Published Date : Jun 21, 2016
China is focussing on increasing its domestic capacity to produce advanced technologies in the energy sector and challenge international energy companies working on oil and gas exploration and thermal power plants. China is lagging behind in the competition with German and Japanese power turbine manufacturers and Anglo-American oil companies in terms of developed technologies for electricity generation and deepwater gas and oil production. However, China is the biggest consumer of energy across the globe. As a result, it is imperative for the country to work on these technologies to meet its domestic energy demand.
State-Owned Companies to Spearhead Technological Developments in These Sectors
This week, a new catalogue has been released that stresses on increasing the country’s energy independence by 2025. The report also states the various export opportunities in the field of deepwater gas and oil drilling, renewable generation of electricity, and advanced thermal power plants. The plan has identified that the country’s self-designed capacity is pretty weak with the lack of core technologies. The National Energy Administration has created the report. The regulatory body has not specified the name of the companies that would lead the development. However, it is expected that the state-owned China National Petroleum Corp., Sinopec Group, and PetroChina would be leading the developments. To ensure energy supply, China will be focussing on offshore oil and shale gas.
In the renewable sector, Goldwind is the top ranking wind turbine manufacturer and is anticipated to play an important role in the country’s efforts in the generation of electricity. In the thermal and gas power sector, the state-owned companies and their listed subsidiaries are the biggest investors. The Chinese government is planning to showcase live projects in these sectors by 2020, thereby starting new production chains by 2025. The plan also focuses on the government’s efforts to move away from industries such as coal and steel.