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Towngas and Pacific Basin ink MoU for green methanol bunker fuel supply

Towngas signed MoUs with both Transport and Logistics Bureau and Pacific Basin Shipping to support Hong Kong’s aim to be a green maritime fuel bunkering and trading centre.

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Towngas and Pacific Basin ink MoU for green methanol bunker fuel supply

The Hong Kong and China Gas Company Limited (Towngas) on Wednesday (25 June) said it signed memoranda of understanding (MOUs) with both the Transport and Logistics Bureau (TLB) and Pacific Basin Shipping Limited (Pacific Basin), supporting the HKSAR Government’s initiative to develop Hong Kong as a green maritime fuel bunkering and trading centre.

Green methanol produced by Towngas’s subsidiary uses scrap tyres and agricultural and forestry waste as production feedstock, and has obtained multiple international certifications, including ISCC EU, ISCC PLUS, and ISO6583. 

Towngas is China’s first enterprise to achieve both ISCC EU and ISCC PLUS dual certification whilst commencing large-scale green methanol production.

Under the MOU signed with the Transport and Logistics Bureau, Towngas, as a green maritime fuel producer, will actively supply marine green methanol fuel that complies with current international standards for delivery, bunkering, export, and trading in Hong Kong. The Company will use Hong Kong as a trading and settlement hub, supporting the territory’s development of a green maritime fuel trading market.

The Transport and Logistics Bureau will incorporate Towngas into Hong Kong’s green maritime fuel business cooperation platform, facilitating connections with stakeholders interested in purchasing green maritime fuel, including bunkering operators, liner companies, and other third-party enterprises or institutions, with the aim of developing green maritime fuel-related business in Hong Kong and connecting to international markets.

Simultaneously, Towngas signed an MOU with local shipping company Pacific Basin, establishing a framework for green methanol supply cooperation. Towngas will supply green methanol to Pacific Basin to help its fleet comply with EU and International Maritime Organization carbon emission reduction requirements.

To support green methanol market deployment, Towngas had earlier signed an MOU with Chimbusco in November last year, establishing a complete green methanol supply chain in Hong Kong.

Mr Peter Wong Wai-yee, Towngas Managing Director, stated: “The two MOUs signed today with the HKSAR Government and Pacific Basin mark another step forward for Towngas on the path of green energy transformation. We have consistently provided clean, sustainable fuel solutions for the global shipping industry, supporting Hong Kong’s achievement of carbon neutrality goals and assisting the Government in building a green maritime fuel bunkering centre, thereby consolidating Hong Kong’s position as an international shipping centre.”

Mr Martin Fruergaard, Chief Executive Officer of Pacific Basin, said, “Our collaboration with Towngas represents important progress in our efforts to enhance our priority access to increasing and eventually very large volumes of green fuels, including green methanol, that ships will need to comply with tightening maritime decarbonisation regulations. Towngas has proven production capabilities, a strong commitment to innovation and decarbonisation, and a deep understanding of shipping’s green fuel needs which, combined with its expansion plans and role in Hong Kong and China’s green marine fuel bunkering ambitions, make Towngas an ideal partner for us.”

Towngas’s green methanol production facility is located in Inner Mongolia, where the product produced recently completed bunkering operations at Shanghai Port—the first large-scale bunkering operation and currently Asia’s largest green methanol bunkering project.

Towngas will continue to increase green methanol production capacity to meet the shipping industry’s growing demand for green methanol. The Inner Mongolia facility’s annual capacity is expected to increase from 100,000 tonnes to 150,000 tonnes by the end of this year. Additionally, the Group, together with Foran Energy, plans to build multiple green methanol production facilities on the mainland, targeting an annual capacity of one million tonnes. The Foshan facility is expected to achieve an initial annual capacity of 200,000 tonnes in its first phase by 2028. 

 

Photo credit: Towngas
Published: 26 June, 2025

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 mt annually.

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Ship design and engineering service provider Western Baltic Engineering on Thursday (16 July) showcased its latest concept design for a green methanol bunkering vessel, developed for the operational needs of the Port of Klaipėda.

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 metric tonnes (mt) annually. 

“It is Western Baltic Engineering’s first concept dedicated exclusively to green methanol bunkering, expanding our portfolio of alternative-fuel vessel solutions,” the company said in a social media post.

“Building on our experience in methanol-ready vessel design, it reflects our continued focus on enabling the industry’s transition to cleaner fuels.”

“As the maritime sector evolves, engineering companies have a responsibility not only to respond to market needs but also to anticipate future challenges,” said Marius Arkusauskas, Director at Western Baltic Engineering.

“By exploring emerging technologies and alternative fuel applications, we help our partners prepare for the next generation of maritime operations while contributing to a more sustainable future.”

 

Photo credit: Western Baltic Engineering
Published: 20 July, 2026

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China launches methanol shipping supply chain alliance to accelerate green transition

Marine fuel suppliers in the alliance include Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai), and Shenzhen Port Energy Development.

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China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

 

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

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MTF releases new safety guidelines for methanol-fuelled ships

Recognising that methanol as a marine fuel remains at an early stage of adoption, the guidelines place particular emphasis on risk-based decision-making, continuous improvement and organisational agility.

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The Maritime Technologies Forum (MTF) recently announced the publication of new guidelines to support companies in developing new Safety Management Systems (SMS) and strengthening existing SMS for ships using methanol as marine fuel.

As the maritime industry accelerates its decarbonisation efforts, low-carbon methanol has emerged as one of the most scalable alternative fuel options. 

Its liquid state under ambient conditions, compatibility with existing fuel infrastructure, and increasing industry adoption make methanol an attractive near-term solution. However, its toxicity, low flashpoint and invisible vapour and flame characteristics introduce new safety challenges for the maritime industry that require enhanced procedural controls and risk management measures for safe operations.

“Developed collaboratively by MTF members and industry stakeholders with expertise in methanol fuel technologies and the International Safety Management (ISM) Code, the guidelines provide methanol-specific recommendations across all functional areas of an SMS,” MTF said in a statement. 

Recognising that methanol as a marine fuel remains at an early stage of adoption, the guidelines place particular emphasis on risk-based decision-making, continuous improvement and organisational agility. 

The guidelines emphasised the importance of learning from hazardous occurrences, near-misses and accidents involving methanol fuel.

The report also highlighted the importance of developing versatile SMS frameworks capable of supporting mixed-fuel operations during the transition period, where both conventional fuels and methanol may be carried and used onboard.

Human factors are identified as a critical element in ensuring safe methanol operations. The guidelines recommend that companies assess competency, training, familiarisation and resource requirements based on individual roles and responsibilities.

By providing clear, practical recommendations aligned with the ISM Code, the new MTF guidelines aim to support the safe and effective adoption of methanol as fuel while enabling the maritime industry’s transition towards lower-carbon shipping.

Note: The new guidelines can be viewed here.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 17 July, 2026

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