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(30 October 2026) The Hong Kong and China Gas Company Limited (Towngas) and DBS Bank (Hong Kong) Limited (DBS Hong Kong) signed a Memorandum of Understanding (MoU) during the International Gas Union’s (IGU) 2026 Council Meeting and “Empowering a Sustainable Future” Summit. Under this initiative, Towngas will be provided with a loan from DBS Hong Kong, the proceeds of which will be allocated to green hydrogen projects undertaken by Towngas that meet the standards of the Hong Kong Monetary Authority’s Hong Kong Taxonomy for Sustainable Finance (Hong Kong Taxonomy) Phase 2A. This marks Hong Kong’s first loan dedicated to supporting local green hydrogen projects, representing an important milestone for green finance and the development and application of new energy solutions in Hong Kong.

Towngas is actively participating in various hydrogen fuel trial projects in Hong Kong, including Hong Kong’s first green hydrogen production project at the South East New Territories Landfill Extension in Tseung Kwan O. According to the MoU, Towngas will commission an independent third-party certification body to verify the lifecycle carbon emissions of the green hydrogen involved in the project and its downstream applications across the value chain, ensuring compliance with the standards for the Hong Kong Taxonomy. DBS Hong Kong will provide a loan to Towngas to support its green hydrogen projects, including green hydrogen production and hydrogen power generation at construction sites.

Ir Don Cheng Hill-kwong, Chief Operating Officer – Hong Kong Business, Towngas, joined the MoU signing ceremony and said: “Towngas is committed to developing green energy solutions, including actively expanding its hydrogen business in Hong Kong. As a clean and highly efficient energy source, broader adoption of hydrogen will help drive green, low-carbon development and support Hong Kong’s target of achieving carbon neutrality before 2050. The inclusion of hydrogen-related activities in Phase 2A of the Hong Kong Taxonomy provides banks and corporations with a clear framework and guidance, helping to channel capital towards hydrogen projects that meet recognised green and sustainability standards and fostering the growth of the hydrogen value chain. We hope this collaboration will serve as a demonstration for future initiatives, leveraging the power of green finance to support new energy development and accelerate the city’s energy transition”.

Mr Boris Chan, Managing Director and Head of Institutional Banking Group, DBS Bank (Hong Kong) Limited, said that the collaboration underscores DBS Hong Kong’s commitment to supporting the low-carbon energy transition and helping businesses achieve their decarbonisation goals. “DBS Hong Kong is honoured to partner with Towngas in supporting the first green hydrogen production project that aligns with the Hong Kong Monetary Authority’s Hong Kong Taxonomy for Sustainable Finance, marking an important step in Hong Kong’s energy transition. Technological innovation and financial support are equally important in driving this transformation. Together, they can help new energy projects move towards implementation and scale. DBS believes that financial institutions play a pivotal role in driving sustainable development and remains committed to working alongside its clients to advance Hong Kong’s green finance and new energy ecosystem.”

The green hydrogen project at the South East New Territories Landfill Extension is expected to be completed in the first quarter of 2027. The project will utilise biogas from the landfill to produce green hydrogen, transforming waste into energy. Upon commissioning, it is expected to produce approximately 300 kilograms of hydrogen per day, supporting a wide range of application scenarios.

In addition, in support of the first Five-Year Plan by the HKSAR Government, Towngas is participating in a number of local hydrogen fuel trial projects, covering electric vehicle charging systems, temporary power generation for construction sites, and power supply for large-scale events, helping to accelerate the wider adoption of hydrogen energy in Hong Kong. Towngas will continue to collaborate closely with stakeholders across different sectors to facilitate the popularisation of new energy solutions and join hands to build a more sustainable community.

DBS is committed to driving energy transition in Asia, integrating sustainability into its products and services and empowering businesses in undertaking low-carbon projects. DBS Hong Kong also provides comprehensive support to clients through capital allocation, risk management, and advisory services, thereby fostering the development of Hong Kong's green finance ecosystem.  

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Press photos:

Photo 1:

Witnessed by (back row from left) Ir Charles Tsoi Chau-chi, General Manager – Strategy Development of Towngas; Ir Don Cheng Hill-kwong, Chief Operating Officer – Hong Kong Business of Towngas; Mr Edmund Yeung Lui-ming, Executive Director and Chief Financial Officer of Towngas; Mr Lim Wee-seng, Managing Director and Group Head of Energy, Project Finance, Strategic Advisory and Sustainability, Institutional Banking Group, DBS Bank; Mr Boris Chan, Managing Director and Head of Institutional Banking Group, DBS Hong Kong; Ms Florence Li, Executive Director and Segment Head of Energy, Renewable and Infrastructure, Institutional Banking Group, DBS Hong Kong, Mr Bien Wong Chun-cheung (left, front row), Assistant General Manager – Group ESG of Towngas, and Ms Serena Mak (right, front row), Executive Director, Sustainable Finance, Institutional Banking Group, DBS Hong Kong, sign the memorandum of understanding, jointly fostering Hong Kong’s first sustainable financing initiative for green hydrogen projects.

Photo 2:

Mr Eric Wong Lui (4th from left, back row), Acting Deputy Director of Electrical and Mechanical Services, and Mr Ronald Young (4th from right, back row), Head of Sustainable Banking Development of the Hong Kong Monetary Authority, attend the ceremony to witness this remarkable occasion.

Photo 3:

The green hydrogen project in which Towngas is participating is expected to commence production in the first quarter of 2027. The project will utilise biogas to produce green hydrogen, converting waste into energy. Pictured is a digital rendering of the green hydrogen production facility.

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