Towngas and Foran Energy Form Joint Venture to Expand Inner Mongolia Green Methanol Production
The Hong Kong and China Gas Company Limited (Towngas) has announced the formation of a new joint venture with Foran Energy Group Company Limited (Foran Energy) aimed at accelerating green methanol production and supporting China’s clean energy goals. The new entity, named VENEX Holding Company Limited (VENEX), is jointly owned by Towngas and Foran Energy, with each party holding an equal 50% stake.
As part of this strategic collaboration, Towngas is transferring its existing green methanol facility in Ordos, Inner Mongolia — Inner Mongolia ECO Coal Chemical Technology Company Limited — to the newly formed VENEX. This move is part of a broader plan to scale up green methanol production and promote a low-carbon energy transformation in China.
A Strategic Alliance for Sustainable Growth
Towngas brings substantial expertise to the venture, having established itself as a pioneer in green methanol production. The company utilizes proprietary technologies to convert agricultural and forestry residues, as well as scrap tyres, into green methanol — a sustainable fuel gaining global traction, especially in the shipping sector.
Since 2022, Towngas has been certified by ISCC EU and ISCC PLUS for three consecutive years, making it the first company on the Chinese mainland to earn both certifications while maintaining large-scale production capabilities. These credentials highlight the company’s commitment to internationally recognized sustainability standards and bolster its credibility in global markets.
In 2024, Towngas and Foran Energy signed a framework cooperation agreement to jointly invest in and build out green methanol facilities across China. The regions targeted include the Inner Mongolia Autonomous Region, the Greater Bay Area, and Hainan Province, with an ambitious annual production target of one million tonnes of green methanol.
The current transfer of the Ordos facility to VENEX is a major step toward that goal. With this initial asset now under joint management, VENEX is positioned to leverage both companies’ operational strengths, including Towngas’ technical know-how and Foran Energy’s extensive industry presence.
Capitalizing on Strategic Location and Expertise
VENEX aims to fully exploit the strategic geographic advantages of the Greater Bay Area, which serves as a key shipping and logistics hub in Asia. The joint venture will integrate this location advantage with its partners’ existing production, operational, and management experience to create a robust green methanol supply chain that meets both domestic and international demand.
The new company will also focus on streamlining production efficiency and expanding the reach of green methanol in the shipping sector — a segment that is under increasing pressure to decarbonize. Green methanol is considered a promising alternative marine fuel due to its lower carbon emissions and compatibility with current bunkering infrastructure.
Aligning with National and Global Energy Priorities
The establishment of VENEX comes at a critical time when countries and industries around the world are intensifying efforts to combat climate change. In China, national goals to peak carbon emissions by 2030 and reach carbon neutrality by 2060 have spurred rapid development in alternative fuels and renewable energy sources.
Towngas’ broader strategy aligns with these goals and extends to international collaborations. The company previously signed a memorandum of understanding (MoU) with the Transport and Logistics Bureau of the Hong Kong Special Administrative Region (HKSAR) to support the government’s vision of transforming Hong Kong into a green maritime fuel bunkering and trading hub.
To this end, Towngas has also entered into additional MoUs with various domestic and international shipping companies, trading houses, and bunkering partners. These agreements aim to foster a robust ecosystem for green fuel trading in Hong Kong, further cementing the city’s position as a premier global maritime centre.
