China powers green fuel sector as it expands production capabilities

China has already made phased progress in cultivating its green fuel sector, marked by steadily expanding production capabilities, according to the China Green Fuel Development Report 2026, the country's first comprehensive industry panorama report recently released by the National Energy Administration.

By the end of 2025, China's total green fuel production capacity reached about 8 million metric tons of oil equivalent per year, it said.

Within this broader expansion, emerging sectors such as green methanol, green synthetic ammonia, and sustainable aviation fuel have recorded annual capacities of 380,000 tons, 700,000 tons, and 1.7 million tons, respectively. These figures firmly establish the country's supply capacity as a major force in the global market, the report said. 

Green fuels—characterized by their low carbon emissions throughout their entire lifecycles—are gaining unprecedented momentum worldwide. With the continuous decarbonization of global shipping and aviation, international demand for these fuels is set to continue surging in the upcoming years.

Leveraging its abundant renewable energy and biomass resources, China is exceptionally well-positioned for large-scale commercialization, said the NEA.

Meanwhile, the NEA also noted that the industry must still overcome existing hurdles, such as high production costs, insufficient market demand, and international certification barriers.

Looking ahead, the NEA vows to consolidate the industry's foundational development to address these practical challenges.

Authorities will focus on systematically improving policy support frameworks, accelerating the establishment of standard certification systems, and promoting targeted technological breakthroughs and industrial pilot projects, ensuring China provides robust solutions for the global energy transition, it said.

zhengxin@chinadaily.com.cn