6 CLEANER FUEL MIX FOR Getting to Know the Fuels for Power Generation

ƒ Different fuels used for electricity generation consideration of the properties of different have their own unique properties and each plays fuels to strive for an optimal fuel mix to different roles in the fuel mix. achieve a balance among safety and reliability, environmental performance and cost. The ƒ has no indigenous resources following introduces them in terms of cost and and most of the fuels needed for electricity efficiency etc. generation are imported. CLP takes into careful

Coal ƒ Provides high reliability, can be stored on site and a quick response to meet changes in demand ƒ Generation cost is relatively low ƒ High carbon emissions and other air emissions even with the latest available abatement measures are the major drawbacks

Natural gas ƒ Provides high reliability and a very quick response to meet changes in demand. Outperforms in emissions performance ƒ A significantly higher generation cost in place ƒ World demand for gas is increasing given its environmental benefits

Nuclear ƒ High reliability, enables large-scale and steady base-load electricity ƒ Very competitive generation cost

ƒ Virtually zero CO2 and other air emissions ƒ Requires sophisticated and careful operational safety and waste management ƒ Public concern over nuclear safety still remains after the Fukushima accident

Renewable Energy ƒ Natural resources availability is intermittent in nature, and support from (RE) conventional fossil fuel generation is required to ensure reliable electricity supply ƒ Large amount of land is often required for developing RE ƒ Higher generation cost ƒ It is practically emission-free and thus is gaining in popularity in countries where its relatively high cost can be supported ƒ RE has a role to play in the world’s fuel mix, and where there are abundant quantities of RE available (e.g. Hydro in British Columbia, Canada; wind in Australia; solar in Arizona, United States.) However, abundant natural RE resources and favourable criteria for developing RE are not available everywhere

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 45 ƒ The chart below compares the fuel types in terms of emissions, price, reliability and public concerns.

CO & air Public 2 Price today Reliability emissions concerns

Coal

Natural gas

Nuclear

RE

Managing Fuel Costs

ƒ Most of the fuels Hong Kong required for power ƒ Globally, fuel prices have been highly volatile. The generation are imported and they are subject to following chart shows the volatility of fuel prices price volatility in the international fuel markets. since 2006.

ƒ In support of the Government’s environmental policy and the increasingly tightening emissions requirement, CLP will substantially increase the use of natural gas for power generation in order to meet Hong Kong’s fuel mix target in 2020. As the cost of gas-fired generation is more than double than that of coal-fired generation, CLP expects this will inevitably continue to put pressure on future tariffs. In fact, fuel cost increases have been the driver of CLP’s total tariff adjustment over the past few years.

46 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 Fuel Price Trends

400 350 300 250 200

Index Natural Gas 150 Coal (Jan 2007 Price = 100) Price 2007 (Jan 100 Crude Oil 50

0 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec

Australian Coal Spot Price (globalCOAL Index) Japanese LNG Import Price Crude Oil Brent Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec

ƒ CLP’s diversified fuel mix strategyhelps maintain ƒ CLP takes a prudent approach in managing our the competitiveness of fuel costs in addition to fuel costs. Measures taken include contracting fuel supply security. with different suppliers, as well as using a range of commercial terms to help us capture value from changing market conditions over time, thus ensuring our supply costs are in line with the market.

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 47 Fuel Choices

ƒ The Government launched a public consultation ƒ To tackle the imminent challenge of climate in 2014 on the Future Fuel Mix for Electricity change, and to fulfil the obligation of carbon Generation. Most of the respondents supported reduction target agreed upon in the Paris local power generation by natural gas and Agreement signed in 2015, the Council for expressed reservation about importing electricity Sustainable Development launched a three- from the Mainland. Following the consultation, month public engagement on Long-term the Government announced a new fuel mix target Decarbonisation Strategy in June 2019. for power generation with around 50% natural Views from the community were gauged for gas by 2020 in order to meet the proposed developing feasible strategies and measures environmental targets. These targets are to for carbon reduction. The public engagement reduce the carbon intensity of Hong Kong by document suggested scenarios of three reduction 50%-60% by 2020 when compared to 2005; and levels, pointing out that if the global average o to reduce emissions of sulphur dioxide (SO2) by temperature rise is to be limited to 2 C, between o o 35%-75%, nitrogen oxides (NOx) by 20%-30% and 1.5-2 C and to 1.5 C respectively, 80% or more respiratory suspended particulates (RSP) by 15%- than 80% or even 100% of the electricity 40% by 2020 when compared to 2010. has to come from zero-carbon sources. CLP Power’s response to the public engagement was ƒ In 2017, the Government announced Hong Kong’s submitted in September 2019. Climate Action Plan 2030+, which stated that in order to meet its new carbon intensity reduction ƒ Link to reference information: target of 65% to 70% by 2030, Hong Kong will CLP’s Response to the Public Engagement on the continue to phase down remaining coal plants in Long-term Decarbonisation Strategy the next decade and replace them with natural gas and non-fossil fuel sources.

