Towngas is scaling its green methanol production to 500,000 tonnes per year by 2028 through a strategic new biomass-to-fuel plant in Foshan, Guangdong, developed via its VENEX joint venture. This dual-production framework across northern and southern China establishes a resilient supply chain designed to cement Hong Kong’s position as a global green bunkering hub and accelerate the decarbonization of international shipping.
Hong Kong | May 14, 2026 – The Hong Kong and China Gas Company Limited (Towngas) has unveiled a major capacity expansion that will see its green methanol production surge to 500,000 tonnes per annum by 2028. The move is a decisive effort to provide the scale necessary to transform Hong Kong into a global leader for sustainable maritime refueling.
The centerpiece of this strategy is a new production facility in Foshan, Guangdong, which will serve as the southern anchor of Towngas’s supply chain, complementing its existing operations in Inner Mongolia.
The Foshan Initiative: Scaling via Circular Economy
The new plant is being developed by VENEX Company Limited, a joint venture formed in mid-2025 between Towngas and Foran Energy. By focusing on advanced biomass gasification, the facility turns regional waste into high-value marine fuel:
- Waste-to-Fuel Feedstock: The plant will utilize agricultural and industrial residues, specifically sugar cane bagasse and wood processing offcuts.
- Phased Capacity: The first phase is scheduled for commissioning in 2028, adding an initial 200,000 tonnes of annual capacity to the Towngas portfolio.
- Advanced Gasification: The process ensures the production of high-purity green methanol that meets the rigorous standards required for dual-fuel maritime engines.
Supply Chain Resilience: The Dual-Production Masterstroke
For the bunkering industry, the “dual-production layout” spanning Northern (Inner Mongolia) and Southern (Guangdong) China is a strategic game-changer.
This geographic diversification mitigates logistical risks and ensures a stable, high-volume flow of compliant fuel to the Port of Hong Kong. As shipowners face the looming pressures of FuelEU Maritime and global carbon taxes, Towngas is positioning itself as the most reliable supplier in the Greater China region.
“Our dual-production layout boasts a total annual capacity of 500,000 tonnes, providing a stable supply chain to support Hong Kong’s development as a green maritime fuel bunkering hub,” the company stated.
VENEX: A New Force in Asian Green Fuels
Though Towngas has a history dating back to 1862, its evolution through VENEX marks its transition into a modern energy titan. Now recognized as one of the largest green methanol producers in Asia, VENEX is tasked with:
- Investing in and operating green fuel and chemical projects.
- Supplying compliant, high-quality fuels to help the maritime industry meet international decarbonization mandates.
- Supporting China’s national “30-60” dual carbon goals.
Hong Kong’s Green Bunkering Ambition
As the maritime sector shifts away from heavy fuel oils (HFO), green methanol has emerged as a frontrunner due to its “drop-in” potential and lower handling complexity compared to ammonia or hydrogen. With 500,000 tonnes on the horizon, Towngas is effectively de-risking the transition for carriers operating along the trans-Pacific and intra-Asia trade lanes.
From Street Lamps to Sustainable Shipping
Founded as Hong Kong’s first public utility, Towngas has transitioned from a local gas supplier for street lighting into a diversified energy conglomerate. Today, its portfolio spans:
- Core Gas Operations: Production, distribution, and appliance marketing.
- Engineering & Telecoms: Building services and technical infrastructure.
- New Eco-Energies: The strategic frontier where green methanol now sits as a flagship product.
As the 2028 deadline approaches, the maritime world will be watching Foshan. With 500,000 tonnes of green methanol on the horizon, Towngas is not just fueling ships; it is fueling the credibility of Hong Kong’s green corridor.
About The Hong Kong and China Gas Company Limited (Towngas)
Established in 1862, Towngas is the public utility with the longest history in Hong Kong and one of the city’s largest energy suppliers, operating at world-class standards of corporate management and operations. For generations, Towngas has provided safe and reliable energy solutions to the public, leading the way in the Greater China energy sector.
In 1994, Towngas expanded its business into the Chinese mainland. The Company now operates over 970 projects across 29 provincial regions. In recent years, Towngas has been actively developing clean energy solutions, including hydrogen energy, marine green methanol, and sustainable aviation fuel, supporting Hong Kong’s goal of achieving carbon neutrality before 2050 and China’s national “30-60” dual carbon goals.
Source: Towngas