Their primary goal is not “cross-border”, but emission reduction.

Cement enterprises that relied heavily on coal in the past must turn to a greener and economic production mode.

The predecessor of Conch Cement, “Ningguo Cement Plant”, was born in 1978 and was restructured into “Conch Cement” in the late 1990s.

For a state-owned enterprise with a revenue of 100 billion yuan, this revenue is just icing on the cake in the short term.

On March 7, Conch Cement, the second largest cement manufacturer in the world, announced that the company would invest 5 billion yuan in the development of new energy businesses such as photovoltaic power stations and energy storage projects in 2022.

More than ten of their subsidiaries purchased and used nearly 40 million kilowatt hours of photovoltaic power in 2020, an increase of more than 40% year on year, equivalent to saving 13000 tons of coal and reducing emissions of 33000 tons of carbon dioxide.

This is the output of China’s cement industry in 2020.

More than 30000 solar panels were installed in the plant, with an installed capacity of 11.9MW.

Under the trend of electricity price marketization, the use of photovoltaic power is also a safer option in the long run.

As a high emission enterprise, Wang Cheng, secretary of the Party Committee of Conch Group, said in an interview with the surging news that the “two high” projects are more and more tightly bound, and the layout of the main business of the cement industry will become more and more difficult.

Compared with commercialized companies, the installed capacity of Talbot is not large, and it is mainly used for enterprises’ own use, and the surplus will be connected to the power grid.

For a long time, they have only expanded in the cement industry, and the sporadic actions in the photovoltaic industry are mostly related to self-use electricity.

After completion, it can meet 20% of the electricity demand.

In December last year, Jingke Energy, the leading component company, won the centralized purchase order of Sinopec 2.1GW PV modules.

As a benchmark super state-owned enterprise in the industry, Conch Cement must set an example.

In addition, the state has restricted the use of electricity by enterprises.

The key to the transformation of manufacturing industry is to reach the carbon peak in 2030, and under the carbon neutral target in 2060, the traditional manufacturing industry with high energy consumption is collectively turning to clean energy.

However, before the dual-carbon policy was put forward, these energy reforms did not become the climate.

It is expected that by the end of 2022, the installed capacity of photovoltaic power generation will reach 1GW and the annual power generation capacity will reach 1 billion kilowatt-hours.

Start emission reduction ahead of time.

Of course, photovoltaic power generation also has practical benefits for them.

The national carbon trading market was officially established in 2021.

In June of last year, Guangdong’s cement leader “Tapai Group” announced that it would invest 1.3 billion yuan to build a distributed photovoltaic power generation+energy storage integration project.

Under the trend of electricity price marketization, the use of photovoltaic green power is also a safer option in the long run.

In Battambang, Cambodia, their photovoltaic energy storage power station will also be put into operation in October 2021.

Although the installed capacity is only 18MWp, in addition to building a photovoltaic power station for self-sufficiency, Conch Cement will also buy green power.

At that time, the Conch Cement business was not smooth.

They are the key to emission reduction.

Its actual controller is the State-owned Assets Supervision and Administration Commission of Anhui Province, which is a state-owned enterprise with a positive root.

In 2020, the Conch Cement subsidiary of Jiande City, Zhejiang Province, invested hundreds of millions to repair the optical storage integration project.

Article | Editor of Yuan Silai | Source of Su Jianxun | Source of 36 carbon (ID: carbon_36kr) cover | Visual China’s production of 2.3 billion tons of cement will emit how much carbon dioxide? This figure is 1.466 billion tons, accounting for 14.3% of the national carbon emissions and nearly half of the global carbon emissions.

This investment is not a big deal in the photovoltaic industry.

The cement industry with high energy consumption has an old saying in the cement industry: “The world cement looks at China, and China cement looks at conch”.

In August 2021, Conch Cement spent 443 million yuan to purchase Conch New Energy, which is mainly used for photovoltaic power generation.

As a benchmark super state-owned enterprise, “Conch Cement” must set an example.

The cement industry has always been far from photovoltaic, and it is too old-fashioned.

When we talk about carbon neutrality and carbon peak, we can’t get around these manufacturing industries under the water.

The largest project was in Jiaoling region, reaching 220 MWp (megawatt), with an annual power generation of 258 million kilowatt-hours.

When officially included in the carbon trading market, enterprises can directly obtain economic returns in the carbon trading.

Their subsidiary in Meizhou has also installed 18000 photovoltaic panels, which can save more than 6 million yuan of electricity every year.

Finally, they hope to achieve “zero electricity purchase” in the daytime.

This project is mainly for the self-use of conch cement.

Coil Insert

According to McKinsey’s calculation, to achieve the scenario of global warming not exceeding 1.5 ℃, the carbon emission reduction of China’s cement industry needs to reach more than 70% by 2050.

Last year, the soaring price of coal directly increased the cost of cement production, which has put Conch Cement under pressure.

These transforming giant state-owned enterprises will provide considerable orders in the future.

They actually had some sporadic attempts.

In 2020, the power consumption of Conch Cement will reach 14.47 billion kWh.

Their semi-annual report showed that the non-net profit after deduction decreased by nearly 7%.

However, this is an extremely traditional industry from production to sales, and carbon reduction is particularly difficult.

Although they have entered the photovoltaic industry, the investment is not high.
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However, under the goal of carbon neutrality, the energy-intensive cement industry cannot be ignored in the task of emission reduction.

It is the second largest cement enterprise in the world after China’s building materials.

According to the calculation of Zhongtai Securities, the fuel and power cost of Conch Cement accounts for more than 50% of the total.

From a global perspective, the overall carbon emission of the cement industry is only second to that of the United States and China.

Of course, more entrants are actually cautious.

However, if the time line is extended and the carbon trading is mature, this will be a huge market.

However, when “double carbon” became a national strategy, Conch Cement, as a leading state-owned enterprise, put forward an ambitious “J-30” plan in the first year of “double carbon”, one of the main contents of which is to find alternative fuels, clean energy, etc.

Although cement is not included in the first batch of energy-intensive industries, it will probably enter the carbon trading market in the future due to its huge emissions.

Conch Cement is building photovoltaic power stations, more to let its subordinate factories use photovoltaic power generation.