Cost-efficient cooling systems offer promising opportunities

Ayra Wang

The Environment and Ecology Bureau will submit the review results of the district cooling system in Hung Shui Kiu/Ha Tsuen New Development Area and San Tin Technopole to the Legislative Council in the second quarter, Secretary for Environment and Ecology Tse Chin-wan said.

The government is reviewing the scale and delivery mode of the systems in the two new development areas, which could save at least HK$40 billion in construction costs, according to the latest budget.

Tse explained that district cooling systems centralize cooling production and distribute chilled water or air to multiple buildings within a region.

He said such systems offer cost-efficiency advantages and represent a promising business opportunity.

Additionally, Tse said these systems help keep carbon emissions in check through efficient energy use and centralized management.

"When combined with renewable energy sources like solar or wind power, or low-carbon options such as natural gas, [such systems] can further minimize environmental impact, supporting sustainable urban development," Tse said.

Tse added that the systems can also help reduce financial pressure on developers and property owners due to lower operational costs, as well as save space and reduce noise pollution.

However, he noted that the current model, where the government directly builds and operates these systems, excludes private sector participation and requires significant public funding.

"It's time to explore better approaches for building and operating these systems in future development areas and leverage private sector innovation and investment," Tse said.

He said such cooling systems have been successfully adopted in many cities, including Shenzhen, Guangzhou, Chongqing, Singapore, Paris and Toronto.

Tse said a district cooling system is operating in Kai Tak while systems in Tung Chung and Kwu Tung North are under construction.

The planned systems for Hung Shui Kiu/Ha Tsuen and San Tin Technopole, still in initial or planning stages, are set to become the largest of their kind in the city, with projected government costs reaching tens of billions of Hong Kong dollars.

ayra.wang@singtaonewscorp.com