13 Mar 2024
Towngas and Shenergy sign cooperation framework agreement to promote green methanol and hydrogen energy markets in Shanghai and Hong Kong
(13 March 2024) The Hong Kong and China Gas Company Limited (“Towngas”) and Shenergy (Group) Company Limited (“Shenergy Group”) signed a strategic cooperation framework agreement yesterday 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 hydrogen 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 hydrogen 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 hydrogen industry and Towngas’ expertise in developing hydrogen 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, utilises biomass and municipal waste, transforming them into green methanol through proprietary technology. The plant has an annual production capacity of 100,000 tonnes of green methanol, catering for applications in industries such as shipping and manufacturing.
Mr 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.” Mr Wong added that as a green energy supplier, Towngas is also proactively developing a green hydrogen energy supply and expanding its application areas in response to the hydrogen energy development strategies proposed by the country and Hong Kong.
Shenergy Group, a Shanghai-based municipal state-owned enterprise, has capitalised 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 hydrogen energy. This framework encompasses various domains, including hydrogen sources, storage and transportation, hydrogen refuelling stations, and fuel cells, with a focus on deploying these technologies in multiple locations and promoting their application in demonstration scenarios in order to advance the industrialisation of hydrogen 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.
Mr Huang Dinan, Party Secretary and Chairman of Shenergy Group, expressed, “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 hydrogen energy, in Shanghai, Hong Kong, and both domestic and international markets, in order to contribute to the country’s ecological protection and sustainable development.”
To address climate change, countries worldwide have implemented stricter carbon emission policies. The European Union has incorporated the shipping industry into its EU Emissions Trading System (EU-ETS), subjecting shipping companies to carbon taxes. The International Maritime Organization (IMO) has also set more ambitious emission reduction targets for the shipping industry, resulting in a significant surge in demand for green fuels among major shipping companies. As at January 2024, over 200 orders for green methanol-powered vessels have been placed globally, and the demand for green methanol fuel is projected to reach approximately 7 to 8 million tonnes by 2027. However, only a few companies currently possess the necessary production capacity and meet the certification requirements for large-scale production of green methanol.
About Towngas
Founded in 1862, Towngas is one of the longest-standing public utilities in Hong Kong, China, and is committed to providing a diversified energy supply and developing green energy solutions. Presently, it serves approximately 42 million customers on the Chinese mainland and in Hong Kong. These projects encompass a wide range of areas, including piped city gas, smart energy, water supply, urban waste utilisation, and green energy.
About Shenergy Group
Established in 1987, Shenergy Group is the only state-owned comprehensive energy enterprise group in Shanghai that operates in various sectors, including electricity, gas, finance, cables, hydrogen energy, and environmental protection. Shenergy plays a crucial role in Shanghai’s resilient and secure city development by supplying one-third of its electricity and over 95% of its natural gas. With a steadfast commitment to the principles of “bold exploration and steady operations”, Shenergy Group has deepened its presence in the energy and finance industries, consistently ranking among the top 500 Chinese enterprises for 22 consecutive years.
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Photo 1:
Mr Martin Kee Wai-ngai (left, front row), Chief Operating Officer – Mainland Utilities of Towngas, and Mr Shi Pingyang (right, front row), Vice President of Shenergy Group, Party Secretary and Chairman of Shanghai Gas, sign a Memorandum of Understanding at the headquarters of Shenergy Group. The signing ceremony was witnessed by Mr Peter Wong Wai-yee (2nd from left, back row), Managing Director of Towngas; Mr Huang Dinan (2nd from right, back row), Party Secretary and Chairman of Shenergy Group; Mr Ni Bin (1st from left, back row), President and Deputy Party Secretary of Shenergy Group; and Mr Sham Man-fai (1st from right, back row), Chief Operating Officer – New Energy Businesses, marking the beginning of a new chapter in the development of green energy.
Photo 2:：
Towngas and Shenergy Group representatives attending the signing ceremony include: (From left): Mr Zhou Jun, Executive Vice President of Towngas Energy Academy; Mr Cheng Mingfeng, Party Branch Secretary and Chairman of Shenergy Environmental; Mr Martin Kee Wai-ngai, Chief Operating Officer – Mainland Utilities of Towngas; Mr Yin Xiang, Chairman of Foran Energy Group Company Limited; Mr Ni Bin, President and Deputy Party Secretary of Shenergy Group; Mr Peter Wong Wai-yee, Managing Director of Towngas; Mr Huang Dinan, Party Secretary and Chairman of Shenergy Group; Mr Shi Pingyang, Vice President of Shenergy Group, Party Secretary and Chairman of Shanghai Gas; Mr Sham Man-fai, Chief Operating Officer – New Energy Businesses of Towngas; Mr Yang Jun, Chief Operating Officer - Extended Business (Towngas Lifestyle) of Towngas; Mr Zhou Hengxiang, Chief Operating Officer - Gas Resources of Towngas; Ms Gu Jing, Senior Vice President & Chief Representative – Beijing Office of Towngas.
Photo 3:
Mr Peter Wong Wai-yee, Managing Director of Towngas, visits the exhibition hall of Shenergy Group to learn more about the application of green methanol in transportation and energy storage systems.
Photo 4:
The methanol production plant in Ordos, Inner Mongolia, China, has undergone successful technological upgrades and renovations. It can now produce 100,000 tonnes of green methanol annually, in compliance with the International Sustainability and Carbon Certification (ISCC) standards. Around 50,000 tonnes of this production meet the specifications of the ISCC EU certification for renewable energy fuels and can be used as green marine fuel.
For media enquiries, please contact:
The Hong Kong and China Gas Company Limited
Mr Addie Lam
Assistant General Manager –
Corporate Affairs
Tel: 2963 2578 / 6702 6449
Email:
addie.lam@towngas.com |
Ms Kara Kwong
Senior Corporate Affairs Officer
Tel: 2963 3497 / 6698 3357
Email:
kara.kwong@towngas.com |