Untitled - Civic Exchange

SUSTAINABLE TRANSPORT IN HONG KONG: DIRECTIONS AND OPPORTUNITIES
Diverting some gas from power generation (especially from the retrofitted coal boilers) to transport and
replacing it with coal would result in a net reduction of emissions in Hong Kong, except for carbon dioxide
(CO 2 ) and sulfur dioxide (SO 2 ). 167 The advantages of this switch are even greater when one considers the
location of the emissions from power stations and the fact that these emissions are highly diluted by the
time they affect people. 168 In contrast, the emissions from traffic on congested streets are inhaled directly
and at extremely unhealthy concentrations.
Replacing transport diesel fuel with natural gas would also be commercially attractive because natural gas
for power plants is priced to compete with coal. Hence, gas would be cheaper than transport diesel on an
equivalent energy basis. In effect, diesel consumption would be cut, while coal consumption would
increase. 169 There should be no need for ongoing government financial support in making this transition.
As noted above, the only environmental drawback to diverting natural gas from power to transport is the
modest increase in total CO 2 and SO 2 emissions resulting from the use of coal in place of gas in power
generation. 170 However, such increases should be viewed within the context of major cutbacks in CO 2 and
SO 2 in Hong Kong following the introduction of natural gas for power generation in 1994. In other words,
one could argue that increases are a small step backwards after a major step forward. Future emissions of
carbon and sulfur will drop even further as soon as Hong Kong Electric begins using natural gas. In
addition, measures to conserve electricity have great potential in Hong Kong and would help reduce both
the demand for power and the emissions from power plants.
NGV do have moderately higher capital costs than their diesel and petrol equivalents. It is not clear how
much of this difference is due to economies of scale (far fewer NGV produced than diesel or petrol
vehicles) and how much is inherent in the technology. Considering the higher capital costs, there is a case
for some form of government support to encourage potential customers to try using natural gas (e.g.,
reducing the first registration tax on NGV for several years). Such assistance from government would be
in line with the support given for the conversion of taxis (and soon public light buses, as well) to LPG.
Unfortunately, the Hong Kong government has historically taken a hands-off approach to cleaner vehicles
- at least until faced with a crisis and then, as with LPG for taxis, it is forced to create incentives in order
to secure user compliance and public acceptance.
If a limited CNG fueling system were set up (i.e., with pipeline gas available at fueling stations and
localized compression to fill the pressurized fuel tanks of vehicles), it could potentially be used not only
for buses but also for medium and possibly some heavy goods vehicles, depending on trial results.
• Future possibilities for NGV
While there is some potential to divert gas from power generators at Castle Peak, the real potential for NGV
depends on the status of the planned Liquefied Natural Gas (LNG) port facility in Guangdong. In Hong
Kong, this gas supply would be used primarily to expand the generation capacity of Hong Kong Electric,
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167 Ibid.
168 This is not to suggest that pollution from power plants is unimportant. Some forms of pollution are damaging
even when highly diluted. Sulfur emissions contribute to acid rain and carbon dioxide (CO 2 ) contributes to climate
change.
169 Barron W., and Steinbrecher, N., eds. (1999), Heading Towards Sustainability Practical Indicators of
Environmental Sustainability for Hong Kong.
170 Barron, B. (2000), Natural Gas for Transport and Industry: A Major Option for Reducing Hong Kong's Air
Pollution.