Bunker supplier Chimbusco Pan Nation (CPN) and public utility company Hong Kong and China Gas Company (Towngas) have inked a green methanol supply deal in Hong Kong.

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Under the agreement, the two companies will work together to supply green methanol as a marine fuel for both domestic and ocean-going vessels.

CPN and Towngas will collaborate on the distribution of green methanol. Towngas will supply CPN with green methanol produced at its facility, while CPN will handle its distribution to bunker buyers.

Towngas will also assist with technical inquiries and provide product certification documents. Its methanol production plant in Ordos, Inner Mongolia, converts biomass and municipal waste into green methanol. The facility aims to produce 150,000 mt/year by 2025, catering to the shipping sector as well as the chemical industry. The company expects to increase the production capacity to 300,000 mt/yr through retrofitting and other upgrades.

Towngas is also the first company on the Chinese mainland to achieve ISCC EU and ISCC PLUS certifications for green methanol, according to CPN.

“Towngas is committed to expanding its green methanol production capacity and, through industry collaboration, responding to the Government’s recently promulgated Action Plan on Green Maritime Fuel Bunkering to contribute to Hong Kong’s development as a green maritime fuel bunkering centre,” Towngas’ executive director and chief financial officer Edmund Yeung Lui-ming says.

By Tuhin Roy

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