China will enforce its latest edition of the Guiding Catalogue for Industrial Structure Adjustment on February 1, 2024. Compared to the 2019 edition, the new Catalogue intensifies efforts to reduce carbon emissions, with a notable increase in contents related to hydrogen energy technology.
- In the new energy sector, the updated Catalogue only lists the encouraged items, which, compared to the 2019 version, adds contents regarding sustainable aviation fuel development and production, research and application of new-generation hydrogen fuel cell technology, hydrogen production from renewable energy, electrolysis of water to produce hydrogen and the catalytic synthesis of green methanol from CO2.
Note: Text in green indicates newly-added content, orange for adjusted content, red for deletions in the new version, and black for unchanged content.
- For the petrochemical and chemical industry, the Catalogue lists encouraged, restricted and eliminated items, emphasizing a low-carbon green transition. In the encouraged category, there's a shift from the 2019 version's emphasis on CO2 capture to CO2 utilization, including technologies such as CO2-methane reforming, CO2 hydrogenation for chemical production, etc (see attached figure for more details). Additionally, the Catalogue raises standards for the restriction of existing petrochemical production facilities, mandating the elimination of chlorohydrin process for epoxy propane and calcium-based saponification process in epoxy chloropropane production by December 31, 2025.
- In the power industry, newly-added encouraged items include CCUS technology for coal-fired power generators, energy-saving and carbon-reduction modifications for thermal power generators, heating system renovation, and low-carbon fuel co-firing in thermal power plants, etc. Coal-fired power units failing to meet ultra-low emission standards (excluding those using special furnaces) and coal-fired boilers have been included in the restricted category.
- For technologies and products in the restricted category, investment in new projects is prohibited, but existing capacity is allowed to continue operations within set deadlines after undergoing transformation and upgrades, and can continue to receive financial support.
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Edited by Navy Liu: liuchuanjun@mysteel.com