HKUST partners with French company to promote EPC model, aiming to expand building carbon reduction across Hong Kong.

The Hong Kong University of Science and Technology (HKUST), together with a French enterprise team comprising Schneider Electric, Veolia, and Bouygues Bâtiment, signed two agreements on Tuesday (8th) witnessed by InvestHK, launching the low-carbon retrofit of the Lee Shau Kee Business Building, with plans to extend to student dormitories, using the Energy Performance Contracting (EPC) model to promote campus carbon reduction.

EPC is an energy-saving solution that requires no upfront capital expenditure. The service provider is responsible for design, construction, and maintenance, and guarantees energy-saving performance. The contract period is generally 5 to 15 years, with project costs recovered through electricity savings, and profits shared between the owner and the service provider.

The first phase is carried out by HKUST, Schneider, and Veolia, replacing nearly 700 fan coil units (involving over 800 motors) in the building with high-efficiency permanent magnet DC motors, and installing AI temperature control systems in classrooms to adjust air conditioning based on usage. Technical assessments show that motor upgrades alone can save about 25% to 67% of electricity, and the overall project is expected to be completed in about two years.

In the second phase, HKUST, Bouygues Bâtiment, and Veolia signed a memorandum of understanding, planning to extend the model to dormitories and other facilities, and explore the introduction of green finance to facilitate project replication. Bouygues Bâtiment cited its Paris renovation experience, stating that deep retrofitting can reduce energy consumption by up to about 65%.

French Consul General in Hong Kong and Macau Christile Drulhe said that the relevant technology is expected to reduce energy consumption in campus buildings by up to about 30%. InvestHK Director Liu Kaixuan said that carbon neutrality holds huge investment opportunities and will continue to promote cross-sector collaboration. HKUST Acting President Tam Kar Yan pointed out that EPC is based on quantifiable performance and accountability, helping to advance carbon reduction from planning to implementation.

Government data shows that over 90% of existing buildings in Hong Kong are expected to still be in use in 2050, indicating a huge demand for retrofitting and emission reduction; the International Energy Agency also points out that over two-thirds of energy emission reductions can be achieved by 2030 through existing technologies, reflecting the practical feasibility of building energy-efficiency retrofits.