In a move that aligns with the global push towards sustainable energy solutions, The Hong Kong and China Gas Company Limited (Towngas) has entered into a strategic framework cooperation agreement with Vopak China Management Co., Ltd. (Royal Vopak). The partnership aims to strengthen collaboration in areas including green methanol production, storage, bunkering, and trading, with a focus on driving growth in mainland China, Hong Kong, and the broader Asia-Pacific region.
By combining their unique capabilities, Towngas and Royal Vopak are working to establish a robust and efficient green methanol supply chain. Towngas uses its proprietary technology to produce green methanol from agricultural residues, forestry by-products, and waste tyres. This process has earned multiple international certifications and ensures a stable supply of green methanol, particularly for maritime fuel applications. Royal Vopak, on the other hand, brings extensive experience in terminal operations and offers a wide-reaching port network and storage infrastructure essential for the handling and distribution of green methanol.
The joint initiative is designed to enable effective resource sharing and transport green methanol to strategic regions such as the Greater Bay Area, East and South China, and across Asia-Pacific markets, supporting the decarbonisation of the shipping industry.
The agreement outlines plans to deepen regional collaboration, starting with the Greater Bay Area. Ports in Hong Kong, Shenzhen, and Guangzhou will play key roles in developing integrated logistics and terminal facilities, with an emphasis on synchronising production and storage. In East China, efforts will be centred around the international ports of Shanghai and Ningbo, where the focus will be on expanding storage and bunkering infrastructure to meet surging demand for clean marine fuels. Meanwhile, in the Bohai Bay region, Towngas will deliver green methanol from its northern China production facility to Royal Vopak’s storage terminal in Tianjin. From there, the product will be distributed via Royal Vopak’s network, ensuring supply coverage across northern China and beyond.
Beyond China, the partnership sets its sights on international markets including Singapore, Vietnam, Japan, and South Korea, aiming to accelerate regional clean energy adoption and strengthen the competitiveness of green fuels.
“Towngas has recently completed a 6,000-tonne green methanol bunkering project, the largest in Asia. It was completed with the support of Royal Vopak’s Tianjin storage tank farm facilities, laying a solid foundation for this partnership. Towngas’s Inner Mongolia green methanol plant is set to increase its annual capacity from 100,000 tonnes to 150,000 tonnes by the end of this year, with plans to further expand to 300,000 tonnes by 2028. Together with Royal Vopak’s storage and terminal services infrastructure and coastal port network, the two parties will build a comprehensive green methanol supply chain network.”
Mr Sham Man-fai, Towngas Chief Operating Officer – Green Fuel and Chemicals.
Looking ahead, Towngas is accelerating its efforts to scale up production capacity. Through its dedicated green methanol platform, the company plans to develop multiple production plants across China, with the goal of reaching an annual capacity of one million tonnes. This expansion is designed to support the broader deployment of green methanol across regional and international markets.
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