Citybus majority owner Hans Group makes a deal to fuel hydrogen-powered buses in Hong Kong

Hans Group, Citybus and Grand Resource Hydrogen signed a supply agreement on Wednesday

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From left, Yang Dong, CEO of Hans Group; He Wen Zhong, chairman of Grand Resource Hydrogen; and Richard Hall, managing director of Citybus. Photo: Sun Yeung

Published: 8:03pm, 15 Jan 2025Updated: 8:40pm, 15 Jan 2025

Hans Group Holdings, the majority owner of Hong Kong bus operator Citybus, has secured a supply of hydrogen from a mainland producer, part of its effort to decarbonise its fleet by using the clean fuel.

Hans Group, Citybus and Grand Resource Hydrogen Energy Science & Technology, which is based in Shenzhen and controlled by the Guangdong provincial government, signed a supply agreement on Wednesday.

Grand Resource Hydrogen has guaranteed a minimum daily supply of five tonnes of hydrogen at prices not exceeding those charged to mainland customers, the companies said in a joint statement.

“This agreement will greatly relieve concerns about the supply source and affordability of hydrogen as a low-carbon public transportation fuel for Citybus,” Hans Group CEO Yang Dong told the Post after a signing ceremony.

Five tonnes of hydrogen would be sufficient to meet the needs of around 100 buses running on hydrogen fuel cells, he said, adding that the Citybus hydrogen fleet expansion is not expected to reach that level in the next two years or more.

Citybus has pledged that its entire fleet – at present, more than 1,700 buses – will create zero emissions by 2045, five years ahead of a Hong Kong deadline. At the moment, one hydrogen fuel cell bus is on the road, but that will increase to five this year.

The high cost of hydrogen has put into doubt the economic viability of hydrogen buses in Hong Kong. Last year, Sinopec said it would price hydrogen at HK$108 per kilogram (US$13.80) in the city, around three times the price in Foshan, Guangdong.