The Hong Kong and China Gas Company Limited (Towngas) and Shenergy (Group) Company Limited (Shenergy Group) finalized a strategic cooperation framework agreement recently. The agreement aims to collectively advance green energy ventures in Shanghai, Hong Kong, as well as domestic and international markets. This collaboration includes augmenting the production capabilities of green methanol and exploring markets for green energy like green methanol and hydrogen energy.

Towngas presently stands as the sole company in mainland China engaged in large-scale production of ISCC EU-certified green methanol. This certification ensures compliance with the European Union's standards for sustainable biofuels and chemical products. Towngas operates a methanol production facility in Ordos, Inner Mongolia, employing biomass and municipal waste to produce green methanol through proprietary technology. Having an annual production capacity of 100,000 tonnes, this green methanol caters to diverse industries including shipping and manufacturing.

The partnership between Towngas and Shenergy Group in the realm of low-carbon energy generates synergy. It not only addresses the escalating demand for green energy in recent years but also contributes to China's endeavors in meeting its dual carbon goals. As a green energy supplier, Towngas is actively diversifying its offerings to include green hydrogen energy, aligning with the hydrogen energy development strategies outlined by China and Hong Kong.

Shenergy Group, a municipal state-owned enterprise based in Shanghai, has substantially strengthened its footprint in the burgeoning green and low-carbon industries. In recent years, it has acquired controlling interests in new energy projects across 18 provinces, municipalities, and autonomous regions in China. The company has devised a comprehensive development framework termed the "Three Verticals and Three Horizontals" plan for hydrogen energy, covering hydrogen sources, storage and transportation, hydrogen refueling stations, and fuel cells. Emphasis is placed on deploying these technologies across diverse locations and promoting their application in demonstration scenarios to facilitate the industrialization of hydrogen energy and drive pollution and carbon reduction across industrial and transportation sectors. Additionally, Shenergy Group is actively diversifying into other emerging energy domains like green methanol and new power systems, aiming to establish itself as a leading player in integrated green and low-carbon development through a combination of production and financing.

This collaboration assumes considerable significance in steering the energy transition and realizing green and low-carbon development objectives for both entities. Shenergy Group will leverage its expertise and collaborate with Towngas to collectively propel the development of green energy industries, encompassing green methanol and hydrogen energy, across Shanghai, Hong Kong, and domestic and international markets. This concerted effort is poised to contribute significantly to China's ecological preservation and sustainable development goals.