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Nitrogen+Syngas 397 Sep-Oct 2025

15 September 2025

Methanol from biomass

Methanol from biomass

Chinese electrolyser manufacturer LONGi Green Energy has begun construction on a $325 million green methanol project in Inner Mongolia that will combine biomass gasification with hydrogen from the company’s electrolysers. The project, being developed at the Urad Rear Banner Industrial Park, will process 600,000 t/a of agricultural waste to produce 190,000 t/a of green methanol in the first phase. Phase 2 will expand ethanol capacity to 400,000 t/a, with hydrogen coming from new electrolysers powered by 850 MW of wind and 200 MW of solar power. LONGi says that the project will cut carbon dioxide emissions by 1.2 million t/a, while adding more than 1 GW of wind and solar capacity to the region’s energy mix.

“Urad Rear Banner boasts abundant wind and solar resources, resulting in low-cost green electricity, enabling economical scale power generation,” said Yu Litao, vice president of Xi’an LONGi Clean Energy Co, Ltd. “The abundant local agricultural biomass provides a low-cost source of carbon dioxide feedstock, laying the foundation for the subsequent development of a green methanol synthesis industry chain.”

Latest in Asia

Manyar smelter faces supply issues

Freeport Indonesia may be forced to suspend operations at its Manyar smelter at the end of October due to a lack of copper concentrate, according to local press reports. The news follows the mudslide at the Grasberg mine in September, which killed seven workers. Grasberg, which represents almost 3% of global copper mine production, has halted production and Freeport says that it may not return to pre-accident operating rates until 2027. Stocks of copper concentrate at Grasberg were estimated to be only sufficient to operate the Manyar smelter until the end of October. The $3.7 billion Manyar smelter only resumed operations in May after a fire broke out in October last year, damaging the plant.

Government to limit new nickel projects

The Indonesian government has moved to limit new licenses for nickel projects in an attempt to correct overdevelopment of the industry and the subsequent crash in global nickel prices. The permit restriction applies to new nickel processing companies that produce intermediate products, both with pyrometallurgical (RKEF) and hydrometallurgical (HPAL) technologies. Currently, Indonesia already has 54 nickel processing plants operating, 38 in the construction stage, and 45 are still under planning.

Paradeep plans additional phosphoric acid capacity

Paradeep Phosphates Ltd (PPL) has announced a $400 million capacity expansion program, following its October 13th merger with Mangalore Chemicals & Fertilizers Limited (MCFL). This company says that the move aims to strengthen PPL's market position and enhance its production capabilities. The investment will involve increasing granulation capacity by 1.0 million t/a at the Paradeep site, as well as an additional 250,000 t/a of phosphoric acid and 750,000 t/a of sulphuric acid capacity at the company’s new Mangalore site. The expansion is expected to be completed within three years, according to PPL, and is expected to ensure 100% backward integration for fertilizer production, reduce import dependency, and enhance operational capabilities and profitability. low-contaminant phosphate concentrate that allows for easy conversion into purified phosphoric acid. The company has spent over C$100 million advancing the project and has received funding and investment from the Quebec Government.

METI funds hydrogen for steel and ammonia production

As part of the Japanese government’s Green Transformation scheme, two hydrogen producers have been selected to receive subsidies for low-carbon production projects. Out of the overall $1 trillion GX scheme, $51 billion is earmarked for hydrogen and ammonia investments, with the bulk going towards a long-term programme that subsidises the increased production costs. The first two recipients are a Toyota Tshuho-led consortium (electrolytic hydrogen for steel), and Resonac (hydrogen from used plastics for ammonia). In the programme, production projects are required to have the support of a major hydrogen consumer – in Resonac’s case, this is Japanese chemicals giant Nippon Shokubai, who will offtake the ammonia produced from lower-carbon hydrogen.