Energy Insider: China’s steel exports increase 20% in May; Shanxi coal giant expects 60% increase in production
In today’s Caixin energy news: Shanxi coal mining giant predicts a 60% production increase over the next five years; China’s steel exports rose 20% in May amid booming commodities; Shandong is planning key energy storage projects while Baosteel is investing in a low carbon project.
Steel exports increase 20% in May
China exported about 5.3 million tonnes of steel in May, an increase of 19.8% year-on-year, according to the General Administration of Customs. The cumulative volume of steel exports from January to May reached 30.9 million tonnes, up 23.7% from a year ago. China imported 89.8 million tonnes of iron ore and iron ore concentrate in May, up 3.2%. From January to May, the cumulative volume of imported iron ore and iron ore concentrate reached 471.8 million tonnes, up 6% from the previous year.
Shandong to launch seven energy storage projects in 2021
Shandong Province Energy Administration unveiled a list of key energy storage projects, including five peak shaving projects and two frequency modulation projects, with respective energy storage scales up to 520 megawatts and 1,041 megawatt hours. The projects will be undertaken by State Power Investment Corp., China Huadian Corp. Ltd., China Huaneng Group Co. Ltd., State Grid Corp. of China, Three Gorges Renewables (Group) Co. Ltd. and China Datang Corp. Ltd.
Baosteel unit plans low carbon metallurgy project
Baoshan Iron & Steel Co. Ltd. (600019.SH) said its board of directors approved the plans of its subsidiary Baosteel Zhanjiang Iron & Steel Co. Ltd. to build a hydrogen-based shaft furnace system project. The unit will first build a pilot production line of hydrogen-based shaft furnaces in the hope of achieving low-carbon metallurgy, improving its competitiveness in carbon emissions and to accumulate experience for the further independent integration and development of perhydrogenated fusion technology. The company ultimately aims to develop intellectual property in low carbon metallurgy processes.
Zhuhai Port to Pay $ 118.8 Million for 11.96% of Tianlun Gas
Zhuhai Port Co. Ltd. (000507.SZ) announced plans to buy 120 million shares of Henan Tianlun Gas Group, representing 11.96% of the company. The deal will expand the scale of Zhuhai Port and make room for a new energy company. The transaction will be conducted by the wholly owned subsidiary of Zhuhai Port (Hong Kong) Development Co. Ltd. Zhuhai Port will pay HK $ 7.68 ($ 0.99) for each share of Tianlun Gas, bringing the total amount to HK $ 922 million ($ 118.8 million). Tianlun Gas is one of the first Chinese private companies to specialize in town gas operations. The Henan-based company operates in Henan, Jilin, Gansu, Shandong, Guangdong, Yunnan and other provinces.
Shanxi mining giant plans to increase production by 60% in five years
China’s second-largest coal mining company, Jinneng Holding Group, is expected to increase coal production by 60% to 500 million tonnes during the 14th Five-Year Plan between 2021 and 2025. Jinneng was formed in 2020 by the merger of three companies local mining companies in Shanxi. The company’s total annual production capacity reached 400 million tons after the merger. Jinneng Chairman Guo Jingang said the company plans to produce 600 million tons of coal every year during the 15th Five-Year Plan.
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