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HK has the good oil on greener fuel
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| Steve Choi, Executive Director of Dynamic Progress, hopes more restaurants will sell him their used cooking oil |
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| Oil is picked up at collection bays to be turned into environmentally friendly fuel |
Hong Kong's reputation as Asia's food capital has caught the attention of the biofuel industry. Manufacturers of biodiesel, a type of renewable energy derived from used cooking oil, consider the proliferation of restaurants in Hong Kong fodder for their burgeoning industry.
"Nowhere is there such a high concentration of restaurants in such a small location as Hong Kong," said Steve Choi, Executive Director of Dynamic Progress, the first licensed biodiesel plant in Hong Kong. The US-based company started its Hong Kong operation 10 months ago. "We saw a definite potential when we were told there were 10,000 restaurants in the city with no local business to recycle all that used oil."
Biodiesel is considered an environmentally friendly fuel because it helps cut down on greenhouse gas emissions. Mr Choi said his company's US$3.2 million investment is currently at the "commission stage." Employing 15 staff so far, the plant has produced 60,000 litres of biodiesel but has the capacity to process up to 60,000 tonnes.
With fuel prices at record highs, there is strong demand for alternative fuels. Biodiesel is up to 15 per cent cheaper than conventional fuel and Mr Choi said he has a group of prospective buyers, mainly in the construction industry, waiting to buy recycled oil.
However, in order to meet demand, the company needs to line up more restaurants to sell their used oil. The company currently has around 500 clients, including restaurants at hotels such as The Peninsula Hong Kong, Regal Hotels International, Holiday Inn Hong Kong, as well as restaurant groups such as Lan Kwai Fong Entertainments, Maxim's Group, Café de Coral and Pokka Café taking part. It is also in talks with fast-food chains McDonald's and KFC to collect their used cooking oil.
Developers pitch in
Space being a premium in Hong Kong, the biodiesel firm has had to come up with novel ways to collect oil with help from major developers. Kai Shing Management Services Ltd, a member of Sun Hung Kai Properties, was the first to designate collection bays at commercial buildings to allow regular collection of used oil from restaurant tenants. The Hong Kong Airport Authority is also taking part in a similar arrangement, while Dynamic Progress is currently in talks with other major Hong Kong developers, including Hong Kong Land, to set up collection points in their commercial buildings. The plan is to eventually expand the collection programme to include small restaurants around the city, providing jobs for up to 800 people. "This effort requires partners to make it work," Mr Choi said.
Biodiesel can also fuel vehicles. Tests on Airport Authority vehicles by Dynamic Progress found that using biodiesel lowers carbon dioxide emissions by six times. The Hong Kong SAR government is currently drawing up a specification for the use of biodiesel as motor vehicle fuel. Meantime, glycerol, a by-product of the recycling process, can also be used as detergent for commercial cleaning.
While the biodiesel industry is still in its early stages, Mr Choi said he is encouraged by the Hong Kong government's moves towards use of the renewable fuel. Chief Executive Donald Tsang, in his policy speech last year, pledged to introduce a duty-free policy on the use of biodiesel. The pledge has caught the attention of new players who are considering entering the market, with several overseas companies looking into the possibility. A second plant is due to open in a few years' time. ASB Biodiesel, a joint-venture by Al Salam Bank-Bahrain and six other partners, is scheduled to start production in early 2010, with plans to produce up to 100,000 tonnes of biodiesel per year for sale in Hong Kong and Europe.
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