SECTOR REPORT: INSIDE CHINA S CLEAN COAL INDUSTRY

Transcription

1 SECTOR REPORT: INSIDE CHINA S CLEAN COAL INDUSTRY INSIDE INDUSTRIAL INFRASTRUCTURE (ICORP) BUSINESS INTELLIGENCE SERIES SUMMER 2015 An in-depth look at China s clean coal industry Topics include an overview

2 Table of Contents Overview 3 Industry Outlook: Snapshots... 3 Market Trend: Ultra-Low Emission Technology... 4 Regulatory Summary 5 DRC action plan on energy development strategy notice from 2014 to 2020:... 5 Industrial Coal-fired Boiler Energy Saving and Environmental Protection Plan (2014)... 6 Thermal power plant energy saving and emission reform action plan ( )... 7 Emission standard of air pollutants for thermal power plants (GB )... 8 notice to the energy industry to strengthen air pollution prevention work task (2014)... 9 NEA suggestions on regulating and controling coal industry resource allocations (2014):... 9 NDRC working plan on greater air pollution prevention notice (2014):... 9 NEA advisory on the guidance of 2014 energy work notice (2014, No.38): Foreign Opportunity 11 Foreign Denitration Technology Foreign Valve Supply at Combined Heat and Power (CHP) Plant Foreign Automation and Control Systems Foreign Advanced Materials Clean Coal Foreign Opportunity Overview Integrated Gasification Combined Cycle (IGCC) 13 Ultra-Supercritical (USC) Technology 13 Appendix A: Industry Performance 14 Appendix B: The Five Majors 15 China Huadian Corporation China Huaneng Group Datang International Power Generation Company China Guodian Corporation China Power Investment Corporation Page 2 ICORP Business Intelligence Series Spring/Summer 2015

3 Overview China s energy supply system is undergoing a tremendous reform, with the dual goals of reducing energy consumption and achieving energy sustainability. The country s coal consumption targets through 2020 have been outlined in the recently released Energy Saving and Emission Cut Action Plan for Coal Power 2014 to 2020 (hereafter referred to as The Plan ), jointly published by China s National Development and Reform Commission (NDRC), the Ministry of Environmental Protection (MEP) and the National Energy Administration (NEA). If the standards outlined in The Plan are strictly enforced across the coal industry, the amount of coal China consumes will decrease by 160 million tons in the next five years (in 2010, China s coal consumption was 3.2 billion metric tonnes per annum), with the use of thermal coal for power generation accounting for more than 60% of total coal consumption. Municipal and provincial governments will receive funds to help support energy saving projects involving local coal power plants, and will be forbidden from building new coal power plants in the future. The central government will also allocate grants for research and development (R&D) into energy saving technologies and energy saving demonstration projects. Every municipality will provide supplementary funding to support the projects. Industry experts predict that The Plan will stimulate the upgrade of China s coal power industry, and bring monetary benefits to relevant energy services companies (ESCO) and environmental protection companies. INDUSTRY OUTLOOK: SNAPSHOTS There are general several trends underway in the coal power generation industry in China: Electricity output keeps decreasing Downward trend in domestic thermal coal prices On-grid tariffs and the price of thermal coal are both falling Emissions standards are getting stricter and more effectively enforced Combined heat and power generation units are gaining favor China wants to improve efficiency and reduce carbon emissions through technological development. The Plan mentions the following technologies as having potential large scale applications: Research on heat-resistant material Master 600 ultra supercritical unit Research on 700 ultra supercritical unit Expand use of integrated gasification combined cycle (IGCC) Research on ultra-supercritical circulating fluidized bed Propel the transformation from subcritical unit to super critical unit Research on carbon capture and storage (CCS) technology Improve power plant supplementary equipment manufacture level Page 3 ICORP Business Intelligence Series Spring/Summer 2015

