China has abundant biomass and renewable energy resources suitable for producing green methanol via biomass thermochemical conversion. Given China’s increasing demand for sustainable fuel alternatives and the urgency to reduce carbon emissions, optimizing biomass utilization through gasification is critical. Research has highlighted the potential of integrating biomass gasification with water electrolysis to enhance efficiency in green methanol production, leveraging China’s vast biomass reserves to establish a cleaner energy pathway. Four main biomass gasification technologies—fixed-bed, fluidized-bed, pressurized fluidized-bed, and entrained-flow—have been investigated. Fixed-bed and bubbling fluidized-bed gasification face low gas yield and scaling issues; whereas, circulating fluidized-bed gasification (CFB) offers better gas yield, carbon efficiency, and scalability, though it exhibits high tar and methane in syngas. Pressurized fluidized-bed gasification improves gasification intensity, reaction rate, and equipment footprint, yet stable feedstock delivery under pressure remains challenging. Entrained-flow gasification achieves high carbon conversion and low tar but requires finely crushed biomass, restricted by biomass’ low combustion temperature and fibrous nature. Current industrially promising routes include oxygen-enriched and steam-based CFB gasification with tar cracking, which reduces tar but requires significant energy and investment; oxygen-enriched combustion to produce CO₂ for methanol synthesis, though oxygen in flue gas can poison catalysts; and a new high oxygen equivalence ratio CFB gasification technology proposed here, which lowers tar formation and effectively removes oxygen from syngas, thereby enabling efficient green methanol production. Overcoming feedstock challenges, optimizing operating conditions, and controlling tar and catalyst poisoning remain key hurdles for large-scale commercialization.