehicles

Nevertheless, he suggested that specific green methanol engines for plug-in hybrids could have potential opportunities.

Liu Ke, a foreign academician of the Australian Academy of Technological Sciences and Director of the Innovation and Entrepreneurship College at Southern University of Science and Technology, conveyed that green methanol hybrid systems could address common issues faced by electric vehicles, such as expensive batteries, excessive weight, range anxiety, and the slow development of quick charging infrastructureGreen methanol serves as an excellent storage and transportation medium for green hydrogenLiu advocated for harnessing abundant desert resources and low-quality coal in western China to produce green hydrogen, green oxygen, and green methanol, while also improving soil quality to ensure energy and food security, achieving multiple benefits.

He believes that the future direction for developing new energy vehicles will combine electric and green fuel technologies, implying significant potential for methanol-hydrogen passenger vehicles in the future.