China Clean Energy Syndicate [16-22 March 2020]

Wind

CRRC Begins to Build a 9MW Offshore PMSG, the First in China

The turbine equipment maker based in Shanxi announced to start assembly China’s first 9MW offshore permanent-magnet synchronous generator (PMSG).

Energy Iceberg Note:CRRC did not reveal the client for the 9MW PMSG. Previously, the firm developed China’s first 7.6MW PMSG during the 2018 WindEnergy Hamburg, which supplied to Ming Yang Smart Energy. Check out our summary on Chinese OEMs’ competition to develop larger offshore turbine R&D. https://energyiceberg.com/chinese-oems-turbine-development/ 

“Renewable Fully Purchase” and “Fixed Feed-In Tariff” Two Necessities for Wind Power to Develop in 2021-2025, CWEA

China Wind Energy Association’s secretary-general Qin Haiyan recently spoke about the near future of the country’s wind industry. Energy Iceberg believes that the following key points are worth noticing:

  • Amid Coronavirus outbreak, wind power installed capacity in the country this year is estimated to be around 30GW. The imports and transportation of raw materials from aboard is an uncertain factor, which “would have a great (negative) impact on the installation.”
  • In the next few years, 20GW (incremental) installed capacity is considered “a threshold to gauge industry development.” A smaller than 20GW new capacity would suggest an unhealthy market.
  • The wind market in China is haunted by considerable uncertainty. Before 2020, the main competition among developers is a competition of project grabbing–especially the national-subsidized and offshore wind projects. For the next stage, between 2020-2025, the focus will be on retrofitting, zero-subsidy projects, and distributed projects.
  • But all market segments face challenges and uncertainties.
  • In the traditional Northern China wind market, the wind industry faces severe overcapacity, lack of local demand and the shortage of UHV grid access.
  • In China’s mid-eastern and southern regions, wind businesses struggle to meet with the rising ecological requirements
  • In the offshore segment, reduction of national subsidy would have a significant influence on the viability of current constructing projects
  • The nascent distributed wind market faces difficulties in land acquisition (compensation), grid-connection approval, as well as local consumption.
  • A booming market is O&M and retrofitting. In 2035, more than 90,000 wind turbines, of around 150 GW of the capacity, will reach its life limits.

Installation Rush in China Greatly Boosted Turbine Turbine OEM’s Performance in 2019

China’s leading wind turbine manufacturer Zhejiang Windey Co., Ltd. (Windey) released its annual report last week. The firm registered an operating income of ¥5.01 bn, up 51.29% YoY; the net profit attributable to shareholders was ¥107 mn.

New orders in 2019 were 5,870.2MW, with a YoY increase of 192.74%, and cumulative orders were 7,315.9MW.

Energy Iceberg: Windey’s primary business is at onshore, and in 2019 developers mainly focused on securing onshore turbine supplies. Windey, thus, stands out among peers for its strong performance in 2019.

Zhejiang Province to Construct 5 Offshore Wind Projects in 2020: of 1.782GW Total Capacity

Zhejiang released a 2020 provincial government work plan, which listed 5 offshore wind projects as the province’s energy project priorities. The total investment for these projects will be at ¥30+bn.

These offshore wind power projects are:

  1. China Resources Power Cangnan 1 # Offshore Wind Power Project (400MW)
  2. Huaneng Cangnan No. 4 Offshore Wind Power Project (400MW)
  3. Zheneng Jiaxing No. 1 Offshore Wind Farm (300MW)
  4. Huaneng Jiaxing Offshore Wind Farm Project(00MW )
  5. CGN Zhoushan Shengsi 5 #, 6 # Offshore Wind Farm Project (300MW)

Solar

Beijing Jingneng Plots 5GW Wind-Solar-Hydrogen-Storage Hub in Inner Mongolia

Chinese state-owned utility Beijing Jingneng has revealed that it will spend ¥23 bn (US$3 bn) on a 5GW hybrid solar, wind, hydrogen and storage facility in northern China.

The complex is expected to be commissioned in 2021, with construction set to start in mid-March 2020. It will be built in Eqianqi in Inner Mongolia, northern China, not far from where the autonomous region meets the regions of Shaanxi and Ningxia.

Energy Iceberg Note: the project plans to reclaimed land from a collapsed coal mine to develop 5GW distributed rooftop solar. It plans to build an electrolysis plant for hydrogen and oxygen production with 20,000 m3/h capacity and a “green energy island” of 200,000 m3/h helium production capacity.

Hydrogen Storage & Fuel Cells

NDRC and MoJ Promises Better Policymaking System to Promote Green Energy

National Development and Reform Commission (NDRC) and the Ministry of Justice (MoJ) together issued a guideline to strengthen their policymaking to promote sustainable production and consumption. The guideline proposed 27 essential policymaking tasks in 9 areas, including clean energy development, green agriculture, and other green economy sectors.

