Towngas and CPN ink MoU for green methanol bunker fuel distribution

Hong Kong-based marine fuel oil supplier Chimbusco Pan Nation Petro-Chemical (CPN) on Tuesday (19 November) said it has signed a Memorandum of Understanding (MoU) with The Hong Kong and China Gas Company Limited (Towngas) to collaborate in green methanol fuel distribution to promote Hong Kong as a green port. 

Both will jointly develop domestic and international green methanol marine fuel markets and promote the maritime industry’s green transition.

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, said: “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, Towngas 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.

Hong Kong recently revealed the Action Plan on Green Maritime Fuel Bunkering to develop Hong Kong into a top-tier green maritime fuel bunkering centre through five major strategies and 10 actions to achieve the International Maritime Organization’s emission reduction goals.

With the timely implementation of the Action Plan, the Government expects that Hong Kong will provide bunkering services to ocean-going vessels powered by green maritime fuels such as LNG or green methanol for over 60 times a year by 2030, involving over 200 000 tonnes of green maritime fuels.\

Related: Hong Kong unveils action plan to become green maritime bunkering centre

Photo credit: Chimbusco Pan Nation Petro-Chemical Company
Published: 20 November, 2024