Hong Kong-based power company CLP Holdings said on Tuesday it does not plan to invest in any additional coal-fired generation capacity and will instead aim to progressively phase out remaining coal assets by 2050.
The switch will be part of the company’s efforts to ‘decarbonise’ in line with Paris Agreement climate commitments, CLP said in a statement. In a separate report, it said 20% of its revenue currently comes from coal-based power generation.
As of December, last year, CLP Group had 11,997 megawatts of coal-fired equity generation capacity, a spokesman from the company told Reuters. CLP Holdings is the holding company for CLP Group.
The spokesman added that for CLP, phasing out coal-fired generation capacity will mean retirement and closure of coal-fired power assets, moving away from build-operate-transfer coal-fired projects before the end of the contract term, or divestment from a coal-fired asset.
It currently operates in various Asian regions including India, Southeast Asia, Hong Kong and China, as well as Australia.
CLP is building Hong Kong’s first offshore liquefied natural gas (LNG) receiving terminal as Hong Kong undertakes a massive shift to use more natural gas to fuel its electric power generation rather than coal.