Energy Insider: China’s Plans to Boost Energy-Storage Sector and Marine Renewables

In a recent analysis by Caixin, several critical developments within China's energy sector were highlighted, focusing on policies, industry advancements, and significant projects. [para. 1]

To bolster its position as a global leader in energy storage manufacturing, China has unveiled a plan to support top companies and cultivate regional industrial clusters by 2027. This initiative is orchestrated by eight central-level government agencies, including the Ministry of Industry and Information Technology, and is designed to drive improvements in energy-storage technologies while ensuring the sector doesn't overheat. The plan emphasizes the need for a skilled workforce, whether through local education channels or international recruitment. China currently stands as the largest energy storage market worldwide, propelled by innovations that have driven down costs significantly. However, intense domestic competition presents challenges within this rapidly growing market, prompting strategies to maintain industry stability and prevent a detrimental price war. [para. 2][para. 3]

The Chinese government has also set a target to expand the use of marine renewable energy resources such as tides and waves, as detailed in a strategic roadmap released by six central government agencies. By 2030, the objective is to achieve a marine energy capacity of 400 megawatts. Coastal provinces have been encouraged to establish industrial clusters that can support the burgeoning sector. The widespread adoption of marine energy could address electricity shortages in coastal areas and islands while advancing China’s national strategy to become a robust maritime nation, a priority articulated by President Xi Jinping. [para. 4][para. 5]

Artificial intelligence (AI) is positioned to accelerate innovation within the battery industry, particularly in the development of solid-state batteries. Experts believe AI will reduce time spent on selecting, designing, and developing battery chemistries, which traditionally are labor-intensive tasks. According to Sun Fengchun from the Chinese Academy of Engineering, AI will markedly decrease the timelines and costs associated with battery research, potentially cutting research spending by up to 80%, as stated by Ouyang Mingao from the Chinese Academy of Sciences. Although AI is facilitating progress in solid-state battery development, it is not yet a replacement for human ingenuity in creating new principles or technologies. Companies, such as CATL, are already leveraging AI to advance their battery chemistry research. [para. 6]

In infrastructure news, China National Petroleum Corp. (CNPC) has achieved a significant milestone by drilling a "super-deep" oil well in the Tarim Oilfield, Xinjiang. The Shenditake 1 well reaches a depth of 10,910 meters, surpassing previous records and requiring 279 days to drill the first 10,000 meters. This effort uncovered additional potential oil and gas reserves within the well, highlighting strategic steps toward enhancing China's energy self-sufficiency. Approximately 34% of China's oil and gas reserves are categorized as deep or super-deep, underscoring the importance of advanced drilling technologies. The discovery is pivotal for China's energy security, encouraging further exploration efforts in the field. [para. 7][para. 8]