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Goodbye to hydrogen, EVs, and gasoline ― China and Malaysia team up to produce this new fuel

by Warren S.
May 21, 2025
in Mobility
New fuel emerges from Asian partnership

Credits: Royal IHC

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A new fuel that could be the end to hydrogen, EVs, and gasoline? Sign us up. The powerhouse team of China and Malaysia has the potential to significantly change the outlook towards the alternative fuel sector. The new fuel that the two Asian giants are setting their sights on has hardly been explored to find its full potential. The alternative fuel market is one that the biggest manufacturers in the world have invested huge amounts of resources and time into, with varied results. Is this just another hairbrained idea or something tangible that we can actually use for the future?

How did the world find all these “new fuel” sources for our mobility needs?

The alternative fuel revolution began when Toyota released the Prius way back in 2000. After first testing the new type of hybrid power in the Japanese market, they then proceeded to release it to the American market. The next real innovation in the sector came when Tesla became the belle of the EV ball. Their Model S was the prime example of the technology of the time and the first truly successful EV attempt.

The EV’s popularity became so massive that it propelled Musk into “richest man in the world” status. Competitors emerged out of other major economic hubs like China in the form of BYD, which stands for “Build Your Dreams”. BYD has quickly overtaken Tesla and is now the world leader in the EV sector by some distance. While the world was buying up every EV in sight, other countries began exploring alternative fuel sources like hydrogen.

One of those countries was South Korea. Hyundai was the first major car manufacturer to start exploring the potential of hydrogen in all its possible forms and applications, whether it be fuel cell stack technology or the newer hydrogen-powered internal combustion engines coming out of the region. No matter the “new fuel ” of choice, so long as it was considered “green,” it got sizeable investments.

What have China and Malaysia started producing to make this “new fuel”?

As previously mentioned, the emphasis on the “new fuel” explorations has been on finding a “green fuel” to not only power the human race into the future, but also do so sustainably and without the harsh carbon footprint that has been a by-product of mankind’s technological advancements. The latest “new fuel” is one that has the Chinese and Malaysians working together.

Sarawak Petchem Sdn Bhd is a Malaysian state-owned company, established in June 2017, that produces methanol. Methanol is a green fuel that produces zero emissions and is made by “employing water electrolysis technology powered by renewable energy, along with captured carbon dioxide as feedstock in the synthesis of methanol,” according to Sarawak chairman Tan Sri Abdul Aziz Husain, creating methanol from hydrogen and CO2.

The Malaysian company has began exporting tons of the green methanol to China. The Chinese have huge energy needs as they have a huge population density, and the booming economy over the past few decades means that their energy needs have surpassed most other major economies, with Europe exploring its own solutions to the energy crisis that the world is facing.

Can China and Malaysia move the world toward green methanol?

The new green fuel, methanol, will be used at first for the large shipping industry. While there are some advantages to the EV and its applications for the personal mobility sector, it has experienced some problems as of late, with Tesla exemplifying the current state of the EV market. The green methanol being produced in Malaysia has the potential to move the world even closer to the carbon-neutral goals we have set for ourselves. The world is acutely aware of the climate crisis, and the “new fuel” coming out of Asia is a step in the right direction for all of us.

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