Towngas, Sinopec (Hong Kong), and Sinopec Star have signed a memorandum of understanding to collaborate on hydrogen, green methanol, and sustainable aviation fuel (SAF) projects.
Hong Kong | February 4, 2026 – In a strategic move that could reshape future marine fuel supply and accelerate low‑carbon fuel adoption in Greater China’s maritime markets, The Hong Kong and China Gas Company Limited (Towngas), Sinopec (Hong Kong) Limited and Sinopec Star Company Limited have signed a memorandum of understanding (MoU) to collaborate on hydrogen, green methanol and sustainable aviation fuel (SAF) initiatives.
While the partnership spans multiple energy vectors, one of its core objectives, and the most relevant for the marine industry, is advancing green methanol for shipping applications and expanding the clean fuel ecosystem that could underpin low‑emission marine bunkering services.
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Strategic Collaboration to Build a Hydrogen and Green Fuel Ecosystem
Under the MoU, the three companies will comprehensively pursue cooperation in:
- Hydrogen business development and downstream commercialization
- Construction and operation of hydrogen refueling infrastructure
- Liquid hydrogen storage and transport technologies
- Hydrogen‑charging facilities
- Green methanol shipping applications
- Development and supply of sustainable aviation fuel (SAF)
The partnership will also explore setting up a joint venture to pool technical, capital and operational resources, accelerate project delivery, and build a competitive clean‑energy industrial ecosystem in Hong Kong and the wider region.
Towngas currently produces gas with approximately 50% hydrogen content and has an annual hydrogen production capacity exceeding 12,000 tonnes. The company has already delivered multiple hydrogen demonstration projects, including Hong Kong’s first public automatic hydrogen charging station and the first integrated hydrogen generator showcased at a major sporting event. Leveraging its distribution network of 3,700 km of underground pipelines, Towngas plans to prioritize locally produced competitive hydrogen supply into the partnership’s initiatives.
Executive Statements on Strategic Benefits and Sector Impacts
Towngas: Practical Applications and Local Supply Strength
Mr. Peter Wong Wai‑yee, Managing Director of Towngas, stated:
“Towngas operates an underground gas network spanning 3,700 kilometres across Hong Kong, giving us ready access to local hydrogen sources. Combined with our years of experience handling hydrogen‑rich town gas safely and rigorously, this partnership should help drive the hydrogen economy forward, particularly practical applications in green transport and on‑site hydrogen power generation.”
His remarks highlight the company’s operational strength in hydrogen production and distribution, and the relevance of these assets in supporting broad energy transition efforts including maritime and transport fuels.
Sinopec Hong Kong: Supply Chain and Marine Fuel Positioning
Mr. Wu Qinggao, Director and General Manager of Sinopec (Hong Kong) Limited, commented:
“Sinopec (Hong Kong) Limited has been deeply rooted in Hong Kong for over three decades, with a comprehensive oil and gas storage, transport and sales network and substantial customer base covering the entire supply chain from depots and retail stations to marine refueling and airport jet fuel supply.”
“This cooperation represents a partnership among three parties with complementary strengths and aligned objectives. We will leverage our respective advantages in resources, technology and markets to expedite key projects, including hydrogen refueling stations, hydrogen vehicle promotion, green methanol shipping applications and SAF supply. This will accelerate the commercialization of hydrogen and low‑carbon fuels, providing reliable support for Hong Kong’s green transport, maritime and aviation energy transition.”
Wu’s statement underscores Sinopec Hong Kong’s existing role in marine refueling operations, positioning the company to potentially integrate green methanol bunkering capabilities as the partnership’s projects mature.
Sinopec Star: Industrial Chain Integration and Export‑Driven Hydrogen Development
Ms. Zhang Mingming, Chief Accountant, General Counsel and Chief Compliance Officer of Sinopec Star, said:
“Sinopec Star is Sinopec Corp’s specialist new energy company. We have completed and commissioned the world’s largest green electricity‑to‑green hydrogen project, which has been running safely and stably for over two years. The project has successfully integrated the entire industrial chain from green electricity production to hydrogen generation and refining applications, driving coordinated development of the hydrogen industry ecosystem.”