4 Opportunities in terms of equipment purchase orders appear likely as the existing fleet of power plants will be retrofitted with these new, higher efficiency supercritical and ultra-supercritical systems. China aims to increase coal-fired power generation efficiency to more than 50%. Coal power plants that install environmental equipment will require significant continued investments and/or financing for future operation and maintenance. Plant operators who need to upgrade their plants under the new regulation are also likely to ask for financing options. Construction of the Chinese 700 C steam temperature demonstration project is expected to begin in 2018; the targeted demonstration completion date is approximately Several other countries have launched plans to develop advanced ultra-supercritical power plants with steam temperatures above 700 C, including the European AD700 plan, the American A-USC (760) plan and the Japanese A-USC. This follows ultrasupercritical power generation with 600 C steam temperatures becoming commercially mature. This means that support of the relevant scientific research and project demonstrations to support technology development are in the country s energy security interests, as is the encouragement of widespread implementation of these highly efficient plants after they reach commercial maturity. The immediate wider implementation of Integrated Gasification Combined Cycle (IGCC) systems for power generation is not expected after China s first demonstration project located in Tianjin failed to operate due to economic and safety concerns stemming from equipment incompatibilities. MARKET TREND: ULTRA-LOW EMISSION TECHNOLOGY Government regulations have steered the Chinese market towards seeking ultra-low emission systems for traditional coal power units without effective emissions control systems. Coal power plant operators now must factor emissions controls into in their decision making processes. Different types of technologies exist in the market for dust removal, smoke and gas desulphurization and denitration purposes, such as low-low temperature electrostatic precipitator technology, wet electric dust collector, electrostatic fabric filter, wet desulfurization technology, SCR denitrification technology etc. When a Chinese company has the budget and a suitable domestic product is not apparent for effective emissions control, it will choose to import higher-quality and often more expensive foreign products to avoid having to upgrade again in the near future as regulations tighten. Generally, a company will consider the recommendations from design institutes they work with and, as can be expected, the market is currently gravitating towards most critical ultra-low emission technology with the lowest investment cost. Page 4 ICORP Business Intelligence Series Spring/Summer 2015

5 Regulatory Summary After many years of appearing to look the other way on pollution control, China is taking solid actions to cope with the environmental problems resulting from its historical over reliance on coal as its major energy source. The Chinese government has announced a goal of reaching a coal consumption cap and realizing a transition to cleaner energy production. Regulations are the chief driver of Chinese industrial market trends, and the increasing action on coal consumption methodology is creating new opportunities for foreign experts in emissions reduction and pollution control. An awareness of pertinent regulations and their implications is necessary for companies strategizing on Chinese market share gains. DRC ACTION PLAN ON ENERGY DEVELOPMENT STRATEGY NOTICE FROM 2014 TO 2020: This plan shapes China s coal energy policies until 2020, with many of them specifically aimed at coal: By 2020, coal shall account for less than 62% of the country s total primary energy consumption. Coal consumption is to be controlled in important economically developed areas, which are generally more polluted than less developed economic areas. Make full use of heat and pressure technologies and retire distributed small scale coal burning boilers. Replace all coal burning boilers and industrial stoves with fuel from natural gas. Develop oil-based alternatives to coal. Form 40m tons of oil alternative energy by Develop biomass waste-to-energy (WTE) alternatives. Introduce electric vehicle (EV) alternatives to the current transportation scheme. Implement the coal-to-gas and coal-to-oil demonstration projects based in Xinjiang, Nei Mongol, Shaanxi, and Shanxi; develop coal-to-gas and coal-to-oil technology. Strictly control energy consumption, water consumption, and waste emissions. Page 5 ICORP Business Intelligence Series Spring/Summer 2015

