1HongKongHydrogenEconomyStudyandReportMarketStudyontheUseofHydrogeninGreenTransportationinHongKongSeptember20232A.ExecutiveSummaryInthelatestPolicyAddress,theGovernmentiscommittedtoreducingcarbonemissions,includingexploringdifferenttypesofzero-carbonenergyanddecarbonisationtechnologies,tostrivetowardcarbonneutrality.Hydrogenisoneofthepotentialsourcesofenergycarrierwhichhasversatilitytosubstitutefossilfuelinvariousutilizationscenarios.TheCleanAirPlanforHongKong2035(releasedinJune2021)clearlyidentifiessixmajorareasforfurtheraction,whichincludegreentransport,liveableenvironment,comprehensivereduction,cleanenergy,scientificmanagement,andregionalcollaboration.Hydrogencantypicallyplayaroleincontributingtoaresilient,sustainableenergyfutureintwomajordirections:(1)current/traditionalpracticeofhydrogenusage,dominantlypresentinindustrialactivities(e.g.refinery,steelproduction,fertilizermanufacturingetc.),canusehydrogenproducedfromgreeneralternativemethods;(2)hydrogenreceivesinterestinnewandemergingapplicationsmainlyinelectricitygeneration,heatingsourceandtransportation(i.e.fuelcellvehicleFCV).InHongKong’scontext,hydrogenusageinthe(2)findsitsultimaterelevance.Hydrogencanbedirectlyusedinitspureformstoredindifferentphysicalstates(includinguncompressedgas,compressedgas,liquefiedhydrogenandsolid-statehydrogenasmetalhydride).Alternatively,hydrogencanbeconvertedtohydrogen-basedfuelssuchasammonia,methaneorliquidalcoholfuels.Withthesemultiplefacetsofhydrogen,thereispotentialtoconnectdifferentpartsoftheenergysystemwithhydrogen-derivedfuels.Disregardingtherawsourcesofhydrogen,HongKonghasanobviousadvantageoverothercitiesintheworldinthatthehydrogenmixturedistributionnetworkisreadilyavailablethroughoutHongKong.ThesignificantportionofhydrogenintheutilitygasmixturewithitsextensivenetworkaccessibilityisrenderingHongKongconvenientinextractingpurehydrogenforitsdedicatedusageatthedesirablesites.Theexistinginfrastructurescapableofhandlinghydrogen-blendedmixturealsoofferthepotentialofcosteffectivenessinfurtherdevelopingtheapplicationofpurehydrogenfortransportationpurpose.Promotinghydrogen-fuelledvehicles,inadditiontobattery-poweredelectriccounterparts,inHongKongwillhelptodecarbonisethetransportationsector.Bothmodesofgreentransport(hydrogenandbattery-powered)havecomplementaryrolesinsatisfyingvehicleswithdifferentenergydemands.EnactmentofpoliciesandregulationsonhydrogenutilizationwouldbethenextmajoreffortinfacilitatingtherealadoptionofhydrogeninHongKong.3B.MarketAnalysisontheUseofHydrogeninHongKongHongKong’sPotentialsThereleaseofthe“CleanAirPlanforHongKong2035”inJune2021islikelytomarkaturningpointformanysectors.AsHongKonglookstocreateamoresustainablesocietywithhealthylivingthroughlow-carbontransformation,itwillbecomeincreasinglyfocusedonlow-carbonenergy,includinghydrogen.WithinthesixmajorareascoveredintheCleanAirPlanforHongKong2035,thereareatleastthreemajorareasthatcanseethepotentialrapidgrowthofhydrogen,includingtheareasforgreentransport,comprehensiveemissionsreductionandcleanenergy.Hydrogenhasbeenusedinawiderangeofapplicationsformanydecades.Itisanimportantreagentinoilrefining,steelmaking,fertilizerproduction,andmanufacturingofplastics,fabricsanddyes.ThesetraditionalusagesofhydrogenarerelativelydistanttothecontextofHongKongbecauseoftheirtrivialpresenceinthoseindustries.However,asatoolinrealizingdeca...
