Its Hong Kong and clean energy businesses have signed a memorandum of understanding (MOU) with the Hong Kong and China Gas Company (Towngas) aimed at developing projects in the special administrative region.

Their efforts will focus on hydrogen refuelling station construction, liquid hydrogen storage and transport technology, shipping applications, and SAF development.

According to Towngas, the MOU would see the trio aim to “build a hydrogen industry ecosystem” in Hong Kong, as well as the possible creation of a joint venture for pooling resources and accelerating project delivery.

Towngas describes itself as a “major hydrogen supplier” in Hong Kong. However, its gas network provides town gas produced from naphtha and natural gas – made up of hydrogen, methane, and carbon dioxide.

“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,” said Towngas Managing Director, Peter Wong Wai-yee.

Sinopec has also been aggressive on its hydrogen development, building several multi-hundred-megawatt hydrogen projects, alongside early-stage technology development.

Wu Qinggao, Director of Sinopec Hong Kong, said the MOU would accelerate the commercialisation of hydrogen and clean fuels in Hong Kong.

The agreement comes after Hong Kong unveiled its hydrogen strategy in 2024, aiming to link China with global markets.