6 The action plan also establishes the development goals of coal utilization projects, specifically requiring the construction of fourteen coal mining projects: By 2020, 95% of China s total coal production will come from these 14 coal bases. The 14 coal bases shall follow strict coal mining entrance safety and environmental standards. The 14 coal bases shall promote clean coal mining technology, including filling mining technology and water conservation mining technology. Additionally, the regulations also called for nine coal power bases to be constructed. The bases are to adopt the most advanced energy and water conservation, emissions reduction and pollution control, and highefficiency electricity generation technologies. China intends to develop long-distance, large-capacity electrical transmission technology to increase the scale of transfer from west to east, and implement north to south electricity transfer projects. There is to be an increase in the construction of rail transmission channels for coal, with a special focus on the channel between West Nei Mongol and Central China, and the west to east channel. By 2020, the national coal railway transmission capacity is expected to reach 3bn. INDUSTRIAL COAL-FIRED BOILER ENERGY SAVING AND ENVIRONMENTAL PROTECTION PLAN (2014) Released in October 2014, this regulation aims to provide solutions for helping current industrial coal-fired boilers cut emissions and save energy. The plan was jointly released by the National Development and Reform Commission (NDRC), Ministry of Environmental Protection (MEP), Ministry of Finance (MOF), General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), Ministry of Industry and Information Technology (MIIT), National Government Offices Administration, and the National Energy Administration (NEA). The plan attributes current China s widespread pollution and smog problem to the operation of coal-fired boilers, which often discharge pollutants at extremely high intensity and at relatively low altitudes. It also notes that China s industrial boiler operating efficiency rate is currently 15% less than the current international advanced level, leaving significant work for future improvement. Air pollutants created by the current coal-fired boiler fleet include dust and smoke, sulfur dioxide and nitrogen oxides, and account for 33%, 27% and 9% of the national totals, respectively. The plan includes the following specific regulations: By the end of 2018, the market should absorb high efficiency units for boilers with 500,000 t/h capacity; and the market share of high efficient boilers shall increase from the current 5% to 40%. Regulators will shut down obsolete boilers of 40 steam tons and retrofit them with environmental protection devices. The plan encourages the construction of manufacturing bases for high efficient boiler production. The average working efficiency of active boilers is to increase 6% from the 2013 levels, with the goal of saving 40 million tons of coal equivalent per year. Page 6 ICORP Business Intelligence Series Spring/Summer 2015

7 The accurate numeric goal is to reduce 1 million tons of dust and smoke, 1.28 million tons of sulfur dioxide and 2.4 million tons of nitrogen oxide. Current boilers have several issues stopping them from being energy efficient and more environmentally sound: Inefficient technology and equipment: o Most industrial coal-fired boilers have small individual capacities. The average capacity is 2.8 t/h, and 66.5% have a capacity of only 2 t/h. o Control systems are generally not intelligent enough. o High efficiency boilers tend to be too costly for large-scale application, resulting in a small market share. o Many manufacturers are small in scale and low in skill, resulting in the production of lower quality and lower efficiency products. Low quality ancillary equipment: o Fans and water pumps do not have a load adjustment class Boiler feedwater struggles to meet the national quality standards pertaining to their heat utilization rate. Incompatible energy fuel: o Most burning coal has not been washed, which greatly decreases the working efficiency of boilers. Lack of environmental protection devices: o Most coal-fired boilers of 10 t/h do not install efficient dust removal devices, and tend to lack effective desulfurization and denitration devices. THERMAL POWER PLANT ENERGY SAVING AND EMISSION REFORM ACTION PLAN ( ) In September 2014, the Thermal power plant energy saving and emission reduction upgrade and reform action plan ( ) was jointly released by the National Development and Reform Commission (NDRC), the Ministry of Environmental Protection (MEP) and the National Energy Administration (NEA). The plan raises several measures to upgrade the current coal-fired power fleet to meet coal consumption reduction goals. With these more stringent environmental protection standards, China aims to reduce coalfired power generation to under 62% of the national total by 2020, with thermal coal making up more than 60% of that total. The plan puts forward that the average coal consumption at new power plants should be less than 300 gce/kwh (where gce is grams coal equivalent), and average coal consumption at existing furnaces should be less than 310 gce/kwh after necessary upgrades. In principle, the newly built coal power generation plants should use 600 MW or higher ultra-supercritical (USC) units, with the following coal consumption by output. Page 7 ICORP Business Intelligence Series Spring/Summer 2015

