Gasgoo Munich- Geely Farizon New Energy Commercial Vehicle Group("Geely Farizon") and The Hong Kong & China Gas Company Limited ("Towngas") signed a strategic cooperation agreement on June 18 aimed at accelerating the development of a methanol-based transportation ecosystem in Hong Kong. The partnership will focus on several core areas, including methanol fuel supply, refueling infrastructure deployment, and the adoption of methanol-powered commercial vehicles, as both companies seek to develop a low-carbon mobility model tailored to the city's unique operating environment.
Image source: Geely Farizon
The agreement comes as Hong Kong intensifies efforts to meet its climate objectives under the Hong Kong Climate Action Plan 2050. While electrification remains a key component of the city's decarbonization strategy, limited land availability and the challenges associated with large-scale charging infrastructure deployment have created hurdles for the widespread adoption of battery-electric commercial transport.
Against this backdrop, methanol is emerging as a potential complementary pathway. Often described within the energy sector as a liquid carrier for renewable energy, methanol can be produced through processes that combine captured carbon dioxide with hydrogen. As a liquid fuel, it offers advantages in storage, transportation, and refueling efficiency, while allowing existing energy infrastructure to be adapted at relatively low cost—factors that make it particularly relevant for densely populated urban environments such as Hong Kong.
Founded in 1862, Towngas is the city's oldest public utility and remains Hong Kong's sole provider of town gas pipeline services. Its extensive energy infrastructure network is expected to provide a foundation for future methanol fuel distribution and related facilities.
Geely Farizon, meanwhile, brings more than two decades of methanol technology development experience inherited from the broader Geely Holding Group. Over the years, the company has established an integrated methanol value chain covering green methanol production, refueling infrastructure, powertrain development, and large-scale commercial vehicle deployment.
The two companies believe their complementary strengths could accelerate the establishment of a complete methanol mobility ecosystem in Hong Kong. By combining Farizon's experience in methanol vehicle deployment with Towngas' local energy infrastructure and operational capabilities, the partners aim to create an integrated network spanning fuel production, distribution, refueling, and vehicle operation.
Future cooperation will include planning and developing an M100 automotive methanol supply system for Hong Kong, while also exploring station deployment strategies and commercially viable operating models for methanol refueling infrastructure.
In recent years, Geely Farizon has expanded its presence in Hong Kong through initiatives involving vehicle deployment, refueling infrastructure, and industry-academic collaboration. A central component of that strategy is its methanol-electric technology, which uses methanol as a range-extending energy source to generate electricity onboard the vehicle. The approach is designed to address common concerns associated with conventional new-energy vehicle solutions, particularly driving range and refueling efficiency.
The company recently achieved a key milestone when its Xingji U12M methanol-electric bus, developed specifically for the Hong Kong market, received an emissions exemption from the Environmental Protection Department. The model is now preparing to enter full commercial operation.
According to Geely Farizon, vehicles equipped with its methanol-electric technology deliver substantial environmental benefits compared with conventional diesel-powered models. Particulate matter emissions are reduced by 98%, carbon monoxide emissions by 88%, and nitrogen oxide emissions by 82%. The company also reports a reduction in overall energy costs of between 32% and 52%.
Farizon says more than 60,000 methanol-electric vehicles have already entered operation, collectively accumulating over 25 billion kilometers of driving mileage. The company views these figures as evidence of the technology's maturity and operational reliability. Looking ahead, Farizon plans to expand the deployment of methanol-electric light trucks, vans, and heavy-duty trucks in Hong Kong as part of the city's broader transportation decarbonization efforts.
Going forward, Geely Farizon and Towngas intend to use green methanol as a cornerstone of their collaboration, combining energy innovation with transportation decarbonization. The partners aim to support Hong Kong's transition toward a cleaner and lower-carbon urban environment while creating a scalable demonstration model that could contribute to China's broader carbon reduction and carbon neutrality objectives.
By positioning Hong Kong as a testing ground for methanol-powered commercial mobility, the companies hope to showcase an alternative pathway for sustainable transportation in regions where infrastructure constraints make a purely battery-electric transition more challenging.
