Energy Insider: China’s Electric Vehicles Sales to Triple in First Eight Months
In today’s Caixin energy news wrap: China needs to invest $21 trillion to achieve its carbon neutrality goals by 2060; China’s new-energy vehicle sales are set to triple in the first eight months; China approves three city clusters as hydrogen fuel cell vehicle demonstration regions; solar panel glass prices rebound; Sinopec plans to establish a hydrogen unit in Tianjin; Saudi Aramco cuts crude prices.
Meeting China’s carbon goals may cost $21 trillion
China needs to invest 136 trillion yuan ($21 trillion) to reach its carbon neutrality goals by 2060, creating huge opportunities for investors, said Zhang Shaogang, vice chairman of the China Council for the Promotion of International Trade in China International Fair for Trade in Services. Zhang cited the key role of the market in reducing greenhouse gas emissions and called for the participation of social capital in the “carbon reduction economy.”
China’s new-energy vehicle sales expected to triple in first eight months
China’s sales of electric vehicles and intelligent connected vehicles are booming. According to Xin Guobin, vice minister of the Ministry of Industry and Information Technology, about 1.7 million electric vehicles were produced in the first eight months, three times as many as in the same period last year, contributing more than 10% of total car production. Intelligent connected vehicles contributed about 20% of production.
China approves three city clusters as hydrogen fuel cell vehicle demonstration regions
China cleared three city clusters led by Beijing, Shanghai and Foushan (Guangdong) as its first-round hydrogen fuel cell vehicle demonstration regions. About 20,000 hydrogen fuel cell cars, buses and trucks will come into operation in the cities in the next four years. Besides the promotion of hydrogen vehicles, the project also focuses on research and development as well as cost reduction in the hydrogen vehicle industry.
Sinopec plans to establish hydrogen unit in Tianjin
A Tianjin subsidiary of China Petrochemical Corp. (Sinopec) signed a cooperation agreement with the government of Tianjin Port Free Trade Zone and Qingcheng Co. Ltd., a start-up in hydrogen fuel cell vehicles, to establish a new unit in Tianjin. The enterprise will focus mainly on the hydrogen vehicle business, including manufacture of hydrogen cars and building of hydrogen refueling stations. In June, Sinopec signed a strategic cooperation agreement with Trina Solar, a publicly traded solar panel maker.
Shanxi wants to develop hydrogen industry
North China’s Shanxi province, China’s main coal producing region, wants to leverage its advantages to develop a hydrogen industry. According to Wang Qirui, head of the Emergency Management Department of Shanxi, the coal industry in Shanxi can produce 15 billion cubic meters of hydrogen with carbon-reduction potential of 87 million tons a year. Its chemical and steel sector can also provide a huge amount of waste gas for extraction of hydrogen. Meanwhile, abundant wind and solar resources are available for hydrogen production through water electrolysis in the province.
Shanxi cooperates with Agora Energiewende in energy transition
The Taiyuan Energy Low Carbon Development Forum, Shanxi Energy Research Institute and Agora Energiewende, a German think tank, signed an agreement to promote an energy transition in Shanxi. Shanxi province is the main coal producer of China, which now faces pressure to reduce carbon dioxide emissions to meet China’s goals for reducing greenhouse gas emissions.
Shanxi signs cooperation agreements with leading institutes and SOEs
A series of cooperation agreements involving a total investment of 49.2 billion yuan ($7.6 billion) were signed at the Taiyuan Energy Low Carbon Development Forum, held in North China’s Shanxi province. Local governments and companies are seeking to cooperate with leading institutes and state-owned enterprises in businesses including advanced equipment manufacturing, new generation information technology, new energy, energy saving and biomedicine.
MIIT pledges to support development of new-energy vehicles
The Ministry of Industry and Information Technology (MIIT) pledged to accelerate the rollout of regulations promoting new-energy vehicles. At the opening of 17th International Forum on Chinese Automotive Industry Development, MIIT Vice Minister Xin Guobin said China will build a robust system to ensure the supply of lithium, cobalt and nickel, the key materials for the electric vehicle battery industry.
Solar panel glass prices rebound
The prices of photovoltaic glass rebounded from 22-24 yuan ($3.41-$3.72) per square last month to 24-27 yuan per square, driven by rising prices of sodium carbonate and natural gas, according to market researcher PVInfoLink. Solar panel glass prices dropped from 40 yuan/square since March and hit 22 yuan/square in June. According to Hua Chuang Securities, rising demand will further boost prices.
Saudi Aramco cuts crude prices for Asia
Saudi Arabian Oil Co. (Saudi Aramco) cut oil prices for Asia. The prices of light and ultralight crude for October delivery fell $1.30 a barrel and for medium and heavy crude $1. Crude for America and Western and Northern Europe remained unchanged.
CATL unit issues $500 million of offshore bonds
Contemporary Amperex Technology Co. Ltd. (CATL) said its wholly owned overseas subsidiary Contemporary Ruiding Development Ltd. priced and booked the issuance of $500 million of bonds. The debt securities will be traded on the Hong Kong Stock Exchange. The borrowings will increase the unit’s total of international bonds to $2 billion. According an earlier statement, the battery giant plans to issue no more than $3 billion of bonds abroad.
Baosteel and Baogang Group sign cooperation agreement
Baosteel, a key subsidiary of state-owned Baowu Steel, signed cooperation and regulation accord with Baogang Group, a steelmaker in North China’s Inner Mongolia. Though the two companies have cooperated in coal tar processing and oxygen concentration, it will be their first collaboration in steelmaking. Under the agreement, Baogang commissioned Baosteel to operate the steel pipe business, its least profitable sector last year accounting for 8.8% of total revenue. The deal may prepare the companies for further cooperation and integration. Baogang Group used to be China’s main steelmaking base. It now owns the world’s largest rare earth elements reserve of 35 million tons.
Syria allows gas and electricity transit to Lebanon to resolve energy crisis
Lebanon’s Deputy Prime Minister Zeina Akar led a high-level delegation to Syria and met Saturday with Syria’s Foreign Minister Faisal al-Meqdad. Lebanon sought to import energy via Syria as it is now suffering a severe energy shortage. According to Syrian Arab News Agency (SANA), Syria agreed to gas and electricity transit from Egypt and Jordan to Lebanon.
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