Hong Kong, 25 June 2025 – In a significant move towards greener shipping, Pacific Basin Shipping Limited, a global leader in dry bulk shipping, has signed a Memorandum of Understanding (MOU) with The Hong Kong and China Gas Company Limited (Towngas) to secure enhanced access to green methanol marine fuel. This collaboration marks a critical step in Pacific Basin’s strategy to expand its use of sustainable marine fuels as it transitions to a lower carbon footprint.
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Driving Decarbonisation Through Green Methanol
As the maritime industry faces increasingly stringent decarbonisation regulations, green methanol is set to play a pivotal role in Pacific Basin’s fuel mix. The shipping company is accelerating its fleet modernization with the introduction of dual-fuel low-emission vessels (LEVs) designed to operate flexibly on conventional fuel oil, sustainable biofuels, and green methanol. This flexibility will enable Pacific Basin to optimize fuel use based on market conditions while meeting regulatory requirements such as the EU’s FuelEU Maritime initiative and the International Maritime Organization’s (IMO) upcoming Global Fuel Standard.
Under the terms of the MOU, Towngas will formalize a supply agreement to provide Pacific Basin with green methanol certified under internationally recognized standards including ISCC EU and ISCC PLUS. This certification is essential for compliance with global and regional maritime decarbonisation mandates, ensuring the fuel’s environmental credentials are verified and traceable.
Strategic Collaboration: Leadership Perspectives
Martin Fruergaard, CEO of Pacific Basin, highlighted the strategic importance of the partnership:
“Our collaboration with Towngas marks a significant step forward in securing priority access to growing volumes of green fuels essential for meeting emerging global standards. Green methanol will be instrumental in supporting our fleet’s transition to LEVs, providing operational flexibility and aligning with IMO’s planned Global Fuel Standard incentives. This agreement also underscores our commitment to our ambitious sustainability targets — aiming for green fuels to constitute 5% of our fuel mix by 2030 and to achieve net zero emissions across our fleet by 2050.”
Fruergaard further praised Towngas’s track record and capabilities: “We are excited to collaborate with Towngas, one of Hong Kong’s most established companies, renowned for its innovation and dedication to decarbonisation. Their robust production capacity and clear expansion plans across China position them as a key partner in developing the region’s green marine fuel bunkering infrastructure.”
Peter Wong Wai-yee, Managing Director of Towngas, emphasized the significance of the MOU:
“This agreement with Pacific Basin is a landmark in our journey to promote sustainable marine fuel solutions globally. Towngas is expanding its green methanol production capacity significantly, with our Inner Mongolia facility’s output set to increase from 100,000 tonnes to 150,000 tonnes by year-end. Additionally, we are developing multiple green methanol plants on the Chinese mainland targeting a combined annual production capacity of one million tonnes to meet growing demand from the shipping sector.”
Towngas: A Pioneer in Green Methanol Production
Towngas has emerged as a pioneering energy provider in green methanol production, operating one of China’s earliest and most advanced green methanol plants located in Ordos, Inner Mongolia. Leveraging proprietary technology, the company converts biomass and municipal waste into ISCC-certified green methanol, offering a cleaner alternative to traditional marine fuels. Their expansion strategy and collaborative approach are driving the advancement of sustainable marine fuel infrastructure in Asia, positioning Towngas as a critical enabler of the shipping industry’s decarbonisation goals.
About Pacific Basin Shipping
Pacific Basin Shipping is a globally respected owner and operator of modern Handysize, Supramax, and Ultramax dry bulk vessels. The company operates a fleet of over 260 vessels, including 108 owned ships, and is known for its commitment to safety, environmental stewardship, and operational excellence. It is currently expanding its fleet with four dual-fuel low-emission Ultramax vessels under construction in Japan, scheduled for delivery in 2028 and 2029. Headquartered in Hong Kong, Pacific Basin serves over 600 customers worldwide, supported by a dedicated workforce of more than 4,600 seafarers and 400 shore staff across 14 international offices.