China Clean Energy Syndicate – [2020 May 18]

Several “milestone” events in wind power and hydrogen market has been the highlights of last week’s Chinese new energy market. But check out our full recaps of the week to get updated on Chinese wind, solar, hydrogen, battery and power sectors.

The key highlights:

WIND: China Three Gorges launched the country’s first tender for floating turbine foundation engineering and construction–floating wind is one step closer to become a reality in China.

HYDROGEN: Guangdong Province released a throughout hydrogen industry development plan, and its Nanhai district announced to extend H2 and FCV subsidy. Local governments show stern support for the nascent sector. Notably, in the development plan, Guangdong also voiced preference of green H2 production–a rare policy preference so far.

EV&BATTER: CATL revealed it is developing cobalt-free battery technology, too.

Hope these updates bring new inspiration for your week.

Best Regards,

Energy Iceberg: to serve as a Knowledge Base of Chinese Clean Energy Policy for Foreign Stakeholders

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Wind

Breaking: China's First Floating Turbine Tender Kicked Off

China Three Gorges launched an open tender for an offshore engineering contractor to build install and test a semi-submersible foundation for a 5.5MW floating turbine prototype. The firm aims to start the floater construction before 1 Aug. this year and hope to complete the installation and testing by 31 Jul. 2021.

Two and Four Provinces Failed to Achieve the Minimum Renewable Power Purchase Target Last Year

National Energy Administration (NEA) last week released China’s 2019 renewable power market monitoring report and statistic results. The annual report looks into China’s wind and solar PV power’s consumption status in each province, which is the key source of understanding China’s renewable curtailment issue.

According to NEA,

  • Wind Power: two regions (Gansu’s Class III, Ningxia’s Class III area) failed to meet the required annual minimum wind power utilization (purchase) hours. The actual utilization hours in these two areas were 140 and 39 hours lower than their required targets.
  • PV Power: four provinces Xinjiang, Gansu, Ningxia, and Shaanxi provinces (regions) all failed to meet the annual minimum utilization hours requirement. Among them, the most severe curtailed regions are Xinjiang Class II, Gansu Class II and Ningxia Class areas, which were 196 hours, 221 hours and 136 hours short from the target.

Energy Iceberg Note: to cope with the country’s previous severe renewable curtailment issues, China has deployed “Target Guiding” Policy and Renewable Investment Risk-Alert Mechanism. Beijing would set annual targets for each province (and their sub-regions depending on renewable resource conditions) in terms of the minimum renewable power purchase (defining by time) and renewable curtailment rates. Regions failing to achieve these targets would be suspended for new project development. 

The six regions that filed to achieve the targets have been the “usual suspects” for curtailment. As new wind and solar complex projects took off since 2019, a worsening curtailment issue may occur in the next 1-2 years.

Market Speculates Intentions of Harbin Electric to Acquire XEMC Wind

The Chinese wind market is in heated speculation that Harbin Electric (HEC) may be approaching turbine OEM XEMC Wind for potential acquisition. The speculation is triggered by the visit of the Deputy General Manager of the Harbin Electric Power Group (HEC) to XEMC Wind last week.

Energy Iceberg Note: The speculated acquisition could fit both parties’ interest. HEC, together with Shanghai Electric and Dongfang Electric, are China’s Big-3 electricity equipment manufacturers. However, HEC currently has limited wind power market existence, while its peers both are top-10 wind OEMs and strong in offshore wind. As conventional power businesses struggle, HEC is likely to look into entering into the wind sector. As a later-coming to the well-establish market, acquiring makes sense. 

 Meanwhile, XEMC Wind Power, of which the mother firm struggle in financial insolvency risk, may better team with a more influential player. The firm–once almost a global top-10, remained China’s major wind OEM, with technology capability in China and the Netherlands. The firm has already established technology of 7-8MW offshore wind turbine, which could be a strong asset for HEC.

Solar

China's Largest PV-hybrid-Battery-Storage Project Concluded Equipment Tender, with Sungrow the Winner

State Power Investment Corp concluded the equipment tender for its Qinghai Hainan Zhou UHV Generation Complex project–a 202.86MW mount PV and 202.86MWh battery storage hybrid project, and largest of this sort in China.

Sungrow was chosen to provide the integrated system of lithium iron phosphate battery energy storage and its world-leading 1500V string inverter SG225HX.

Jinko Launches PV Module with Record Output of 580 W
JinkoSolar launched a new module series on Friday, led by its 78TW panel, which offers a record-setting 580 W of power output.

