Energy Insider: China Starts Tracking Carbon Emissions in Real Time; Inner Mongolia Shutters 35 Crypto Miners
In today’s Caixin energy news wrap: Power supply shortage looms in southern China provinces as demand rises; China launches first system to track power companies’ carbon emissions in real time; Shanghai Electric warns of risks linked to subsidiary’s financial troubles, and more crypto miners are forced to close in Inner Mongolia.
China launches first real-time carbon emissions monitoring system
China’s first high-accuracy carbon emissions measurement system for the electricity industry officially went into operation Thursday in Jiangsu province, the Securities Times reported Sunday. While power companies’ carbon emission were previously calculated mainly based on coal consumption, the new system can conduct real-time monitoring of carbon emissions. Accurate and reliable carbon emissions data are the foundation of the carbon trade.
Southern provinces feel pressures of tighter power supply
Power consumption in five provinces and regions in southern China continued rising amid accelerating economic recovery and hot weather, straining the region’s electricity system, China Southern Power Grid Co. Ltd. said. The Southern Grid’s total power distribution as of May 29 reached 502.9 billion kilowatt-hours, up 23.7% from the previous year. Guangdong province adopted measures to ensure orderly supply of power across the province while Yunnan started limiting certain companies’ power usage.
Inner Mongolia shuts down 35 cryptocurrency mining companies
North China’s Inner Mongolia shut down 35 cryptocurrency mining companies as of the end of April as part of its efforts to slash energy consumption over the next few years. According to preliminary statistics, the closure of the electricity gobbling enterprises may save 5.2 billion kilowatt-hours of electricity a year, equivalent to more than 1.6 million tons of standard coal, the official Xinhua News Agency reported. The autonomous region has initiated a series of measures to crack down on the crypto mining business in the region to meet its energy-saving goals.
Fujian plans world’s largest stainless steel production facility
Fu’an city in southern China’s Fujian province will build up stainless steel production capacity totaling 7 million tons, the world’s largest, according to the China Metallurgical News. The city currently has capacity to produce stainless steel products of around 550,000 tons. Tsingtuo Group, a unit of Tsingshan Holding Group Company Limited, will be the leading player in the plan.
Shanghai Electric unit reports $1.4 billion of overdue accounts receivable
State-owned power giant Shanghai Electric (688660.SH) Sunday warned investors of potential risks related to massive accounts receivable at one of its subsidiaries. Shanghai Electric Communication Technologies, 40% owned by Shanghai Electric, had approximately 8.7 billion yuan ($1.4 billion) of accounts receivable as of May 30 that were generally overdue. The unit faces the risk of not being able to recover a significant amount of the receivables, Shanghai Electric said. The unit has 7.7 billion yuan of unpaid loans to Shanghai Electric.
Ganfeng Lithium unit plans to expand lithium salt lake project in Argentina
Ganfeng Lithium Co. Ltd.’s subsidiary Minera Exar will launch a feasibility assessment of expanding production of the Cauchari-Olaroz lithium salt lake project in Argentina, Ganfeng Lithium said. The decision reflects the site’s rich lithium resources and strong market demand for high-end lithium salt products. It has a planned post-expansion production capacity of at least 20,000 tons of lithium carbonate equivalent.
Steel prices drop under regulatory pressure
Steel prices retreated after surging to record highs in early May following a series of regulatory moves to rein in the white-hot market. The price of steel billet in Tangshan closed at 4,880 yuan ($766.20) per ton Friday, down 15% from the May peak. The dominant contracts for SHFE deformed steel bar futures and hot rolled coil dropped nearly 20% from the May peaks. Steel prices are hovering around early-April levels after top policymakers targeted the surge in commodity prices. Several central government ministries held meetings last week with major commodity producers calling for them to maintain price stability.
Contact editors Han Wei (email@example.com) and Bob Simison (firstname.lastname@example.org)
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