Shandong explores energy transformation: five key industries such as steel and electrolytic aluminum account for 57% of the province's total coal consumption

Recently, the Institute of Ecology of Shandong Academy of Sciences and the Natural Resources Conservation Association (NRDC) jointly organized the "Research on Coal Reduction Paths in Key Coal Consumption Industries in Shandong Province during the 14th Five-Year Plan" (hereinafter referred to as the "Report") press conference to discuss the path to promote Shandong's energy transformation from the perspective of the five key coal consumption industries of steel, electrolytic aluminum, chemical, cement, and petrochemical, and conduct an analysis of the coordinated coal reduction paths for key coal consumption industries in Shandong Province, proposed coal reduction policy recommendations for key coal-consuming industries in Shandong Province.
According to the report, the iron and steel industry is expected to bring 7.4 million tons of coal reduction potential to Shandong during the 14th Five-Year Plan period. The cement industry is expected to bring 3.8 million tons of coal reduction potential to Shandong. Electrolytic aluminum industry is expected to bring 24.2 million tons of coal reduction potential to Shandong. The petrochemical industry is expected to bring 2.55 million tons of coal reduction potential to Shandong. The chemical industry is expected to bring 6.5 million tons of coal reduction potential to Shandong.

Shao Min, Institute of ecology, Shandong Academy of Sciences, said at the above press conference that during the 14th Five Year Plan period, the state requires Shandong Province to continue to reduce coal by 10%. We should also clearly realize that there is no contradiction between coal reduction and development. It is an important measure to promote the green, low-carbon and high-quality development of Shandong Province, and it is also an inevitable requirement to achieve the goal of "double carbon.

"Based on the actual economic and social development of Shandong Province, this report mainly focuses on the five key coal-consuming industries in Shandong, namely, steel, cement, electrolytic aluminum, chemical industry and petrochemical industry, and studies the potential of coal control in the important window period of the 14th Five-Year Plan and the contribution it can make to the low-carbon transformation of energy and industry in Shandong Province." Zhang Jieqing, director and chief representative of NRDC Beijing Representative Office in China, said in his speech.

Coal consumption in five key coal-consuming industries increased slightly

Shandong is a big province of coal consumption, and its industrial structure is long-term heavy.

On the basis of completing the "13th Five-Year Plan" coal reduction task, Shandong Province will continue to reduce coal consumption by 10% during the "14th Five-Year Plan. Under the background of "double carbon", it is an important starting point for coal reduction in Shandong Province to carry out coal reduction work with key coal-consuming industries as the starting point, and it is also an effective way to promote the green, low-carbon and high-quality development of the industry.

According to the report, the coal consumption of the five key coal-consuming industries of iron and steel, electrolytic aluminum, chemical industry, cement and petrochemical accounts for 57% of the total coal consumption in the province (including indirect coal consumption generated by secondary energy consumption such as electricity and heat). It is the main coal-consuming industry in Shandong Province. During the "13th Five-Year Plan" period, the province's total coal consumption decreased by 10%, but the coal consumption of the five key coal-consuming industries still increased slightly.

The iron and steel industry is a high energy-consuming and coal-consuming industry, and iron and steel is a valuable green resource for human society. Because steel materials have the characteristics of easy availability, magnetic suspension, easy recycling and easy re-smelting, from the perspective of the whole life cycle, this is a very green material in metal materials, so to promote low-carbon process innovation, with digital empowerment to promote the high-quality development of the steel industry.

Teng Guoxing, director of the Strategic Research Institute of Shandong Iron and Steel Group Co., Ltd., said at the above-mentioned press conference that it is necessary to start from the entire production process of steel and carry out technical and disruptive innovations that rely on coal for ironmaking. The green transformation of the steel industry is facing many difficulties, and we must accelerate the green transformation. Iron and steel itself is an asset-heavy industry, and process transformation is very difficult. If measures are not taken properly, it will have a huge impact on the entire enterprise, the entire production and operation, and even uncontrollable system risks.

