CPN and Towngas sign Green Methanol Agreement to Support Hong Kong’s Green Marine Fuel Initiative

Chimbusco Pan Nation Petro-Chemical (CPN), a prominent bunker service provider, has partnered with the Hong Kong and China Gas Company (Towngas) to expand the green methanol marine fuel market and promote Hong Kong as a leading green marine fuel hub. The two companies recently signed a memorandum of understanding (MoU) to collaborate on the distribution of green methanol fuel. Under the terms of the agreement, Towngas will supply CPN with green methanol certified by ISCC EU and ISCC PLUS, which Towngas produces in-house. CPN will be responsible for distributing this fuel to its customers and will receive support from Towngas in technical inquiries and product certification.

Towngas, based in China, is the first company on the mainland to obtain ISCC EU and ISCC PLUS certifications for its green methanol production. The company operates a methanol production plant in Ordos, Inner Mongolia, where it uses proprietary technology to convert biomass and municipal waste into green methanol. Towngas expects to produce 150,000 tonnes of green methanol annually by 2025, with plans to expand production capacity to 300,000 tonnes as it retrofits its facilities. This expansion aligns with the International Maritime Organization's (IMO) target for net-zero carbon emissions in international shipping by 2050.

Edmund Yeung Lui-ming, Executive Director and CFO of Towngas, emphasized the company’s commitment to increasing its green methanol production capacity and collaborating with the industry to support Hong Kong's green maritime fuel bunkering goals. The Hong Kong government has recently outlined an "Action Plan on Green Maritime Fuel Bunkering" to position the city as a green maritime fuel center. Calvin Chung Dik-hong, Director and Deputy General Manager of CPN, also underscored the importance of developing green methanol to achieve the government's objectives and strengthen Hong Kong's maritime industry.

The government’s action plan, introduced on November 15, 2024, aims to reduce carbon emissions from Hong Kong's shipping industry. Key targets include achieving net-zero carbon emissions for international shipping by 2050, cutting carbon emissions from Hong Kong-registered ships by at least 11% (compared to 2019 levels), and ensuring that 55% of the government’s diesel-powered vessels transition to green fuels by 2026. Additionally, the plan sets a goal of reducing carbon emissions from Kwai Tsing Container Terminals by 30% by 2026 and ensuring that 7% of Hong Kong-registered vessels use green fuels by 2030.

To reach these goals, the action plan outlines five green strategies and ten actions that address fuel supply, infrastructure, emission reductions, incentives, collaboration, and workforce development. By 2030, the government aims to provide over 200,000 tonnes of green marine fuel to ocean-going vessels, with over 60 bunkering services each year.