Reduction of Coal in Fuel Mix for Electricity Generation 2015–2030

continue to continue to increase phase down

25% 25% 25% 2015 48% 2020 2030 27% 50% continue to Coal Natural Gas Non-fossil fuels increase Source: Hong Kong's Climate Action Plan 2030+

48 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 CLP's Fuel Mix for Electricity Generation

ƒ CLP has been adopting a diversity of fuel types such as emission standards and costs. Our supplied from multiple sources and optimising its procurement team also keeps exploring new fuel mix. The objectives of the diversified fuel mix sources of cleaner fuels. For instance, we have are to ensure energy security and price stability started procuring low-emission coal from the US, while providing a reliable electricity supply and another fuel source in addition to . For meeting environmental standards at reasonable gas supplies, we are also exploring new sources costs. for diversity.

ƒ CLP endeavours to source fuels with high quality ƒ The following table and chart illustrate CLP’s and at competitive prices. A well-established ongoing efforts in managing a diversified fuel mix mechanism for fuel procurement is in place to to achieve these objectives. source the fuels that can satisfy our requirements

Evolution of CLP's Fuel Mix

1960s–1980s ƒ Single fuel supply from oil

1982 ƒ Began fuel diversification with the introduction ofcoal with multiple sources of supply

1994 ƒ Further diversification by importingnuclear energy from Daya Bay Nuclear Power Station ƒ Began to phase out oil

1996 ƒ CLP pioneered the use of natural gas for power generation in the region in the early 1990s ƒ Secured natural gas supply from one of the four largest offshore gas fields in the Mainland near Hainan with a 20-year contract

2000 ƒ Began to use low-emission coal to further improve emissions performance

2013 ƒ Started using natural gas supplied via the Second West-East Gas Pipeline (WEPII) in the Mainland

2015 ƒ HKSAR’s Sludge Treatment waste-to-energy facility connected to the CLP grid

2018 ƒ Feed-in Tariff was introduced to promote the development of local renewable energy

2020 ƒ The landfill gas generation project at the West New Territories (WENT) Landfill started operation to utilise landfill gas produced locally as fuel ƒ The new gas-fired generation unit at Black Point Power Station was put into operation as a baseload unit in mid-2020 to increase the share of gas-fired generation to around 50%

ƒ As early as the 1990s, CLP spearheaded the introduction of nuclear energy and natural gas for power generation, achieving a diversified fuel mix that enables an abundant and reliable electricity supply, an improving environmental performance and a stable tariff for Hong Kong.

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 49 40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000 Electricity Sent-out by Fuel Source (GWh) Source Fuel by Sent-out Electricity

0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Year Coal Gas Nuclear Oil Others

Notes: Financial year basis (i.e. October to September) for 1990 to 1999 and calendar year basis for 2000 and thereafter.

ƒ CLP fully supports the Government’s plan to improve Hong Kong’s air quality and to promote low-carbon living. We are committed to continuing to increase the proportion of cleaner fuels in our generation portfolio. The section below illustrates our key initiatives of using cleaner fuels: natural gas, nuclear energy and renewable energy.

Natural Gas

ƒ In 1996, CLP became the first electricity supplier ƒ Today, the Yacheng gas supply is nearly to bring natural gas to Hong Kong for power exhausted. There is a need to replace this gas generation, for which natural gas emits much less source as well as to develop new sources to meet sulphur dioxide, nitrogen oxides, particulates and the tightening emissions caps and the fuel mix carbon dioxide than most other fossil fuels. Over policy set by the Hong Kong Government. the years, the use of natural gas has helped CLP reduce emissions from its operations.

