Authoritative interpretation of the \"Guiding Opinions on the Deployment of Methanol-powered Vehicles in Certain Areas\"

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Recently, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Public Security, the Ministry of Ecology and Environment, the Ministry of Transport, the National Health Commission, and the State Administration for Market Regulation jointly issued the \"Guiding Opinions on the Deployment of Methanol-Fueled Vehicles in Certain Areas\" (MIIT Joint Notice [2019] No. 61) (hereinafter referred to as the \"Guiding Opinions\"). The following is an interpretation of the relevant contents of the \"Guiding Opinions\": Question: What is the background for the issuance of the \"Guiding Opinions\"? Answer: Methanol, when used as a substitute fuel for vehicles, possesses the advantages of low carbon content, high oxygen content, and high octane rating; these characteristics facilitate complete combustion and can effectively increase engine power. The research, development, and application of methanol-powered vehicles in our country began at the end of the 1970s. Through over 40 years of continuous exploration and practice, a number of vehicle and engine manufacturing companies such as Geely Automobile, Shaanxi Heavy Industry Automobile, Yutong Automobile, and FAW Jingye have acquired proprietary technologies for methanol-powered vehicles. They have solved key technical issues associated with methanol fuel, such as its corrosiveness, problems during cold starts, and swelling effects, and thus possess the capability to develop methanol-powered vehicles independently. Since 2012, the Ministry of Industry and Information Technology, in collaboration with relevant departments, has carried out pilot projects for methanol-powered vehicles in five provinces and municipalities: Shanxi, Shanghai, Shaanxi, Guizhou, and Gansu. These efforts have enabled a scientific and systematic evaluation of the performance aspects of methanol-powered vehicles that are of concern to the public, including their suitability, reliability, cost-effectiveness, safety, and environmental impact, thereby laying an important foundation for the promotion and use of such vehicles. Our country is characterized by abundant coal resources but limited oil and gas reserves; its energy structure is dominated by coal, while it relies heavily on imports for crude oil and natural gas. In 2018, the dependence on imported crude oil was 70%, and that on imported natural gas was 43%. More than 40% of China’s coal resources are high-sulfur coals. These low-quality, high-sulfur coals are not suitable for use directly as fuel in power generation or industry, but they can be used to produce methanol. At present, methanol produced from coal accounts for about 75% in China; methanol can also be manufactured using raw materials such as coke oven gas and coalbed methane. In 2017, China’s methanol production capacity was 83.51 million tons, while the actual production volume was 61.47 million tons; the utilization rate was around 74%, indicating an overcapacity situation. Considering China’s resource profile and the current status of methanol vehicle development, promoting the regional use of methanol vehicles is in line with the country’s conditions. It not only helps to make full use of China’s coal resources and facilitate the transformation and upgrading of traditional industries, but it also contributes to green and circular development, promotes energy diversification, and ensures **energy security. Question: What efforts have been made in the pilot programs for methanol-powered vehicles? Answer: Since 2012, the Ministry of Industry and Information Technology, in conjunction with relevant departments, has carried out pilot programs for methanol-powered vehicles in 10 cities across five provinces and municipalities – Shanxi, Shanghai, Shaanxi, Guizhou, and Gansu – including Jinzhong, Changzhi, Shanghai, Xi’an, Baoji, Yulin, Hanzhong, Guiyang, Lanzhou, and Pingliang. The pilot projects were all completed in 2018, and they passed the acceptance assessment organized jointly by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology, achieving positive results. A total of 1,024 methanol-powered vehicles were put into operation as part of the pilot project; the total driving distance covered by these vehicles exceeded 184 million kilometers, with each vehicle traveling over 350,000 kilometers on average. In total, more than 24,000 tons of methanol fuel were consumed. First, it has improved the technical level of methanol-powered vehicles. A total of 17 batches of announcements were issued, covering 9 methanol vehicle manufacturers and 32 types of methanol vehicle models. This has resulted in a range of vehicle types including methanol-powered sedans, heavy commercial vehicles powered by both methanol and diesel, microcars, and urban buses, thus establishing an industrial framework for the manufacturing of complete methanol vehicles as well as specialized components for them. Second, the supporting standards and specifications have been improved. Technical specifications such as the \"Technical Requirements for Methanol-Fueled Vehicles,\" the \"Construction Standards for Methanol Fuel Filling Stations for Vehicles,\" and the \"Safety Standards for Operations Involving Methanol Fuel for Vehicles\" were formulated