A Geely GC9 sedan is pictured in the carmaker's Hangzhou plant on May 31, 2015. [Photo / Xinhua]

REYKJAVIK -- China's Geely Holding Group, known as the world's leading methanol vehicle manufacturer, inked a deal on Friday to make an investment of $45.5 million in three years to Iceland's Carbon Recycling International (CRI), known as the world leader in power to methanol technology.

Addressing the agreement signing ceremony, Li Shufu, founder and chairman of Geely Holding Group, said, "it is no doubt that methanol will be widely used as its advantages compared with gasoline fuel will be more and more prominent. I believe the cooperation with CRI will greatly promote Geely's development in clean energy for vehicles."

CRI produces renewable methanol, marketed under the Vulcanol brand, from carbon dioxide, hydrogen and electricity for energy storage, fuel applications and efficiency enhancement.

Methanol is a clean burning, high octane fuel that can be blended with gasoline for automobiles and used in the production of biodiesel or fuel ethers and reduces carbon emissions by more than 90 percent compared to fossil fuels.

"The investment of Geely to CRI will enable carbon recycling expand into China as well as into Europe. It will accelerate the deployment of our technology in China as well as in Europe. It will facilitate the development of methanol fuel cars," said K-C Tran, chief executive officer of CRI.

Geely became the first auto manufacturer in China to begin conducting research and development into methanol vehicle solutions in 2005, and has since acquired dozens of patents.

It's Englon SC7 sedan was the first methanol-fuelled car to receive approval from China's ministry of industry and information technology.

Scientific studies indicate that methanol-fuelled cars generate as much as 80 percent fewer fine particulate matter (PM2.5) emissions than traditional gasoline-powered equivalent and cost an average of 40 to 50 percent less to fuel.

"In this sense, Geely group is a natural investment partner for CRI. With the deepening of this partnership, we will explore the possibility of promoting methanol vehicles that will meet local standards here in Iceland and other European countries," Li added.

Describing Geely's cooperation with CRI as an important practice to realize their commitment to the global sustainable development, Li said, "Geely is unique in researching and manufacturing methanol vehicles around the world, and so is CRI in converting carbon dioxide into methanol. The cooperation between these two companies will promote the development of the clean energy and the carbon cycle economy."