China Shenhua Energy Co., Ltd, a fully-owned subsidiary of the country's top coal producer China Energy Investment Corporation (CHN Energy), will pour about 4 billion yuan to set up a new investment company, which will mainly focus on investment in new energy and energy storage projects, Shenhua said in an announcement recently.
The overall investment from CHN Energy would reach about 10.02 billion yuan, a recent response to the country's call for central government-run enterprises to take the lead in carbon reduction.
The State-owned Assets Supervision and Administration Commission (SASAC) held a meeting during December 24-25 last year, requiring central enterprises to actively contribute to achieving the "carbon peak" and "carbon neutrality" goals.
China announced in September last year it will roll out more vigorous policies so that the country will achieve peak carbon dioxide emissions before 2030 and become carbon neutral before 2060.
As the country's largest carbon emitter, CHN Energy has shouldered a large responsibility in emission reduction, but the experience and exiting assets from China Shenhua Group and China Guodian Group before they merged and reorganized into CHN Energy are expected to lay the groundwork.
Guohua Energy Investment Co., Ltd, a subsidiary of former Shenhua Group, specializes in the development and operation of clean energy projects. The installed capacity of wind power and PV power of the affiliate has reached 11.7 GW, ranking sixth among domestic new energy enterprises in the installed capacity in 2020.
The former Guodian Group also owned lots of clean energy installed capacity, and its subsidiary China Longyuan Power is one of the world's large wind power operators.
Early in August 2020, CHN Energy worked out a guideline in accelerating the construction of PV power and planned to increase 25-30 GW of new PV capacity over 2020-2025.
The company said it will also increase the proportion of installed power capacity in economically developed areas to 7% to 8% of the total installed power capacity, and accept the pace of layout in the field of hydrogen energy in the meantime, according to the guidance.
CHN Energy expected its newly-installed new energy capacity would reach 70-80 GW during the country's 14th Five Year Plan period (2021-2025).
(Writing by Emma Yang Editing by Tammy Yang)
For any questions, please contact us by email@example.com or +86-351-7219322.