and issued. Additionally, a series of national, local, and industry standards regarding methanol fuel additives and filling machines were promulgated. Third, it verified the performance of methanol vehicles. A total of over 500 million basic technical data points were collected in 12 areas, including methanol engines and complete vehicles, human health, and environmental impacts. The various performance aspects of methanol-powered vehicles, such as reliability, adaptability, environmental friendliness, safety, and cost-effectiveness, were effectively verified. Fourth, it explored market-based development models for methanol vehicles. Guidance was provided to the pilot provinces and cities to introduce support policies such as including methanol-powered vehicles within the scope of policy support for new energy vehicles, expanding taxi quotas, and reducing fees related to taxi operating rights as well as highway tolls. These measures aim to encourage operating companies to engage in market-based cooperation and to foster the development of various business models. Question: What are the advantages of adopting methanol-powered vehicles in our country? Answer: Considering the actual conditions of our country, there are three advantages to promoting the use of methanol-powered vehicles at present. First, there is extensive experience in the actual operation and management of methanol-powered vehicles. Through years of practice, methanol vehicle technology has continued to improve, and the relevant standards and regulations have been continuously refined. Companies have actively explored market opportunities, giving rise to various business cooperation models that have accumulated valuable experience for the commercial deployment of methanol vehicles. Second, the industrial foundation for methanol vehicles has been initially established. At present, China has initially established a system for the research and development, production, and testing of methanol-powered vehicles. Some automobile manufacturers such as Geely Automobile and Shaanxi Heavy Duty Truck Industry have achieved a certain level of production capacity, while various research institutions including the China Automotive Technology and Research Center possess the capability to test methanol-powered vehicles. Third, methanol resources are secure. The raw materials for production come from a wide range of sources; in particular, methanol is produced from low-quality coal, coalbed methane, coke oven gas, etc. The production technology is mature, enabling the maximum clean and rational utilization of coal resources. Question: What are the overall approach and basic principles of the \"Guiding Opinions\"? Answer: The \"Guiding Opinions\" are guided by **Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era**, fully implement the spirit of the Party’s *guidelines, adhere to the new development philosophy, deepen supply-side structural reforms, and pursue an innovation-driven development strategy. It is important to take into account local conditions, proceed in a proactive yet cautious manner, and ensure safety and controllability when developing methanol-powered vehicles in areas where such applications are feasible. Strengthen the rational development of the methanol vehicle industry, accelerate the improvement of industrial policies, technical standards, and market application support systems, enhance the level of market adoption, and maintain China’s leading position in the fields of products, technologies, and specialized equipment related to methanol vehicles. This will help accelerate the diversification of energy sources and the development of clean energy vehicles, promote the transformation and upgrading of traditional industries, foster new sources of economic growth, and advance green, circular, and low-carbon development. The Guidelines focus on the principles of adapting measures to local conditions, proceeding in a proactive and cautious manner, and ensuring safety and controllability. They emphasize the need to proceed based on reality, taking into account available resources; to promote energy diversification where appropriate, and to ensure proper coordination. Second, it is necessary to give full play to the decisive role of the market in resource allocation, stimulate the enthusiasm and creativity of enterprises, strengthen policy guidance, and promote coordinated development. Third, by relying on technological innovation, it is possible to make the production process of methanol fuel cleaner and more efficient, thereby promoting the sustainable development of methanol fuel. Question: What specific guiding policies are emphasized in the \"Guiding Opinions\"? Answer: Guiding opinions are provided in four main areas: the development of a manufacturing infrastructure for methanol-powered vehicles, the establishment of systems for the production and distribution of methanol fuel, the development of standards for methanol-powered vehicles, and the application of such vehicles. Accelerating the development of the methanol vehicle manufacturing ecosystem is an important core task. Automobile and related parts manufacturers should improve the manufacturing system for methanol-powered vehicles through technological upgrades, enhance the technical level of such vehicle production, and develop a variety of products to meet market demands. Improve