8 USC OUTPUTS AT NEW COAL POWER GENERATION PLANTS 1000 MW wet air cooling system Less than 282 gce/kwh 1000 MW air cooling system Less than 299 gce/kwh 600 MW wet air cooling system Less than 285 gce/kwh 600 MW air cooling system Less than 302 gce/kwh Heat supply systems of 300 MW or higher, and circulation fluid bed low calorie thermal coal systems of 300 MW or higher, should also adopt supercritical parameters with coal consumption by output 300 MW+ HEAT SUPPLY/CIRCULATION BED SYSTEM GUIDELINES 300 MW wet air cooling system Less than 310 gce/kwh 300 MW air cooling system Less than 327 gce/kwh 600 MW wet air cooling system Less than 303 gce/kwh 600 MW air cooling system Less than 320 gce/kwh Newly built thermal power plants should simultaneously construct high efficient desulfurization, denitration and dust removal devices. A report from the NEA predicted that newly built thermal power units of approximately MW would need to install flue gas desulfurization (FGD) devices in The plan calls for shutdown of obsolete thermal power units, defined as the following: Traditional small thermal power units of less than 50 MW. Oil burning boilers and oil-powered generation units. For plants connected to the power grid, this includes units of less than 200 MW that have reached their designed life cycles, those that do not apply heat supply transformation, and traditional thermal power units of less than 100 MW. Plants that do not meet national environmental protection standards and do not complete the necessary upgrades in time. The plan encourages the following energy-saving changes for plants: The adoption of mature techniques to raise the coal power units such as turbine flow path retrofits, the recovery of waste heat from flue gas, frequency conversion motors, and heat supply upgrades. Special focus should be placed on the transformation of 300 MW and 600 MW subcritical and supercritical power units. Reconstruction of 200 MW and below condensing units, giving priority to backing units that supply heat. EMISSION STANDARD OF AIR POLLUTANTS FOR THERMAL POWER PLANTS (GB ) This document gives the current national emissions standards for thermal power units, and was published in 2011 and put into effect in Effective starting July 2014, the standards cover existing coal burning boilers and gas turbine units. Page 8 ICORP Business Intelligence Series Spring/Summer 2015

9 EMISSIONS STANDARDS BY POLLUTANT POLLUTANT Dust and smoke Sulfur dioxide Nitrogen oxide UPPER LIMIT 30 mg/m3 100 mg/m3 100 mg/m3 Mercury (and compound pollutant)* 0.03 mg/m 3 *Effective from January 2015 This standard is even stricter than the United States and European countries, creating a huge market for suppliers of emission reduction technologies. However, foreign suppliers must be able to meet the core challenge of providing effective and reasonably-priced equipment to gain space in the Chinese market. NOTICE TO THE ENERGY INDUSTRY TO STRENGTHEN AIR POLLUTION PREVENTION WORK TASK (2014) Released last year, this document outlines the following directives for the energy industry: Explore new sources of petroleum products, take full advantage of coal-to-oil technology, and promote the development of coal-to-oil projects in Shaanxi, Nei Mongol and Shanxi province. Promote coal-to-gas demonstration projects, though these should follow the most stringent environmental protection standards and water resource supply standards. Construct the coal-to-gas pipeline in Xinjiang to aid the transfer the gas produced in the western coal resource areas to the eastern energy consumption areas. Achieve 32bn cubic meters in coal-to-gas output. Achieve a coal-to-oil output of 10m tons. Achieve 50% efficiency through the comprehensive coal utilization demonstration project. NEA SUGGESTIONS ON REGULATING AND CONTROLING COAL INDUSTRY RESOURCE ALLOCATIONS (2014): For a period of time, the eastern areas of China shall not build any new coal projects. The central areas of China should rationally exploit their coal resources and build projects to renew the production of coal mines. The western areas of China shall develop coal power plants to deliver electricity to the nation and supply coal to modern coal chemical projects. The country shall take full advantage of current coal mine capacities and build new supplementary coal mine projects. NDRC WORKING PLAN ON GREATER AIR POLLUTION PREVENTION NOTICE (2014): Accelerate the retirement rate and close 2m kw-worth of small fire-power plants by Install dust removing desulfurization and denitrification devices for the coal burning boilers. All petrochemical enterprises should install desulfurization devices on their catalytic cracking units. Page 9 ICORP Business Intelligence Series Spring/Summer 2015