The Tiger Pro series also includes two 530 W panels – dubbed the 72TR and 72HC – and the 60TR panel, which provides 430 W of output, for specific use in the distributed-generation PV segment.

Hydrogen Storage & Fuel Cells

Guangdong Set off Ambitious and Leading H2 Development Plan for 2021-2025

Guangdong government last week released a “New Energy Industry Fostering Plan for 2021-2025,” which laid down ten aggressive targets/priorities for the hydrogen industry. Three of the ten work priorities are below:

  • The province set to develop hydrogen fuel cells system (megawatt level) technology and manufacturing capacity and have 90 hydrogen refuelling station put in operation by 2025.
  • In terms of value chain development tasks, the province will focus on 1) developing diversified H2 production capacities, with PDH and clean-hydrogen production the main methods; 2) developing high-performance hydrogen fuel cell stacks, 3) developing solid oxide fuel cells and the distributed generation system, 4) making break thoughts in key materials and equipment such as carbon paper, catalysts, and high-pressure storage equipment.
  • In terms of frontier research and R&D, the province plans to develop the first demonstration of H2 production based on plasmon-promoted photocatalytic electrolysis; it will also research on high-temperature fuel-cell distributed poer system. (These tasks will be carried out by China Energy Construction Guangdong Electric Power Design and Research Institute.)

Hexagon And CIMC ENRIC Forming Alliance to Accelerate Hydrogen Transportation in China and Southeast Asia

Hexagon Composites ASA today signed a term sheet for a strategic cooperation and joint venture agreement with CIMC ENRIC, a leading Chinese manufacturer of energy equipment, headquartered in Shenzhen, China. CIMC ENRIC is a subsidiary of China International Marine Containers (CIMC), a global leading supplier of transportation solutions.

The Parties will now proceed towards a final agreement. This alliance will serve the fast-growing demand of the Chinese market for safe, lightweight and cost-efficient compressed Hydrogen storage solutions. The strategic cooperation will support the transition to zero emission transportation also in Southeast Asia. The Parties intend to jointly establish facilities for manufacturing of cylinders and assembly of systems to serve the Chinese and Southeast Asian markets.

Foshan City Extended Subsidy Period to Support H2 Fueling Station and FCVs

The Nanhai District Government of Foshan City recently issued a notice on the measures for promoting the investment and operation of hydrogen fueling stations and fuel cell vehicles. The notice set to:

  • extend the subsidizing time for H2 fueling stations’ gas product (H2 at ¥40/KG and less) to 2021.
  • extend the subsidizing time for H2 fueling stations’ gas product (at ¥36 and below) from 2020-2021 to 2020-2022

Energy Iceberg Note: the enthusiasm of some local government over FCV and H2 supply chain subsidization is higher than other clean-tech industries. Currently, in China, the local government appear to be more eager (than central government) regarding FCV subsidy, and Nanhai Government sets an example. 

EV & Battery

CATL Claimed Progress in Cobalt-free Batteries

Chairman of Contemporary Amperex Technology Co. (CATL), Yuqun ZENG, revealed last week in the company’s performance report session that:

  1. CATL will start to supply lithium-ion cells to Tesla from the second half of 2020, but the two’s agreement does not limit to LFP (probably including cell-to-pack design) or NCM (including NCM 811). The technology of the battery supply will depend on market demand.
  2. Tesla last year already revealed the intention to develop its own batteries and push forward cobalt-free cells. CATL said it had also conducted technology for cobalt-free batteries, of which the R&D progress has been going smoothly, Zeng said. The firm said the work priority for this new product is to ensure supply chain capacity and reliability, as it is “a completely new, disruptive product.”

Clean Energy Related

Which Chinese Energy Companies Are Among the "Forbes Global 2000" This Year?

Forbes Magazine released the Global 2000 Ranking for 2020.

  1. 31 companies in mainland China made it into the list. In the energy sector.
  2. The two national oil company (NOCs) China National Petroleum Corporation (CNPC) and China Petrochemical Corporation (Sinopec), are among the “Forbes Top 100.”
  3. Most Chinese energy companies in the “Forbes Global 2000” are listed companies of state-owned energy groups. Publicly traded subsidiaries of power utilities China Energy Investment Corp (CEIC), China Huaneng, and China Datang Corporation are in the list.
  4. In addition to the 24 state-owned listed companies, 7 private listed energy companies include Hengli Petrochemical Co, Contemporary Amperex Technology, ENN Energy Holdings, Rongsheng Petrochemical, Longi Group, Hengyi Petrochemical Co. and Ningxia Baofeng Energy Group also made the “Forbes Global 2000” 2020 list. 
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