Crossovers of the Renewable Titans– China Clean Energy Syndicate

Last week is all about cross-over: the No.1 battery maker CATL announced to set foot in renewable power development; the major wind and solar players revealed plans regarding green hydrogen investment; the iron&steel makers are zooming into hydrogen; then, the PV makers unveil new products combing PV and battery storage…

The game and players of China’s new energy market are under reshuffle.

Our picks of China clean energy market updates from last week: 

  • Wind: CATL to work with China National Nuclear Corp to set up JV for wind and solar project development; Windey announced 7MW offshore wind prototype
  • Hydrogen: Zhangzhou of Fujian eyes on developing offshore wind green hydrogen production and nuclear-based pink hydrogen; GLC, Angang Steel and other industry players unveiled new hydrogen strategies.
  • Energy Storage: Huawei presented a revolutionary battery storage product Fusion Solar All-scenario PV & Storage Solution.

Please scroll down for the 10 updates from last week.

Net-Zero Investment

National Carbon Emissions Trading Scheme is around the Corner

Shanghai Environment Energy Exchange experts recently revealed on the Hongqiao International Economic Forum that:

  • The current national carbon emissions trading scheme (ETS) has met the operational requirements. It is expected to be in service soon.
  • The basic framework of the ETS includes five key elements: coverage, quota management, transaction management, MRV, and regulatory mechanisms.
  • Coverage includes carbon emission control target setting and specific industry coverage; quota management involves quota allocation plans and settlement performance; transaction management involves transaction rules and risk management; MRV involves accounting and reporting and third-party verification; regulatory mechanisms involve Supervision and management and legal responsibility.

Wind Power

Battery Giant CATL Sets Foot in Wind and Solar Development

China’s largest automotive lithium-ion battery maker Contemporary Amperex Technology (CATL) has teamed with China National Nuclear Corp (CNNC) for renewable project development.

Subsidiaries of the duo, CATL Yongfu and CNNC Hua Yuan Titanium Dioxide, last week concluded a deal to set up a joint venture Baiyin CNNC CATL New Energy.

The JV will invest, build, and run photovoltaic, wind power and other integrated smart energy projects. Specifically, the JV eyes on building mounted-solar, rooftop solar and onshore wind projects first in Gansu province.

Energy Iceberg Note: “smart integrated energy projects” often refer to renewable projects with battery storage units as well as other industrial applications. The “hybrid” energy projects are the key investment hype right now.

“Onshore-Only” Windey Launched an Offshore Prototype, Eyeing 10MW

Zhejiang Windey announced that the firm has secured the first purchase order for its offshore turbine, of which the delivery will be in this year.

The 7MW “Haifeng Series” offshore wind turbine platform has a capacity configuration range from 6 to 8 MW, with a rotor-diameter range of 175-195m.

Zhejiang Windey also claimed that the company is carrying out R&D for large-capacity 10MW+ offshore wind turbines.

Regional Planned Solar Capacity is 2X of that of Wind
Wind & Solar Competition in 14th FYP?
Regional Planned Solar Capacity is 2X of that of Wind
Wind & Solar Competition in 14th FYP?

Recently, six provinces in Chin have released the energy industry 14th Five-Year Plans with specific wind and solar targets for 2025. The six are Hebei, Shandong, Zhejiang, and Jiangsu provinces.

According to these local targets, the incremental wind and solar capacity combined would be 153.14GW.

Four provinces (Hebei, Shandong, Zhejiang, Jiangsu) announced separate targets for wind and solar, which mount to 44.76GW wind and 83.18GW solar capacity.

The key takeaways of the targets is that: The incremental solar capacity of the six is almost 2X of wind capacity. Except for Jiangsu, other regions all have higher solar capacity than wind.

14th FYP is likely to be a critical period where wind and solar power are head-on competing in China.


Another Region Commits to Offshore Wind Power-to-Gas & Pink H2

Zhangzhou City of Fujian Province recently issued the city’s 14th Five-Year Economy and Social Development Plan (FYP). The plan listed hydrogen as one of the new energy development. The city sets to

  • Develop an energy system integrated nuclear, solar, wind, hydrogen energy and energy storage.
  • Become the largest clean energy base on the southeast coast of the country.
  • Deploy its large scale offshore wind complex for power-to-gas projects, and develop smart water-way and land transportation equipment for hydrogen fuel.

Energy Iceberg: Zhangzhou is with great clean power sources. Currently, two Hualong-One (HPR1000s, 1250MW each) are under construction with at least four are awaiting further approval. Meanwhile, off its coast, major offshore wind complexes are also available. The city is of good condition to deploy both green and pink hydrogen.

Another Iron & Steel Maker Setting Foot in Hydrogen Application

CIMC Enric and (a subsidiary of) Angang Steel announced to set up a joint venture, where each will invest ¥100 m. The JV is set to develop a coke oven gas (COG) to produce LNG and hydrogen project.

Located in Yingkou of Liaoning Province, the first phase of the project is expected to produce 125,000 tons of LNG and 24 million m3 of hydrogen, and to be put into production in Q3 2022 at the earliest.

China’s steelmakers have taken active steps to explore hydrogen substitute since last year. Notably:

  • Baowu Steel Group, HBIS, Jiuquan Iron & Steel and Shougang Group currently focuses on hydrogen metallurgy.
  • HBIS Xuangang launched a hydrogen energy development and utilization demo project in May.
  • Jiuquan Iron & Steel Group established a hydrogen metallurgy research institute in 2019.
  • Private steel companies Beijing Jianlong Heavy Industry Group and Rizhao Steel also have hydrogen projects.

Energy Iceberg’s Note: See our previous summary of China’s iron & steel companies’ activities in H2 utilization.

PV Powerhouse GCL-Poly Takes Action in Green Hydrogen

PV developer GCL Group last week signed four strategic cooperation agreements with Siemens, Toshiba, CSSC Perui Hydrogen Technology and State Power Investment Corporation Beijing Green Hydrogen Technology Development, respectively.

The essence of these four agreements was not disclosed but all point to power-to-gas equipment. The move signals GCL Poly setting foot in the green hydrogen business.

Zhu Gongshan, the chairman of GCL-Poly, confirms the strategic move to the hydrogen business. The group will focus on developing integrated power plant of wind, solar, storage and power-to-gas.

Energy Storage

Huawei & Other Solar Players Pushes for Energy Storage

Huawei Digital Power last week presented its Fusion Solar All-scenario PV & Storage Solution at SNEC 2021, the world’s largest solar trade exhibition.

The product covers “4+1” scenarios: Smart PV Generator FusionSolar 8.0, Green Residential Power 2.0, Green C&I Power 1.0, and Off-grid (fuel removal) Power Supply Solutions + Energy Cloud, aiming to accelerate the shift to zero-carbon generation and bridge the energy divide.

Hou Jinlong, President of Huawei Digital Power, suggested that the company believes energy storage has become a necessary enabling technology to promote new energy from ‘adapting to the grid’ to ‘strengthening the grid’.

Besides Huawei, several key solar PV makers this week unleashed PV Plus Storage products.