Towngas Joins Forces with Sinopec Subsidiaries to Advance Hydrogen and Green Fuel Initiatives

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February 05, 2026

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(Towngas) 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.

About The Hong Kong and China Gas Company Limited (Towngas)

Established in 1862, Towngas is the public utility with the longest history in Hong Kong and one of the city’s largest energy suppliers, operating at world-class standards of corporate management and operations. For generations, Towngas has provided safe and reliable energy solutions to the public, leading the way in the Greater China energy sector.

In 1994, Towngas expanded its business into the Chinese mainland. The Company now operates over 970 projects across 29 provincial regions. In recent years, Towngas has been actively developing clean energy solutions, including hydrogen energy, marine green methanol, and sustainable aviation fuel, supporting Hong Kong’s goal of achieving carbon neutrality before 2050 and China’s national “30-60” dual carbon goals.

About Sinopec (Hong Kong) Limited

Founded in 1989, Sinopec (Hong Kong) Limited has become one of Hong Kong’s leading oil and gas energy suppliers. The company owns comprehensive oil and gas storage and transport assets in Hong Kong, including two oil depots, 54 service stations, and oil tankers. It holds a leading market share in the petrol station retail market, is a major jet fuel supplier to Hong Kong International Airport, and is the primary supplier of fuel oil in Hong Kong.

As an investment platform for Sinopec Corp’s downstream business, the company has vigorously expanded its international operations, establishing subsidiaries in Singapore, Australia, the Philippines, Thailand and Laos, where it operates petrol stations and serves retail fuel customers. It also provides jet fuel refueling services at airports in over 10 countries.

In recent years, Sinopec (Hong Kong) Limited has actively responded to the national and Hong Kong dual carbon goals and policies, fully exploring clean energy businesses, including hydrogen, electric vehicle charging, and green fuels. It has built Hong Kong’s first hydrogen refueling station and is advancing Hong Kong’s first photovoltaic green hydrogen project and Zero Carbon Green Hydrogen Hub. The company has established over 200 charging points across 15 districts in Hong Kong and routinely supplies bio-jet fuel and bio-marine fuel.

About Sinopec Star Company Limited (Sinopec Star)

Sinopec Star is the new energy specialist company of China Petroleum & Chemical Corporation (Sinopec Corp), with its headquarters in Beijing. In recent years, Sinopec Star has actively implemented the Party and the State’s energy security strategic deployment, proactively integrated into the carbon peak and carbon neutrality strategy, earnestly implemented Sinopec Corp’s “One Foundation, Two Wings, Three Chains, Four Growth Points” industrial framework, and actively built a new energy industrial system covering geothermal, hydrogen, wind and solar power, striving to become Sinopec Corp’s green energy demonstration enterprise. Currently, Sinopec Star’s new energy business extends across 16 provincial-level administrative regions, including Beijing, Hebei, Xinjiang and Inner Mongolia, with active expansion in green hydrogen production and green electricity substitution for traditional energy enterprises. The company has completed and commissioned the world’s first 10,000-tonne-scale green hydrogen demonstration project—the Xinjiang Kuqa 20,000-tonne-per-year green hydrogen demonstration project. This project has been operating stably and continuously for over 900 days, achieving full industrial chain integration from “photovoltaic power generation - green electricity transmission - water electrolysis for hydrogen production - hydrogen storage - hydrogen transport - green hydrogen refining”, validating the feasibility of large-scale industrial production and application of green hydrogen from green electricity. READ MORE