Towngas Expands Green Methanol Supply Network to Singapore Through Partnership with Golden Island
The Hong Kong and China Gas Company Limited (Towngas), one of Asia’s pioneering providers of sustainable energy solutions, has taken a major step forward in the development of low-carbon shipping fuels by partnering with Singapore-based Golden Island Pte Ltd. Under this landmark agreement, Golden Island will begin procuring Towngas’s ISCC-certified green methanol for its marine bunkering operations in Singapore. This move marks a pivotal expansion in Towngas’s green methanol supply chain, strengthening its presence in the Asia-Pacific maritime sector.
Expanding a Regional Vision for Green Marine Fuels
With global shipping regulations tightening and the International Maritime Organization (IMO) targeting a reduction of greenhouse gas emissions by at least 50% by 2050 compared to 2008 levels, the industry is actively seeking alternatives to conventional fossil fuels. Green methanol, produced from renewable and sustainable sources, has emerged as one of the most promising solutions for decarbonizing marine transport. It offers significant reductions in carbon intensity, and when produced from biomass or municipal waste, it enables near net-zero emissions across the fuel lifecycle.
Recognizing the potential of this clean energy source, Towngas has focused its innovation and investment strategies on becoming a key supplier of green methanol in Asia. This latest supply arrangement with Golden Island reinforces that commitment, enabling sustainable fuel distribution in one of the world’s busiest maritime hubs—Singapore.
Details of the Supply Arrangement
Towngas will supply ISCC EU and ISCC PLUS-certified green methanol to Golden Island’s newly built bunker vessel, Golden Antares. This Singapore-flagged tanker, which has a dedicated carrying capacity of 6,500 tonnes for methanol, is outfitted with the latest mass flowmeter technology for accurate fuel transfer measurements. The vessel is currently being completed at a shipyard in China and is scheduled for delivery by late April 2025.
Once construction is completed, Golden Antares will lift green methanol directly from Towngas’s production facility before sailing to Singapore. Upon arrival, it will offload its cargo at a terminal designated for methanol handling and storage, in line with Singapore’s updated Technical Reference (TR) 129 on Methanol Bunkering. The Singapore authorities recently released TR 129 as a comprehensive safety and technical guideline to regulate the use of methanol as a marine fuel, addressing both shipboard and onshore handling procedures. This regulatory milestone has paved the way for broader acceptance and operational use of methanol as a clean alternative in regional shipping.
Golden Antares is expected to begin bunkering trials in July 2025, playing a crucial role in Singapore’s broader ambition to become a leading alternative fuels bunkering hub.
Leadership Voices on the Strategic Move
Speaking on the development, Mr Sham Man-fai, Chief Operating Officer of Green Fuels & Chemicals at Towngas, emphasized the importance of this collaboration in the context of regional energy transition efforts:
“We are delighted to see Towngas’s green methanol business gaining significant momentum across the region. The growing interest from clients worldwide in adopting our certified green methanol validates our strategic investment in this sustainable fuel. Supplying green methanol to customers like Golden Island aligns perfectly with our commitment to developing low-carbon solutions that support the shipping industry’s decarbonisation journey.”
Mr Sham also pointed to future growth plans as Towngas deepens its role in Asia’s green fuel landscape:
“With our new cooperation plan with Foran Energy Group, we will soon expand our capacity to serve major ports in South China and the Greater Bay Area, including Hong Kong, Guangzhou, and Shenzhen, further strengthening our position as a leading green methanol supplier in Asia’s maritime sector.”
Echoing these sentiments, Mr Tomohiro Yamano, General Manager of the Marine Fuel Department at Golden Island, commented on the environmental advantages of the arrangement:
“We are planning for Golden Antares to lift the green methanol from Towngas, which has obtained ISCC EU and ISCC PLUS certifications, before sailing back to Singapore for bunkering trials. With this arrangement in place, we ensure that green methanol marine fuel, provided by Golden Island, offers Carbon Intensity savings of more than 75% compared to conventional Very Low Sulphur Fuel Oil (VLSFO).”
The Ordos Production Plant: China’s First ISCC-Certified Facility
Towngas’s ability to supply certified green methanol at scale is rooted in its groundbreaking facility in Ordos, Inner Mongolia. This state-of-the-art plant was the first in mainland China to achieve ISCC EU and ISCC PLUS certification for green methanol production, signaling a major leap forward in the country’s renewable fuel sector.
Using proprietary processes developed in-house, the Ordos plant converts municipal waste and biomass into high-purity green methanol. Its current annual production capacity stands at 100,000 tonnes, with plans underway to boost that figure to 150,000 tonnes by the end of 2025. The facility showcases not only Towngas’s technological leadership but also its commitment to the circular economy by utilizing waste as a valuable resource.
Strategic Collaboration with Foran Energy Group
To further scale production and meet growing demand across domestic and international markets, Towngas has entered into a “Cooperation Framework Agreement for Green Fuel and Chemical Projects” with Foran Energy Group Company Limited. The two companies have agreed to co-invest approximately RMB 10 billion (~USD 1.4 billion) to establish multiple green methanol production bases across China.
The first of these projects will be located in Foshan, with an initial target production capacity of 200,000 tonnes per year by 2028. Collectively, the partnership aims to bring annual production capacity to 1 million tonnes, creating a robust and diversified supply chain to serve both domestic energy needs and international marine fuel markets.
Strengthening the Singapore Connection
Singapore’s strategic location and forward-looking maritime policies make it a critical node in Towngas’s expansion plans. In January 2025, Towngas also signed a Memorandum of Understanding (MoU) with Global Energy Trading Pte Ltd, another prominent marine fuel supplier in Singapore. This agreement aims to jointly promote the adoption and distribution of green methanol as an alternative marine fuel, facilitating market readiness and establishing a reliable bunkering infrastructure.
The MoU complements the current partnership with Golden Island, collectively creating a stronger ecosystem for methanol-based shipping in Singapore and beyond.
Green Methanol: A Growing Role in the Energy Transition
Green methanol has emerged as one of the most practical and scalable options for reducing the carbon footprint of shipping. As a liquid fuel, it fits relatively easily into existing logistics and bunkering systems, unlike gaseous fuels like hydrogen or ammonia which require more complex infrastructure and safety considerations.
Moreover, methanol can be burned in dual-fuel engines that are increasingly being adopted by major shipping lines. These engines provide flexibility and can transition from conventional to renewable fuels with minimal redesign, reducing the capital risk associated with adopting new propulsion technologies.
From a sustainability standpoint, green methanol—particularly when produced from waste and biomass—offers up to 95% lifecycle greenhouse gas emission reductions compared to conventional fuels. This makes it a compelling candidate for shipowners and operators seeking to comply with upcoming IMO carbon intensity targets and to attract climate-conscious investors and customers.
