Towngas and Global Energy to advance green methanol as marine fuel

They will integrate production and logistics.

A memorandum of understanding has been signed between Hong Kong and China Gas Company Limited (Towngas) and Global Energy Trading Pte Ltd (Global Energy) in Singapore that aims to advance the supply and distribution of green methanol as a marine fuel for the shipping industry.

In a statement, Towngas said the partnership will integrate the parties’ production and logistics capabilities to develop green methanol supply solutions across major and regional ports in Asia.

“By combining Towngas’s strengths in green methanol production with Global Energy’s supply chain management and market operation expertise, we are creating a robust platform to accelerate the shipping industry's decarbonisation journey,” said Sham Man-fai, COO–Green Fuels & Chemicals of Towngas.

Loh Hong-leong, managing director of Global Energy said aside from supply, the company could also offer advisory on compliance and in managing the benefits of using green methanol.

Towngas’s methanol production plant in Ordos, Inner Mongolia converts biomass and municipal waste into green methanol. It plans to expand its production bases across China, including in Inner Mongolia, the Greater Bay Area, and Hainan, to achieve its goal of an annual production capacity of 1 million tonnes of green fuel and chemical supplies.

Meanwhile, Global Energy has delivered over 4.7 million tonnes of marine fuels in 2024.