China Accelerates E-Fuel and Synthetic Fuel Development

China E-fuel market was valued at $10.5 billion in 2024 and is projected to reach $87.1 billion by 2035, growing at a CAGR of 19.4% during the forecast period (2025–2035). The utilization of e-fuels in China is expanding rapidly, followed by improved renewable energy integration and cleaner fuel technologies. Rising efforts to reduce carbon emissions in the transport and industrial segments are further boosting market adoption. Strategic investment in manufacturing centers and associated infrastructure is supporting domestic supply powers. Increasing interest among automotive and aviation companies is propelling demand growth. Government policies encouraging a sustainable transition to energy have established a favorable policy framework.  

Browse the full report description of “China E-Fuel Market Size, Share & Trends Analysis Report by Fuel Type (E-Diesel, E-Gasoline, E-Hydrogen, E-Methanol, E-Ammonia, and E-Kerosene), by State of Fuel (Portable, Stationary, and Transportation (Automotive, Aviation and Marine)), and by Application (Liquid Fuel and Gas Fuel), Forecast Period (2025-2035)” at https://www.omrglobal.com/industry-reports/china-e-fuel-market

According to the People's Republic of China, in July 2025, Total installed power generation capacity is predicted to be approximately 3.9 terawatts by the end of 2025, a year-on-year growth of about 16.5%. Nonfossil fuel sources are predicted to share 2.4 TW, or 61.0% of overall capacity.

China has significantly increased synthetic fuel manufacturing to diversify its energy resources and minimize its reliance on crude oil. For instance, a Chinese company making a synthetic fuel alternative for diesel is the Shenhua Ningxia Coal-to-Liquids (CTL) project, owned by the Shenhua Group in Ningxia. This CTL facility converts coal into synthetic diesel (and naphtha) through direct coal liquefaction methods—offering a synthetic diesel product in place of conventional petro-derived diesel.

Key Market Developments

• In May 2024, Shanxi International Energy Group signed an agreement with a local government in northern China to produce 350,000 tons a year of green aviation fuel made from wind-powered hydrogen. The ¥10.7 billion  ($1.49 billion) project in the administrative region of Jarud Banner, Inner Mongolia (also spelled as Zharut Banner), includes 1GW of new wind power, used on an off-grid basis to produce green hydrogen that would then be combined with captured CO2 to produce e-kerosene chemically identical to fossil-based jet fuel. Shanxi International Energy Group has agreed to produce 350,000 tons of e-kerosene a year in Inner Mongolia using green H2.

• In March 2024, TotalEnergies and China Petroleum and Chemical Corporation (“SINOPEC”) signed a Heads of Agreement (HoA) to jointly develop a Sustainable Aviation Fuel (SAF) production unit at SINOPEC's refinery in China. The planned unit, jointly owned by SINOPEC and TotalEnergies, is estimated to produce 230,000 tons of SAF per year, and process local waste or residues from the circular economy (waste cooking oils, animal fats). 

Market Coverage

• The market number available for – 2024-2035

• Base year- 2024

• Forecast period- 2025-2035

• Segment Covered- 

o By Fuel Type

o By Application 

o By State of Fuel

• Competitive Landscape - Aramco (Saudi Arabian Oil Company), Audi AG, Ballard Power Systems, HIF Global, and Norsk e-Fuel, among others

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

China E-Fuel Market Report Segment

By Fuel Type

• E-Diesel
• E-Gasoline
• E-Hydrogen
• E-Methanol
• E-Ammonia 
• E-Kerosene 

By Application

• Portable

• Stationary

• Transportation

o Automotive 

o Marine 

o Aviation

By State of Fuel

• Liquid Fuel

• Gas Fuel

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