Overview

Environmental Technologies Market in Hong Kong

Year	2006	2007	2008 (estimated)
Total Market Size	170	190	200
Total Local Production	0	0	0
Total Exports	380	390	400
Total Imports	550	580	600
Imports from the U.S.	170	180	190

All figures are in US$ millions.  The above statistics are unofficial estimates, extracted from Hong Kong Census and Statistics Department and industry sources.

Hong Kong has been allocating significant resources toward tackling air pollution, water pollution and solid waste treatment problems.

Waste Management
Owing to the imminent need to extend the life of existing landfills and construct a new Integrated Waste Management Facility (IWMF), solid waste management solutions and technologies will absorb most of the Hong Kong Government’s (HKG) investment in the environment in the next few years.  Two possible sites for the IWMF have been identified, pending feasibility review.  The core technology of the IWMF will be waste-to-energy incineration (the first phase calls for a capacity of approximately 3,000 tons per day), supplemented by sorting and recycling technologies.  In addition to the IWMF, the HKG will develop an organic waste treatment facility at another location.

Among the HKG’s waste management initiatives is the establishment of EcoPark, a facility dedicated to value-added waste recycling.  Phase I of the EcoPark has already come on line and Phase II will further create a demand for high-end recycling processes and technologies for handling batteries, tires, electronic goods, plastics and wood.  Phase II is scheduled for completion in late 2009. 

Wastewater Management
The majority of Hong Kong’s wastewater undergoes primary treatment through the Harbor Area Treatment Scheme (HATS).  Stage 1 of HATS was completed in December 2001.  Stage 2A of HATS requires the provision of additional disinfection, the construction of sewage tunnels and expansion of existing chemical treatment capacity whereas Stage 2B requires the installation of biological treatment facilities.  Detailed planning is underway with the aim of completing Stage 2A in 2014.  The timing of Stage 2B, to be undertaken in 2010-11, will depend upon a review of water quality trends, population increases and sewage flow build up.

Air Pollution
Hong Kong’s air pollution problem is a regional one.  The HKG has agreed with the authorities in mainland China’s Guangdong Province to cut emissions of major air pollutants, i.e., sulphur dioxide, nitrogen oxides respirable suspended particulates, and volatile organic compounds (VOC), to meet stringent caps by 2010.  Power generation is the primary source of local emissions of these pollutants.  The HKG signed the Scheme of Control Agreements with the two Hong Kong power companies, Hong Kong Electric and China Light and Power, on January 7, 2008, which stipulated that the permitted rate of return of the power companies would be linked to their emissions performance.   Both power companies have started their own overall retrofit program, and the project will be completed in phases between 2009 and 2011.

The recent decision by China Light and Power to cancel construction of an LNG terminal near Hong Kong Island has greatly complicated the utility’s plans to meet the new emissions standards after 2010, as conversion from coal-fired to natural gas-fired power generation was a key component of their compliance strategy.

In neighboring Macau, the local government expanded its waste incineration facility, tightened emission standards, built a hazardous waste treatment plant, set up waste classification and recycling stations, and expanded its wastewater treatment plant in 2005-2006.  The Macau Government invested a total of US$132 million and US$158 in 2005 and 2006 respectively in "planning and environment" projects, representing 6.7% and 7.3% of total public administration expenditure respectively.  This public investment increased at an average annual growth rate of more than 50% during the period 2004 to 2006.

Macau imports power from the China Southern Power Grid to meet almost 70% of its total power need.  Locally, Macau will increasingly rely on natural gas for power generation in response to the public’s desire for cleaner air.  CEM (the only power generation company in Macau) will gradually replace the existing heavy fuel generation facilities at the Macau Power Station with gas-fired generation units.

Best Products/Services

Air:
Analytical instruments
Vehicle emission particulate reduction devices
Desulphurization/de-nitrification technologies

Water/wastewater:
Water filtration equipment (such as biological filtration)
Disinfection technologies (UV, membrane & ozonation)
Analytical instruments

Solid waste:
Mechanical-biological treatment (waste sorting & separation)
Biological treatment (composting)
Waste-to-energy technologies
Recycling technologies for handling batteries, tires, electronic goods, plastics and wood

Opportunities

The market for industrial pollution prevention equipment also has been growing.  The vast majority of Hong Kong’s manufacturers (estimated total of 80,000 industrial establishments) have shifted production to southern China especially the Pearl River Delta.  Traditionally, these manufacturers purchase equipment from Hong Kong suppliers.  Recently, the authorities in southern China have been encouraging these manufacturing facilities to recycle as much as 75% of water consumption and to invest in green production processes, creating a rise in the demand for water reuse and recycling, as well as energy efficient and clean production technologies.  Partnering with Hong Kong-based firms has been a successful model for selling to Mainland factories, many of which are Hong Kong-owned.

Recent attention to air pollution, combined with plans to develop regional emissions trading in China and Hong Kong, improve prospects for air pollution and emissions reduction technologies.

Resources

Trade Shows:

2009 Macao International Environment Cooperation Forum & Exhibition
Date: April 2-4, 2009
Venue: The Venetian Macao
Website: www.macaomiecf.com

GreenTech Expo
Date: May 7-10, 2009
Venue: Shenzhen Convention & Exhibition Center, Shenzhen, China
Website: www.greentech-exhibition.com/

Date: June 3-6, 2009
Venue: China International Exhibition Center, Beijing, China
Website: www.chinaenvironment.org/index_en.aspx

Eco Expo Asia - International Trade Fair on Environmental Protection
Date: October 28-31, 2009
Venue: Asia World Expo
Website: http://ecoexpoasia.tdctrade.com

Trade Associations:

Environmental Contractors Management Association
www.ecma.org.hk

Green Council
www.greencouncil.org

Hong Kong Environmental Industry Association
www.hkenvia.org

Hong Kong Waste Management Association
www.hongkongwma.org.hk

For more information about this industry sector, please contact U.S. Commercial Service:

Ms. Olevia Yim, Sr. Commercial Specialist
Email: olevia.yim@N0SPAM.mail.doc.gov
Tel: (852) 2521-1467; Fax: (852) 2845-9800