The partnership supports Pacific Basin’s strategy to incorporate green methanol into its fuel mix as it expands its fleet of dual-fuel, low-emission vessels. These vessels can switch between conventional fuel oil, sustainable biofuel, and green methanol, aligning with economic and environmental goals. Martin Fruergaard, CEO of Pacific Basin, stated: “Our collaboration with Towngas marks a significant step forward in our efforts to enhance our priority access to increasing and eventually very large volumes of green fuels that ships will need to comply with FuelEU Maritime and International Maritime Organization’s Global Fuel Standard.” He added: “Green methanol in particular will support our dual-fuel low-emission vessels, which will enjoy the flexibility to switch between conventional fuel oil, sustainable biofuel and green methanol according to the prevailing economics, and the reward provision of IMO’s planned Global Fuel Standard should support the business case for early adoption of LEVs and zero- or near-zero emission fuels.”
Towngas is scaling up its green methanol production to meet the shipping industry’s growing demand. Peter Wong Wai-yee, Managing Director of Towngas, said: “The MOUs signed today with Pacific Basin represent a significant milestone in Towngas’ commitment to decarbonisation, advancing the provision of clean, sustainable fuel solutions for the global shipping industry. Towngas is set to expand its green methanol production capacity to meet the shipping sector’s rising demand.” The company plans to increase its Inner Mongolia facility’s annual capacity from 100,000 tonnes to 150,000 tonnes by the end of 2025 and aims to develop additional plants on the mainland, targeting a combined capacity of one million tonnes annually.
The collaboration builds on Towngas’s earlier efforts in 2025, including a partnership with Singapore’s Global Energy Trading and a 2024 agreement with Chimbusco Pan Nation Petro-Chemical to promote green methanol markets and establish Hong Kong as a hub for sustainable marine fuel. This MoU with Pacific Basin supports the global transition to cleaner shipping fuels, contributing to reduced emissions and sustainable maritime operations.
