The Hong Kong and China Gas Company Limited (Towngas) has signed two strategic memoranda of understanding (MOUs) aimed at bolstering Hong Kong’s role as a regional hub for green maritime fuel. The agreements, inked at the Mainland Hong Kong Green Energy Matchmaking Event held at the Central Government Offices, were made with the Transport and Logistics Bureau (TLB) and Pacific Basin Shipping Limited (Pacific Basin). The event was hosted by the Commercial Office of the Economic Affairs Department of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region.
These partnerships support the Hong Kong SAR Government’s initiative to establish the city as a key center for green fuel bunkering and trading in the maritime sector.
Expanding Green Methanol Adoption
Under the MOU with the Transport and Logistics Bureau, Towngas will act as a supplier of green methanol that complies with current international marine fuel standards. The company will use Hong Kong as a base for green methanol trading, delivery, export, and bunkering—enhancing the territory’s role in the global clean shipping fuel supply chain.
The Transport and Logistics Bureau will incorporate Towngas into Hong Kong’s green maritime fuel business platform, facilitating engagement with industry stakeholders, including liner companies, bunkering operators, and third-party institutions.
In a parallel move, Towngas formalized an agreement with local shipping operator Pacific Basin to ensure a reliable green methanol supply for its fleet. The collaboration aims to help Pacific Basin meet increasingly stringent decarbonisation requirements set by the EU and the International Maritime Organization (IMO).
Martin Fruergaard, CEO of Pacific Basin, highlighted the strategic significance of the partnership:
“This collaboration represents a vital step toward securing access to the growing volumes of green fuel our ships will require. Towngas brings proven production capabilities, deep domain expertise, and a commitment to decarbonisation that aligns perfectly with our goals.”
Scaling Up Production
Towngas’s green methanol is produced from waste materials such as scrap tyres and agricultural residues at its facility in Inner Mongolia. The product has achieved multiple international certifications, including ISCC EU, ISCC PLUS, and ISO6583, making Towngas the first enterprise in China to obtain dual ISCC certification while maintaining industrial-scale production.
Recently, the Inner Mongolia plant supported a large-scale bunkering operation at Shanghai Port—currently the largest green methanol bunkering project in Asia.
Towngas is set to expand its annual production capacity at the Inner Mongolia facility from 100,000 tonnes to 150,000 tonnes by the end of 2025. It has also partnered with Foran Energy to build additional facilities in mainland China. Among these, the Foshan plant is projected to produce 200,000 tonnes per year in its first phase by 2028, with an overall target of one million tonnes annually.
Strategic Vision
Peter Wong Wai-yee, Managing Director of Towngas, described the MOUs as a major step in advancing Towngas’s green transformation:
“We continue to support the Government’s carbon neutrality goals and strengthen Hong Kong’s position as a leading international shipping center by providing sustainable fuel solutions to the maritime sector.”
These latest agreements follow a previously signed MOU with Chimbusco in November, which laid the foundation for a complete green methanol supply chain in Hong Kong.
Tags: Clean Energy, Energy Transition, Green Fuel, Green Methanol, Hong Kong Shipping, MaritimeDecarbonization
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