Towngas and DBS Hong Kong Partner to Finance Green Hydrogen Projects
Towngas and DBS Hong Kong have signed a memorandum of understanding (MoU) to support green hydrogen development through a dedicated sustainable financing initiative, marking Hong Kong’s first loan specifically designed to fund local green hydrogen projects. The agreement was signed during the International Gas Union’s 2026 Council Meeting and “Empowering a Sustainable Future” Summit.
Under the arrangement, DBS Bank (Hong Kong) Limited will provide financing to The Hong Kong and China Gas Company Limited (Towngas). The loan proceeds will be allocated to eligible green hydrogen projects undertaken by Towngas that meet the requirements of the Hong Kong Monetary Authority’s Hong Kong Taxonomy for Sustainable Finance, Phase 2A. The framework includes hydrogen-related activities and provides criteria for identifying sustainable economic activities.
The initiative is a step forward for Hong Kong’s green finance market and the development of new energy solutions. By connecting funding with projects assessed against the Hong Kong Taxonomy, the companies aim to direct capital towards hydrogen activities that satisfy recognised sustainability standards. The collaboration also highlights the role financial institutions can play in helping emerging energy technologies move towards deployment.
Towngas is involved in several hydrogen fuel trials across Hong Kong. A key initiative is the city’s first green hydrogen production project, located at the South East New Territories Landfill Extension in Tseung Kwan O. The project will use biogas generated at the landfill as feedstock for hydrogen production, converting waste-derived resources into energy.
Under the MoU, Towngas will appoint an independent third-party certification body to verify the lifecycle carbon emissions associated with the green hydrogen produced through the project and its downstream applications across the value chain. The assessment will confirm whether relevant activities comply with Phase 2A of the Hong Kong Taxonomy. Independent verification will support the evaluation of the hydrogen’s environmental performance and the allocation of financing to qualifying projects.
DBS Hong Kong’s loan will support Towngas’s green hydrogen initiatives, including hydrogen production and hydrogen-powered electricity generation at construction sites. These applications form part of the companies’ effort to encourage hydrogen use in different operating environments and demonstrate its potential role in Hong Kong’s energy system.
Ir Don Cheng Hill-kwong, Chief Operating Officer – Hong Kong Business at Towngas, said the company is committed to developing green energy solutions and expanding its hydrogen business in the city. He described hydrogen as a clean and highly efficient energy source whose wider adoption could contribute to low-carbon development and help Hong Kong achieve carbon neutrality before 2050.
Cheng said the inclusion of hydrogen-related activities in Phase 2A of the Hong Kong Taxonomy gives banks and companies a clearer framework for directing investment. This can help channel capital into projects that meet recognised green and sustainability standards while supporting the wider hydrogen value chain. He said Towngas hopes the partnership will provide a model for future initiatives, showing how green finance can support new energy development and accelerate the city’s energy transition.
Mr Boris Chan, Managing Director and Head of Institutional Banking Group at DBS Bank (Hong Kong) Limited, said the collaboration reflects the bank’s commitment to supporting the low-carbon energy transition and helping businesses achieve their decarbonisation goals. He said DBS Hong Kong is pleased to work with Towngas in supporting the first green hydrogen production project aligned with the Hong Kong Monetary Authority’s sustainable finance taxonomy.
Chan noted that technological innovation and financial support are both essential to the energy transition. Together, they can help new energy projects advance towards implementation and scale. He said financial institutions have an important role in promoting sustainable development and reaffirmed DBS’s commitment to working with clients to strengthen 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. It will use landfill biogas to produce approximately 300 kilograms of hydrogen per day once commissioned. The planned output is expected to support a range of applications, demonstrating how waste resources can be converted into useful energy while contributing to hydrogen infrastructure.
Towngas is also participating in local hydrogen fuel trials in support of the first Five-Year Plan of the Hong Kong Special Administrative Region Government. The trials cover electric vehicle charging systems, temporary power generation at construction sites and electricity supply for large-scale events. These activities are intended to test practical applications and help accelerate wider adoption of hydrogen energy across the city.
Towngas aims to work with stakeholders from different sectors to promote new energy solutions and contribute to a more sustainable community. Its activities span hydrogen production and end-use applications, supporting the development of a value chain that connects supply with emerging demand.
DBS said it is committed to advancing the energy transition across Asia by incorporating sustainability into its products and services and supporting businesses undertaking low-carbon projects. In Hong Kong, the bank supports clients through capital allocation, risk management and advisory services. Its collaboration with Towngas adds a financing channel for qualifying green hydrogen projects and supports the development of the city’s green finance ecosystem.
Source Link: https://www.towngas.com/
