Towngas And CPN Sign Green Methanol Distribution MOU To Promote Hong Kong As A Green Port

The Hong Kong and China Gas Company Limited (Towngas) and Chimbusco Pan Nation Petro-Chemical Company Limited (CPN) have recently signed a Memorandum of Understanding (MOU). Both parties agreed to establish a long-term partnership to jointly develop domestic and international green methanol marine fuel markets and promote the maritime industry’s green transition.

Towngas and CPN will collaborate on green methanol fuel distribution. Towngas will supply CPN with its self-produced green methanol, which has obtained ISCC EU and ISCC PLUS certifications. CPN will be responsible for distributing the green methanol fuel to its customers. Towngas will also provide support in handling technical enquiries and providing product certification documents.

Mr Edmund Yeung Lui-ming, Executive Director & Chief Financial Officer of Towngas, who witnessed the signing ceremony, noted that demand for green methanol as marine fuel will continue to rise as governments and international organisations worldwide implement decarbonisation requirements for the shipping industry. “Towngas is committed to expanding its green methanol production capacity and, through industry collaboration, responding to the Government’s recently promulgated Action Plan on Green Maritime Fuel Bunkering to contribute to Hong Kong’s development as a green maritime fuel bunkering centre.”

Mr Calvin Chung Dik-hong, Director & Deputy General Manager of CPN, stated, “Implementing green methanol development is a crucial step in realising the Action Plan on Green Maritime Fuel Bunkering. As Hong Kong’s largest bunker fuel supplier and trading house, CPN actively pursues long-term development plans for alternative marine fuels with partners, helping to strengthen and enhance Hong Kong’s maritime industry advantages and contribute to establishing Hong Kong as a green port.”

Towngas is the first enterprise on the Chinese mainland to receive ISCC EU and ISCC PLUS certifications for green methanol. The Company’s methanol production plant in Ordos, Inner Mongolia, uses proprietary technology to convert biomass and municipal waste into green methanol. Production is expected to reach 150,000 tonnes annually in 2025, serving both the maritime and chemical industries. Through retrofitting existing facilities and other measures, the Company plans to gradually increase the annual production capacity to 300,000 tonnes, supporting the International Maritime Organization (IMO)’s target to reach net-zero carbon emissions from international shipping by or around 2050.