NATIONAL NEWS

National Energy Administration: By 2035, the area of geothermal heating (cooling) will double that of 2025

To promote the development and utilization of geothermal energy in China, the National Energy Administration issued a draft of “Several Opinions on Promoting the Development and Utilization of Geothermal Energy (Draft for solicitation of comments)” in April 2021.

According to the draft, by 2025 a comprehensive and standardized management system for the development and utilization of geothermal energy will be basically established in all regions, and the relevant information and monitoring system will be basically completed. The area of geothermal energy heating (cooling) will increase by 50% compared with 2020. Several geothermal energy power generation demonstration projects will be built; by 2035, the area of geothermal energy heating (cooling) will be doubled compared with 2025.

• In Beijing, Tianjin, Hebei, Shanxi, Shandong and Henan and Yangtze River area, the use of shallow geothermal energy will be promoted in accordance with local conditions in combination with heating (cooling) needs;
• Promote the use of geothermal energy in the Yunnan-Guizhou alpine region;
• In the middle and lower reaches of the Yangtze River where surface water resources are abundant, actively develop surface water source heat pump heating and cooling;
• Promote mid-deep geothermal energy heating. According to resource conditions and market demand, actively promote mid-deep geothermal heating in the Beijing-Tianjin-Hebei, Shanxi, Shandong, Shaanxi, Henan and Qinghai etc.

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National Development and Reform Commission’s “14^th Five-Year Plan (2021-2025)” Circular Economy Development Plan: Promote the application of integrated heat and power

Circular economy is regarded as an important way to achieve carbon peak and carbon neutrality.

On July 7th , 2021, the National Development and Reform Commission released the Development Plan for the Circular Economy in the 14^th Five Year Plan Period (the “Plan”). The Plan aims to develop the circular economy through various initiatives, such as promoting recycling, re-manufacturing, green product design, and renewable resources.

In particular, the Plan stresses the circular development project in the industrial parks. The Plan promotes the resource utilization of industrial residual pressure and heat, wastewater, and waste liquid, realize green and low-carbon circular development, and actively promote district heating.

Transformation policies will be tailor made for each park. Integrated heat and power are encouraged. All industrial parks at or above the provincial level will be fully transformed into circular development by the end of 2025.

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REGIONAL NEWS

Sichuan province: Priority is given to co-generation of natural gas

The Development and Reform Commission of Sichuan province and Sichuan Energy Regulatory Office of National Energy Administration issued a notice in July 2021 to prioritize co-generation of natural gas.

According to the Notice, newly built co-generation projects using natural gas, biomass, and waste heat and pressure as initial fuels will be prioritized. There will be restrictions to the development of co-generation projects using coal as the initial fuel.

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Hainan province: Kairun (Dongfang) Natural Gas Cooling, Heating and Power Generation Distributed Energy Project

The project is located on the west side of the industrial park of Dongfang city, Hainan province.

The project is invested by Kairun (Dongfang) New Energy Co., Ltd. The project will use clean energy-natural gas as the fuel and has two sets of 80MW gas-steam combined cycle power generation heating units. The design unit has 20 hours of daily operation and 5500 hours of annual operation. It is estimated that the natural gas consumption is 270 million standard cubic meters per year, the total power generation is 658.482 GWh (2.5% of the power used by the plant, and 97.5% of the remaining power delivered to the grid), the average heat supply is 928, 290 GJ/a (257,858 MWh), and the average annual heat-to-power ratio is 80.06%. The annual comprehensive energy utilization efficiency of the whole plant is 80.18%.

The project investment is 1,04 billion RMB.

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Recent district energy workshop by the SHC team in China

Business Sweden, together with SweHeat & Cooling, organised a Sweden-Hainan Energy Project Online Workshop on August 20^th, 2021. This workshop is supported by Swedish Energy Agency and Embassy of Sweden in Beijing.

The online workshop focuses on a district energy project in Li’an International Education Innovation Pilot Zone in Lingshui, Hainan province. SweHeat & Cooling, ABB, Alfa Laval, Nxity, PG Monitoring, Swep and Vexve joined the online workshop.

Project owner in Hainan and the local energy adviser to the Pilot Zone joined the workshop from the Chinese side.

The district energy project in Li’an International Education Innovation Pilot Zone plans to use seawater as cooling source, and the project owner is interested in cooperation with Swedish suppliers that are experienced in using seawater for district energy project.

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Sweden is at the forefront of decentralised heat networks technology. Our aim for “Sustainable Heating & Cooling by Sweden” is to facilitate knowledge sharing between British, French and Swedish stakeholders and develop and encourage environmental and economic best practice.

To find out how we can help you and your organisation, please contact our London or Paris-based “SHC” teams. We can introduce you to leading consultants, suppliers of technology and services who will be pleased to share know-how of the development of sustainable heating & cooling solutions.