25 Nov 2024
Towngas and Foran Energy sign strategic cooperation agreement on green methanol with million-tonne annual output plan
(25 November 2024) The Hong Kong and China Gas Company Limited (Towngas) and Foran Energy Group Company Limited (Foran Energy) signed a Framework Agreement for Cooperation on Green Fuels and Chemical Projects today. The two companies will establish a joint investment platform to promote green economic development.
The agreement was signed at the Guangdong-Hong Kong Deepening Economic, Trade and Investment Cooperation Conference, witnessed by Mr Huang Kunming, Member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Secretary of the CPC Guangdong Provincial Committee; Mr John Lee Ka-chiu, Chief Executive of the HKSAR; Mr Zheng Yanxiong, Director of the Liaison Office of the Central People’s Government in Hong Kong; Dr Lee Ka-kit, Chairman of Towngas, and other distinguished guests.
According to the Framework Agreement, the companies initially plan to raise RMB10 billion through various financing channels to establish green methanol production bases across China, including Inner Mongolia, the Greater Bay Area, Hainan, and Fujian, developing an annual production capacity of one million tonnes of green fuel and chemical supplies.
Mr Sham Man-fai, Chief Operating Officer – Green Fuels & Chemicals of Towngas, said, “With over 160 years of experience in the energy sector, Towngas has been actively developing green energy, including green methanol and hydrogen. This strategic partnership will leverage our strengths in green methanol production, operations, and technical support. Together with Foran Energy, we will build a green energy supply chain to provide more green fuel and chemical products for the shipping and chemical industries, helping accelerate their low-carbon transition.”
Mr Yin Xiang, Chairman of Foran Energy, indicated that this strategic cooperation marks a new chapter in their partnership. “This collaboration, beginning with green methanol project investment, signifies both companies entering a new development phase. Foran Energy is now formally entering the green fuel and chemical industry, with our joint efforts supporting the country’s dual carbon goals.”
Towngas brings extensive experience in green methanol project investment and operations. Their green methanol project in Ordos, Inner Mongolia, has obtained ISCC EU and ISCC PLUS certifications for three consecutive years since 2022, making it the first large-scale green methanol producer with both international certifications on the Chinese mainland. Over the past two years, Towngas has delivered ISCC EU and ISCC PLUS certified green methanol to overseas customers. The Inner Mongolia plant’s production capacity will reach 150,000 tonnes by 2025, serving the shipping and chemical industries.
This partnership will combine both parties’ strengths in green energy, energy chemicals, hydrogen energy, supply chain management, investment and construction, technical support, product certification, and market operations. Through this strong alliance and resource sharing, both companies aim to jointly promote the green energy revolution and industrial low-carbon upgrade, accelerating the development of green new quality productive forces.
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