AcceleratingtheNet-zeroTransition:AssessingPotentialsofE-fuelsinChina’sRoadTransportClassification:CompanyGeneralUsewww.methanol.orgForewordMethanolasaroadtransportationfuelisnotnew.China,inparticular,boastsmorethanthreedecadesofexperienceusingmethanolincars,trucksandbuses.Today,andaroundtheworld,methanolisgainingextensiveattentionasakeyenableroftheglobalsustainabilitytransition.Asthesimplestalcoholmoleculewiththehighesthydrogen-to-carbonratioofanyliquidfuelatambienttemperature,methanolcanbeuseddirectlyasafuel,fueladditive,orconvertedintogasolineorjetfuelasadrop-incarbonneutralfuelforhard-to-abatesectorsliketransportationandshipping;andmethanolcanbesustainablyproducedfromnumerousrenewablefeedstocks.Carbon-basede-methanolande-gasolineintegraterenewablepowerwithwaterelectrolysis(forgreenhydrogen)andachemicalreaction,resultinginanoverallimprovementingreenhousegas(GHG)emissionperformance.Thisreport-a3E(Environment,EconomyandEfficiency)study-makesthecasefore-fuels(e-hydrogen,e-methanol,ande-gasolineviamethanoltogasoline(MTG)technology)toacceleratethetransitionoftheChineseroadtransportsector.Theauthorscomparethelatestdevelopmentofe-fuelsinadvancedpowertrains(methanol-andgasoline-poweredhybridelectricvehicles,HEVs)withitscounterpartsofconventionalICEV,batteryelectricvehicles(BEV)chargedwithChinesegridelectricitynowandinthefuture,alongwithfuelcellselectricvehicles(FCEV)poweredbye-hydrogen.Takingonemoreconversionstepfrommethanoltogasoline,thedrop-in,liquide-fuelsalsoshowpromisingresultsinoverallenvironmentalperformance,providinganeffectivesolutiontomitigatelifecycleGHGemissionsforbothnewvehiclesandexistingfleetinChina.Whilethecurrentproductioncostofe-fuelspresentschallenges,atapproximately2-3timesmorethantheirfossil-basedcounterparts,Chinaenvisionsovercomingthisbarrierbyleveragingitsabundantrenewablesources,advancedmanufacturingcapabilities,anditsmatureenergyandchemicalvaluechains,toachieveeconomiesforscaleandcompetitiveness.Anticipatedadvancementssuggestthepotentialforhalvinge-fuels’productioncostsby2030–makinge-methanolforexample,only30%highercomparedtoChina’scoal-basedmethanol.Theconfluenceofelectrifiedpowertrainsande-fuels,positionsChinaonanacceleratedtrajectorytowardsustainable,low-carbonmobility.Withthat,Iwouldliketothankthemanycontributorstothisstudy,AsLaoTzunoted,“Thejourneyofathousandmilesbeginswithonestep”andwehopethisreportisanimportantstepforwardinChina’sandtheworld’srecognitionoftherolee-fuelscanplayinthetransitiontocleanerroadtransport.GregDolanCEOoftheMethanolInstitute0405AcknowledgementThisreportiscollaborativelypreparedwithexpertsfromAramcoStrategicTransportationAnalysisTeam,byFrankT.Hong(Asia),VictorGordilloZavaleta(Europe),XingyuXue(Asia).TheauthorsaregratefulforvaluablecommentsandfeedbackfromexpertsofGeelyAutoGroup,OCIGlobalandCompanyrepresentativesinRoadandAviationCommitteeofMethanolInstitute,andTransportTechnologiesR&DDivisionofSaudiAramco.CommentsandquestionsarewelcomeandcanbeaddressedtoBeijingRepresentativeOfficeoftheMethanolInstitute,KaiZhaoat:kzhao@methanol.orgDisclaimerThispublicationandthematerialhereinareprovided“asis”.AllreasonableprecautionshavebeentakenbytheMethanolInstitutetoverifythereliabilityofthematerialinthispublication.However,neithertheMethanolInstitutenoranyofitsofficials,agents,dataorotherthird-partycontentprovidersprovidesawar...