10 Strengthen the monitoring and management of volatile organic compounds (VOC) and promote leak detection and repair (LDAR) technology during the transportation, storage and production phases. Improve the residential clean coal supply. Subsidize consumers with modern stoves that emit less pollutants. Supply high quality clean coal processing technology in heavily pollution regions. NEA ADVISORY ON THE GUIDANCE OF 2014 ENERGY WORK NOTICE (2014, NO.38): Combine the construction of coal-fired power plant with the construction of electricity grids. Encourage the construction of large capacity coal-fired power stations in coal intensive areas, specifically in Ordos, Ximeng, Northern, Eastern and Central Shanxi province, Eastern Ningxia, Eastern Xinjiang, and the Yangtze River Delta. Encourage the use of low calorific value coal-to-fuel power plants. Develop the 700 o C supercritical power generation unit coal-fired power plant technology (currently being worked toward by European, American and Japanese firms too), and apply the combustion engine emissions standard. Develop modern coal deep processing technology (such as coal-to-liquids, coal-to-gas, coal quality classifications), and coalbed methane utilization. Page 10 ICORP Business Intelligence Series Spring/Summer 2015

11 Foreign Opportunity Following years of heavy reliance on coal, China has accumulated much experience and invested a lot of money into the operation of coal power plants and thermal power research stations, allowing it to successfully produce much of the necessary key equipment on its own. However, there are several important areas including electrical automation and the development and science behind coal- and thermal-related materials where China has been unable to create its own technological innovations. The clean coal technology trend is particularly important in China because of the public pressure placed on the government to cope with Beijing s smog issue, and to reduce coal consumption as a whole. This has urged China s five major power companies 1 to invest in environmental protection products and to improve efficiency in coal conversion. FOREIGN DENITRATION TECHNOLOGY Considered a major piece of the clean coal puzzle, denitration technologies are fast becoming typical at modern Chinese coal-fired power plants and at those that have been retrofitted with modern systems. In the first half of 2015, ICORP reported on a minimum average of over 3.5 denitration supply opportunities per week. However, according to a report mad by the NEA, only 50% of existing plants were operating denitration facilities in 2013, leaving many opportunities on the horizon for qualified suppliers. Foreign suppliers of denitration equipment should look to China for new supply opportunities, as plants undergoing upgrades or new plants installing these systems often invest in imports, specifically citing the desire for the higher quality foreign systems and expertise. The NEA report further indicates that China s desulphurization market has fewer opportunities for foreign suppliers, as it is more saturated with qualified domestic suppliers than the denitration market. The frequency of plants with desulphurization devices has skyrocketed in the past decade, jumping from 12% of the thermal power units being equipped in 2005, to a whopping 91.6% in FOREIGN VALVE SUPPLY AT COMBINED HEAT AND POWER (CHP) PLANT Foreign-made valves are in high demand at combined head and power (CHP) plants, with the quality of the foreign product is being cited as the driving factor in valve procurement decisions. For instance, in a recent report by ICORP on 29 April regarding upgrades to a 2x330MW CHP plant occurring in Shandong Province, foreign valves are being asked for as they tend to be of higher quality compared with those produced domestically. FOREIGN AUTOMATION AND CONTROL SYSTEMS 1 See Appendix B 2 ICORP proprietary content Valves for 2x330MW combined heat and power plant, 29 April 2015, Page 11 ICORP Business Intelligence Series Spring/Summer 2015

