In a significant move toward cleaner public transportation, Hans Group Holdings, the majority shareholder of Hong Kong’s Citybus, has inked a deal with Shenzhen-based Grand Resource Hydrogen Energy to secure a steady supply of hydrogen for its bus fleet. This agreement aims to facilitate the transition to hydrogen fuel cells, a key element in Citybus’ commitment to a zero-emissions fleet by 2045. The arrangement guarantees a daily hydrogen supply of five tonnes at competitive prices, easing concerns over hydrogen’s availability and cost, which has been a major hurdle for the widespread adoption of hydrogen-powered buses.
Despite the promising development, hydrogen’s high cost remains a significant challenge. Citybus, with over 1,700 buses, currently operates just one hydrogen fuel cell bus, with plans to expand that number to five this year. However, the shift to hydrogen buses faces financial obstacles, as the hydrogen fuel itself is substantially more expensive than traditional diesel. Grand Resource Hydrogen has promised to supply the fuel at a rate comparable to diesel, below HK$40 per kilogram, but this price is still dependent on government support to make hydrogen buses a viable option for Citybus and other operators.
The Hong Kong government has so far shown limited enthusiasm for hydrogen fuel cell buses, as evidenced by its decision to focus a recent subsidy program on battery-electric buses. The exclusion of hydrogen buses from the subsidy, coupled with the city’s hesitancy to invest in the still-developing technology, signals that hydrogen fuel cell buses are still in the early stages of development in Hong Kong. However, the city authorities remain open to monitoring progress and will reassess their stance if fuel cell technology becomes more reliable and affordable.
Grand Resource Hydrogen, a long-time partner of Hans Group, is also ramping up production to meet future demand. With a new plant in Guangdong and plans for expansion, the company aims to scale its hydrogen output to support a broader shift toward green transportation. However, the pace of this transition will depend on continued innovation, government backing, and market acceptance. For now, the promise of hydrogen buses in Hong Kong’s future hangs in the balance, with stakeholders working to navigate the logistical and financial hurdles that come with this ambitious environmental goal.
(Source: Tip Ranks | SCMP)
