Economic network

Iconic net-zero industrial park takes shape

September 1, 2022

BEIJING – North China-based facility will supply clean energy to nearby businesses

In Ordos, Inner Mongolia Autonomous Region, the world’s first net-zero industrial park powered by the latest wind, solar and hydrogen energy technologies is gradually taking shape, helping to initiate a new industrial transition in the country and around the world. world.

The industrial park, built by leading national green technology company Envision Group, will use 100% renewable energy, including solar, wind and energy storage, for the production and operation of high-energy industries. energy consumption. This will not only play a key role in helping China achieve its peak carbon and carbon neutrality goals, but also lead the global industrial transition to net zero, said Zhang Lei, CEO of Envision, during a conference. a recent net-zero Ordos industry peak.

Envision said excess electricity produced at the park will be sold to the grid and stored green energy will be drawn from the grid when needed to ensure 100% net zero energy, secure and stable supplies and reduced costs.

After more than a year of development since the launch of the net zero industrial park last year, the project currently houses a wind power plant as well as battery and hydrogen power generation, with an estimated annual production value of 100 billion yuan ($14.5 billion), the company added.

So far, the industrial park has attracted many upstream and downstream power plants in the green energy industry chain, including LONGi Green Energy Technology, Zhejiang Huayou Cobalt and Shanghai Hydrogen Propulsion Technology Co.

Green hydrogen will also play an important role in interconnecting renewable energy and decarbonizing industrial systems within the industrial park, the production of which will be applied to downstream industries to further reduce coal consumption in Ordos.

Ordos is rich in coal reserves. The latest data shows the Ordos Plateau’s proven coal reserves stand at 210.2 billion metric tons, which is about one-sixth of the country’s supply, and proven natural gas reserves stand at 210.2 billion metric tons. to almost 5 trillion cubic meters, which represents a third, according to local authorities.

In recent decades, a large number of energy-intensive projects have been built in the region, including coal power, coal chemical industry, iron and steel, electrolytic aluminum and large data centers, leading to increased carbon emissions.

The integration of green energy, transportation and chemical industry will help spur the vigorous development of the net zero industrial park in Ordos, helping the region – which has unique regional advantages due to its rich renewable energy resources and affordable – to further exploit its potential, said Envision.

The Energy Research Institute of the Chinese Academy of Macroeconomic Research said regions with rich and low-cost renewable energy, including the southwest and the three northeast regions, will attract more of industries, with a growing demand to achieve a significant reduction in carbon emissions.

The Rocky Mountain Institute agreed, saying that compared to transporting energy to regions where industries are located, attracting industries to regions rich in cheap, clean energy is a model with great potential for replication.

Li Ting, general manager and chief representative of the Beijing office of the Rocky Mountain Institute, said industrial parks are the best places for industrial upgrading and technology model innovation, and play a pivotal role in energy transition and China’s dual carbon strategy.

“In the future, we will see more parks practicing the energy transition through innovation and implementable models. Among them, the availability of renewable energy will be the starting point for innovation, as renewable energy will become the main driver to promote industrial upgrading and changing industrial development patterns,” Li said.

“Energy-intensive businesses and parks will be located near areas rich in solar and wind resources, maximizing the use of green energy and facilitating innovation of green energy supply applications. The transformation of the chemical industry based on green hydrogen will be mainly driven by renewable energy, and northwest China will become the largest market for the chemical industry and green hydrogen, as well as the center of the transformation of the chemical industry,” she added.

The development of hydrogen-based green steelmaking will break the current pattern of steelmaking, which is “strong in the east and weak in the west”.

Companies will pay more attention to regions with abundant renewable hydrogen resources when selecting sites for hydrogen steelmaking projects, Li said.

However, one of the major challenges facing renewable energy is its fluctuation, as the sun does not always shine and the wind does not always blow.

Luo Zuoxian, head of intelligence and research at Sinopec’s Economics and Development Research Institute, said renewable energy generation is highly dependent on weather conditions and more volatile than traditional energy like coal. coal and oil.

On the other hand, net zero industrial park enterprises are not only large energy consumers, but also high value-added industries. Any failure can lead to serious losses, which makes ensuring total energy reliability a top priority.

To ensure a stable and stable green power system, the net zero industrial park will not only accurately predict wind and solar generation loads, but also ensure that the power transmitted to the terminal is controllable regardless of generation fluctuation. renewable energy.

With a real-time dynamic balance of power generation and load conditions, the park can optimize resource allocation and maximize grid efficiency while achieving stable wind power generation comparable to that of the thermal energy, whether the sun or the wind cooperate.

Envision said the new power system formed by wind power, photovoltaics, energy storage, hydrogen power and AIoT (artificial intelligence-powered Internet of Things) will become a green, stable energy system. and reliable.

As a leading technology company providing end-to-end source-grid-charge-storage-hydrogen net-zero solutions, Envision believes that the transition to renewable energy will bring great opportunities and the net-zero industrial park is a key infrastructure project in building a new net zero industrial system.

Aiming to help popularize net-zero industrial park practices overseas, the company plans to build 100 such parks around the world over the next decade with global partners, with the goal of reducing global carbon emissions. carbon of one billion tons per year.

Asia’s industrial sector accounts for more than 35% of global annual carbon emissions, and the region is very important for the world’s net-zero industrial transition, according to a report by the United Nations Economic and Social Commission for Asia and Peaceful.

Envision signed an agreement with the Spanish government to build Europe’s first net zero industrial park in July, following the launch of the Ordos project. The one in Spain will include the construction of a gigafactory for batteries for electric vehicles, a development and innovation center for the digitization of renewable energy systems, a green hydrogen production plant for manufacture of electrolysers and a wind power generation plant for the assembly of smart wind turbines. turbines, he says.

“The agreement with the Spanish government is not only critical for Spain, but also for Europe. As the European Union aims for carbon neutrality by 2050, this partnership is very important to ensure a firm commitment to make the changes needed to reach net zero,” said Zhang of Envision.

Envision believes that the cost of reducing carbon emissions will increase over the next few years and that it will not be competitive to stay in the same industrial parks powered by fossil fuels. This makes building net zero industrial parks in previously underdeveloped areas due to exposure to wind and sun a wise choice.

“With our new net-zero industrial parks, customers can take advantage of cheaper energy immediately and, in the long term, avoid carbon risks,” the company said.