ƒ CLP started importing gas from Yacheng Gas Field near Hainan Island in 1996 at a very attractive price, providing an abundant and reliable energy source to support Hong Kong’s economic development. It enabled significant environmental improvement accompanied with a stable tariff regime.

50 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 Gas Consumption

2011 2012 2013 2014 2015 2016 2017 2018 2019

Yacheng Gas Wenchang Gas Short Term South China Sea Gas WEPII

Gas Supplies to Hong Kong ƒ A Memorandum of Understanding (MOU) on ƒ In line with the MOU, a long-term gas supply energy cooperation was signed between the agreement with PetroChina was signed for Central Government and the Hong Kong SAR supplying WEPII gas to Hong Kong starting from Government in 2008, paving the way for the use 2013. Gas is delivered via a 20-km undersea of new gas sources from the Mainland. One of pipeline connecting the gas launching station the primary sources is the Second West-East Gas at Dachan Island in and Black Point Pipeline (WEPII). Power Station.

ƒ WEPII, operated by China National Petroleum Corporation (PetroChina) and its subsidiaries, is currently the world’s longest natural gas pipeline. It consists of one trunk line and eight branches that starts in Horgos, Xinjiang, where it connects to the Central Asia-China Gas Pipeline and crosses 14 provinces, autonomous regions and municipalities, and terminating at Hong Kong’s Black Point Power Station.

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 51 Š Since 2018, gas from Wenchang Gas Field in the South China Sea has started supplying CLP via the existing Yacheng pipeline, supplementing our supply needs in the medium term.

Ensuring Gas Supply ƒ To meet the Government’s target of increasing local gas-fired generation by 2020, CLP is taking additional steps to ensure sufficient gas supply and to further increase the diversity and security of supply. In view of the depleting Yacheng gas fields and the two-month temporary suspension of gas supplies from the existing WEPII due to a landslide in Shenzhen in December 2015, CLP sees the importance to diversify the gas sources for CLP, and for Hong Kong as a whole.

ƒ CLP has developed a plan to ensure future energy supply stability, security and diversity. This also helps enhance the city’s bargaining power for natural gas purchases and provide our customers a more cost- effective electricity supply.

ƒ Since 2020, CLP has begun receiving gas from CNOOC’s gas fields in the South China Sea via the existing Yacheng pipeline under a new long-term contract with CNOOC along with existing Yacheng gas supply.

52 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 Š For longer term, CLP is constructing an offshore liquefied natural gas (LNG) terminal by applying the new natural gas related technology of Floating Storage Regasification Units (FSRU) to enable direct purchase of LNG from the international gas market.

Artist’s Impression

Š The project obtained an environmental permit in 2018. Construction of the project began in 2020 after Engineering, Procurement, and Construction contracts were awarded for the offshore jetty facility, subsea pipelines, and gas receiving station at the Black Point Power Station. The terminal allows us to diversify our gas supply, access competitive international LNG pricing and enhance fuel supply security to the long-term benefit of our customers.

Regasification unit Floating Storage LNG delivered (onboard equipment Regasification Unit LNG Carrier from LNG Carrier for regasifying LNG) (FSRU) Vessel

LNG Storage

Double Berth Jetty Regasified natural gas is sent out through subsea pipeline to the power station or other gas users

ƒ In parallel, CLP continues to consider opportunities for additional gas sources as stipulated in the MOU on energy cooperation and strives to achieve an optimal balance between different fuel types.

