Partnership will explore green methanol shipping applications in Hong Kong as the alternative marine fuel demand grows. Image Credit: Towngas

The Hong Kong and China Gas Company Limited (Towngas) has partnered with Sinopec units to explore green methanol supply for shipping and other low-carbon fuel projects in Hong Kong.

The MoU signed sets out cooperation across hydrogen infrastructure, marine methanol applications and sustainable aviation fuel, Towngas said in a statement on its website on Wednesday.

The agreement was signed with Sinopec (Hong Kong) Limited, a major fuel supplier in the city with marine and aviation refuelling operations, and Sinopec Star Company Limited, the new-energy arm of China Petroleum & Chemical Corporation, focused on renewable power and hydrogen development.

The companies said they will collaborate on hydrogen business development, bunkering infrastructure, storage and transport technologies, and potential green fuel applications across transport sectors.

The partnership will also explore the establishment of a joint venture to accelerate project delivery and strengthen Hong Kong’s clean-energy ecosystem.

The global methanol-fuelled fleet currently numbers 112 vessels, with a further 337 expected by 2030, according to classification society DNV.

As more ships enter service, demand for green methanol is expected to rise, requiring additional supply streams. Companies including AP Moller Maersk, which operates dual-fuel methanol container ships, have already secured offtake agreements with producers to support future fuel needs.

Hong Kong has also been laying the groundwork for alternative marine fuels.

During the IBIA Annual Convention 2025 in the city, officials said Hong Kong plans to mandate the use of mass flow meters for methanol bunker deliveries.