12 Automation and control systems play an integral role in maximizing the efficiency, and thus the environmental cleanliness, of a wide range of systems at coal-fired power generation facilities. Many domestic coal power projects have been working with foreign suppliers of automation and control systems, such as Hitachi Group, Rockwell Automation, Siemens, ABB, and General Electric A recent example of this phenomenon is the Huaneng Dezhou Power Plant ( 华能德州电厂 ), which is likely to procure foreign distributed control systems (DCS) and digital electric hydraulic control systems (DEH) for its 660MW thermal units. The plant owner cited advanced technologies and stable performance as his reasoning behind the purchasing decisions. The previous DCS unit was a Teleperm XP (TXP) system from Siemens, and the previous DEH system was a General Electric Mark V. Both were installed in 2002 and the systems functionalities are declining. The new systems are expected to be installed in Emerson Electric Co., a Missouri, USA-based firm, has recently been awarded contracts for the supply of its Delta V DCS system. An example of this supply was reported on by this new service in a 07 May 2015 publication 3 detailing the supply of two digital control systems to ultra-supercritical (USC) coal power plants. The value of the two DCS systems is estimated as being worth up to USD 30m and is part of a larger supply structure for Emerson valued near USD 50m. FOREIGN ADVANCED MATERIALS The supply of hot channel materials for thermal power plants often requires foreign participants. China has been relatively slow in the development of related materials, especially high temperature- and high pressureresistant materials. Thus, blades, coatings, burner walls, as well as catalysts may all require foreign products where advanced temperature, pressure and corrosion resistances are needed. CLEAN COAL FOREIGN OPPORTUNITY OVERVIEW Demand for foreign-made equipment and foreign collaborations is fluid. Although China is a world leader in coal power efficiency the need for emissions reduction is ever increasing, and continued advancements in technologies across the world will always leave market shares available for importers. Advanced clean coal power plants require high-end technologies, some of which still tend towards foreign supply. Clean coal facilities running supercritical and ultra-supercritical units often source equipment such as the following from foreign companies: Distributed control systems (DCS) Emissions reduction and pollution control systems o Selective catalytic reduction (SCR) o Non-selective catalytic reduction (NSCR) o Catalyst services o Electrostatic precipitators (ESP) o ESP power supply and control systems o Flue gas filtering technologies 3 ICORP proprietary content Delta V DCSs for USC coal power plants (2x660MW, 2x1000MW and 2x1000MW) Page 12 ICORP Business Intelligence Series Spring/Summer 2015

13 Wastewater treatment o Reverse osmosis (RO) and ultrafiltration (UF) membranes o Electrodeionization (EDI) Power generation / thermal cycle equipment o Steam turbines o Condensers o Thermal cycle circulation system valves, pumps, compressors and controls Integrated Gasification Combined Cycle (IGCC) Integrated gasification combined cycle (IGCC) is regarded to be amongst the cleanest technologies in coal power. IGCC facilities are able to reduce sulfur emissions by 93%, NxOy emission by 75%, particulate matter by 33%, and water consumption by 30%, compared to the traditional pulverized coal technology. However, opportunities pertaining to IGCC plants should not be expected in the near future. In 2012, Siemens partnered with Xi an Thermal Power Research Institute (TPRI) on China s first IGCC demonstration project. Siemens provided the gas turbine, and TPRI provided the gasifier for the project. Despite some previous experience in running IGCC projects on the part of Siemens in Japan and Spain, the gas turbine from Siemens and gasifer from TPRI were not technically compatible and the cost for developing the project became immeasurable, causing the Tianjin-based project to fail due to safety and economic reason. The central government has yet to approve any future IGCC demonstration projects at this time. Ultra-Supercritical (USC) Technology Ultra-supercritical (USC) thermal coal-fired power plant systems are considered a viable alternative to IGCC in China. When used with proper emission reduction and pollution control systems, highly efficient USC units can achieve similar energy savings and environmental benefits as seen with the industry s cleanest technologies, such as IGCC systems. USC facilities come with additional cost savings over IGCC as China is now able to manufacture much of the ultra-supercritical process components independently. Page 13 ICORP Business Intelligence Series Spring/Summer 2015

