Sheneng Group’s first batch of green methanol is set to be exported; urban wet waste is heading around the world

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The 100,000-ton green methanol project based in Shanghai and operated by SHENENG Group is currently the largest of its kind in the world, using waste materials such as wet waste from a single city as raw material for the production of green methanol. But the true value of this project lies not only in its scale but also in the revolutionary breakthroughs in its technical approach. In September 2025, the Shanghai 100,000-ton green methanol project, pursued jointly by four municipal state-owned enterprises including Shenneng Group, Chengtou Group, Huayi Group, and Shanghai Port Group, obtained ISCC EU and PLUS certification for the entire process, covering raw material supply, methanol production, as well as trading, storage, transportation, and refueling. The eleven certification certificates obtained by the project cover the raw material processing facilities of SHENENG Group’s biomass facility in Langxia Town, Jinshan District, as well as those of CHENGTOU Group’s ecological protection facility in Laogang; the production facilities of HUAYI Group; and the trading, storage, and refueling operations carried out by SHENENG Group and SHANGGANG Group. These certifications signify that Shanghai’s 100,000-ton capacity green methanol project has obtained the necessary ‘green pass’ to enter the global market and carry out refueling activities at Shanghai Port. On January 31, 2026, the Shanghai project on \"the targeted conversion of biogas carbon into green methanol\" announced a significant technical breakthrough at the Shanghai Laogang Ecological Environment Protection Base: a pilot plant with a capacity of thousands of tons has successfully implemented the entire production process, yielding green methanol that meets the standards for use as fuel in international shipping. The purity of this methanol is 99.99%, while the content of bio-based carbon is 97.78%. On April 13, 2026, Huaguang Energy Co., Ltd. signed a green methanol procurement and supply agreement with Shanghai Shenji Energy Environment Technology Co., Ltd. The first batch of green methanol that meets EU certification standards is scheduled to be shipped and delivered in the first half of 2026. This agreement marks the official entry of green methanol produced in Shanghai into the international market. Leveraging the shipping resources of its parent company, Huaguang Marine, as well as Hong Kong’s strategic location, Huaguang Energy is committed to acting as a bridge for Chinese green methanol producers to reach end-users around the world. Leveraging its expertise in the utilization of biomass energy, Shenji Energy supplies ISCC-certified bio-methanol. The partnership between the two parties covers not only product supply but also extends to all aspects of the supply chain, including raw material sources and the issuance of green certification documents, thereby establishing a practical and traceable framework for the standardized trading of green fuels. The carbon reduction benefits of this batch of green methanol can help downstream shipping customers meet the increasingly stringent compliance requirements imposed by EU carbon tax policies and regulations such as FuelEU Maritime. Currently, the international shipping industry is facing unprecedented pressure to decarbonize. Starting in 2026, the shipping industry will no longer have any free quotas; it will be fully integrated into the EU’s carbon trading system. At the current price of 85 euros per ton of carbon, the overall cost of traditional fuels, including the carbon price, will be 50% to 79% higher than the cost of raw materials. The continuous rise in compliance costs is forcing global shipping companies to accelerate their shift to green fuels. This means that the market value of green methanol produced in Shanghai is being reassessed. It is no longer just an “environmental option”; it is becoming an essential requirement for shipowners to avoid huge compliance costs and achieve decarbonization in shipping.