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CLP (0002) will submit an offshore wind project for approval as it seeks to capitalize on falling renewable energy costs and as surging prices of fossil fuels bite.

CLP, one of the two main electricity generators in Hong Kong, will seek government consent for the project in a forthcoming development plan, chief executive Richard Lancaster said. The utility company said last year it was revisiting wind technology after shelving a project a decade earlier because of high costs.

"The cost of the technology has come down considerably," Lancaster said. "Even in a place like Hong Kong, which is very crowded, and the wind resource is not that good, but we now believe that offshore wind can be a viable technology."

Costs of electricity from offshore wind projects in China have fallen to US$78 (HK$612) in the first half of this year from about $259 per megawatt-hour in early 2014, according to BloombergNEF data. That's about the same as the costs of coal- and gas-fired electricity. Hong Kong has set a goal to achieve net-zero emissions by 2050.

Rising prices for fossil fuels have pressured CLP's business, which also operates in mainland China, Australia, India and Southeast Asia.

The company on Monday reported losses of HK$4.9 billion in the first half of the year, compared to a HK$4.6 billion profit in the same period in 2021.

Richard Lancaster.

CLP plans offshore wind project