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Towngas and Linde HKO plan local hydrogen supply chain

Towngas and Linde HKO plan local hydrogen supply chain
Sammy Kong Siu-kuen (left, front row), General Manager – Commercial & Industrial Marketing & Sales, Towngas; and Cedric Chung (right, front row), General Manager, PKG Management, sign the Memorandum of Understanding, witnessed by Don Cheng Hill-kwong (left, back row), Chief Operating Officer – Hong Kong Business, Towngas; and Bertie Liu (right, back row), General Manager, Linde HKO (photo courtesy Towngas).

In Hong Kong, the Hong Kong and China Gas Company Ltd (Towngas) and Linde HKO Ltd (Linde HKO) have signed a Memorandum of Understanding to collaborate on the production, sales, and distribution of locally manufactured hydrogen, working together to advance the hydrogen energy upstream and midstream sectors whilst promoting Hong Kong’s green energy development.

Under the MoU, Towngas will provide Linde HKO with a stable supply of locally produced hydrogen. Linde HKO will compress and store the hydrogen in suitable carriers for distribution to downstream customers, including construction sites and hydrogen refuelling stations.

The entire hydrogen supply chain will operate wholly within Hong Kong, encompassing hydrogen extraction from gas produced at Towngas’s Tai Po Gas Production Plant, green hydrogen converted from biogas collected at the Tseung Kwan O landfill, through to local gas compression, storage, and transport, culminating in local consumption.

An artist’s rendering of the green hydrogen production project at the South East New Territories Landfill Extension in Tseung Kwan O, which will commence operation next year (image courtesy Towngas).

This localised hydrogen supply chain saves long-distance transport time, reduces high shipping costs, lowers transport-related carbon emissions, and fully capitalises on the advantages of local hydrogen sources.

The initial phase of the collaboration will supply two tonnes of hydrogen daily, sufficient for the basic needs of 14 local construction sites.

Without affecting local gas supply, Towngas has a hydrogen production capacity of 34 tonnes per day.

Through this collaboration with Linde HKO, we can leverage their expertise across the hydrogen value chain to meet demand at construction sites across various areas, laying the foundation for larger-scale hydrogen applications in Hong Kong’s future, said Don Cheng Hill-kwong, Chief Operating Officer – Hong Kong Business of Towngas.

Towngas and Linde HKO will continue to deepen their cooperation, actively supporting the HKSAR Government’s carbon reduction policies and the Strategy of Hydrogen Development in Hong Kong, utilising hydrogen energy to help Hong Kong’s green transformation towards carbon neutrality.

Linde looks forward to working with Towngas, leveraging our expertise in industrial gas compression, storage and distribution to support Hong Kong’s transition to a cleaner future. This collaboration marks an important step in making clean hydrogen accessible to more industries and communities across the city, said Bertie Liu, General Manager of Linde HKO.

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