Cop28: Middle East holds immense potential for Hong Kong proptech firms to deploy energy-saving solutions

The hot and dry climate in the Middle East provides ample opportunities for Hong Kong greentech firms to showcase their energy-saving solutions for buildings, according to companies. Finding local partners remains a challenging hurdle, they said.

Hong Kong-based consultancy M Concept Studio's technology can reduce the energy use of conventional air conditioning systems while also improving indoor air quality, Paul Chan Yim-cheong, chairman and co-founder, said in an interview from the Cop28 conference in Dubai. The company is displaying its technology at the conference as part of a delegation led by the Hong Kong Science and Technology Park (HKSTP).

The company's "Flat Cool" system involves cooling panels installed on the ceiling of a room through which chilled water is circulated and plenty of fresh air is pumped into the enclosed space, allowing heat to be absorbed and thus lowering the temperature of the room.

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"The Flat Cool system is particularly well-suited for the dry and hot climate of the Middle East," said Chan. "It is my dream to showcase our system here."

Paul Chan, chairman and co-founder of M Concept Studio, showcasing the company's solution at Cop28 in Dubai. Photo: Handout alt=Paul Chan, chairman and co-founder of M Concept Studio, showcasing the company's solution at Cop28 in Dubai. Photo: Handout>

The technology can also cut down the energy use of conventional air conditioning systems by half, he added.

Cop28 is an annual international climate summit on solutions to tackle climate change. The gathering in 2015 agreed to limit global warming to 1.5 degree Celsius, compared with pre-industrial levels.

Founded in August 2020, M Concept joined the HKSTP's incubation programme two years ago. It completed its pilot project in May last year at an elderly centre in Pak Tin public housing estate in Kowloon followed by another at the HKSTP in February.

Cooling equipment currently accounts for 20 per cent of total electricity consumption, and is expected to more than double by 2050 based on current growth trends, according to the Global Cooling Watch report by the UN Environment Programme-led Cool Coalition released on Tuesday.

"As temperatures rise, it is critical that we work together to improve energy efficiency and reduce emissions from the cooling sector while increasing access to sustainable cooling," Cop28 president Sultan Al-Jaber said in a statement at the launch of the report.

In the Middle East, air conditioning and cooling accounts for the bulk of electricity consumption.

Some 70 per cent of electricity generated in Kuwait is used in the refrigeration and air conditioning sectors, according to Yaqoub Almatouq, a Kuwaiti environment official.

"If we save energy while adopting the new technologies, then the economic cycle of the country will be increased," he said at a panel at Cop28.

Neuron Digital Group acting CEO Thomas Pang showcasing the company's solution at Cop28. Photo: Handout alt=Neuron Digital Group acting CEO Thomas Pang showcasing the company's solution at Cop28. Photo: Handout>

Neuron Digital Group, another HKSTP-based start-up, has developed technology to "transform the built environment" and help buildings improve their energy efficiency. It too is keen to bring its solution to the Middle East.

Neuron's platform can cut down a building's energy use by 15 per cent to more than 30 per cent, depending on the building's current energy efficiency and the investment undertaken to improve it, according to acting CEO Thomas Pang. The firm is also showcasing its technology at Cop28.

Neuron was conceived five years ago when Arup, an engineering and consultancy services provider, was working on a smart building project for Swire Properties at One Taikoo Place. However, it was only set up last year as a joint venture between Arup and venture capital firm Venturous Group.

As of the end of November, the platform has been used in more than 150 new and existing buildings in Hong Kong, with services provided to developers such as Swire Properties and Nan Fung, utility provider CLP and the government's Architectural Services Department and Electrical and Mechanical Services Department.

Each building has achieved an average reduction in carbon emissions of 90 to 120 tonnes per year, comparable to the carbon offset achieved by planting 4,000 to 6,000 trees a year for each building, according to the company.

The market in the Middle East should not be that different from mainland China or Hong Kong, said Pang.

"To expand to other geographical locations outside Hong Kong [and] finding a local partner is a big challenge," he said. "We are looking for local partners to work with. We aim to be a significant player in the [Middle East] market."

Along with its delegation of companies showcasing at Cop28, the HKSTP is keen to stay abreast of the latest climate agendas and tap into the innovation trends in the United Arab Emirates.

"We eagerly anticipate forging dynamic and transformative collaborations among our park companies and the local accelerators and innovators," said HL Yiu, chief corporate development officer of HKSTP.

"Together, we will propel Hong Kong's mission to surge forward as a green tech and green finance hub."

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

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