APAS R&D Centre released today Hong Kong's first "Hong Kong Hydrogen Economy Development Report and Survey Results." The Report suggests establishing policies and regulatory frameworks to promote the development of Hong Kong's hydrogen economy

 

(Hong Kong, 13 October 2023) The Automotive Platforms and Application Systems R&D Centre (APAS), today announced Hong Kong's first "Hong Kong Hydrogen Economy Development Report and Survey Results," conducted by the APAS R&D Centre in collaboration with the City University of Hong Kong. The report incorporates industry perspectives on the development and opportunities of Hong Kong's hydrogen economy. The survey results indicate a positive response from the industry regarding the development of hydrogen in Hong Kong.

The 2022 Policy Address proposed the trial implementation of hydrogen fuel cell double-decker buses and heavy vehicles in 2023, as well as the formulation of a strategy for land transport to utilise hydrogen energy by 2025. The "Hong Kong Hydrogen Economy Development Report and Survey Results" provide data research on global hydrogen technology and its potential applications in Hong Kong. This will assist the government in formulating long-term strategies for hydrogen energy use in land transport and promoting initiatives for hydrogen development to achieve Hong Kong's goal of carbon neutrality by 2050.

Hong Kong Hydrogen Economy Development Report
The " Clean Air Plan for Hong Kong 2035" proposes multiple policies to address the challenges of improving air quality in Hong Kong. These policies encompass six major actions, including green transportation, comprehensive emission reduction, and clean energy, among others. The aim is to align with national development goals and comprehensively promote the development of Hong Kong's hydrogen industry.

The "Hong Kong Hydrogen Economy Development Report" focuses on several key aspects. Firstly, it explores the potential of utilising hydrogen in Hong Kong, such as its use in commercial vehicles. Secondly, it examines recent trends in the hydrogen field in Hong Kong, including innovative technological research projects related to hydrogen production, storage, and application. Lastly, the report discusses the limitations of hydrogen development in Hong Kong and proposes corresponding strategies to drive the development of the hydrogen industry, embracing the new era of the hydrogen economy.

The report also points out that Hong Kong has a significant advantage in hydrogen application compared to other places because its gas supply network covers most areas, with half of the gas being hydrogen. This allows for the extraction of pure hydrogen from the gas supply network at target locations through appropriate equipment. Additionally, the existing infrastructure can handle hydrogen-blend gases, making the development and application of pure hydrogen in the transportation sector more cost-effective. Furthermore,promoting hydrogen fuel vehicles will contribute to achieving decarbonisation goals in the transportation industry. Hydrogen energy and battery-powered vehicles complement each other as green transportation options, meeting the diverse energy needs of vehicles. It is also emphasised that the formulation of policies and regulations for hydrogen utilisation will be a significant driving force for promoting hydrogen application in Hong Kong.

Survey Results
This survey examines opinions from the industry regarding hydrogen production, distribution, safety, usage, and economics in Hong Kong and other regions. Regarding hydrogen production and supply, the survey results indicate that over 40% of respondents believe it is challenging for Hong Kong to produce enough hydrogen locally, possibly due to concerns about limited land supply. Among them, more than half (51.1%) expressed the view that Hong Kong lacks land for green hydrogen production. Therefore, the mainstream opinion suggests that Hong Kong would need to import hydrogen from mainland China (62.5%) or other countries such as Australia, Chile, and South Africa to meet local demand.

In terms of hydrogen safety, over 60% of respondents (68.2%) believe that hydrogen-powered vehicles are no less safe than traditional cars or fully electric vehicles. Additionally, over 80% of respondents (80.7%) think that hydrogen-powered vehicles can be safely used as long as they comply with appropriate international standards and requirements. When considering whether to enter the hydrogen market, the industry takes into account three main factors: the development potential of renewable energy and hydrogen technology in Hong Kong (44%), concerns about climate change and sustainable development (38%), and new perspectives and market opportunities (36%).

In terms of transportation costs, more than half of the respondents (56.8%) believe that the price of hydrogen fuel would hinder its widespread use in cars, as the vehicle's price is a key factor in accepting or adopting it. It is expected that the operating costs of hydrogen fuel vehicles will be higher in the initial stage. Compared to conventional petrol cars, the cost difference of hydrogen fuel vehicles can be as high as 20%. Similarly, 55% of the respondents hold the same opinion when it comes to transitioning from electric vehicles to hydrogen fuel vehicles. Over 60% of the respondents (64.8%) prefer hydrogen fuel vehicles over electric commercial vehicles when considering factors such as range and charging/hydrogen refueling time. However, approximately 22% of the respondents expressed a lack of strong interest in transitioning to hydrogen fuel vehicles, regardless of the operating costs.

