Hong Kong-based dry bulk shipping giant Pacific Basin has signed a memorandum of understanding (MOU) with The Hong Kong and China Gas Company Limited (Towngas) to secure supplies of green methanol, as the company moves to meet tightening international emissions standards.
The deal outlines plans for Towngas to provide Pacific Basin with green methanol that meets international certification requirements, including ISCC EU and ISCC PLUS.
鈥淥ur 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鈥檚 Global Fuel Standard,鈥 said Martin Fruergaard, chief executive of Pacific Basin.
The fuel will help power Pacific Basin鈥檚 future fleet of dual-fuel vessels, capable of operating on traditional marine fuel, sustainable biofuels, or green methanol, the operator of more than 260 ships, of which nearly 110 are currently listed as owned, said.
Late last year, the company made a surprising newbuilding move after many years, with four methanol dual-fuel ultramaxes booked at Japan鈥檚 Nihon Shipyard for delivery between 2028 and 2029.
Fruergaard noted that the company鈥檚 vessels will have the flexibility to switch between different fuels, adding that incentives under the IMO鈥檚 proposed Global Fuel Standard could strengthen the business case for early adoption of low-emission vessels and near-zero carbon fuels.
Earlier this year, Towngas partnered with Singapore鈥檚 Global Energy Trading鈥攖he first firm in the city-state to operate dedicated methanol bunkering tankers鈥攖o develop supply solutions across Asia.
The company is expanding its green methanol production capacity at its plant in Ordos, Inner Mongolia, which converts biomass and municipal waste into fuel using proprietary technology. The facility鈥檚 annual output is expected to increase from 100,000 tonnes to 150,000 tonnes by the end of this year.
Towngas has announced plans to establish additional methanol production facilities across China, including in Inner Mongolia, the Greater Bay Area, and Hainan, to reach an annual production capacity of 1m tonnes of green fuel and chemical supplies to meet rising demand from the shipping sector.
The move by Pacific Basin is part of a broader trend among shipping companies to secure methanol supply, including major containerlines.