Methanol Fuel in China Report

Methanol is a clean-burning alternative fuel increasingly used for heating applications. In China, methanol is widely deployed for cooking, boilers, and industrial kilns, replacing traditional fuels such as coal while delivering cleaner air and more affordable energy solutions. Compared to coal, methanol boilers achieve significant environmental benefits, reducing particulate matter (PM), sulfur oxides (SOx), and nitrogen oxides (NOx) emissions by at least 75%.

In 2025, China’s total methanol fuel consumption reached 8,514 thousand metric tons (KMT). Heat applications accounted for the majority of demand, totaling 7,172 KMT (84.2%), while transportation uses represented 1,342 KMT (15.8%). Within the heating segment, 2,502 KMT were used in cookstoves and 4,670 KMT in boilers and furnaces.

Methanol consumption for inland waterway transport also emerged for the first time, reaching 6 KMT in 2025—an early indicator of the rapid development of this segment in China.
These figures are based on a forthcoming study conducted jointly by the China Association of Alcohol and Ether Fuel and Automobiles (CAAEFA), with support from the Methanol Institute and its member company Methanex Corporation.

Methanol Industrial Boilers

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As the simplest molecule of alcohol, methanol is not only widely used as a building block of thousands chemicals but also as a clean energy for automobiles, cooking and marine applications. In countries like China, methanol is used as a clean alternative fuel to replace coal in various applications in heating, agriculture and manufacturing. In this brochure, you will find some facts about the current methanol usage in boilers.
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Methanol Cook Stoves

Methanol Cook Stove Brochure
In 2016, a study found that nearly 2.6 mil people died globally due to harmful exposure to PM2.5 emissions produced from cooking with polluting fuels such as biomass and waste. This made indoor air pollution one of the leading health risk factors in developing countries. As a clean-burning fuel, methanol emits significantly less harmful emissions that are detrimental to health. It is a safe fuel that is easy to handle as it is a liquid at ambient temperature and pressure, making it suitable for regions that do not have access to gaseous fuels. Methanol’s properties as a fuel have seen it being used as a cooking fuel in industrial kitchens, households, refugee camps, and on ships. Most importantly, it is a cost-efficient fuel for households in developing countries that wish to transition to cleaner cooking solutions. 
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