HSBC Bank has granted its first green loan to a climate-mitigation technology firm based in Hong Kong. The borrower is fighting global warming with emissions reduction projects on the construction sites
Ampd Energy received a $8 million two-year green loan from the British HSBC bank to fund its efforts to make building sites more sustainable. Placing massive batteries on the sites of construction reduces the need for diesel generators, thus, assisting construction companies and property developers in lowering their carbon footprints.
The firm has developed the Ampd Enertainer – a compact and connected battery energy storage system (BESS) – able to replace the dirty, noisy and hazardous diesel generators that typically power construction worldwide.
Ampd Energy estimates that its systems are emitting up to 85% less carbon dioxide than traditional diesel generators. This equates to a decrease of about 17,500 tonnes of CO2 emissions per year. Besides, they produce no tailpipe emissions such as nitrogen oxides and sulfur dioxide.
Starting its operations with Hong Kong in 2014, the company plans to expand its all-electric replacement product globally. The sustainability-focused firm has already expanded its operations to Singapore, Australia, and the UK. It is currently focusing on the American market.
Construction sites are among major CO2 polluters. Therefore, decarbonizing the construction industry is a crucial step to fight climate change. At the same time, funding the transition finance opportunities is often difficult for the building companies.
Climate activists have previously accused HSBC, along with its international counterparts, of not doing enough to reduce emissions from its lending portfolio. However, in 2020, the bank promised its shareholders to offer between $750 million and $1 trillion in green finance and investment by 2030.
Its first green loan to a climate-mitigation technology firm aligns with the Hong Kong Financial Secretary initiatives to stimulate innovation and enable funding for environmental projects, aimed at turning Hong Kong into an international green technology and finance hub.