The Hong Kong and China Gas Company Limited (Towngas) and China Gas Yuanbang Petrochemical (China Gas Yuanbang) have signed a memorandum of cooperation to establish a long-term partnership.
The collaboration aims to develop both local and international markets for green methanol as a shipping fuel, supporting the maritime industry’s green transformation.
Under the agreement, Towngas will supply self-produced green methanol certified by ISCC EU and ISCC PLUS, while China Gas Yuanbang will handle the distribution to its customers. Towngas will also provide technical support and assistance with product certification.
Yang Leiming, Executive Director and CFO of Towngas, highlighted that as governments and international bodies enforce carbon reduction targets in the shipping sector, the demand for green methanol as a sustainable shipping fuel is set to grow steadily.
“Promoting the development of green methanol is an important step in implementing the Green Marine Fuel Bunkering Action Plan. As the largest marine fuel supplier and trader in Hong Kong, China Gas Yuanbang Actively promoting the long-term development plan of green alternative fuel business with partners will help consolidate and enhance the advantages of Hong Kong’s shipping industry and contribute to the construction of a green port in Hong Kong,” stated Zhong Dikang, director and deputy general manager of China Gas Yuanbang.
Towngas is the first mainland enterprise to achieve ISCC EU and ISCC PLUS certification for green methanol. The company’s production facility in Ordos, Inner Mongolia, employs innovative technology to convert biomass and municipal waste into green methanol. The plant is projected to produce 150,000 tons annually by 2025, catering to the shipping and chemical industries.
Looking ahead, Towngas plans to expand its production capacity to 300,000 tons per year through facility upgrades and other measures, contributing to the International Maritime Organization’s target of achieving net-zero carbon emissions in global shipping by 2050.