the construction of methanol vehicle production bases and rationalize the layout of methanol vehicle manufacturing. Promoting the development of methanol fuel production and refueling infrastructure is an important foundational task. In the production of methanol, the use of integrated resource utilization processes and technologies, as well as their practical application, is encouraged. Methanol fuel manufacturers should organize production in strict accordance with **standard requirements, and comply with laws and regulations related to environmental protection as well as emission standards. Local **departments should ensure proper coordination and make a rational plan for the construction of methanol fuel filling stations. Accelerating the development of standard systems is an important supporting task. In light of the characteristics and application requirements of methanol-powered vehicles, efforts should be accelerated to develop standards related to these vehicles as a whole, their engines, pollutant emissions, methanol fuel, and fueling systems. Active participation in the development of international standards is also necessary, so as to ensure that the standards for methanol-powered vehicles are forward-looking and innovative. To encourage the use of methanol-powered vehicles, it is necessary to strictly adhere to the principles of adapting measures to local conditions and proceeding in a cautious and steady manner. The focus should be on accelerating the adoption of M100 methanol-powered vehicles that meet environmental standards in areas where the conditions permit, so as to fully reflect the characteristics of each region. Local **departments should play a guiding role by offering preferential policies in areas such as procurement and operation; methanol vehicle manufacturers should assume their responsibilities and provide proper after-sales service. Question: What regulatory requirements are set out in the Guidelines for methanol-powered vehicles? Answer: To uphold the principles of safety and controllability, strengthen the regulation of methanol-powered vehicles, and promote their healthy and sustainable development, the Guidelines put forward regulatory requirements primarily in three areas. First, production and import enterprises of methanol vehicles are required to disclose information on environmental protection and maintenance technologies in accordance with the law, and to carry out this disclosure through the official websites of the Ministry of Ecology and Environment and the Ministry of Transport. Environmental protection authorities in various regions carry out supervision during and after the process, and impose strict penalties in accordance with the law on manufacturing enterprises that fail to disclose information. Second, new methanol-powered vehicles are required to strictly comply with the existing emission limits and testing method **standard requirements. Until relevant emission standards are introduced, the emission limits for methanol and formaldehyde shall be controlled in accordance with the specified limits for the time being. Regular emission tests for existing methanol vehicles powered by ignition systems and existing methanol engines powered by diesel ignition-compression systems shall be carried out in accordance with the reference standards for now. Third, provincial environmental protection authorities are required to strengthen supervision and inspection of methanol-powered vehicles to ensure they meet environmental standards; they should increase the frequency of random inspections and tests, and impose strict penalties in accordance with the law on those vehicles that exceed emission limits. Methanol vehicle manufacturers should take effective measures in accordance with standard requirements to ensure compliant emissions. Question: How can we ensure the implementation of the Guidelines? Answer: To promote the effective enforcement of the Guidelines and facilitate the smooth development of methanol vehicle applications, five key safeguard measures have been proposed. First, strengthen organizational leadership; multiple departments need to coordinate their efforts to create a unified approach and play a guiding role, while local **departments should establish working mechanisms. Second, develop feasible plans; local **departments should put forward specific implementation plans based on the actual development needs of their regions, to ensure the orderly progress of all tasks. Third, it supports market-based applications by handling vehicle registration, licensing, and safety inspections for methanol-powered vehicles in accordance with relevant laws and regulations, and by implementing mandatory product certification and disclosure of environmental information. Study the policies that encourage and support the development of methanol vehicles. Fourth, strengthen operational management by effectively supervising and regulating the production, transportation, and refueling of methanol fuel, as well as the production and operation of methanol-powered vehicles, to ensure the safe, stable, healthy, and environmentally friendly use of such vehicles. Fifth, it is necessary to strengthen publicity and international cooperation to create a favorable social environment for the sustainable development of methanol vehicles, and to promote their use in the international market.