Strengthening key players to extend industrial chains and build clusters – Shanxi Jinzhong is developing a methanol economy ecosystem worth hundreds of billions of yuan

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Strengthening key players to develop industrial chains and form clusters – Jinzhong, Shanxi, aims to build a methanol economy ecosystem worth hundreds of billions of yuan. Author/Source: Economic Daily; Date: 2022-03-27; Clicks: 25. Producing 1 million tons of green methanol per year, manufacturing 100,000 methanol-powered vehicles annually, building 1,000 methanol refueling stations, producing 50,000 methanol-powered heavy trucks per year, and achieving an annual economic output of over 50 billion yuan… Building on the existing infrastructure for new energy vehicle industries, Jinzhong City in Shanxi Province has launched the development of a methanol economy demonstration zone, with the goal of creating a first-class methanol industry hub, producing advanced methanol engines and vehicles, establishing a green methanol production and refueling system, and fostering a methanol economy ecosystem worth hundreds of billions of yuan. As one of the earliest pilot cities in China to explore the use of methanol fuel and methanol-powered vehicles, Jinzhong City has a competitive advantage in areas such as the production of methanol-powered vehicles, methanol fuel production technologies, and methanol fuel refueling. In recent years, Jinzhong City has made great efforts to promote the use of methanol-powered vehicles, by focusing on developing and strengthening the industrial chains related to methanol fuel and methanol vehicles, thereby driving the transformation and upgrading of its industrial economy. A responsible official from the relevant department in Jinzhong said that the methanol industry there started developing early, boasts a solid industrial foundation, strong technical support, and a complete supply chain. After more than 30 years of development, a comprehensive methanol industry ecosystem has been established, covering methanol research and development, equipment manufacturing, and fuel distribution. Jinzhong is the city in China where the benefits of the methanol economy have been most widely applied, and where industrialization efforts are strongest. Geely’s Jinzhong facility was established to produce methanol-powered vehicles, and it has already carried out a number of pilot projects to manufacture the most advanced such vehicles. At the same time, the development of the automobile industry in Jinzhong has gained momentum, providing a platform for the application of the methanol economy. The new energy vehicle industry is one of the 8 emerging industrial clusters that Jinzhong City is focusing on developing. In its new energy vehicle industrial park, with companies such as Geely, Meijin, Paul, Snard, and AVIC Lantian moving in one after another, a strategic layout of \"one chain and three lines\" has been established, focusing on three main categories: passenger vehicles, commercial vehicles, and special-purpose vehicles. The park has the capacity to produce 100,000 passenger vehicles, 5,000 commercial vehicles, and 20,000 special-purpose vehicles per year; it currently represents the longest industrial chain, the largest scale, and the greatest variety in Shanxi Province’s automotive industry. By the end of the 14th Five-Year Plan period, the Jinzhong New Energy Vehicle Industrial Park will have more than 60 enterprises operating there, along with over 80 enterprises specializing in components, thus creating an industrial structure characterized by a \"1+10\" collaborative development model. The annual production of new energy vehicles in this park will account for 95% of the total production in Shanxi province. It is understood that the construction of the **-level methanol economy demonstration zone in Jinzhong City was launched this year. Efforts are being made to attract projects for manufacturing 50,000 units of Geely G3 methanol-powered heavy trucks per year; 5,000 units were produced through production line upgrades in the first half of the year. The city will also make use of the policies related to its status as a pilot city for developing a strong transportation sector, in order to promote the trial operation of these methanol-powered heavy trucks in the urban cluster of central Shanxi first. Chang Shuming, mayor of Jinzhong City, said that the city will focus on developing the new energy vehicle industry as a leading sector, by strengthening key enterprises, extending industrial chains, and building industrial clusters. By leveraging its existing advantages in the methanol vehicle industry, Jinzhong will establish a **-level methanol economy demonstration zone, aiming to see it take shape within three years and become established within five years. The goal is to create an economic ecosystem related to methanol worth hundreds of billions of yuan, so as to play a leading role in Shanxi’s efforts to build an advanced manufacturing base in the central region of China.