The Hong Kong and China Gas Company Limited and Shenergy Company signed a strategic cooperation framework agreement to jointly promote the development of green energy businesses in Shanghai, Hong Kong, and both domestic and international markets. This includes enhancing the production capacity of green methanol and exploring markets for green energy, such as green methanol and H₂ energy.

Towngas and Shenergy Group signed a strategic cooperation framework agreement in Shanghai, establishing a consultation mechanism to promote green energy businesses in Shanghai, Hong Kong, and both domestic and international markets. The specific initiatives include:

• Exploring the establishment of a green energy investment platform to jointly expand green energy markets such as methanol and H₂ by integrating the resources and advantages of both parties
• Collaboratively driving the expansion of the Towngas’ green methanol project, thereby increasing its green methanol production capacity to meet market demands
• Leveraging Shenergy Group’s leading position in the H₂ industry and Towngas’ expertise in developing H₂ applications in Hong Kong to drive low-carbon energy transition and development in Hong Kong.

Towngas is currently the only company on the Chinese mainland that mass-produces ISCC EU-certified green methanol, which meets the European Union’s requirements for sustainable biofuels and chemical products. Towngas’ methanol production plant in Ordos, Inner Mongolia, utilizes biomass and municipal waste, transforming them into green methanol through proprietary technology. The plant has an annual production capacity of 100,000 tons of green methanol, catering for applications in industries such as shipping and manufacturing.

Peter Wong Wai-yee, Towngas Managing Director said, “The partnership between Towngas and Shenergy Group in low-carbon energy creates synergy between us. Not only does it meet the increasing demand for green energy in recent years, but it also contributes to the country’s efforts in achieving its dual carbon goals.” Wong added that as a green energy supplier, Towngas is also proactively developing a green H₂ energy supply and expanding its application areas in response to the H₂ energy development strategies proposed by the country and Hong Kong.

Shenergy Group, a Shanghai-based municipal state-owned enterprise, has capitalized on its strengths in recent years to accelerate its presence in the emerging green and low-carbon sectors. It holds controlling stakes in new energy projects across 18 provinces, municipalities, and autonomous regions throughout the country, establishing a comprehensive development framework known as the “Three Verticals and Three Horizontals” plan for H₂ energy. This framework encompasses various domains, including H₂ sources, storage and transportation, H₂ refueling stations, and fuel cells, with a focus on deploying these technologies in multiple locations and promoting their application in demonstration scenarios to advance the industrialization of H₂ energy and promote pollution and carbon reduction in industrial and transportation sectors. Furthermore, Shenergy Group is also actively expanding into other emerging energy fields, such as green methanol and new power systems, aiming to become a frontrunner in integrated green and low-carbon development through a combination of production and financing.

Huang Dinan, Party Secretary and Chairman of Shenergy Group said, “This collaboration holds immense significance in driving the energy transition and achieving green and low-carbon development for both parties. Shenergy Group will leverage its strengths and collaborate with Towngas to jointly promote the development of green energy industries, including green methanol and H₂ energy, in Shanghai, Hong Kong, and both domestic and international markets, to contribute to the country’s ecological protection and sustainable development.”