Secretary for the Environment KS Wong today officially launched Alice Ho Miu Ling Nethersole Hospital's environmentally-friendly power system.
It generates electricity and heat from gases released by landfills.
It is the first system of its kind to be installed in a local hospital.
Mr Wong said the system is a good example of using waste to produce energy, by making further use of the gases generated from three local landfills.
The gases are also used to generate heat and electricity to power infrastructure and offices at landfill sites.
Surplus gases are exported off site for other uses.
The hospital system was put into service in November.
It can yield estimated annual savings of $2.7 million in electricity bills, and carbon emission reductions of up to 2,000 tonnes.
To promote energy saving and carbon reduction, the hospital and Towngas recently held a competition, inviting students to design a mural to decorate the system's external wall.