Hainan's First 10,000-ton-Scale "Offshore Wind - Green Hydrogen - Green Methanol" Demonstration Project Lands in Yangpu, Danzhou

At the “Dual-Carbon Action: For Green Growth” Danzhou Special Session held in Shenzhen, officials from Shenergy New Energy (Hainan) Co., Ltd. unveiled a complete industrial chain: offshore wind power generates renewable electricity, which is then used to produce green hydrogen. The green hydrogen reacts with carbon dioxide to synthesise green methanol, and the end-product will be supplied to international vessels for bunkering at Yangpu Port. This marks Danzhou-Yangpu’s push to turn offshore wind energy into storable, tradable and export-ready liquid green fuel.

Shenergy Group is developing 1.2 GW of offshore wind capacity in Hainan. Phase-one 603 MW units reached full commercial operation in 2025, while the 576 MW Phase-two complex is scheduled for commissioning by the end of 2026. Upon full completion, the wind farms will deliver over 3.8 billion kWh of clean power annually. Large-scale power output brings challenges for local consumption. The company’s solution lies in on-site conversion: Hainan’s first full-chain green-hydrogen demonstration project is tightly integrated with the CZ2 offshore wind farm. Renewable power from wind turbines feeds on-site hydrogen production, with downstream capacity for green methanol and green ammonia manufacturing.

A core technical hurdle stems from operational mismatch: offshore wind output fluctuates with weather conditions, whereas chemical synthesis requires stable, continuous operation. To resolve this, the project adopts a coordinated operational model. Electrolyser units with different performance characteristics run in tandem; hydrogen storage provides short-term load buffering; the public power grid offers back-up support for extreme scenarios; and smart dispatch algorithms take real-time wind forecasts to smooth volatile wind power into steady production capacity.

Located within Yangpu’s green petrochemical zone, the facility produces green methanol via direct synthesis of green hydrogen and biomass-sourced CO2. Green power accounts for more than 97 % of total energy input, qualifying the output for ISCC sustainability certification. Project filing has been completed; land bidding and auction procedures were finalised this September. Construction will start within 2026, with civil works, commissioning and full-scale commercial launch targeted for end-2027 to deliver 10,000 tons-per-year green methanol output. It will be Hainan’s first such large-scale operational green-hydrogen-to-methanol plant.

The development is driven by surging global shipping decarbonisation demand. International Maritime Organization net-zero targets and the EU Carbon Border Adjustment Mechanism are accelerating shipping’s energy transition. Industry projections estimate global green-methanol demand will hit around 12 million tons by 2030, alongside some 450 methanol-fuelled vessels. Bunkering demand alone for international shipping lanes could reach 40 000-50 000 tons, with EU-bound routes as a key market. On 15 September, Shenergy completed continuous bunkering of 11,000 tons of green methanol at its 100,000-ton-scale green-methanol facility in Shanghai.

Yangpu-Danzhou was selected for several compelling reasons. Hainan plans to add 12.3 GW of new offshore wind capacity by 2030. Hainan Free Trade Port zero-tariff policies for large imported equipment help curb capital expenditure. Strategically positioned as a shipping hub for the New International Land-Sea Trade Corridor, Yangpu holds potential for million-ton-scale green-fuel bunkering capacity. Beyond building a standalone plant, Shenergy intends to build an innovation and test-bed platform for Hainan’s green-fuel industry. Universal technical interfaces will be reserved to validate offshore-wind-to-hydrogen adaptability, integrated power-hydrogen-methanol workflows and grid-interaction mechanisms, generating datasets and operational benchmarks for future 100,000 ton and million-ton-scale projects.

Once the full cycle — offshore-wind hydrogen production, methanol synthesis, international sustainability certification and global ship bunkering — proves commercially viable, Shenergy aims to replicate the model at major port cities including Qingdao, Shanghai, Ningbo and Shenzhen. Volatile offshore wind in Danzhou-Yangpu is being transformed into stable, monetisable clean energy assets, creating a replicable industrial pathway for large-scale renewable energy absorption across Hainan.