In promoting carbon reduction, hydrogen energy has been recognised as an important energy source for reducing air pollution and achieving carbon neutrality, as part of Hong Kong's overall plan. Over 87.5% of respondents agree that hydrogen energy will play a crucial role in the future.

Dr. Lawrence Cheung, the CEO of APAS R&D Centre highlighted: “To support the development of a hydrogen economy, most of the industry would hope for the Hong Kong government to provide hydrogen energy policies, including a roadmap and long-term goals. This includes establishing a clear and consistent regulatory framework, as well as providing infrastructure such as hydrogen refueling stations using existing gas pipelines. Additionally, economic incentives such as tax benefits or subsidies should be given to hydrogen producers, refueling station operators, and certifying organisations. Moreover, there is a need to enhance hydrogen energy and new energy-related courses in local universities and colleges to cultivate talents in the hydrogen industry or those already involved in the field.

Professor Yun Hau NG, Director of Low-Carbon and Climate Impact Research Centre (LCCIC), School of Energy and Environment, City University of Hong Kong said: “The survey report reflects positive sentiments within the industry regarding the development of hydrogen energy in Hong Kong, particularly in terms of confidence in hydrogen safety. The report and survey also show a general preference for commercial hydrogen vehicles, as they are believed to reduce air pollution and help decrease carbon emissions. Even if the cost of hydrogen vehicles is up to 20% higher than traditional or electric vehicles, respondents are still willing to switch to hydrogen-powered cars."

The "Hong Kong Hydrogen Economy Development Report and Survey" was conducted in August and September 2023, and successfully interviewed 88 industry stakeholders. The report can be downloaded from the APAS website: https://www.apas.hk/index.php/en/rad-areas/download-area. (Only available in English)

- Ends -

 Dr Lawrence Cheung, CEO of APAS R&D Centre, and Professor Yun Hau NG, Director of Low-Carbon and Climate Impact Research Centre (LCCIC), School of Energy and Environment, City University of Hong Kong, announced during a press conference on the "Hong Kong Hydrogen Economy Development Report and Survey Results" that the industry's response towards hydrogen development in Hong Kong has been predominantly positive.

About Automotive Platforms and Application Systems (APAS) R&D Centre
The Automotive Platforms and Application Systems R&D Centre (APAS) is set up under the R&D Centre Programme of the Innovation and Technology Commission and was hosted by the Hong Kong Productivity Council (HKPC) until 31 October 2012. The Centre was merged with HKPC with effect from 1 November 2012. The Centre continues to undertake market-led R&D programmes as well as commercialises R&D results in collaboration with industry, universities and technology institutes in the area of automotive parts and accessory systems. The aim is to enhance the capabilities and competitiveness of Hong Kong's automotive parts and accessory systems industry, which is made up of different industry sectors including the foundation industries.

About Hong Kong Productivity Council
The Hong Kong Productivity Council (HKPC) is a multi-disciplinary organisation established by statute in 1967, to promote productivity excellence through relentless drive of world-class advanced technologies and innovative service offerings to support Hong Kong enterprises. Being a key enabler of Industry 4.0 and Enterprise 4.0, HKPC strives to facilitate new industrialisation in Hong Kong, as well as bolstering Hong Kong to be an international innovation and technology centre and a smart city. The Council offers comprehensive innovative solutions for Hong Kong industries and enterprises, enabling them to achieve resources and productivity utilisation, effectiveness and cost reduction, and enhance competitiveness in both local and overseas marketplace. The Council partners and collaborates with local industries and enterprises and world-class R&D institutes to develop applied technology solutions for value creation. It also benefits a variety of sectors through product innovation, technology transfer, and commercialisation, bringing enormous business opportunities ahead. HKPC’s worldclass R&D achievements have been widely recognised over the years, winning an array of local and overseas accolades. 

In addition, HKPC offers SMEs and startups immediate and timely assistance in coping with the ever-changing business environment, and strengthens talent nurturing and Hong Kong’s competitiveness with FutureSkills training for enterprises and academia to enhance digital capabilities and TechEd competencies. For more information, please visit HKPC‘s website: www.hkpc.org/en.

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