ƒ Links to reference information: CLP Press Release: Š CAPCO and HK Electric Sign Contract with Shell for Long-Term Liquefied Natural Gas Supply to Hong Kong Š CAPCO and HK Electric Sign Contract with MOL for Hong Kong Offshore LNG Terminal Project

Introduction Video to the Hong Kong Offshore The Hong Kong Offshore Liquefied Natural Gas Terminal Liquefied Natural Gas Terminal Project Website

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 53 Nuclear Energy

Nuclear Energy in Hong Kong

ƒ In 1985, the Chinese Government and CLP joined ƒ Importing nuclear energy to Hong Kong has hands to develop Daya Bay Nuclear Power helped avoid carbon dioxide emissions in the city Station in Guangdong Province, the nation’s by over 7.5 million tonnes a year while ensuring a first large-scale commercial nuclear power reliable power supply at a competitive price. station. It was CLP’s first large-scale power project in the Mainland and our new milestone ƒ In the longer term, CLP believes that nuclear to low-emission power generation. In the same power should continue to be a part of our fuel year, CLP established a joint venture company mix and we will continue to explore ways of with Guangdong Nuclear Investment Co., Ltd. importing it in a manner that is acceptable to the (a subsidiary of China General Nuclear Power community. It will offer an important element of Corporation) and signed a 20-year contract for diversity as we seek to minimise generation costs nuclear power supply to Hong Kong starting from and emissions. 1994. ƒ CLP has three distinct roles in the Daya Bay ƒ In September 2009, the supply contract for Hong Nuclear Project. We: Kong was extended for another 20 years to 2034. Š act as an investor; ƒ As of today, nuclear energy accounts for about a Š contribute our expertise; and third of CLP’s fuel mix in Hong Kong and has been Š import nuclear electricity into Hong Kong. safely meeting 25% of Hong Kong’s electricity needs for more than 20 years.

ƒ Daya Bay produces around 15 billion kWh of electricity per year. To ensure that more clean and cost-competitive energy is provided to Hong Kong, Daya Bay increases its electricity supply to Hong Kong from 70% to around 80% of its output from late 2014 to 2023.

54 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 Facts and Figures about Guangdong Daya Bay Nuclear Power Station

CLP Ownership 25% (through Hong Kong Nuclear Investment Company Limited (HKNIC))

Joint Venture Partner China General Nuclear Power Corporation

Reactor Technology Pressurised Water Reactor

Generation Capacity Gross capacity 1,968MW (2 x 984MW) Capacity attributable to HK 1,577MW*

Commencement Date of 7 August 1987 Construction

Date of Commissioning Unit 1  1 February 1994 Unit 2  6 May 1994

Plant Management & Operation Daya Bay Nuclear Power Operations & Management Company, Limited (DNMC) (CLP has 12.5% stake)

ƒ Link to reference information: Nuclear Energy-A Viable Choice for Powering the Future

Safety Excellence and Emergency Preparedness ƒ Safe operation is always the top priority for ƒ In the event of an emergency due to equipment all nuclear power operators. At Daya Bay, the failure or human error, standby equipment is defence-in-depth principle is applied to ensure ready to step in and maintain the safe operation a robust and safe operation, covering a full of the plant, minimising the chances of any spectrum of activities from the initial plant incidents and their adverse impacts on the design to the installation of all equipment and environment. the implementation of all operational procedures. They include: ƒ Well established contingency plans are in place at Daya Bay. A communication mechanism is Š site selection; also set up to facilitate communication with the Š plant design and operational safety; general public and between relevant government authorities in Guangdong and Hong Kong in the Š staff training and qualification; unlikely event of a nuclear accident. Š international benchmarking; Š radiation protection and environmental ƒ To enhance public’s understanding of nuclear monitoring; and operation and promote higher transparency, Š emergency preparedness. Daya Bay has adopted a public notification mechanism to release information of non- ƒ Daya Bay is located in a seismically stable region. emergency Licensing Operational Events through The site was selected meticulously according the websites of DNMC and HKNIC. These events to international guidelines and stringent safety carry no nuclear safety consequences and have assessment by the National Nuclear Safety no impact on the environment or public safety. Administration, after a comprehensive analysis Events of an emergency significance will be and survey. announced far more quickly and as appropriate by the government authority. ƒ The nuclear power station is designed according to the local situation around the site of the power station and able to withstand natural hazards such as tsunami and earthquake.

* Daya Bay has increased its electricity supply to Hong Kong from 70% to around 80% of its output from late 2014 to 2023.

