Guangzhou (JLC), May 6, 2026--China has built up a capacity of around 8 mln mt/yr of oil equivalent for green fuels, indicating that the industry has begun to take shape, the National Energy Administration said on April 27.
Among these, the installed capacity for green ammonia, green methanol, and sustainable aviation fuel (SAF) has reached approximately 700,000 mt/yr, 380,000 mt/yr, and 1.7 mln mt/yr, respectively.
Green fuels are of great significance for ensuring China's energy security, and building a new energy system. Development of green fuels has become increasingly important given the current turmoil in the Middle East and significant fluctuations in the international oil and gas market, the Administration emphasized.
Green fuels refer to fuels that meet environmental protection requirements and feature low carbon emissions throughout their life cycles. In addition to the traditional fuel ethanol and biodiesel, the green fuel portfolio has expanded to include green ammonia, green methanol, and SAF as the cost of producing green hydrogen from wind and solar power is gradually decreasing thanks to the rapid development of China's new energy industry, the Administration explained.
