Chinese electrolyser giant Longi has begun building a two-phase green methanol complex in Urad Rear Banner Industrial Park, Inner Mongolia, that will produce 400,000 tonnes annually from biomass and renewable hydrogen.

Phase one will deliver 190,000 tonnes of methanol each year by gasifying local agricultural waste such as sunflower stalks and corn stover into syngas, which will then be processed into methanol.

Phase two will see Longi install 100 of its own 5 MW electrolysers, powered by 850 MW of wind and 200 MW of solar, to produce 54,000 tonnes of green hydrogen annually. This hydrogen will be combined with CO₂ captured from the biomass process to produce a further 210,000 tonnes of methanol — primarily for use as clean shipping fuel.

When complete, the 500 MW hydrogen capacity will match the world’s largest existing green hydrogen facility. Construction is expected to finish before 2027.

Local authorities say the project will boost green energy use, industry upgrades, tax revenues, jobs, and farmer incomes.