HONG KONG – 8 July 2025, In a landmark move to accelerate the maritime industry’s transition to low-carbon fuels, Towngas –The Hong Kong and China Gas Company Limited and Vopak China Management Co., Ltd. (Royal Vopak) have signed a strategic cooperation agreement to develop a comprehensive green methanol supply chain, spanning production, storage, bunkering, and regional trading. The collaboration is aimed at boosting clean fuel availability across mainland China, Hong Kong, and the broader Asia-Pacific region.
The partnership combines Towngas’s expertise in green methanol production—using waste biomass and scrap tyres—with Vopak’s international logistics and terminal infrastructure. Together, the companies plan to create a scalable, integrated bunkering and supply network for green methanol, a key alternative fuel in the decarbonisation of shipping.
“Towngas has recently completed Asia’s largest 6,000-tonne green methanol bunkering project, supported by Royal Vopak’s Tianjin terminal,” said Mr. Sham Man-fai, Chief Operating Officer – Green Fuel and Chemicals at Towngas. “This agreement is a strategic step forward in establishing a reliable, cross-regional bunkering ecosystem for sustainable marine fuels.”
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A Strategic Energy Alliance
The agreement outlines coordinated development in green methanol production and terminal services, with a focus on enhancing storage and logistics synergies in key maritime hubs including:
- Greater Bay Area (Hong Kong, Shenzhen, Guangzhou) – where both firms will collaborate on terminal construction and bunkering logistics.
- East China (Shanghai, Ningbo) – to serve growing demand for low-emission marine fuels at two of the world’s busiest ports.
- Bohai Bay (Tianjin) – where Towngas will route methanol from its northern production base to Vopak’s storage tanks, enabling regional and international distribution.
The companies also plan to expand beyond China, targeting emerging bunkering markets in Singapore, Vietnam, South Korea, and Japan.
Scaling Green Methanol for Global Shipping
Towngas, one of Hong Kong’s oldest and largest energy providers, is rapidly scaling its green methanol production to meet rising demand from the shipping sector. Its Inner Mongolia facility is on track to increase annual capacity from 100,000 tonnes to 150,000 tonnes by the end of 2025, with plans to reach 300,000 tonnes by 2028 and ultimately 1 million tonnes per year through new plants across China.
The company uses proprietary waste-to-methanol technology certified under ISCC EU, ISCC PLUS, and ISO 14067, enabling compliant supply for international markets.
Meanwhile, Royal Vopak—headquartered in the Netherlands—brings its vast global storage network to the table. In China alone, Vopak operates terminals in nine coastal provinces, offering over 3.5 million cubic metres of tank storage capacity. The firm has been positioning itself as a key logistics enabler for next-generation fuels, including ammonia, biofuels, hydrogen, and CO₂ storage.
“The collaboration supports Royal Vopak’s broader strategy to enable the energy transition through scalable, safe, and efficient fuel infrastructure.”
Eyes on the Asia-Pacific Bunkering Market
The collaboration comes amid increasing regulatory pressure on global shipping to decarbonise. As IMO targets net-zero greenhouse gas emissions by 2050, demand for green bunkering infrastructure is surging across Asia’s key maritime trade routes.
With their combined technical capabilities and market access, Towngas and Vopak aim to become leading players in Asia’s green methanol market, offering a vertically integrated supply chain—from production to bunkering—positioned to serve both domestic and international fleets.
About Royal Vopak
Royal Vopak, based in the Netherlands, is the world’s leading independent provider of tank storage infrastructure for energy and chemical products. With a 400-year heritage, Vopak is a key facilitator of the global energy transition, focusing on clean fuel logistics, including ammonia, hydrogen, biofuels, and green methanol. Its China operations play a critical role in supporting regional fuel supply chains through strategically located coastal terminals.
About Towngas
Founded in 1862, Towngas is one of Hong Kong’s most established public utilities and a major clean energy player across China. Its business spans piped gas, renewable energy, water, and waste-to-energy solutions. The company operates over 1,000 projects across 29 provincial regions in China, and is a pioneer in certified green methanol production, hydrogen energy, and sustainable aviation fuel.
Source Towngas Hong Kong