As Hong Kong intensifies its efforts to decarbonize its energy systems, a newly announced strategic partnership between The Hong Kong and China Gas Company Limited (Towngas) and CIMC ENRIC Holdings signals a targeted push into green methanol and hydrogen development.
The agreement outlines a dual-track collaboration across green fuel engineering, certification frameworks, and hydrogen infrastructure expansion—all within the framework of Hong Kong’s carbon neutrality target for 2050 and China’s “30-60” dual carbon goals.
Towngas, one of Asia’s oldest gas utility companies, brings to the table a unique operational advantage: approximately 50% of its current gas supply in Hong Kong is already hydrogen-rich, distributed through a 3,700-kilometre underground pipeline network. Leveraging this infrastructure positions the company ahead of global peers now grappling with the technical and regulatory hurdles of hydrogen blending and delivery.
Under the agreement, Towngas and CIMC ENRIC will focus on advancing technologies for hydrogen extraction, purification, and storage—key barriers to scaling green hydrogen in dense urban environments. In addition to mobility and electric vehicle charging applications, the partners are also looking to hydrogen as a cross-sector solution, with potential deployment in logistics, maritime, and industrial heating.
Parallel to the hydrogen collaboration, the two companies are set to deepen their cooperation on green methanol development—an area where China is increasingly asserting global leadership. Towngas recently became the first Chinese company to secure both ISCC EU and ISCC PLUS certifications for large-scale green methanol production, confirming the sustainability of its upstream feedstock and process chains. With CIMC ENRIC’s engineering and maritime storage expertise, the alliance aims to address pressing challenges in scaling methanol adoption, including safety standards, carbon trading mechanisms, and maritime fuel bunkering logistics.
The partnership also underscores the role of international hubs like Hong Kong in anchoring regional energy transition strategies. While mainland China builds out vast hydrogen corridors and renewable power bases, Hong Kong’s port, regulatory environment, and advanced service sector offer a different type of leverage—one centered on certification, trading, and integration into global value chains.
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