China’s dominance in the global energy industry has become all too real in recent years as the nation aims to increase energy generation capacity while keeping a close eye on emissions. China has now announced that Inner Mongolia Yide Hydrogen Energy is moving ahead with plans for its 350,000-ton green methanol plant, following the government granting approval for the project to progress this year.

China’s astonishing growth in the energy sector has led the nation to reach for the stars

China has one of the largest populations in the world, with the latest figures stating that China’s population stood at 1.41 billion in 2025. All those people will need energy and electricity for everyday life. As a result of the expected increase in demand for energy, the Chinese government has implemented its latest Five-Year plan to advance the energy output capacity.

On the last day of 2025, the Chinese regulators approved the development plan for Inner Mongolia Yide Hydrogen Energy Technology’s latest green methanol facility. This has become a common occurrence in China as the nation needs to develop more alternative energy generation processes.

Due to the climate crisis, decarbonization of the global energy market is necessary

It has become abundantly clear that the world needs to develop measures to drastically reduce the amount of carbon released into the atmosphere. Decarbonization of the global energy industry is the best method to achieve this.

By investing in green methanol, China is fostering a new future that will see vast numbers of nations turning to China for their green methanol needs. Green methanol is an essential low-carbon liquid fuel and chemical, which is produced by renewable energy and carbon capture.

Compared to traditional fuels, green methanol cuts carbon dioxide emissions by up to 95%, meaning it will play a vital role in emission reduction efforts across the global energy marketplace.

China is aiming to dominate the green hydrogen and methanol market

With the Chinese officials granting the approval for Inner Mongolia Yide Hydrogen Energy to move ahead with the 350,000-ton green methanol plant, the reality is that China will most likely dominate the green hydrogen and methanol market this year and further afield into the future.

Inner Mongolia Yide Hydrogen Energy is a Chinese company specifically focused on the green methanol and hydrogen market. The latest venture by the Chinese energy market to develop its green methanol sector will be located in the Baotou Jinshan Economic Zone, Guyang County.

“China’s ascension in the global hydrogen economy presents a formidable challenge to U.S. efforts to assume leadership in the clean energy transition,” – Fuel Cell & Hydrogen Energy Association (FCHEA)

China is hoping to lead the global energy transition to the renewable sector

As the global hydrogen market is set to reach astonishing levels this year, as noted by market analysts, China is aiming to lead the global surge in green hydrogen and methanol production. Recent data reveal that the global clean hydrogen pipeline is set to see 1,500 hydrogen projects this year.

“Development of hydrogen is an important move for energy transition and a great support for China’s carbon peak and carbon neutrality goals,”- Wang Xiang of the National Development and Reform Commission (NDRC)

China’s 2026–2030 Five-Year Plan reveals the future of the hydrogen market

China’s 2026–2030 Five-Year Plan has opened the door for substantial investments in green hydrogen production across the entire value chain. China already sits atop the energy mountain, regularly competing with the United States for the status of the world’s top oil producer. However, as the US implements measures to roll back permits for clean energy production, China’s 2026–2030 Five-Year Plan paints a much different picture for the green hydrogen and methanol sector.

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