Hong Kong & China Gas (Towngas) is rapidly scaling its green methanol business, driven by China’s advantages in cost, technology and speed, as global shipping faces tightening emissions rules under the IMO Net-Zero Framework and EU FuelEU Maritime. The company has become China’s first producer to secure both ISCC EU and ISCC PLUS certifications for mass-produced green methanol, positioning itself as a key supplier to the emerging Asian bunker fuel market.
Supply-chain impact
Towngas expects Asian demand for green methanol to reach 2–4 million tonnes between 2026 and 2028, and plans to deploy 1 million tonnes of production capacity. By end-2025, it will expand its Inner Mongolia plant from 100,000 to 150,000 tonnes per year. It is also partnering with Foran Energy to build multiple green methanol production bases across China, ensuring stable feedstock supply from waste tires, agricultural residues and forestry waste.
What buyers should watch
Towngas has already delivered 5,000 tonnes of green methanol to Singapore-based Golden Island for local bunkering trials, and signed MOUs with Universal Energy (Singapore) and Royal Vopak for storage, bunkering and trading. The company also completed Asia’s largest green methanol bunkering operation at Shanghai’s Yangshan Port in early 2025. Importers and ship operators should monitor Towngas’ expanding supply network across Asian ports.
Compliance and logistics signals
Towngas holds ISCC EU, ISCC PLUS and ISO 14067 certifications, and was the first Chinese company to receive TÜV SÜD carbon footprint certification for a green methanol project. Its feedstock sourcing—using waste tires, pruned sand willow branches, sugarcane bagasse and forestry waste—meets EU waste-derived fuel criteria, supporting full regulatory compliance for European buyers.
China sourcing context
Towngas leverages China’s mature chemical manufacturing base and supply chain to cut project construction time from 3–4 years to under 2 years. Its in-house R&D team controls the entire value chain from feedstock to market. The company’s 160-year history, international governance and strong compliance record further enhance its reliability as a long-term green methanol partner for global shipping and industrial buyers.
Source: Read the original report | Published: October 08, 2025