Geely partners with Icelandic company to produce methanol
Zhejiang Geely Holding Group Co. will invest 282 million yuan ($45.5 million) in Icelandic methanol producer Carbon Recycling International over the next three years, with the two partners planning to launch production of methanol fuel in China.
Geely and Carbon Recycling also will develop and sell methanol-powered cars in China, Iceland and other European countries, Geely said last week.
The company did not release other details about the project.
Geely currently produces a small number of methanol-powered cars mainly for the taxi fleet in Jinzhong in north China's coal-rich Shanxi province. Methanol for the cars is produced through a coal gasification process.
The Chinese government in 2013 launched a small scale demonstration program for methanol-fueled vehicles in Shanghai and a select group of cities in north China's Shanxi and Shaanxi provinces and the southwest China province of Guizhou.
After completing a preliminary assessment of the program, the government determined in September 2014 that methanol-powered cars are capable of significantly improved fuel economy and helping reduce emissions compared with gasoline vehicles. However, Beijing has not offered tax incentives for the alternative energy vehicles.
Carbon Recycling, established in 2006 in Iceland, operates a plant in Iceland that produces methanol from carbon dioxide, water and electricity.
The company did not release other details about the project.
Geely currently produces a small number of methanol-powered cars mainly for the taxi fleet in Jinzhong in north China's coal-rich Shanxi province. Methanol for the cars is produced through a coal gasification process.
The Chinese government in 2013 launched a small scale demonstration program for methanol-fueled vehicles in Shanghai and a select group of cities in north China's Shanxi and Shaanxi provinces and the southwest China province of Guizhou.
After completing a preliminary assessment of the program, the government determined in September 2014 that methanol-powered cars are capable of significantly improved fuel economy and helping reduce emissions compared with gasoline vehicles. However, Beijing has not offered tax incentives for the alternative energy vehicles.
Carbon Recycling, established in 2006 in Iceland, operates a plant in Iceland that produces methanol from carbon dioxide, water and electricity.
