Not only pipe dreams: the century-old utility going green without losing its spark

[The content of this article has been produced by our advertising partner.]For most Hong Kong residents, Towngas is felt in those everyday moments—turning on the hob to cook dinner or firing up the boiler for a hot shower. After more than 160 years serving the city, the utility operates as reliably as Hong Kong itself. Yet beneath this steady presence, a quiet transformation has been underway. From underground pipe maintenance to green energy exploration, Towngas is weaving cutting-edge technology into its daily operations, preparing for a new era of energy demands.The AI pipe joint analysis system uses non-destructive testing technology to rapidly detect defects in pipe connections on-site by analysing reflected ultrasound waves, determining whether replacement is needed and ensuring gas supply safety.Stability meets innovationThis pragmatic evolution is most visible where it matters most to residents: safety. With over 3,700 kilometres of underground pipework spanning Hong Kong, Towngas’s engineering team has developed detection systems that use ultrasound reflection to essentially “see through” pipe joints in real-time. This allows engineers to assess whether replacements are needed with far greater precision, boosting both inspection efficiency and supply safety.Similarly, for gas risers running up building facades, the Company has trained imaging systems to identify corrosion levels. These technologies make maintenance far more targeted—potential issues are resolved before residents even notice anything amiss. It’s precisely this approach that keeps gas supply reliability above 99.99%.This marriage of craftsmanship and technology extends to Towngas Group’s renewable energy operations on the Chinese mainland, where drones and robots equipped with AI algorithms conduct inspections and cleaning for solar power stations. Across the Company’s network of liquefied natural gas facilities nationwide, AI-powered monitoring systems detect potential hazards early, substantially improving safety standards. On the smart kitchen front, selected products now feature the TGSE Chip, enabling users to control appliances remotely via smartphone through Internet of Things technology. These innovations haven’t just earned multiple patents—they demonstrate Towngas’s capability to export high-tech industrial solutions.The Group is also positioning itself for robust AI infrastructure. Its Towngas Telecom (TGT) data centre already boasts stable power supply and high-capacity cooling systems, laying the groundwork for the high-speed computing demands of AI development.TGT, which operates data centres under Towngas, completed its first real-world asset tokenisation project.A green energy blueprintIf AI represents technological depth, Towngas’s “sea, land, and air” strategy showcases the breadth of its green ambitions. At sea, the Company produces internationally certified green methanol using conversion technology that transforms scrap tyres and agricultural waste. The long-term goal is to produce a million tonnes annually, providing clean fuel for the maritime industry.On land, there’s hydrogen—and Towngas enjoys a natural advantage here, as Hong Kong town gas already contains approximately 50% hydrogen. Drawing on over a century of hydrogen handling experience and combining it with technological innovation, the Company is helping establish Hong Kong’s first green hydrogen production facility. It’s also advancing low-carbon energy solutions, including hydrogen charging stations for electric vehicles and hydrogen-powered generators for construction sites, supporting the hydrogen economy across multiple fronts.In the air, EcoCeres, a company incubated by Towngas, produces sustainable aviation fuel (SAF) from used cooking oil and agricultural residues. What would otherwise be urban burdens are refined into aircraft fuel that reduces carbon emissions. EcoCeres has already joined the ranks of leading global SAF producers—a process that turns waste into resources whilst helping industries decarbonise, and a commercially viable expansion strategy to boot.The TERA-Award ceremony was held overseas for the first time last year, taking place at the University of Cambridge in the UK.Nurturing green unicornsTowngas recognises that green transformation shouldn’t be a solo endeavour. Group Chairman Dr Peter Lee founded the TERA-Award Smart Energy Innovation Competition, issuing an open call to green startups worldwide to submit innovative zero-carbon energy ideas and bring them to fruition. With annual prize money of up to US$1 million, plus potential investment and application opportunities, the competition has attracted over 1,700 entries from nearly 80 countries and regions since its inception. Take i2Cool, the Hong Kong startup that won the second TERA-Award gold prize: they developed an electricity-free cooling coating that, when applied to building exteriors, effectively lowers indoor temperatures. It’s now been deployed in over a hundred projects globally, turning research into real-world impact.The Company is also venturing into new financial territory. In 2025, Towngas used blockchain technology to complete its first real-world asset (RWA) tokenisation project. Behind the complex financial jargon lies a simple core objective: leveraging new technology to improve capital allocation efficiency and reduce financing costs. It’s an operational optimisation designed to maintain financial flexibility for long-term development.Towngas’s green methanol completed its first large-scale bunkering operation last year. Produced from biomass resources and municipal waste, it achieves a 70% reduction in lifecycle greenhouse gas emissions.Service at the coreFor this century-old institution, all these quiet changes serve a single ultimate purpose: sustainable, high-quality service. Through its dual pursuit of “green” and “smart”, Towngas has evolved from a utility company into an industry-leading integrated energy technology enterprise. No drama, no fanfare—just a utility keeping its promise, one innovation at a time.