November 2023
CIC has not carried out any audit mission for nor commissioned any consultancy services with Ampd Energy Limited and there is no established relationship (financial or others) between CIC and Ampd Energy Limited.
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the Ampd Energy Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Ampd Energy Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with Ampd Energy Limited. CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. Ampd Energy Limited is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of Ampd Energy Limited, nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on Ampd Energy Limited can only be used by Ampd Energy Limited and the Financial Institution. The distribution and publication are at the discretion of Ampd Energy Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2023-004 |
|---|---|
| Certificate no. | SFCS-2023-004 |
| Date of application | 2023.09.12 |
| Company name | Ampd Energy Limited |
| Business registration no. | 63070222 |
| Company profile | Ampd Energy is a sector-focused energy storage company that envisions an emission free future for construction. Founded in 2015 by Brandon Ng and Luca Valente, Ampd Energy is currently operating in three regions, Hong Kong, Thailand and Singapore. With the headquarter in Hong Kong, it is also a member of the Incu-Tech Programme, a Hong Kong Government and HK Science and Technology Park initiative. Ampd Energy pioneered the use of battery energy storage systems (BESS) in urban construction with its flagship product, Enertainer, which is an advanced, compact and connected battery system to replace the dirty, noisy and hazardous diesel generators that power the world's construction. The Enertainer contains up to 27,000 automotive grade battery cells, designed into fire and explosion-proof battery modules driven by high performance power electronics. Features, hardware and software carefully designed for the specific needs of construction sites. In addition, the product is unique in the market both locally and internationally and has significant potential for growth. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Ampd Energy Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Energy Efficiency |
| Eligibility Criteria | Demonstrate the project reduce GHG emissions through the energy efficiency equipment, technology or product. (The project has adopted Enertainers.) |
Ampd Energy Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Ampd Energy Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
Ampd Energy Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | Hong Kong Green Energy Rental Fleet |
| Location | Hong Kong |
| Project description | We have established Hong Kong’s first green energy rental fleet and deploy Enertainers (battery energy storage solution) across industrial use cases in Hong Kong displacing diesel generators. By using an Enertainer instead of a generator we work with customers to reduce CO2 by up to 80%, eliminate dangerous diesel fumes from work sites and reduce sound pollution by 32 times compared with generators of a similar capacity. |
| Highlights of green elements and estimated environmental impact | Enertainer can be used in place of traditional diesel generators in construction sites to reduce carbon emissions and minimise on-site air quality impacts arising from electrification. It has a carbon footprint which is at least 80% less, is as much as 32 times quieter, emits zero diesel fumes, eliminates diesel handling and usage risks, has zero maintenance and refuelling downtime and is dramatically cheaper to operate. The Enertainer has also been approved by Construction Innovation and Technology Fund (CITF). |
Ampd Energy Limited proposes to raise Green Loan for the ‘Hong Kong Green Energy Rental Fleet’ project that falls into the Energy Efficiency category under the Green Loan Principle. Ampd Energy Limited submitted part of the 2022 Annual Report of New World Development Company Limited which shows that the project has adopted Enertainers to reduce GHG emissions by 280 tonnes CO2e in financial year 2022. The Enertainers are considered as a kind of energy efficiency equipment, technology or product that reduces GHG emissions. Ampd Energy Limited also submitted two pieces of project information sheet, which are ‘Subsidised Sale Flats Development Project at On Muk Street’ and ‘High Speed Rail West Kowloon Terminus’, and claimed that by installing the Enertainers, around 80% reduction of CO2 emission were achieved when comparing with comparable diesel generators. Besides, Ampd Energy Limited submitted a duly signed undertaking letter to undertake and agree to comply with the User Guide and Terms and Conditions of the Sustainable Finance Certification Scheme provided by CIC. Therefore, the submitted documents demonstrate that the compulsory technical requirements of Energy Efficiency category are fulfilled. Based on this information, we concluded that the project will bring significant environmental benefits.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Ampd Energy Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
Ampd Energy Limited submitted an organization chart which shows that the CFO of Ampd Energy Limited is responsible for conducting the process for project evaluation and selection. Ampd Energy Limited confirmed that CFO’s team will form a Sustainable Finance Working Group to conduct the process for project evaluation and selection.
Ampd Energy Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Ampd Energy Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Ampd Energy Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with Internal governance
Ampd Energy Limited confirmed that all loan proceeds, project receipts and payments will be dedicated to a designated account for the project. Ampd Energy Limited will only use a general bank account to deposit the green loan proceeds as long as the green loan proceeds will be tracked properly through an internal fund register. CFO of Ampd Energy Limited will work closely to track the allocation of funds and will be responsible for internal governance on proceeds management under the guidance of the bank. Ampd Energy Limited also submitted a fund register template to track the allocation of green loan proceeds to the project.
Ampd Energy Limited is committed to transparent reporting and will publish a standalone green finance report within one year from the date of issuance of each sustainable financing instrument and annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, Ampd Energy Limited will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Energy Efficiency |
| Metrics | Annual GHG emission reduced/avoided in tCO2e (Permanent works) |
| Methodologies | Calculate the diesel consumption based on the energy usage of Enertainer. As a result, calculate the carbon emission of generators based on estimated CO2 emission from a comparable diesel generator - (minus) estimated CO2 emission of Enertainer. |
| Project Categories | Energy Efficiency |
| Metrics | Total installed capacity of energy efficiency equipment in MWh |
| Methodologies | Calculate by Ampd Energy Limited’s online platform. |
| Project Categories | Energy Efficiency |
| Metrics | Annual energy saving in MWh |
| Methodologies | Calculate total energy saved based on the total energy stored in diesel - (minus) electricity energy used by Enertainer. |
| Project Categories | Energy Efficiency |
| Metrics | Total carbon emission reduced/avoided in tCO2e (Temporary works and site impacts) |
| Methodologies | Calculate the diesel consumption based on the energy usage of Enertainer. As a result, calculate the carbon emission of generators based on estimated CO2 emission from a comparable diesel generator - (minus) estimated CO2 emission of Enertainer. |
Ampd Energy Limited confirmed to perform allocation and report impact annually by publishing a standalone green finance report. Ampd Energy Limited also clearly defined the key performance indicators applicable for the impact report with the underlying methodology.
| Use of proceeds | Compliant |
|---|---|
| Project evaluation and selection | Compliant |
| Management of proceeds | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2023-004, Certificate no.: SFCS-2023-004) of the CIC Sustainable Finance Certification Scheme with validity from 10-11-2023 to 09-11-2025 .