The Hong Kong and China Gas signed a cooperation framework agreement with Shenergy Group

On March 12, The Hong Kong and China Gas Company Limited (hereinafter referred to as "China Gas") and Shenergy (Group) Co., Ltd. (hereinafter referred to as Shenergy Group) held a signing ceremony for the green energy strategic cooperation framework agreement at the Shenergy Center. Witnessed by Huang Weiyi, Chief Executive Officer of Hong Kong and China Gas, Executive Director and Chief Executive Officer of Towngas Smart Energy, Huang Dinan, Secretary of the Party Committee and Chairman of Shenergy Group, Ni Bin, Deputy Secretary of the Party Committee and President of Shenergy Group, and Shum Man-fai, Chief Operating Officer of New Energy Business of The Hong Kong and China Gas, Mr. Ji Weiyi, Chief Operating Officer of Hong Kong and China Gas Mainland Utilities, and Mr. Shi Pingyang, Vice President of Shenergy Group, signed the strategic cooperation framework agreement on behalf of both parties.

At the ceremony, the two sides established a consultation mechanism, which includes: studying the establishment of a green energy cooperation and investment platform to integrate the resources and advantages of both parties to jointly expand the green energy market such as green methanol and hydrogen energy, jointly promoting the preparation and increment of Towngas's green methanol project to further increase the green methanol production capacity to meet market demand, and promoting the low-carbon energy transformation and development of Hong Kong through Shenergy Group's first-mover advantage in the hydrogen industry and China Gas's ability to develop hydrogen energy applications in Hong Kong.

(From left) Zhou Jun, Executive Vice President of Towngas Energy Research Institute, Cheng Mingfeng, Secretary of the General Party Branch and Chairman of Shenergy Environment, Ji Weiyi, Chief Operating Officer of Mainland Utilities of The Hong Kong and China Gas, Yin Xiang, Chairman of Foran Energy Group Co., Ltd., Ni Bin, Deputy Secretary of the Party Committee and President of Shenergy Group, Huang Weiyi, Chief Executive Officer of The Hong Kong and China Gas and Executive Director and Chief Executive Officer of Towngas Smart Energy, Secretary of the Party Committee of Shenergy Group, Chairman Huang Dinan, Vice President of Shenergy Group Shi Pingyang, Chief Operating Officer of Hong Kong and China Gas New Energy Business Shum Wenhui, Chief Operating Officer of Hong Kong and China Gas Extended Business Yang Jun, Chief Operating Officer of Hong Kong and China Gas Source Business Zhou Hengxiang and Senior Vice President of Hong Kong and China Gas and Chief Representative of Beijing Representative Office Gu Jing attended the signing ceremony.

Towngas is currently the only company in mainland China that has obtained the EU ISCC certification for green methanol production, and its products meet European requirements for sustainable biofuels and chemical products. The company's methanol production plant in Ordos, Inner Mongolia, uses biomass and municipal waste to convert into green methanol through patented/unique technology. At present, 100,000 tons of green methanol are produced every year, which can be supplied to the shipping industry, industrial production and other applications.

The methanol production plant in Ordos, Inner Mongolia, has successfully undergone technological upgrades and successfully produces 100,000 tons of green methanol per year that meets the International Sustainability and Carbon Certification (ISCC) standards, of which about 50,000 tons meet the requirements of the European Union Energy Fuel Certification (ISCC EU) specifications and can be used as green marine fuel.

Huang Weiyi said that the synergy between China Gas and Shenergy Group in low-carbon energy has not only met the rapid growth of demand for green energy in recent years, but also contributed to the country's "dual carbon" goal. He also stressed that Towngas, as a green energy supplier, is actively developing green hydrogen energy supply and expanding its application scope in addition to green methanol, in line with the hydrogen energy development strategy proposed by the country and the Hong Kong SAR Government.

As a wholly state-owned enterprise group in Shanghai, Shenergy Group has given full play to its own advantages in recent years, accelerated the layout of green and low-carbon emerging fields, and held new energy projects in 18 provinces, autonomous regions and municipalities directly under the central government across the country, forming a "three vertical and three horizontal" development pattern of hydrogen energy, focusing on hydrogen sources, storage and transportation, hydrogen refueling stations, fuel cells and other fields to carry out multi-point layout, focusing on promoting the implementation of related products in demonstration application scenarios, promoting the industrialization of hydrogen energy, and promoting pollution and carbon reduction in industry, transportation and other fields. Shenergy Group is also actively expanding into emerging energy fields such as green methanol and new power systems, and strives to build a leader in green and low-carbon development that integrates industry and finance.

Huang Dinan said that this cooperation is of great significance to promote the energy transition of both sides and achieve green and low-carbon development. Shenergy Group will give full play to its own advantages and work together to promote the development of green methanol, hydrogen energy and other green energy industries in Shanghai and Hong Kong, as well as at home and abroad, through cooperation with Towngas, and contribute to environmental protection and sustainable development.

In response to climate change, countries around the world have implemented stricter carbon emission policies, the European Union has included the shipping industry in the carbon emission trading system (EU-ETS) system, imposing a carbon tax on shipping companies, and the International Maritime Organization (IMO) has also set further emission reduction targets for the shipping industry, and the demand for green fuels for large shipping companies has increased significantly. As of January 2024, the global green methanol ship orders have exceeded 200, and it is estimated that there will be about 7 million to 8 million tons of green methanol fuel demand by 2027, but only a few companies in the world have large-scale production of green methanol that meets the certification requirements.