In terms of clean energy development, the guideline pledged to support distributed power and smart grid, as well as the energy storage technology.

Energy Iceberg Note: the two regulators mention to develop policies supporting hydrogen energy and ocean energy development. Many believe that this is a (subtle) sign of a dedicated law or policy to be set up for the hydrogen sector.

Horizon Received ¥50 mn Investment from Chinese Sovereignty Fund CICC

China’s fuel cell firm Horizon Fuel Cell Group (Horizon) revealed a plan to issue 1.651 million shares to a subsidy of China International Capital Corporation Limited (CICC)—Zhiqi Equity Investment Management Limited (Zhiqi) to raise ¥50 mn.

The market value of firs is, thusly, at ¥1.05 bn.

Chongqing City the Next Contender to Lead China’s Hydrogen Fuel Cell Vehicle Development

Chongqing City released a hydrogen energy development plan that set ambitious goals to develop a fuel cell vehicle value chain. The city looks to:

  • by 2022, established an initial hydrogen fuel cell vehicle industry chain, with than five FCV models to launch mass-production,10 hydrogen refuelling stations and 800 FCVs to start operation
  • by 2025, further expanded the industrial supply chain, with 80 hydrogen fuel cell vehicle-related companies developed, 15 hydrogen refuelling stations and 1500 FCVs in operation

Chongqing has a solid foundation to build hydrogen fuel cell automotive industry, with a hydrogen production capacity of 100,000 tons as chemical by-products. Current key H2 and FCV companies in the city include

  • FCV manufacturing: Changan Automobile, Qingling Automobile, SAIC Hongyan
  • Fuel cell production: Snowman Co, D.R. Power

Chery New Energy Launched a Hydrogen Fuel Cell Project in Anhui Province

Chery New Energy Automotive Technology Co. (Chery New Energy) begun to develop its hydrogen fuel cell production line, official environmental assessment document shows. The firm submitted a “Chery fuel cell system development and commercialization” project proposal to the local environmental watchdog in Wuhu, Anhui province. The proposal revealed the firm’s intention to invest ¥300 mn in constructing the project, which sets to achieve 440 sets of fuel cell assemblies annually.

Chery was one of the first Chinese car brands that marched in the field of hydrogen fuel cell vehicles. Chery began to work with Tongji University on hydrogen fuel cells as early as 2005. Based on CROSS model, Chery developed a fuel cell car code-named SQR7000 in 2010 and was successfully listed in the “210th Batch of Vehicle Manufacturers and Product Announcements” of the Ministry of Industry and Information Technology. In 2016, 2018 and 2019, Chery successively exhibited fuel cell vehicles which inspired by the Arrizo 3 and 5 models.

50 H2 FCV Transporation Trucks Officially Launch Operation in Foshan

Fifty hydrogen fuel cell vans manufactured by Foshan Feichi Automobile Manufacturing Co. (Foshan Feichi) kicked off operation in Guangdong Hongjing Logistics Co. The array will be used as logistic transportation truck in the Guangdong-Hong Kong-Macao Greater Bay Area.

The mileage of these vehicles can reach 300 kilometres at full load. The market share of Foshan Feichi remains above 13.7%, and it has been one of the largest domestic manufacturers of H2 FCV buses. In 2016, the 28 hydrogen fuel cell vehicles produced by Feichi were the first to be put into operation in Foshan and Yunfu of Guangdong Province. The cumulative safety mileage of these 28 vehicles has exceeded 400,000 kilometres.

EV & Battery

Nio Promises Per-Vehicle Profits Ii Q2 As Shares Slide

Nio shares tumbled 16% to $2.43 on Wednesday after it reported a 21% year-on-year decrease in vehicle sales and a worse-than-expected net loss of RMB 2.9 billion ($411.5 million) in its fourth-quarter financial results. The electric vehicle maker earned RMB 7.82 billion in full-year revenue, also below market expectations of RMB 7.95 billion, while posting another annual loss of RMB 11.3 billion. However, that number has more than halved compared with the year prior.

Clean Energy Related

China’s Power Consumption in Feb Dropped 10.1% YoY

China’s electricity consumption in Feb was 439.8 TWh, with a steep 10.1% decrease YoY, said National Energy Administration. Electricity consumption in the first two months of 2020 fell by 7.8% compared to the same period of 2019.

The segmented figures:

  • Primary industry consumption (Agriculture) in Feb: 5300GWh, up 1.9% YoY
  • Secondary industry (Manufacturing): 252300 GWh, down 14.6% YoY
  • Tertiary industry (Services) was 83300 GWh, decreased by 10% YoY
  • Residential: 98800 GWh and up 3.1% YoY
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