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 55 ƒ Daya Bay has maintained an excellent record of ƒ Daya Bay has a comprehensive environmental plant reliability, performance and safety since its monitoring programme to safeguard the health commissioning in 1994. of its staff and the general public. Regular checks over the years have indicated that there has been ƒ Over the years, Daya Bay has ranked high in the no excessive or undue release of radioactivity World Association of Nuclear Operators (WANO) and the effect of radioactive releases on the performance indices across various major environment is very low if not negligible. No aspects of generation capability, plant safety adverse public health impact from Daya Bay (and and efficiency, industrial safety and radiation the nearby Ling Ao) is confirmed in a 25-year protection. DNMC was also named champion in survey by the Shenzhen Municipal Health Bureau. Capability Factor at the EDF Safety Challenge Competition for 11 consecutive years in 2018.

Renewable Energy (RE)

ƒ CLP supports the Government’s energy policy and strives to explore practical local RE opportunities despite limited RE resources and land scarcity in Hong Kong. The following provides an overview about CLP’s support to facilitate the community in developing distributive RE systems and RE projects constructed by CLP.

Grid Connected Renewable Energy Projects ƒ While large-scale land-based projects prove ƒ There are also larger scale RE facilities under challenging, CLP provides technical support, a construction, planning and operation, e.g. the simple procedure and grid connection advice for Government's waste-to-energy facilities including local RE projects of different scales. In addition, the T-Park in Tuen Mun and the Integrated Waste we provide back-up electricity supply for these Management Facilities planned to construct at systems so that customers could enjoy clean Shek Kwu Chau as well as the Organic Resources electricity from renewable sources without Recovery Centers located in Lantau and other sacrificing power supply reliability. places would have larger capacity and may generate surplus electricity to CLP grid. We fully ƒ Solar power is the most popular technology support the operation of these new facilities in applied in distributive RE systems in Hong order to provide help to meet the Government's Kong. Project examples include the Siu Ho Wan environmental goals. In April 2015, the T-Park Sewage Treatment Works of Drainage Services in Tuen Mun was connected and electricity Department as one of the largest solar farms generated from the incinerators is also sent to in Hong Kong. This solar farm, built by CLPe the grid. Solutions and connected to CLP's electricity grid, comprises over 4,200 solar panels covering an ƒ Other community RE projects also include the area of 11,000 square meters and is anticipated Construction Industry Council's Zero Carbon Park to generate as much as 1.1 million kWh of which generates RE on site from photovoltaic (PV) electricity annually. panels and bio-diesel and Science Park’s building integrated photovoltaic (BIPV) and wind turbine systems on the facades.

56 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 Feed-in Tariff (FiT) Scheme ƒ Since 1 October 2018, CLP introduced a Feed-in ƒ For instance, if a customer has installed solar Tariff (FiT) scheme and the Renewable Energy panels at his rooftops and the system is Certificates to further promote the development approved and connected to the CLP's grid, CLP of local RE. The new initiatives also aim to will offer him Feed-in Tariff rate, ranging from encourage the community to embrace low- HK$3 to HK$5 depending on the capacity of the carbon lifestyles through their participation in the RE system. The FiT rates are higher than the development of RE. prevailing tariffs to incentivise RE investment which is expected to enjoy a shortened payback ƒ The FiT scheme is applicable to electricity period of around 10 years. The FiT rate applies to produced by solar and systems with the electricity generated during the entire project a generating capacity of up to 1MW. CLP will technical lifetime or until the end of the existing purchase the electricity produced by an approved SCA on 31 December 2033, whichever is earlier. RE system once it is successfully connected to the company's power grid. A smart meter will ƒ The FiT rates are as follows: be installed to record the amount of electricity generated by the RE system. The FiT rate will be RE system capacity FiT rate (per unit) the same for both solar and wind power systems. ≤10kW HK$5

>10kW to ≤200kW HK$4

>200kW to ≤1MW HK$3

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 57 ƒ The FiT scheme is open to all CLP’s customers ƒ RE promotions are launched through the CLP other than government departments. FiT rates website, CLP app, and social media, etc. to help for new applications may change from time to customers understand the system installation time as agreed with the Government. The new and FiT application procedures. CLP will work with rates will apply to new RE system applications the Government and industry organisations to after the effective date of change. offer technical workshops for contractors and to provide technical support to customers. This will ƒ Since the commencement of applications in May support RE system design, installation, and grid 2018, CLP has received over 11,100 applications connection. Customers can find more technical as of end-August 2020. Majority of them are information on the Electrical and Mechanical from village houses. Over 80% of the applications Services Department website under the heading have been approved. So far more than 4,400 “Technical Guidelines on Grid Connection of applications are completed and successfully Renewable Energy Power Systems”. connected to our grid to enjoy FiT. Among the systems that have been connected to our grid, the biggest is a commercial and industrial customer with a capacity of around 360kW. The scheme attracted customers from a variety of sectors including business and industrial sector, schools, and both urban households and village houses.

