Caixin
Jul 15, 2021 07:51 AM
ENERGY INSIDER

Energy Insider: China to Plug in National Carbon Trading; Port Giants in Closer Equity Tie-Up

In today’s Caixin energy news wrap: Two of China’s largest port operators step up cooperation; Sinopec builds its first onshore wind power project; commodity price rises drive up China’s import costs; and the country’s long-awaited national carbon market debuts soon.

China pays more for imported commodities on surging prices

China paid 2,888.5 yuan ($446.50) on average for each ton of imported crude oil during the first half, 20.5% more than a year earlier, data from the General Administration of Customs showed. The average cost of imported iron ore was 1,075.8 yuan per ton, an increase of 67.3%. In response, the State Council, China’s cabinet, recently deployed comprehensive measures to stabilize market prices and take some of the pressure off smaller companies, the administration said.

China sets July launch for national carbon emissions trading

China plans to launch its national carbon emissions trading program in July to help meet the country’s ambitious climate goals, the environmental ministry said Wednesday. The program will initially involve more than 2,200 power plants across the country, which annually produce around 4 billion tons of carbon dioxide — the chief greenhouse gas contributing to global warming. The launch will make China the world’s largest carbon emissions trading market by volume.

Leading port operators in closer equity tie-up

Two of China’s largest port operators are strengthening their partnership with equity investments in each other. Ningbo Zhoushan Port Co. Ltd. (601018.SH) plans to sell 3.6 million shares in a private placement to Merchants Port Group Co. Ltd. (001872.SZ), raising 14.4 billion yuan ($2.23 billion), Ningbo Port said Tuesday. Merchants Port will become the second-largest shareholder of Ningbo Port. At the same time, Merchants Port will sell 577 million shares privately to Zhejiang Provincial Seaport Investment & Operation Group for 11.1 billion yuan, Merchants Port said in a separate statement. Zhejiang Provincial, the controlling shareholder of Ningbo Port, will become the second-largest shareholder of Merchants Port.

Sinopec starts construction of its first onshore wind power project

China Petroleum & Chemical Corp. (Sinopec) started construction of its first onshore wind power project in Shaanxi. Built by Sinopec Star Co. Ltd., the project will have total installed capacity of 20 megawatts. The project is expected to be connected to the power grid for operation by Oct. 31, with annual on-grid power capacity reaching 42.86 million kilowatt-hours. This will result in a reduction of 13,200 tons of standard coal consumption and 39,600 tons of carbon dioxide emissions yearly.

World’s first typhoon-resistant floating wind turbine installed

Southern China’s coastal province Guangdong installed the world’s first typhoon-resistant floating wind turbine in the Yangjiang sea area. With a single-machine capacity of 5,500 kilowatts, the floating offshore wind turbine is capable of generating 5,500 kilowatt-hours at full capacity, enough to power 30,000 households with green and clean electricity. The turbine is designed to withstand typhoons reaching wind speeds as high as 220 kph.

Trina Solar wins approval to sell $820 million of convertible bonds

Shanghai-listed solar panel maker Trina Solar (688599.SH) received approval from the China Securities Regulatory Commission to sell 5.3 billion yuan ($820 million) of convertible bonds. The company said it will use proceeds to develop its newly built high-efficiency solar cell and module projects and to supplement working capital.

Oriental Energy plans $935 million acrylonitrile project

Oriental Energy Co. Ltd. (002221.SZ) plans to build an acrylonitrile project and supporting facilities with annual capacity of 260,000 tons to strengthen comprehensive utilization of hydrogen energy, produce high value-added staple commodities and improve profitability. Construction is estimated to take two years. The total investment in the two plants will be $935 million.

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

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