Clear Targets Needed to Make Hong Kong Hydrogen Push a Success, Experts Say
Hydrogen Power and Carbon Neutrality
Experts have emphasized the need for clear targets to successfully develop hydrogen power in Hong Kong. Hydrogen development is crucial for the city's ambition to achieve carbon neutrality by 2050.
Officials highlight that mainland China produces top-quality electrolysers, essential for hydrogen production. Collaboration with Shenzhen is vital, as Hong Kong lacks the needed talent pool.
Government Strategy for Hydrogen Development
On Monday, Hong Kong's environmental authorities presented a strategy report aimed at boosting hydrogen infrastructure and cultivating talent with the necessary professional skills. This development supports the city's goal of carbon neutrality by 2050.
The report suggests that by 2027, the government will establish certification standards for hydrogen fuel, aligning with international practices. Tse Chin-wan, Secretary for Environment and Ecology, committed to promoting regional cooperation, attracting external investments, and fostering hydrogen development through joint ventures. Tse aims to leverage Hong Kong's unique position, with strong support from the motherland and global connections, to make it a demonstration hub for hydrogen development.
Market Mobilization and Financial Incentives
Yip, an investment professional in green assets, noted that the strategy misses out on leveraging Hong Kong’s status as an international financial hub. He highlighted the potential of mobilizing Hong Kong’s capital market to support large-scale investments in green hydrogen and energy transition, involving billions of dollars in ESG portfolios.
Comparatively, Singapore’s Ministry of Trade and Industry launched a comprehensive framework in 2022 to build a domestic and regional hydrogen supply chain. Singapore plans to generate up to half of its power from hydrogen by 2050 and has invested S$55 million in related projects, with an additional S$129 million earmarked to tackle key technological challenges since 2021.
Government Objectives and Legislative Amendments
Tse outlined four key objectives for Hong Kong: improving legislation, establishing standards, aligning with the market, and making careful advances. The government plans to propose legislative amendments next year to cover hydrogen's production, storage, transport, supply, and use as fuel.
Tse also promised to enhance the roles of a government working group to improve technical standards, guide broader commercialization, and support talent training and capacity building.
However, Yip argued that the framework should be managed at a higher administrative level, similar to how mainland China would utilize the National Development and Reform Commission or the Ministry of Industry and Information Technology for such strategies. A review of the current working group showed a lack of involvement from commerce authorities.
Market Economy and Financial Mechanisms
Lawrence Iu Chun-yip, executive director of Civic Exchange, stated that authorities should better recognize how the city's market economy could incentivize the adoption of hydrogen. He suggested that the strategy should more robustly promote and elaborate on utilizing Hong Kong’s fiscal system to finance hydrogen technologies.
Dennis Leung Yiu-cheong, a professor at the University of Hong Kong, recommended the government provide a timeline for the medium to long-term development of related technologies. He stressed the significance of moving from grey hydrogen to blue and green hydrogen, which have lower carbon footprints. Tse acknowledged the cost disparity, noting green hydrogen’s higher cost compared to grey hydrogen. The Green Earth, an environmental group, urged the government to create a timetable for green hydrogen use and increase funding opportunities for related projects.
Research Potential in Hong Kong
Lee Seungkyu, assistant professor at the University of Hong Kong specializing in hydrogen technology, pointed out that the city’s strong research institutions could greatly contribute to achieving carbon neutrality through hydrogen technology. He believes combining research with planned projects positions Hong Kong as a fast-developing city in hydrogen technology.
By setting clear targets and aligning legislative frameworks, investments, and research initiatives, experts believe Hong Kong can successfully lead in hydrogen power development and achieve its carbon neutrality goals.