14 Appendix A: Industry Performance Capacity and efficiency are two important indicators to evaluate the performance of the coal power industry. In 2012, coal-fired power plants were producing 3,680 billion kilowatt-hours (kwh) of electrical energy, accounting for 73.9% of the total 4,980 billion kwh produced by all sources in China that year (China Energy News estimates the number as 73.9%, while the International Energy Association estimates that the number is 79%). For reference, in 2004, the coal power produced was 82% of the total electricity output. This represents a 1% decrease every year over eight years and underlines the progress that China is making towards reducing its reliance on coal to produce power. By examining the capacity in relation to output in 2012, it is observed that the contribution of coal to China s energy production was a larger percentage ( %) than its share of the installed capacity (69%). This may indicate that coal power is still a more reliable way of generating energy than other alternative sources (hydro, wind, solar, nuclear) in China. According to the World Coal Association, a 1% improvement in the efficiency of a conventional pulverized coal combustion plant can result in a 2-3% reduction in CO2 emissions. The correlation between efficiency improvements and emissions reduction can strengthen each other s performance. Although China already operates some of the most efficient power plants in the world, the carbon cap is still driving China to upgrade its emissions reduction solutions on the most important energy source in the country. Page 14 ICORP Business Intelligence Series Spring/Summer 2015

15 Appendix B: The Five Majors Five major corporations dominate China s power generation industry. All of the five majors are state-owned enterprises (SOEs). CHINA HUADIAN CORPORATION Huadian Power Corporation owns or has stakes in about 31 provincial utilities with a total net installed capacity of about 472,800 MW. Huadian Power operates the world s first ultra-supercritical air cooling system in the thousands of megawatts range and is China s largest individual capacity ultra-supercritical wet air cooling system in the thousands of megawatts range. CHINA HUANENG GROUP Huaneng Power International, a subsidiary of the China Huaneng Group has nearly 50 power plants in about 20 provinces a capacity of more than 66,700 MW, primarily coming from coal power. In 2009, Huaneng power approved 280 energy saving projects, amounting USD 463m (CNY 2.9 billion). DATANG INTERNATIONAL POWER GENERATION COMPANY Datang International Power Generation (Datang Power) works primarily in coal power, developing and operating power plants, selling electricity and providing power equipment maintenance services. Datang Power owns and operates four power plants and manages more than 50 power and power-related companies in 18 provinces. It actively cooperated with foreign firms, and has imported technologies from firms such as Andritz Energy & Environmental (AE&E) in 2005 as well as selective catalytic reduction (SCR) technology from Hitachi Limited to help gas desulfurization and de-nox denitration process. CHINA GUODIAN CORPORATION China Guodian Corporation is engaged in the development of coal power, hydropower and wind energy infrastructure. Guodian aims to develop large scale, high parameter, combined heat and electric power units. It owns China s largest power plant with a 5,000 MW capacity. CHINA POWER INVESTMENT CORPORATION China Power Investment Corporation is one of the five largest power generation groups in China. It has 49 power plants in over 6 cities with a total installed power capacity of 62,090 MW as of Page 15 ICORP Business Intelligence Series Spring/Summer 2015

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