Towngas joins forces with Sinopec subsidiaries to advance hydrogen and green fuel initiatives
(4 February 2026) Hong Kong has taken a step forward in its energy transition. The Hong Kong and China Gas Company Limited (Towngas), Sinopec (Hong Kong) Limited, and Sinopec Star Company Limited (Sinopec Star) have signed a memorandum of understanding to establish a strategic partnership. The three parties will collaborate extensively on clean energy solutions, including hydrogen, green methanol and sustainable aviation fuel (SAF), injecting fresh momentum into the country’s “dual carbon” strategy and Hong Kong’s energy transition.
Tripartite collaboration to build a hydrogen industry ecosystem
Under the memorandum, the partnership will span key areas including hydrogen business development, hydrogen refuelling station construction, liquid hydrogen storage and transport technology, hydrogen charging stations, green methanol shipping applications, and SAF development. The parties will also explore establishing a joint venture aimed at pooling resources, accelerating hydrogen project delivery, improving Hong Kong’s hydrogen infrastructure, and building a competitive industrial ecosystem.
Hong Kong has ample local hydrogen supply to support the hydrogen collaboration. Towngas, as a major gas and hydrogen supplier in the city, produces gas that is half hydrogen by composition. The Company has successfully delivered hydrogen technology in several demonstration projects, including Hong Kong’s first integrated hydrogen generator at last year’s National Games golf tournament, and the city’s first public automatic hydrogen charging system for electric vehicles at the Hong Kong Science Park. Towngas currently has an annual hydrogen production capacity exceeding 12,000 tonnes. With its biogas-to-hydrogen facility at the Tseung Kwan O landfill adding to the supply of Hong Kong-made green hydrogen, the partnership will actively prioritise locally produced hydrogen at competitive prices, diversifying hydrogen sources.
Sinopec (Hong Kong) Limited operates a leading retail network with an extensive customer base across Hong Kong, covering the full range of petroleum retail, wholesale, aviation and marine refueling operations. It also runs Hong Kong’s first public hydrogen refueling station. Meanwhile, Sinopec Star, as Sinopec’s specialist new energy arm, focuses on wind and solar generation, green electricity transmission, and green hydrogen production, storage, transport and applications. The collaboration will harness each party’s strengths to jointly develop the downstream hydrogen market and accelerate hydrogen adoption in Hong Kong.
Mr Peter Wong Wai-yee, Managing Director of Towngas, said:
Towngas operates an underground gas network spanning 3,700 kilometres across Hong Kong, giving us ready access to local hydrogen sources.
”Combined with our years of experience handling hydrogen-rich town gas safely and rigorously, this partnership should help drive the hydrogen economy forward, particularly practical applications in green transport and on-site hydrogen power generation.”
Mr Wu Qinggao, Director and General Manager of Sinopec (Hong Kong) Limited, commented:
Sinopec (Hong Kong) Limited has been deeply rooted in Hong Kong for over three decades, with a comprehensive oil and gas storage, transport and sales network and substantial customer base covering the entire supply chain from depots and retail stations to marine refueling and airport jet fuel supply.
This cooperation represents a partnership among three parties with complementary strengths and aligned objectives. We will leverage our respective advantages in resources, technology and markets to expedite key projects, including hydrogen refueling stations, hydrogen vehicle promotion, green methanol shipping applications and SAF supply. This will accelerate the commercialization of hydrogen and low-carbon fuels, providing reliable support for Hong Kong’s green transport, maritime and aviation energy transition, actively responding to the HKSAR Government’s energy policies and national dual carbon goals, and working together towards Hong Kong’s 2050 carbon neutrality vision.”
Ms Zhang Mingming, Chief Accountant, General Counsel and Chief Compliance Officer of Sinopec Star, said:
Sinopec Star is Sinopec Corp’s specialist new energy company.
”We have completed and commissioned the world’s largest green electricity-to-green hydrogen project, which has been running safely and stably for over two years.The project has successfully integrated the entire industrial chain from green electricity production to hydrogen generation and refining applications, driving coordinated development of the hydrogen industry ecosystem. We are currently advancing the large-scale green hydrogen production base in Ulanqab, Inner Mongolia, and a long-distance hydrogen pipeline project. Under the tripartite cooperation framework, we will draw on our core technologies and resources to focus on key areas, including transoceanic liquid hydrogen transport, hydrogen blending in natural gas, and green hydrogen power generation. We will participate deeply in Hong Kong’s hydrogen industry development, helping the sector transform towards greener, lower-carbon and more diversified operations, positioning Hong Kong as a global green and low-carbon hydrogen trading hub, and building an exemplar of green energy cooperation to optimise and upgrade the regional energy mix.”
Responding to the national 15th Five-Year Plan and seizing green opportunities
China’s 15th Five-Year Plan explicitly designates hydrogen as a strategic emerging industry and sets out the development direction for green methanol and SAF. The HKSAR Government is also actively formulating relevant strategies to encourage green research and technology commercialisation. The partnership between Towngas, Sinopec (Hong Kong) Limited and Sinopec Star represents a market response to these policies.
Looking ahead, the three companies will use this memorandum as a springboard to comprehensively deepen practical cooperation in hydrogen and green fuels. They will work to create synergies, drive industrial upgrading through technological innovation, and accelerate the development of Hong Kong’s hydrogen industry ecosystem. This collaboration will not only provide Hong Kong’s residents and businesses with more competitive low-carbon energy solutions, but will also fully support Hong Kong’s development as an international green technology hub, contributing substantively to the country’s dual carbon strategy and the global response to climate change.
READ the latest news shaping the hydrogen market at Hydrogen Central
Towngas joins forces with Sinopec subsidiaries to advance hydrogen and green fuel initiatives, source
