Energy Insider: Henan Halts 20 Million Tons of Mining Capacity for Safety Fixes; Guangdong Power Retailers Suffer Huge Losses
In today’s Caixin energy news wrap: Shenzhen to set up carbon emissions fund to manage revenue from carbon trading; Baoneng’s NEV unit receives $1.9 billion investment; Sinochem and ChemChina consolidation advances; and power retailers in Guangdong suffer huge losses amid surging demand.
Henan shuts 20 million tons of coal mining for safety fixes
Several mining sites with combined capacity of nearly 20 million tons in central China’s Henan province halted production for safety fixes amid tightening oversight. Zhengzhou Coal & Electric Co. Ltd. (600121.SH) Tuesday announced the suspension of six sites on regulatory orders, affecting 8.25 million tons of capacity. Henan Dayou Energy Co. Ltd. closed seven sites with capacity of 11.4 million tons on the same day. Neither of the companies provided a schedule for resuming production. Since May, Henan has reported three fatal mining disasters leading to 15 deaths. The mine closures are expected to put additional pressure on tight coal supply during peak summer power demand.
Guangdong power retailers post massive losses despite surging demand
More than 80% of the 161 power retailers in southern China’s Guangdong province posted combined losses of 516 million yuan ($80.6 million) in May as supply shortages drove up electricity wholesale prices. Retailers have to eat the rising costs as the prices they charge are fixed and lagged behind the surging wholesale prices. In the first five months, total power consumption in China reached 3.2 trillion kilowatt-hours, an increase of 17.7% from the same period last year, according to the National Energy Administration.
Shenzhen to set up carbon emissions fund
The southern Chinese city of Shenzhen is mulling whether to set up a carbon emissions fund to manage government revenue from carbon trading and control the total emissions quota to serve the efforts of carbon reduction. Shenzhen is among eight Chinese cities that have launched pilot local carbon trading markets. China’s national carbon trading market is to be initiated at the end of June.
CATL signs strategic cooperation with China Energy
State-owned China Energy Engineering Corp. Ltd. (03996.SZ) reported a strategic partnership Tuesday with vehicle battery giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ). The parties are to enter a long-term strategic partnership in multiple areas including scientific and technological R&D, energy storage system products and industrial cooperation, energy storage projects and key regional markets, and international business development.
Tianyuan Group fully resumes calcium carbide production
Yibin Tianyuan Group Co. Ltd. (002386.SZ) resumed calcium carbide production at three subsidiaries after temporary halts amid power shortages, the company said Tuesday. Production at the three sites, all in southwest Yunnan province, were suspended since May 25. The units are back to operating at 85% of capacity and are expected to meet full-load production by late June, with total production capacity of 470,000 tons.
Baoneng Group’s NEV unit receives $1.9 billion strategic investment
The Guangzhou Development District agreed to invest 12 billion yuan ($1.9 billion) in Baoneng New Energy Automobile Group Co. Ltd., the new-energy car unit of property conglomerate Baoneng Group. Under the agreement, Baoneng New Energy will locate its headquarters in the Guangzhou Development District, Baoneng Group said.
Sinochem and ChemChina integrate headquarters
Sinochem Group Co. Ltd. and China National Chemical Corp. Ltd. (ChemChina) combined their headquarters after a government-led merger to consolidate the two state-owned chemical giants, according to a Sinochem statement. The new company, Sinochem Holdings, was formally inaugurated May 8, the statement said.
Ningxia Jiaze Renewables ties up with Tianjin CRRC Wind Energy
Ningxia Jiaze Renewables Corp. Ltd. (601619.SH) signed a new-energy industry cooperation agreement with the Jixi city government and Tianjin CRRC Wind Energy Technology Co. Ltd., Ningxia Jiaze said Tuesday. Tianjin CRRC Wind Energy is a wholly owned subsidiary of CRRC Corp. Ltd. (CRRC). Under the agreement, Ningxia Jiaze and Tianjin CRRC Wind Energy will invest 26 billion yuan ($4.1 billion) in Jixi, Heilongjiang province, to build a new-energy base and a new-energy equipment manufacturing industrial park. The parties also plan to set up a new-energy industry development fund of 10 billion yuan ($1.6 billion) in Jixi by Oct. 1.
Contact editors Han Wei (firstname.lastname@example.org) and Bob Simison (email@example.com)
Download our app to receive breaking news alerts and read the news on the go.
Follow the Chinese markets in real time with Caixin Global’s new stock database.
- MOST POPULAR