Sep 04, 2021 07:11 AM

Energy Insider: China to Invest $356 Million in Decarbonization

A container ship by COSCO Shipping Holdings Co. Ltd.
A container ship by COSCO Shipping Holdings Co. Ltd.

In today’s Caixin energy news wrap: China Southern Power Grid borrows $250 million for clean energy projects; State Grid issues $1.55 billion of offshore bonds; former Sinopec vice president under investigation; CATL and Jinko Power sign strategic cooperation agreement; China’s consumption of refined oil rose 1.3% in first 7 months; Cosco orders 10 container ships.

China to invest $356 million in decarbonization

China plans to invest 2.3 billion yuan ($356 million) to support projects in pollution-solving, energy-saving and decarbonization as part of efforts to achieve its carbon-reduction goals. The investment will cover energy-saving reconstruction, energy-efficiency optimization, decarbonization demonstration projects, resource recycling and desalination projects. According to the National Development and Reform Commission, the investment will give preference to projects in the Beijing-Tianjin-Hebei region, the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze Delta Region, the Yellow River Basin, and a national pilot zone for ecological conservation.

Tibet Mineral Development asked to explain lithium project cost advantage

Tibet Mineral Development (000762.SZ) was asked to provide a clear explanation for an announcement Aug. 26 that its lithium carbonate project has a cost advantage over rival developments. The Shenzhen Stock Exchange said Tibet Mineral should fully evaluate the profit and potential risk of its project taking into account market trends, price fluctuations and the characteristics of the lithium industry.

China Southern Power Grid borrows $250 million for clean energy projects

China Southern Power Grid Co. Ltd. issued 1.6 billion yuan ($250 million) of asset-backed commercial paper with a coupon rate of 2.58%. The borrowing is China’s first public offering of commercial paper targeting carbon neutrality. The proceeds will be used in the development of 13 clean power projects including an offshore wind project in Jieyang, Guangdong, with total of 400 megawatts of installed capacity.

State Grid issues $1.55 billion of offshore bonds

State Grid Corp. of China issued two series of offshore bonds Thursday. The first one in U.S. dollars totals $600 million with a maturity of five years and a coupon rate of 1.232%. A second issue in euros totals €800 million ($950 million) with a maturity of seven years and a coupon rate of 0.419%.

Former Sinopec vice president under investigation

Cao Yaofeng, former vice president of China Petrochemical Corp. (Sinopec) is under investigation by the Communist Party’s Central Commission for Discipline Inspection. Cao was responsible for a major natural gas project and has been retired for seven years. He is the third current or former Sinopec executive to come under investigation this year.

CATL and Jinko Power sign strategic cooperation pact

Chinese battery giant CATL and leading China solar company Jinko Power Technology Co. Ltd. signed a strategic cooperation pact aiming to deepen their cooperation on photovoltaics with storage. The two companies plan to collaborate on research and development of new PV-storage frameworks and the decarbonization of the PV-storage industrial chain.

China’s consumption of refined oil rose 1.3% in first seven months

Domestic refined oil consumption reached 189 million tons in the first seven months, up 1.3% from the same period of last year, according to the National Development and Reform Commission. Consumption of jet fuel rose 36.7% but use of diesel dropped 8.2%.

China Gezhouba delists from Shanghai Stock Exchange

China Gezhouba Group Co. Ltd. (600068.SH) announced the termination of its listing on the Shanghai Stock Exchange Thursday after its merger with China Energy Engineering Corp. (CEEC) was approved by the China Securities Regulatory Commission.

Cosco orders 10 container ships

Cosco Shipping Holdings Co. Ltd., the publicly traded subsidiary of China Ocean Shipping Co., said its overseas units ordered 10 container ships from Nantong Cosco KHI Ship Engineering Co. Ltd. and Dalian Cosco KHI Ship Engineering Co. Ltd. The ships will cost $158 million each and are expected to be delivered starting in the fourth quarter of 2024.

China-Europe Railway Express runs 10,030 freight trains so far this year

China-Europe Railway Express ran 10,030 freight trains this year through August, topping 10,000 trains two months earlier than last year. A total of 964,000 standard containers were transported in the first eight months, up 40% year-on-year, the official Xinhua News Agency reported. China-Europe Railway Express is now serving as an important transportation corridor for the Belt and Road Strategy of China.

China Energy and CNOOC sign strategic agreement

China Energy Investment Corp. signed a strategic cooperation agreement with China National Offshore Oil Corp. (CNOOC). The companies plan to cooperate in high-end petrochemical products, natural gas and coal as well as research and development of degradable plastic, new energy and carbon capture, utilization and storage.

Hainan plans to build international carbon trading market

Hainan province, the southernmost island of China, plans to build an international carbon trading market as a financial instrument to promote the development of the pilot free trade zone. According to an action plan issued Wednesday, the new market will serve as a connection of China’s domestic carbon market and foreign carbon markets, such as the European Emission Trading Scheme.

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