CLP to tap more nuclear power to meet Hong Kong’s climate goals amid profit growth

CLP Holdings, which runs the larger of Hong Kong’s two power utilities, said it will put more emphasis on nuclear energy to meet the city’s climate action goals as it reported first-half profit growth in line with expectations.

Earnings rose 17.6 per cent to HK$5.95 billion (US$762 million) for the first half, from HK$5.06 million in the same period in 2023, the company said in an exchange filing on Monday. Revenue rose 1.8 per cent to HK$44.08 billion, it added.

To reach the city’s goal of net zero electricity generation by 2050, the government has set a target to increase the share of zero-carbon energy in the energy mix to 60 to 70 per cent by 2035.

“Hong Kong’s zero carbon resources are very limited, so [CLP’s] goal is to achieve that by regional collaboration and bring zero-carbon energy to Hong Kong,” CEO Chiang Tung-keung said at the company’s interim results briefing on Monday. “Zero carbon energy refers to nuclear power and renewable energy. So we will identify opportunities and bring them to Hong Kong.”

Nuclear power will account for a bigger share, he said, because it is more stable than renewable sources such as solar energy.

CLP, which has significant operations in Australia and India, said improved earnings at subsidiary EnergyAustralia more than offset lower generation volumes at its two nuclear power plants in mainland China because of planned outages, according to its interim filing.

CLP reported HK$611 million in earnings from its Australia business in the first half, reversing from a HK$590 million loss in the same period last year. This takes into account the unrealised fair value gain for EnergyAustralia’s forward energy contracts. Margins for EnergyAustralia’s energy business improved thanks to higher realised prices for electricity from its power stations.