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Reprinted from China Bioenergy Network (http://www.bioenergy.cn): Methanol production in China began in 1957, with plants for producing methanol from coal or coke being built in places such as Jilin, Lanzhou, and Taiyuan during the 1950s. A number of small and medium-sized plants were built in the 1960s, and a co-production process for methanol was developed based on the ammonia synthesis industry. In the 1970s, the Sichuan Vinylon Plant introduced a 95 kt/a low-pressure process unit that used acetylene off-gases as raw material, based on British ICI technology. In December 1995, the 200 kt/a methanol production plant, jointly designed by the Eighth Design Institute of the Ministry of Chemical Industry and the Shanghai Chemical Engineering Design Institute, was successfully put into operation at Shanghai Pacific Chemical Company, marking a new step forward in China’s methanol production technology toward larger scale and greater domestic production. In 2000, Hangzhou Linda Company developed the JW low-pressure homogeneous methanol synthesis tower technology, which possesses complete independent intellectual property rights; this technology broke the long-standing monopoly held by a few foreign companies such asICI and Lurgi. In 2004, it won the Second Prize for Technical Invention. With the steady progress of China’s economic development, the imbalance between supply and demand for energy fuels has become increasingly severe, which has led to widespread attention being paid to the issue of alternative fuels. In the search for alternative fuels, methanol fuel exhibits unique advantages. With strong support from relevant national and local authorities, and through years of effort, China has achieved significant progress in the research and development of methanol fuel. Methanol production in China is concentrated in the South, East, and North China regions, accounting for 27.11%, 23.79%, and 16.63% respectively. The main provinces involved in production are Henan, Shaanxi, Shandong, Shanghai, Hebei, Chongqing, and Anhui. From January to December 2004, China’s total production of high-purity methanol was 4,387,090.86 tons, representing a 47.44% increase compared to the same period in 2003 ； In 2005, the domestic production of pure methanol amounted to 5,362,246.52 tons, representing a 21.62% increase compared to the same period the previous year ； Entering 2006, domestic production of pure methanol saw a significant increase; the cumulative output from January to November 2006 was 6,671,255.23 tons. The domestic import and export situation of methanol was favorable. From 2001 to October 2006, the total domestic imports decreased year by year, while the total exports generally increased on an annual basis. Notably, from January to October 2006, 96,802,733.00 kilograms of methanol were exported. In terms of the market, the methanol market was active in 2004, with significant increases in production and sales volumes; prices remained at high levels, indicating a strongly bullish market trend. Since 2005, the domestic methanol market has performed quite well, with prices rising steadily, from 1,100 yuan in January to a peak of 2,100 yuan. In 2005, despite a decline in methanol prices, it remained at a high level of 1,900 yuan. In 2006, the methanol market was a notable highlight in the chemical industry; throughout the year, the prevailing price range was between 2,500 and 3,500 yuan per ton, with prices reaching as high as 3,950–4,200 yuan per ton. Such high levels and large price fluctuations were the highest seen in the past decade. It has turned out that the future prospects for the methanol industry are very promising. In line with its commitments upon joining the World Trade Organization, China first abolished quota controls on the import of refined oil products, allowing foreign investors to operate oil storage and retail businesses on a wholly-owned basis. Subsequently, foreign investors were allowed to engage in the wholesale of refined oil products, thereby integrating with the world economy. Therefore, under the guidance of policies, the market and efficiency can greatly promote the substantial development of the methanol industry. Given the needs of **economic development and energy strategic security, the conditions are now ripe for the widespread adoption of methanol fuel. The development of methanol fuel has reached a critical stage, and its rapid advancement has become imperative.