- Pacific Basin signed an MOU with Towngas to secure access to green methanol for its dual-fuel, low-emission vessels.
- The agreement supports compliance with FuelEU Maritime and IMO’s Global Fuel Standard regulations.
- Pacific Basin aims for green fuels to make up 5% of its fuel mix by 2030 and to achieve net-zero fleet emissions by 2050.
- Towngas plans to expand green methanol production in China, targeting one million tonnes in annual capacity.
Pacific Basin Shipping Limited, a major player in the global dry bulk shipping sector, has signed a Memorandum of Understanding with The Hong Kong and China Gas Company Limited (Towngas) to secure access to green methanol marine fuel. This alternative fuel source is set to play a significant role in the company’s transition to low-emission operations as it expands its fleet of dual-fuel vessels and aligns with tightening international decarbonisation regulations. The agreement outlines a path toward a formal supply arrangement, with green methanol certified under ISCC EU, ISCC PLUS, or similar global standards.
Strengthening Access to Green Methanol for Maritime Decarbonisation
Pacific Basin highlighted that its partnership with Towngas marks a major advancement in its strategy to secure a steady and scalable supply of green fuels. The company noted that green methanol will play a key role in fueling its growing fleet of dual-fuel low-emission vessels, which are designed to operate flexibly on conventional fuel oil, sustainable biofuel, or green methanol depending on economic and regulatory factors. Pacific Basin views the collaboration as essential for meeting the requirements of the upcoming FuelEU Maritime and the IMO’s Global Fuel Standard, which are expected to incentivize the early adoption of lower-emission technologies.
The company also confirmed that the agreement supports its broader decarbonisation roadmap, targeting green fuels to make up 5% of its total fuel mix by 2030 and aiming for net-zero emissions across its fleet by 2050. Pacific Basin praised Towngas for its production capabilities, strong innovation in clean energy, and understanding of maritime fuel demands, as well as its alignment with Hong Kong and China’s ambitions to become a hub for green marine fuel bunkering.
Towngas, in turn, acknowledged the importance of the MOU in advancing its clean energy initiatives. The company announced plans to increase the annual output of its Inner Mongolia green methanol facility from 100,000 to 150,000 tonnes by year-end and outlined future expansion through multiple new production plants across mainland China. This expansion is expected to bring total annual capacity to one million tonnes, supporting growing demand from the shipping industry.
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Source: Pacific Basin
