Towngas and Bravo Transport ink deal to promote hydrogen energy development in HK

Towngas and Bravo Transport Services, the parent company of Citybus, have signed a memorandum of understanding (MOU) to explore the use of hydrogen as an alternative source of fuel for public buses and to exchange information on hydrogen-related business and marketing plans.

The signing of the MOU marks a new chapter in the development of hydrogen energy transportation in Hong Kong, as well as both companies' support on the policy direction of Hong Kong’s Climate Action Plan 2050 and involvement in promoting the development of green transport, with a view to achieving Hong Kong’s target of zero vehicle emissions and carbon neutrality before 2050.

With the signing of the MOU, the two sides will establish a strategic alliance and work together to assist the Hong Kong government in setting up regulations and appropriate subsidy schemes for the use of hydrogen in buses and heavy vehicles.

Under the agreement, the two companies will collaborate on a project for a Citybus depot on Hong Kong Island. Towngas will be responsible for the design and extension of the existing pipe network, the supply of fuel cell graded hydrogen, the installation of a hydrogen extraction facility and the provision of a maintenance service for the above equipment.

Meanwhile, Bravo Transport's operating company Citybus will be responsible for procuring and maintaining hydrogen buses and operating the hydrogen buses on selected routes to obtain relevant operational data.

The MOU is valid for one year and may be extended by mutual agreement. Upon completion, the hydrogen extraction facility will be able to extract about 500 kg of hydrogen per day, which is sufficient for the operation of 10-12 hydrogen buses for one day.

Commenting on the initiative, Wan Yufeng, Citybus director and Templewater partner and head of impact investing, said, “We are excited to work with Towngas which is the oldest energy company in Hong Kong around the introduction, supply and use of hydrogen for transportation purposes. We believe that Towngas will be a strong partner, particularly for the introduction of our second hydrogen refuelling station based in Hong Kong Island with their extensive experience and gas supply chain as we move towards a zero emission future. We look forward to continuing to collaborate with other key industry players to make Hong Kong a pioneer and leader in new energy transformation.”

Meanwhile, Peter Wong Wai Yee, Towngas managing director, said: “Around half of the town gas is composed of hydrogen. Through our existing gas pipeline network across Hong Kong, high-purity hydrogen can be extracted and delivered by simply installing a hydrogen extraction facility at the customer’s end. Using gas pipelines to transport hydrogen avoids the potential risks associated with road transport of hydrogen, saves transportation costs and is a safe and efficient solution."

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