China powers green fuel sector as it expands production capabilities

China is scaling up its green fuel industry, supported by steadily expanding production capacity, according to the China Green Fuel Development Report 2026 released by the National Energy Administration. By the end of 2025, total green fuel production capacity reached about 8 million metric tons of oil equivalent per year. The report highlights emerging segments including green methanol (380,000 tons annually), green synthetic ammonia (700,000 tons) and sustainable aviation fuel (1.7 million tons). It frames these figures as evidence of China’s growing supply role in global markets. The NEA says demand is expected to rise as shipping and aviation decarbonize, but hurdles remain, including high costs, limited market pull and international certification barriers.