Towngas and Royal Vopak partner to develop green methanol supply chain

Key development areas include the GBA, East China, and Bohai Bay (Tianjin).

The Hong Kong and China Gas Company Limited (Towngas) and Royal Vopak have signed a strategic cooperation agreement to jointly build a green methanol supply chain across mainland China, Hong Kong, and the Asia-Pacific region.

The partnership covers green methanol production, storage, transportation, bunkering, and trading, aimed at supporting the shipping industry's transition to low-carbon fuel.

Towngas will supply green methanol using its proprietary technology, which converts agricultural and forestry waste, as well as scrap tyres, into clean fuel.

The company holds international certifications and currently supports bunkering operations. Royal Vopak will provide storage and terminal services through its network of coastal ports and infrastructure across the region.

In the Greater Bay Area, both parties will develop integrated logistics and storage facilities across Hong Kong, Shenzhen, and Guangzhou.

In East China, efforts will center on Shanghai and Ningbo to expand bunkering and storage capacity in response to growing demand.

Meanwhile, in the Bohai Bay region, green methanol produced in northern China will be transported to Royal Vopak’s storage facilities in Tianjin and distributed across national and regional markets.

The companies also plan to expand exports to key Asia-Pacific markets, including Singapore, Vietnam, Japan, and South Korea.

Towngas plans to increase annual output at its Inner Mongolia plant from 100,000 to 150,000 tonnes by the end of 2025, with a long-term goal of reaching 300,000 tonnes by 2028.

The company also intends to build multiple new production plants across China, targeting an annual capacity of one million tonnes to support large-scale applications of green methanol.