Renewable Energy Certificates (RECs) ƒ For customers who want to support local ƒ The units of electricity carried in the RECs development of RE but cannot afford an RE available for sale will match the total amount system on their own, they can subscribe the of electricity from local RE sources generated Renewable Energy Certificates (RECs) which or purchased by CLP over a specific period represent units of electricity produced by local RE of time. Market appetite is positive. As of sources including solar power, wind power, and end-August 2020, over 4.9GWh units were sold waste-to-energy projects, whether purchased through RECs. (such as through the Feed-in Tariff scheme) or generated by CLP.

ƒ Launched on 1 January 2019, the price of each unit of electricity generated by RE sources under the RECs scheme is HK$0.5, with RECs available CLP Feed-in Tariff Scheme CLP Renewable Energy at a minimum purchase of 100 units. Any Certificates residential or commercial and industrial customer with a CLP Power electricity account is eligible to purchase RECs.

ƒ Revenue generated from the sale of RECs will contribute towards part of the price of purchasing RE through the FiT scheme, helping minimise the costs of electricity as a whole.

58 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 RE Projects Developed by CLP

Town Island Renewable Energy (RE) Supply Project ƒ CLP has developed Hong Kong’s first commercial- scale standalone RE generation and storage system on Town Island, located off Sai Kung. The Town Island RE Supply Project powers a non- profit drug rehabilitation centre run by Operation Dawn.

ƒ The entire project, comprises 672 solar panels, two wind turbines and 576 batteries, with a generating capacity of up to 192kW which is capable of lighting up 9,600 compact fluorescent lamps.

ƒ As the system is not connected to the grid, it features batteries capable of storing over 1,000 kWh of electricity to provide power supply for the rehabilitation centre’s use lasting for around 30 hours. By the first quarter in 2020, the system generated more than 595,000kWh of electricity, equivalent to the monthly consumption of around 1,700 households. It had achieved a significant reduction of over 235,000 kg in carbon dioxide

(CO2) emissions.

ƒ Staff and residents at the centre, located off Sai Kung, used to rely on the intermittent running of small diesel generators for a few hours every day for their power supply. Since the commissioning of the first phase of the system in 2010, more reliable electricity has been available to meet their basic energy needs.

ƒ In 2013 the Project was named one of the “Hong Kong People Engineering Wonders in the 21st Century” in a prestigious public vote organised by Hong Kong Institution of Engineers in recognition of CLP’s commitment to promoting sustainability, the use of clean energy and caring for the community.

6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020 59 Landfill Gas Power Generation Project ƒ CLP’s waste-to-energy initiative involves the ƒ The first phase of the project comprises of five installation of power generation units at the West generation units. The annual power generated New Territories (WENT) Landfill. The units make is sufficient to meet the electricity demand of use of landfill gas produced locally at the landfill over 17,000 four-person households. The project site for power generation and the electricity started operation from the first quarter of 2020. produced will be transmitted to CLP’s power grid.

Landfill Gas Generation Process

Feasibility Test for Developing Offshore Wind Farm ƒ Given Hong Kong’s densely populated urban ƒ We are in the process of collecting wind, wave environment and the nature of our terrain, there and other environmental data for completing is limited potential for Hong Kong to develop the feasibility study and will engage with the significant land-based RE projects. However, community on the appropriate way forward. developing wind resources offshore is a possible alternative. CLP is keen to explore this new technology for Hong Kong on a wider scale, although such a move would involve economic and environmental trade-offs.

ƒ CLP is studying the feasibility of developing an offshore wind farm in the south-eastern waters of Hong Kong.

60 6 CLEANER FUEL MIX FOR ELECTRICITY GENERATION | Last update: November 2020