Hong Kong holds a significant position in the international shipping industry while this thriving sector also contributes to substantial greenhouse gas emissions. As part of Hong Kong’s efforts to contribute to the global fight against climate change and develop the city into a green maritime fuel bunkering center, the Hong Kong Special Administrative Region government has released the Action Plan on Green Maritime Fuel Bunkering, advocating for a transition to sustainable marine fuels. Among these, green methanol has garnered considerable attention as a promising alternative fuel because of its environmental and economic benefits. The 2025-26 Budget promotes green methanol bunkering through tax incentives, aiming to reduce fuel costs for vessels and solidify Hong Kong’s position in the field of sustainable shipping.
By actively promoting green methanol bunkering facilities, Hong Kong can develop into a green bunkering hub, attracting more oceangoing vessels to refuel in the city. This will not only strengthen Hong Kong’s position as an international shipping hub but also foster the development of green industries. If Hong Kong can swiftly provide green methanol bunkering services, it will set an example for other ports. This demonstrates the feasibility of sustainable shipping while providing a reference model for green transformation.
The promotion of green methanol holds profound significance for Hong Kong’s economic, environmental, and strategic development. Through policy support and infrastructure development, the establishment of green methanol bunkering facilities will attract more environmentally conscious shipping companies to choose Hong Kong as a partner, thereby enhancing the city’s competitiveness in the global market. As green methanol facilities are developed, opportunities will be created in related green industries, driving local economic growth and injecting new vitality into society. Although initial investment costs may be high, the widespread adoption of green methanol will yield long-term cost benefits.
To achieve the comprehensive promotion of green methanol bunkering, Hong Kong needs to increase methanol supply and establish a robust infrastructure, including the coordinated development of green methanol suppliers, storage facilities, and bunkering service providers. Attracting more suppliers is crucial to ensuring a stable fuel supply. Hong Kong can achieve this by building partnerships with global suppliers or encouraging local enterprises to invest in production within the Guangdong-Hong Kong-Macao Greater Bay Area. Modern storage facilities are key to ensuring the smooth operations of the green methanol supply chain, enhancing supply flexibility, and avoiding operational delays caused by shortages. Additionally, Hong Kong needs to cultivate professional operators to ensure the safe and efficient bunkering of methanol onto vessels, thereby boosting its competitiveness as an international shipping hub and promoting sustainable development.
From a long-term perspective, establishing a complete green methanol supply chain from production and transportation to bunkering is essential. Integrating green methanol bunkering into Hong Kong’s long-term shipping development strategy will ensure its sustainable growth
The promotion of green methanol faces multiple challenges. High initial costs are a major barrier, as the production of green methanol and the construction of infrastructure require significant capital investment, causing hesitation among many businesses. Furthermore, the lack of safety and technical standards adds to the difficulty of promotion. The absence of unified standards may lead to market uncertainty and weaken investor confidence. Therefore, the release of a code of practice for green methanol bunkering is crucial. To address these challenges, all stakeholders must collaborate. The government should facilitate partnerships with regional suppliers and accelerate infrastructure development and technology adoption to reduce initial costs. At the same time, sharing experiences with other international ports and promoting the development of a global green methanol supply chain can help leverage successful cases to enhance production and application capabilities, driving the standardization and marketization of green methanol.
Hong Kong should promptly conduct feasibility studies to assess the construction of green methanol bunkering facilities. These studies will help determine the optimal locations for facilities, the required investments, and potential economic returns. Additionally, launching pilot projects is a critical step. Collaborating with vessel operators and service providers to trial green methanol bunkering services in Hong Kong will validate the effectiveness of green methanol applications and raise awareness among stakeholders. Such initiatives will pave the way for future expansion and build confidence in green methanol.
From a long-term perspective, establishing a complete green methanol supply chain from production and transportation to bunkering is essential. Integrating green methanol bunkering into Hong Kong’s long-term shipping development strategy will ensure its sustainable growth. By implementing relevant policies and leveraging the tax incentives outlined in the 2025-26 Budget, Hong Kong can enhance its reputation as a global shipping hub and attract more shipping enterprises. These measures will enable Hong Kong to play a significant role in the global shipping industry’s green transformation and create new opportunities for future prosperity.
The author is chair of the International Trade and Supply Chain Committee, Chinese Academy of Governance (HK) Industrial and Commercial Professional Alumni Association.
The views do not necessarily reflect those of China Daily.
