The Hong Kong and China Gas Company (Towngas) has inked a strategic framework cooperation agreement with tank storage company Royal Vopak to expand the green methanol supply chain and support the shipping industry’s low-carbon transition.
Under the agreement, Towngas and Vopak will collaborate on the production, storage, bunkering, and trading of green methanol, with a focus on the Chinese mainland, Hong Kong, and Asia-Pacific markets.
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Towngas will deploy its proprietary technology to convert agricultural and forestry waste as well as scrap tyres into green methanol and deliver sufficient supply for maritime fuel bunkering, while Vopak provides storage and terminal services.
In the Greater Bay Area, the partners intend to leverage the strengths of the ports in Hong Kong, Shenzhen, and Guangzhou to focus on “production and storage synergy” and build an integrated green methanol storage and transportation network.
In East China, the two parties will center their collaboration in Shanghai and Ningbo to further strengthen cooperation on logistics storage and bunkering facility construction and meet the growing demand for green fuels at both ports.
In the Bohai Bay region, with Tianjin as the strategic hub, Towngas will transport green methanol produced at its northern China production base to Royal Vopak’s local storage tank farm, then achieve resource allocation through the Royal Vopak’s distribution network, supporting the supply of green methanol from northern China to the national and Asia-Pacific markets.
The two parties will also target key export markets, such as Singapore, Vietnam, Japan, and South Korea, to accelerate overseas expansion and boost the market competitiveness of clean energy in the Asia-Pacific region.
Sham Man-fai , Towngas Chief Operating Officer – Green Fuel and Chemicals, commented on the partnership: “Towngas has recently completed a 6,000-tonne green methanol bunkering project, the largest in Asia. It was completed with the support of Royal Vopak’s Tianjin storage tank farm facilities, laying a solid foundation for this partnership.
“Towngas’s Inner Mongolia green methanol plant is set to increase its annual capacity from 100,000 tonnes to 150,000 tonnes by the end of this year, with plans to further expand to 300,000 tonnes by 2028. Together with Royal Vopak’s storage and terminal services infrastructure and coastal port network, the two parties will build a comprehensive green methanol supply chain network.”
Looking ahead, Towngas plans to enhance production capacity through its green methanol platform, aiming to further establish multiple green methanol production plants across the Chinese mainland, targeting an annual capacity of one million tonnes to prepare for large-scale green methanol applications.
The Hong Kong-based company has lined up several partnerships focused on the green methanol supply chain, including those with Pacific Basin Shipping , Global Energy , and Chimbusco Pan Nation Petro-Chemical (CPN) .
about 1 year ago
The Hong Kong and China Gas Company (Towngas) has inked a strategic framework cooperation agreement with tank storage company Royal Vopak to expand the green methanol supply chain and support the shipping industry’s low-carbon transition.
