For Immediate Release

The Chartered Institute of Logistics and Transport in Hong Kong (CILTHK) Provides Key Suggestions on Logistics and Transport for the Strategy of Hydrogen Development in Hong Kong

The CILTHK is a leading professional body in the logistics and transport industry in Hong Kong. We support sustainable technology adaption and business development of our members and explore collaboration with Hong Kong Special Administrative Region Government, to develop short to long-term hydrogen strategy that provides viable solution for Hong Kong.

After due consultation from leading and sizeable companies in logistics and transport industry (the industry) in Hong Kong and also professional members in the industry, the strength of our over 1,800 professional members to furnish our key suggestions on The Strategy of Hydrogen Development in Hong Kong in relation to our industry for the consideration of the Hong Kong Government.  

Our key suggestions for the Government are 

1. Economic and Operational
2. Government-Industry Collaboration
3. Future Plans and Challenges

• Vehicle Purchase Costs: The initial high purchase costs of hydrogen vehicles, currently about more than twice that of traditional vehicles, could lead to higher bus fares or necessitate additional government subsidies to alleviate operational pressures.
• Subsidies and Infrastructure: Initial stages will require government subsidies for both infrastructure and vehicles. The availability of grey hydrogen from the utility providers pipeline network could help manage costs, but the limited number of filling stations poses a logistical challenge.
• Operational Approvals and Challenges: Accelerate regulation and government approval for operating hydrogen vehicles in tunnel, including incident management and response plan, together with refuelling stations and the commercialisation of hydrogen remain significant challenge, such that the refuelling method can become sustainable to accommodate larger vehicle fleet. A robust regulatory framework can be developed with regulation amendments, funding, and land support.
• Conversion of Existing Stations: To explore the feasibility of transforming current petrol stations into hydrogen refuelling stations. This strategy could alleviate some of the difficulties associated with selecting new locations, given that the public is already aware of the risks associated with petrol stations. It is also crucial to examine the impact on the existing petrol/diesel vehicle fleet to ensure a smooth transition, such that the transition should be feasible to match the future demand.

• Task Force and Technology Leverage: Involvement in a Task Force focused on making hydrogen vehicles (including heavy goods vehicles) environmentally friendly. Leveraging technology and experience is crucial, learn from the Mainland and overseas experience to develop variable solution, supported by adequate funding. The importance of collaboration with the Mainland to achieve economies of scale and lower costs. The Mainland’s advancements in hydrogen technology, particularly for heavy-duty vehicles, can benefit Hong Kong, such as the National Hydrogen Centre in Foshan. Hence, it is vital for our profession to engage and understand more on Government’s plan, such that the Strategy can be further strengthen.
• Continued Subsidies and Research Centre: The importance of continued government subsidies for the transportation sector to encourage the adoption of hydrogen vehicles for various purposes. The research centre with comprehensive research on the hydrogen supply chain, including production, transportation, and storage. Challenges faced in planning refuelling stations, such as land use issues and resident opposition, are relevant to Hong Kong’s high urban density.

• Public Education and Safety: Highlights the need for public education on hydrogen safety. Learnt from previous experience in the promotion of the introduction of Liquefied Petroleum Gas (LPG) that public perception of safety hazard could be overreacted. An educational process is essential to increase the awareness of hydrogen energy and gain public support.
• Safety Measures and Training: Ensuring key safety measures are in place and providing proper training to operators and users of hydrogen vehicles and refuelling stations is crucial. Regular inspections and maintenance are necessary to ensure the safe operation of hydrogen infrastructure, the development of stringent safety measures for the handling of hydrogen is vital.
• Marine Sector Consideration: The strategy should include other transport sectors such as the marine, where ferries can also fully leverage hydrogen technology.