Chief Executive John Lee said on Tuesday Hong Kong can turn challenges posed by the global energy disruption in the Middle East into "green opportunities", as exemplified by the SAR working with Dongguan to set up a biofuel base.

The sustainable aviation fuel base would be set up in Dongguan by EcoCeres, a Hong Kong-based biofuel producer that specialises in using advanced technologies to turn waste cooking oil into globally certified sustainable aviation fuel.

The move also came as the firm signed a memorandum of understanding with the Dongguan government in building the sustainable aviation fuel value chain.

Speaking at the signing ceremony, Lee noted that the collaboration between Hong Kong and Dongguan marked a "real milestone" as the new base, the first such hub in the Greater Bay Area, would support the country's moves to reach its carbon-reduction goals.

"Traditional aviation fuel carries a heavy carbon footprint," he said.

"Sustainable aviation fuel, SAF, cuts lifecycle emissions by more than 80 percent. That is a substantial step toward greener aviation.

"Hong Kong brings global finance, professional services and research capabilities. Dongguan brings mature chemical industry parks, logistics and a steady supply of used cooking oil, the essential raw material for SAF.

"Together, we form a powerful combination."

EcoCeres was set up by Hong Kong & China Gas, known as Towngas, and received backing from US private investment firm Bain Capital in 2023. EcoCeres products include hydrotreated vegetable oil, renewable naphtha and cellulosic ethanol.

Lee noted that the establishment of the new base is in line with the country's 15th five-year plan, which stressed the acceleration of the comprehensive green transition across the economy and society while promoting low-carbon transport.

"The world faces energy disruptions. But Hong Kong, under 'one country, two systems', enjoys a unique advantage: strong support from the motherland and close connection to the world. We can turn green challenges into green opportunities," he said.

Also speaking at the event was Dongguan municipal committee party secretary Wei Hao, who noted that there's great potential for the two sides to collaborate further, after the two cities previously jointly built an international hub connecting the airports of the two cities, which also became the world's first sea-land-air multimodal transportation project to lower logistics costs.

Towngas chairman Peter Lee noted that green energy had become the "main theme" amid the "volatile" global environment, making the reduction of carbon emissions in the aviation industry "inevitable".



Edited by Thomas McAlinden