“We are currently advancing the large‑scale green hydrogen production base in Ulanqab, Inner Mongolia, and a long‑distance hydrogen pipeline project. Under the tripartite cooperation framework, we will draw on our core technologies and resources to focus on key areas, including transoceanic liquid hydrogen transport, hydrogen blending in natural gas, and green hydrogen power generation.”
“We will participate deeply in Hong Kong’s hydrogen industry development, helping the sector transform towards greener, lower‑carbon and more diversified operations, positioning Hong Kong as a global green and low‑carbon hydrogen trading hub, and building an exemplar of green energy cooperation to optimise and upgrade the regional energy mix.”
Zhang’s remarks point to ambitions beyond Hong Kong, including liquid hydrogen shipping and export potential, though the current agreement focuses primarily on regional energy infrastructure and clean fuel commercialization.
Policy Context: China’s 15th Five‑Year Plan and Dual‑Carbon Goals
The collaboration aligns with China’s 15th Five‑Year Plan, which identifies hydrogen as a strategic emerging industry and promotes the development of green methanol and SAF. Hong Kong’s government is also actively shaping strategies to accelerate clean technology commercialization, reinforcing regulatory support for low‑carbon fuels.
Implications for Marine Fuel and Maritime Markets
While hydrogen and SAF are gaining traction across transportation sectors, green methanol stands out for its feasibility as a drop‑in marine fuel alternative that can reduce greenhouse gas emissions compared with conventional bunker fuels. The partnership’s focus on green methanol shipping applications signals a growing industry shift toward diversifying bunker fuel options, especially for vessels operating in emission control areas and markets pursuing decarbonization.
Sinopec (Hong Kong)’s established marine fueling operations, combined with Towngas’s local hydrogen production and Sinopec Star’s clean energy R&D, could accelerate the introduction of green methanol bunkering infrastructure in Hong Kong and possibly serve as a model for other regional ports.
Looking Ahead
According to the MoU, the three companies will use this framework as a springboard for deepening cooperation, with plans to:
- Advance hydrogen and green fuel infrastructure build‑out
- Drive industrial upgrades through technology innovation
- Expand low‑carbon energy solutions for businesses and consumers
- Support Hong Kong’s ambitions to develop as an international green technology hub
- Contribute substantively to China’s dual‑carbon strategy and global climate mitigation efforts
About the Partners
The Hong Kong and China Gas Company Limited (Towngas)
Founded in 1862, Towngas is Hong Kong’s oldest and one of its largest energy suppliers, providing safe and reliable gas and energy solutions. The company operates over 970 projects across 29 provinces in mainland China and has been actively expanding its clean energy portfolio, including hydrogen production, marine green methanol, and sustainable aviation fuel (SAF). Towngas supports Hong Kong’s goal of carbon neutrality by 2050 and China’s national “30-60” dual carbon strategy.
Sinopec (Hong Kong) Limited
Established in 1989, Sinopec (Hong Kong) is a leading oil and gas energy supplier in Hong Kong, owning extensive storage, transport, and retail infrastructure, including two oil depots, 54 service stations, and marine fuel supply operations. It is a major provider of fuel oil, jet fuel, and marine bunkers in the region. The company has also expanded into clean energy initiatives, including hydrogen refueling, green fuels, and bio-marine fuel, positioning itself as a key player in Hong Kong’s low-carbon maritime transition.
Sinopec Star Company Limited (Sinopec Star)
Sinopec Star is the new energy subsidiary of China Petroleum & Chemical Corporation (Sinopec Corp), focused on hydrogen, green electricity, and renewable energy solutions. The company has completed large-scale green hydrogen projects, including the world’s largest green electricity-to-hydrogen project, and is advancing hydrogen storage, transport, and industrial applications. Sinopec Star’s efforts aim to build a competitive, low-carbon energy ecosystem in China and support the global transition to greener fuels.
Source: Towngas