A "Liquid Sunshine" demonstration project in Ordos, designed to turn renewable power and captured carbon dioxide into green methanol, is charging ahead at full speed, with the first output expected by late 2026.

The "Liquid Sunshine" project. [Photo/WeChat account of Nuan News]

"The main structural frameworks for the hydrogen production plants are complete, and we are making progress on pipeline prefabrication," said Liu Liqiang, deputy general manager of the new energy subsidiary of ChinaCoal Ordos Energy Chemical Co. "The goal is to begin commissioning by April or May 2026 and producing qualified methanol by September 30, 2026."

With a total investment of 4.9 billion yuan ($702.55 million), the project is a cornerstone of China's strategy to decarbonize its vast industrial sector. It has a massive 400 MW solar and 225 MW wind power system designed to produce "green hydrogen". This hydrogen is then combined with carbon dioxide captured from existing chemical plants to synthesize methanol – a versatile chemical fuel and feedstock.

Upon completion, the facility will produce 21,000 metric tons of green hydrogen annually. Compared to conventional coal-to-methanol processes, it is expected to save 140,000 tons of coal and reduce carbon dioxide emissions by approximately 500,000 tons each year, while yielding 100,000 tons of methanol.

Hailed as the world's first industrial-scale "Liquid Sunshine" model, the project will see the establishment of a complete industrial chain integrating green power, green hydrogen, and carbon recycling. It paves the way for large-scale green hydrogen application in heavy industry and marks a significant step forward in China's efforts to develop a more sustainable chemical manufacturing sector.