Hong Kong and China Gas Company Limited, commonly known as Towngas, and The Hong Kong Polytechnic University have entered into a cooperation agreement to develop a blockchain-based management platform for green fuels and chemicals, according to a company announcement.
The initiative is intended to improve the certification, traceability and commercial use of green products by creating a digital framework that can record information throughout their lifecycle. The platform is expected to initially serve the green fuels and chemicals operations of VENEX, a Towngas Group subsidiary, at production facilities in Inner Mongolia and Foshan.
The platform will cover the green product supply chain from feedstock procurement and production to certification, logistics and end-use applications, creating a unified digital system for managing green value.
The organizations stated the system will provide technical support for green value certification while establishing mechanisms for tracking products throughout the supply chain. It is also expected to create digital identities for green fuels and chemical products, together with electronic certification systems designed to make product information easier to verify.
Focus on Certification and Supply Chain Transparency
A major objective of the project is to strengthen the reliability of environmental claims associated with green fuels and chemicals. Blockchain-based records are expected to help protect certificates, inspection reports and other supporting documents against unauthorized alteration or forgery.
The technology could also allow stakeholders to trace product information across different stages of the supply chain. Such capabilities may become increasingly important as companies and regulators place greater emphasis on proving the environmental characteristics and origin of products marketed as green.
The platform is further intended to improve the international recognition of green product certification results. By maintaining verifiable digital records, the system could provide overseas buyers, certification organizations and other market participants with a more consistent way to assess green attributes.
Towngas and PolyU also expect the platform to help quantify and demonstrate the environmental value generated by green products. This could support the development of mechanisms for assigning greater economic value to environmental attributes that are currently difficult to measure or verify across complex supply chains.
Towngas and PolyU Combine Industry and Research Expertise
The collaboration brings together PolyU‘s research capabilities in blockchain technology, data science and digital innovation with Towngas’s experience across the green fuels and chemicals value chain.
Towngas Group Chief Technology Officer and Chief Operating Officer for Green Fuels and Chemicals Sham Man-fai said the project reflected the growing importance of green value in the energy transition and industrial upgrading. He indicated that blockchain could help establish a trusted framework in which green attributes are accurately recorded and independently verified.
The companies expect the technology to create a trusted digital foundation for green product trading, circulation of green value and the future development of green finance.
The initial deployment through VENEX is also intended to serve as a demonstration model for digital green value management. Towngas said the model could eventually be replicated and expanded across additional operations and supply chains.
Potential Foundation for Green Finance
Beyond supply-chain management, the project could provide infrastructure for new applications involving green assets. Reliable digital certification and traceability could make it easier to connect verified environmental attributes with trading, financing and other commercial activities.
The companies plan to conduct further research into standards for green value certification, digital traceability mechanisms and models for managing green assets. They also intend to work with supply-chain participants, certification organizations and international markets as the platform develops.
By combining blockchain-based certification with lifecycle traceability, the initiative is designed to make the environmental value of green fuels and chemicals more measurable, verifiable and usable across commercial markets.
The project highlights the expanding role of digital infrastructure in China’s green transition, where companies are seeking ways to connect physical production with verifiable environmental data and emerging financial applications.
