Some of these projects are backed by the government’s HK$400 million (US$51.23 million) Green Technology Fund and HK$200 million New Energy Transport Fund. But it remains to be seen whether Hong Kong’s plan, “proceeding cautiously,” in the words of one government official, will pay off to the point where hydrogen brings about the emissions reductions needed to help the city reach its net-zero goal. Indeed, many in this emerging sector would like to see the government apply more pressure.
Fuel for Citybus’s sole hydrogen-powered vehicle is produced by Linde HKO, a subsidiary of a German company that is one of the world’s leading manufacturers of industrial gases, at its facility in Tseung Kwan O Industrial Park. The company uses electricity to split water into hydrogen and oxygen, then transports the hydrogen to the refueling station using tube trailers with enough capacity to refuel the bus 10 times.
Citybus believes its hydrogen buses can replace diesel models on a one-to-one basis. The same can’t be said about the current battery-electric buses it is testing, said Kenny So Kwok-kin, the company’s general manager of engineering.
“The latest battery-powered double-decker buses have a designed range of 300 kilometers, but because of high energy demands such as air conditioning in summer and the hills on certain routes, they often can only travel around 200 kilometers and need to be charged for 2.5 to three hours during the day,” So said on a hot June afternoon at a depot in West Kowloon, one of Hong Kong’s 11 city bus routes.
Citybus needs to make a big decision to stop buying diesel buses by 2027 to meet its commitment to make its entire fleet of more than 1,700 buses zero-emission by 2045, five years earlier than Hong Kong’s net-zero deadline.
To make a decision, Citybus plans to begin a second phase of trials next year, increasing its fleet of hydrogen buses to five, pitting them against a fleet of five battery-powered and five diesel buses running the same routes.
“We need to conduct field tests to compare the performance and operation models of each to prove the concept we have in mind. Then, by 2027, we will have the data to determine the number and type of new energy buses to purchase, as well as the type, scale and location of refueling infrastructure needed,” Seo said.
“We are looking at both battery and hydrogen options and they will likely be complementary. Hydrogen buses currently have an advantage over battery models in terms of range, refuelling time and passenger capacity, but for routes with low passenger volumes and flat roads the battery model may be more cost-effective.”
Citybus plans to build a larger hydrogen refuelling station at Chai Wan Bus Depot, which will be supplied by Hong Kong China Gas (Towngas), So said.
![Kenny So Kwok-kin, general manager of engineering at Citybus, takes a selfie with Citybus buses at Harbourfront Central. Photo: Kenny So](https://i0.wp.com/cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/06/28/44d61d4a-fb46-45fd-80d1-dbcba8977eda_3b92f15a.jpg?w=749&ssl=1)
Towngas signed a preliminary contract last year to set up and maintain a facility at a Citybus depot to extract hydrogen from existing grid gas — the same gas that fuels kitchen stoves in millions of apartments in the city. The facility can extract half a ton of hydrogen per day, enough to operate 10 to 12 hydrogen buses.
In the long term, to meet decarbonisation needs, we will need to import green hydrogen, or its derivatives, which are produced using renewable energy to split water into hydrogen and oxygen, the combustion of which is clean and produces only electricity, heat and water.
Citybus and Towngas are among a group of companies dipping their toes into Hong Kong’s emerging hydrogen economy, which is based on the widespread belief that hydrogen will play a key role in meeting global climate goals, despite current economic uncertainty.
“Hydrogen as a fuel is quite expensive compared to diesel,” said Linde HKO general manager Cedric Chan, “and our engineers are looking at ways to bring the cost down.” He added that improved safety standards also meant educating the public that hydrogen was as safe as other fuels.
Another of the 14 pilot programs approved by the government is Epro Advanced Technology Co. Ltd.’s experiment using solar panels that would have been discarded. The company uses silicon in the panels to produce a patented material called Si+ that will be used to generate hydrogen and electricity at a public housing construction site in Tung Chung. The project will introduce the world’s first silicon-fueled hydrogen generator, according to Albert Lau, co-founder and CEO of the Hung Hom-based company.
For homegrown hydrogen technology to develop, the government needs to use both carrots and sticks on the financial front, Lau said.
“Without subsidies or a carbon price, hydrogen as a clean energy source will have to compete head-on with traditional fossil fuels, where the supply chain infrastructure is well established and the investment costs have already been largely depreciated on companies’ books,” he said.
Citybus’s Seo agreed that financial support would be key to growing the domestic hydrogen industry, citing mainland China’s performance-based subsidy scheme for hydrogen supply chain start-ups and refuelling stations as examples.
“Mainland China started developing hydrogen public transport around seven years ago and now boasts the world’s largest number of hydrogen buses and hydrogen refuelling stations,” he said. “Hong Kong also needs government support in terms of policies, regulations, hydrogen import infrastructure and, most importantly, financial support in the early stages of market development.”
The government plans to propose legal reforms next year to provide a legal basis for regulating the use of hydrogen as a fuel, allowing for more pilot projects across multiple industries, Tse said. It also plans to establish safety and technical standards throughout the supply chain.
“Furthermore, the Hong Kong government’s proposed regional cooperation with mainland China on hydrogen energy policy could pave the way for Hong Kong and Guangdong Province to jointly plan and co-develop green hydrogen-related infrastructure,” she said.
The Hong Kong Hydrogen Alliance, a newly established non-profit organization, said the establishment of a hydrogen office within the Hong Kong government would benefit Hong Kong by helping to develop and follow up on action plans, building a database of technologies, projects and best practices, and coordinating cooperation.
![Edmond Fong Wai-man, chairman of the Hong Kong Hydrogen Alliance poses at the SCMP office in Causeway Bay, on June, 26, 2024. Photo: Antony Dickson](https://i0.wp.com/cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/06/28/623b65ca-0003-4f38-8636-21f570b34ccd_229ae51b.jpg?w=749&ssl=1)
They would also like to see governments support market studies on the potential supply and demand of hydrogen for power generation and road transport, and its derivatives such as green ammonia and methanol for ships, and synthetic green fuels for aviation. Such studies could be carried out by academia or consulting firms.
“Understanding the market potential, at least technically, is essential for stakeholders to make informed decisions on business development and strategic planning,” said Edmund von Wyman, chairman of the Hong Kong Hydrogen Alliance and general manager of Towngas’ power transmission and aviation fuel facilities businesses.
The alliance was formed earlier this year and its members include Towngas, fuel distributor Sinopec Hong Kong, infrastructure consultants Arup and Linde HKO, clean energy waste-to-energy project developer Enerwaste Asia Pacific, certification service provider TÜV Rheinland and testing service provider CMA Testing.
A spokesman for the Environment and Ecology Bureau said there was no need to set up a new office to support the development of hydrogen in Hong Kong, as the Hong Kong government had already set up an inter-departmental working group and its role and function would be expanded.
The group, which has members from more than 10 government departments, will push for measures outlined in the hydrogen development plan, such as approving pilot projects. The department will continue to provide secretariat support to the group, she added.
“If the government can work with stakeholders to facilitate shared infrastructure, it could mean the difference between eight hours of operation per day at a refueling facility versus 24 hours,” he said. “We need to look at alternatives and think outside the box.”
Adopting a multi-sectoral approach to logistics infrastructure – including potentially public or joint ownership – could significantly increase efficiencies for companies across the hydrogen economy, Citybus managing director Richard Hall told a Business Environment Council conference last month.
“Instead of having multiple infrastructure for each industry, there is an opportunity to share it and benefit Hong Kong businesses and the Hong Kong economy as a whole,” he said.