Azure China Energy Transition Update-November 30th

Azure International

2022-11-29

导读：SPIC’s offshore wind extension project in Jieyang received DRC approval.

In this week, SPIC’s offshore wind extension project in Jieyang received DRC approval. 3 offshore wind projects in Shanghai received 136 million of subsidy funded by the Shanghai government. All three projects are owned by Shenergy, an energy group owned by the Shanghai government. In Shanxi, the wind and solar construction plan for 2022 was finally released by the Shanxi government, specifying 11GW of new energy projects for competitive allocation this year. Finally, a lot has happened lately in the hydrogen industry. Sinopec delivered the first MW-level green hydrogen demonstration project, with daily output of 1.12tons. Chinese steel makers are starting to actively engage in hydrogen industry to decarbonize the iron & steel industry. We produced a short summary in the column of Corporate Net Zero to recap the recent activities in this regard.

The Azure Research

and Strategy team

News Summary

SPIC Jieyang Jinghai 400MW offshore wind farm approved by local DRC
3 offshore wind power projects in Shanghai will receive RMB 136 million subsidy from Shanghai government
More than 11GW wind and solar projects start competitive allocation in Shanxi
Mid-term delivery of Sinopec's first MW-level green hydrogen demonstration project
Coporate Net Zero Pathways: Chinese steel makers invest in hydrogen industry to speed up decarbonization

SPIC Jieyang Jinghai 400MW offshore wind farm approved by local DRC

Jieyang city DRC published a notice of approval for the SPIC Jieyang Jinghai 400MW offshore wind farm. This project is an expansion of the SPIC Jieyang Jianghai 150MW offshore wind farm. The project’s central point is 25 km from the coast, with water depths ranging between 30m and 40m.

The planned capacity of the project is 400MW, and 44 wind turbines with a single unit capacity of 12MW are planned to be installed. The total construction period of the project is 24 months, and the total investment is CNY 5.7 billion (USD 797 million).

(Jieyang DRC)

3 offshore wind power projects in Shanghai will receive RMB 136 million subsidy from Shanghai government

Shanghai's 2022 First Batch of Renewable Energy Special Fund Allocation Plan was released by the Shanghai Development and Reformation Committee (Shanghai DRC) The subsidy is funded by the Shanghai Special Fund for Energy Conservation and Emission Reduction and is applicable to renewable energy projects that were put into operation between 2019 and 2021.

(Shanghai DRC)

More than 11GW wind and solar projects start competitive allocation in Shanxi

Shanxi Energy Bureau released Shanxi’s construction plan of wind and solar competitive allocation projects in 2022, with following results:

10GW of new wind and solar grid connection-guaranteed projects
1.21GW of old projects which missed the construction deadline and are re-allocated
0.25GW of extra capacity given as a reward to some cities that have had a good performance during 2021

Solar projects must be fully grid-connected before the end of Sepetember,2023. Wind projects must be fully on-grid before the end of June,2024.

(BJX)

Mid-term delivery of Sinopec's first MW-level green hydrogen demonstration project

Sinopec Group Co., Ltd. announced on the 23^rdof November that Sinopec's first megawatt-scale renewable electricity electrolysis hydrogen production demonstration project was successfully delivered in Zhongyuan oil field located in Henan before being launched officially.

The PEM-hydrogen project is equipped with a 3.66MW solar power station and a 9MW wind power project. After the project is put into operation, it will produce 1.12 tons of high-purity green hydrogen per day, and it is expected to consume 25.2GWh of renewable electricity per year.

(SINA)

The coporate Net Zero Pathways

Chinese steel makers invest in hydrogen industry to speed up decarbonization

On November 16, the hydrogen making project invested jointly by Angang and CIMC kick-started construction in the Bayuquan Iron and Steel Factory, a subsidiary of Angang Group. The project uses coke oven gas and converter gas, residual products of iron and steel making, to produce LNG (liquefied natural gas) and hydrogen. With a total investment of about 600 million CNY, the project covers a surface of more than 110,000 m², and is expected to be completed and put into operation in 2024, with an annual output of 125,000 tons of LNG and 24 million m³ of hydrogen.

This is one of the latest cases of Chinese iron & steel makers investing in the hydrogen industry. China consumes most of the iron and steel in the world, and has the largest iron & steel production output, contibuting over 50% of the total carbon emissions of the industry. While many other global players in U.S. and Europe are striving to be the first ones to experiment in green steel by using hydrogen-based technology, Chinese players are also beginning to build pilot projects. So far, key front-runners come from the state-owned groups. Most of the leading steel makers have started deploying hydrogen-based metallurgy and hydrogen making. However, only the top players such as HBIS and Baowu have also started activities in the production of green hydrogen.

END

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