Hydrogen, the lightest and simplest element in the universe, is also the fuel of stars. Today, hydrogen energy, with its unique advantages, is gradually emerging as a new engine driving society towards green development, ushering in a new chapter for sustainable development.

Environmental Sustainability (E): The Green Revolution of Hydrogen

As a secondary energy carrier, hydrogen boasts high energy density and produces only water as a combustion byproduct. It can effectively store surplus renewable energy and achieve true zero carbon emissions. Hydrogen can be applied in various sectors, including transportation and building energy, driving the green transformation of industries. For instance, hydrogen fuel cell vehicles can reduce tailpipe emissions, aligning with the ESG environmental sustainability goals.

Social Inclusiveness (S): The Economic Engine of Hydrogen

The hydrogen industry chain encompasses production, storage, transportation, and application, which will drive the development of related industries, create more business opportunities, and jobs. The Hydrogen Council predicts that by 2050, hydrogen will account for 18% of global energy demand, reducing carbon emissions by 6 billion tons annually. The hydrogen and related market size will exceed $2.5 trillion. Analysis by the UK Department for Business, Energy & Industrial Strategy (BEIS) shows that a 10GW hydrogen target can attract over £9 billion in private investment and create over 12,000 jobs by 2030.

Governance Leadership (G): Policy Support for Hydrogen

The development of hydrogen requires government policy support and the improvement of market mechanisms. Currently, the United States, Japan, Germany, and the European Union have each issued government standards for hydrogen energy and green hydrogen production. The central and local governments of China have also successively announced medium-and-long-term plans for the development of the hydrogen industry, and Singapore launched its hydrogen strategy in the same year. Recently, the Hong Kong SAR Government has not only launched the "Hong Kong Hydrogen Development Strategy," but has also strongly supported green hydrogen and low-carbon hydrogen energy in the "Chief Executive's 2024 Policy Address." This includes assisting the industry in establishing solar-to-hydrogen facilities and establishing hydrogen filling stations across districts by 2027.

The Hong Kong Association of Energy Service Companies (HAESCO), believes that Hong Kong has a unique advantage in promoting the development of hydrogen energy, and can leverage its status as an international financial center to attract investment and drive technological innovation, while promoting the development and improvement of the hydrogen energy industry chain through cooperation with the mainland and the world. Chairman Mr. Tam Siu Tung has been appointed as a member of the Hong Kong Special Administrative Region Government's Committee on Carbon Neutrality and Sustainable Development, furthering efforts with various associations to advance energy efficiency within the region and fulfill commitments to sustainability and carbon neutrality.

Looking Ahead:

With technological advancements and policy support, hydrogen will play a crucial role in global energy transformation. Businesses can proactively embrace this hydrogen revolution, establish ESG indicators related to hydrogen, such as carbon emissions from hydrogen production and the economic benefits of hydrogen use, to effectively implement the development of hydrogen and jointly promote sustainable development.

Author: Mr. CK Law, ICSD CEP®, HAESCO Member