Energy Insider: China Tightens Environmental Scrutiny of Polluting Projects; World’s Second-Largest Hydropower Station Closer to Completion

In today’s Caixin energy news wrap: China’s environment authority vows to tighten control on projects with high pollution while Tangshan, the country’s largest steel city, considers easing production cuts; the world’s second-largest hydropower station has its main structure completed; and Qinghai is planning a salt lake industry leader.

China tightens environmental approval for polluting projects

China’s Ministry of Ecology and Environment issued new guidelines to tighten scrutiny of new industrial projects with high energy consumption and high emissions in a regulatory move to advance the country’s green transition. The guidelines require local environmental regulators to strictly review the environment impacts of industrial projects and tighten control on projects involving high energy use and high emissions. The ministry urged local governments to regard environment quality as a "bottom line," particularly if polluting projects are being expanded or relocated into their jurisdictions.

Tangshan may ease production cuts

Tangshan, China’s largest steel producing city in the northern province of Hebei, is considering easing steel output limits in the second half this year to increase supply in response to a recent surge in steel prices, Caixin learned. The Tangshan city environmental authority met with local steel companies Monday to discuss relaxation of production limits that were imposed in March, sources with knowledge of the matter told Caixin. The city government ordered local steel mills to slash production by at least 30% between March 20 and Dec. 31 as part of efforts to reduce pollution.

First 110 kilovolt regenerative electric boiler starts transmitting power in Chongli

The Erdaogou heat supply plant in Chongli, Hebei province, successfully completed trial power transmission via a 110 kilovolt solid fuel-fired boiler, part of its coal-to-electricity project. The project will provide important support for the 2022 Winter Olympics. The trial operation marks the world’s first successful transmission of power by 110 kV direct-in electric boiler with thermal storage. The project is expected to provide clean energy to users in 1.54 million square meters of downtown Chongli.

Qinghai plans to revamp bankrupt fertilizer producer into industry leader

The government of northwest China’s Qinghai province plan to create a leading salt lake resource developer by restructuring the local companies Qinghai Salt Lake Industry Co. Ltd. and Qinghai Huixin Asset Management Co. Ltd. The province, home of China’s largest salt lake, plans to consolidate the business assets under a new company as part of an ambitious plan to develop the province into a world-class salt lake industry base. Qinghai Salt Lake, China’s largest potash fertilizer company, entered bankruptcy restructuring in 2019.

Main structure completed for world’s second-largest hydropower station

Construction of the main structure of Baihetan Hydropower Station in southwest China’s Yunnan province was completed Monday, state broadcaster CCTV reported. The hydropower station is expected to put its first generating units into operation by July 1. Upon full operation, it will save nearly 19.68 million tons of standard coal every year. At 16 million kilowatts, Baihetan Hydropower Station ranks second in the world in terms of total installed capacity. Per unit capacity ranks first in the world at 1 million kilowatts.

Hengyi Petrochemicals plans to sell $471 million of convertible bonds

Hengyi Petrochemicals Co. Ltd. said Monday it plans to issue as much as 3 billion yuan ($471 million) of convertible bonds. Proceeds will be mainly invested in a new functional fiber technology renovation project with annual capacity of 500,000 tons and a new environmentally friendly differentiated fiber project with an annual capacity of 1.1 million tons.

Contact editors Han Wei (weihan@caixin.com) and Bob Simison (bobsimison@caixin.com)

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