Johnson Matthey has partnered with Chinese green energy developer Guangdong Liquid Sunshine to build a 75,000 t/y biomethanol plant in Tiandong County, Guangxi, using its methanol synthesis technology to convert gasified biomass waste. This deal marks the second green methanol plant licence in China, aligning with the country's push to expand renewable methanol output, forecast to reach 8.7 Mt by 2028. Overseas chemical buyers should watch this project as a signal of growing low-carbon methanol supply from China, which could impact global methanol trade flows and feedstock sourcing strategies.
Project details
Johnson Matthey will provide its methanol synthesis technology to convert syngas from gasified biomass waste into biomethanol. The plant, located in Tiandong County, Guangxi, is expected to have a production capacity of 75,000 t/y. Construction on the first phase will begin this year, with a second phase under discussion that could include a separate facility to convert CO2 from the biomethanol plant, combined with electrolytic hydrogen, into e-methanol.
Technology and partnerships
Johnson Matthey's process can use a range of feedstocks, particularly waste biomass, and has been deployed at commercial scale. The company has also signed an agreement with Guangdong Liquid Sunshine and East China Engineering Science and Technology (ECEC) to collaborate on future low-carbon projects. Alberto Giovanzana, CEO of catalyst technologies at Johnson Matthey, said: "Our world-leading methanol synthesis technology will play an increasingly vital role as the site eventually integrates biomethanol with e-methanol production."
China sourcing context
China is already the world's largest producer and consumer of methanol and is rapidly expanding its renewable output, with production forecast to reach around 8.7 Mt by 2028, according to chemical analytics firm Gena Solutions. The project aligns with China's latest five-year plan (2026–2030), which aims to accelerate the energy transition by increasing production of low-carbon fuels including methanol, ammonia and sustainable aviation fuel. Giovanzana added: "Johnson Matthey has worked in China for more than 30 years with the country's largest, most successful energy and chemical producers."
What buyers should watch
Overseas methanol buyers should monitor this project as it represents a growing source of biomethanol from China, which could offer an alternative to fossil-based methanol for downstream industries such as solvents, coatings, and fuel blending. The potential integration of e-methanol production in a second phase could further diversify supply options. Buyers should also track China's renewable methanol capacity expansion, as it may influence global pricing and availability of low-carbon methanol.
Source: Read the original report | Published: May 01, 2026