Teng Guoxing said that Shandong Iron and Steel Co., Ltd. is facing three strategic tasks, namely, giving priority to environmental protection, adhering to product crisis and industry, adhering to the principle of first trial, eliminating and utilizing waste gas and waste residue, reducing the burden and increasing the positive for ecological protection and high-quality development, and reducing the production hazards brought about by steel production.
Top-level co-ordination to promote inter-industry collaborative coal reduction

"Coal reduction is not the business of each industry. Now it is more necessary to promote energy conservation and coal reduction from industry to industry and field to field," Shao Min said. Coal reduction is not to fight alone. It is necessary to establish a systematic concept of coal reduction. It is necessary to plan a system from the top to promote coordinated coal reduction among industries and a recycling system of resources, thus helping to reduce coal.

In terms of cooperation in various industries, the research team of the Institute of Ecology of the Shandong Academy of Sciences pointed out that Shandong Province should focus on coal reduction in high-energy-consuming and high-emission industry clusters, guide the circular production and industrial coupling development of enterprises in the clusters, and encourage dislocation and differentiated development., Coordinate the coordinated layout of chemical, metallurgy, building materials and other industries. In addition to the key coal-consuming industries that can achieve collaborative coal reduction through coupling development, the key coal-consuming industries and other industrial industries, as well as building heating and other fields can also achieve collaborative coal reduction and carbon reduction through the development of waste heat recovery and development of energy storage facilities, thereby improving the energy efficiency of the whole society.
"Shandong is a coastal province. Foreign cement and clinker can be imported into China and can also restrain the consumption of coal in the province. I think the goal set in the report is relatively feasible." Wang Huamin, a researcher at the Shandong Building Materials Industry Design and Research Institute, introduced the situation of the cement industry in Shandong Province at the above-mentioned press conference: "I think that Shandong Province has good basic conditions for coal reduction during the 14th Five-Year Plan, which meets the requirements of the cement industry in Shandong Province last year. In addition, the cement industry needs to adjust the industrial structure, and it is a good way to use waste fuels or alternative fuels for production. There is still great potential in this regard in China."

"The report of" Research on Coal Reduction Path of Key Coal Consumption Industries in Shandong Province during the 14th Five-Year Plan "is very consistent with some policy requirements of the country and Shandong Province, and from Shandong Province to the country, some policies on coal reduction and low carbon have been issued one after another." Liu Hanchun, secretary-general of Shandong Metal Society, introduced the development of China's electrolytic aluminum industry. There is a saying about electrolytic aluminum: aluminum industry looks at China, and Chinalco (4.240, 0.12, 2.91) looks at Shandong. The production capacity of electrolytic aluminum in Shandong once accounted for more than one-third of the country's total. At its peak, it reached a production capacity of more than 1100 million tons. Shandong's electrolytic aluminum has gone through a disorderly to orderly development process. Moreover, the technology of electrolytic aluminum should be in China. With the improvement of science and technology, the energy consumption of electrolytic aluminum is gradually decreasing.

"The important thing is that there is a good way to reduce coal from the aluminum industry, that is, to develop recycled aluminum. Recycled aluminum does not use coal, and the energy consumption is less than 20% of electrolytic aluminum. The development of recycled aluminum is also a very good way to reduce coal." Liu Hanchun said.
Increase fiscal, taxation and financial support for key coal-consuming industries

The carbon emissions generated by coal consumption in Shandong Province account for a large proportion of the total carbon emissions in the province, and reducing coal consumption is a necessary measure to achieve carbon neutrality. To this end, the report also summarizes the key coal consumption industry in Shandong Province coal reduction policy recommendations.

For example, it is necessary to establish a scientific and reasonable coal reduction policy system. Actively connect with the relevant policies and measures of the state on the total amount of coal consumption control. We should plan and systematically promote coal pressure reduction and implement differential allocation of resource elements. To guide enterprises to actively reduce coal through market means. The system of paid use and trading of energy rights, and exploring the establishment of a new mechanism for market-oriented energy use. Guide key enterprises to actively participate in the national carbon emission trading, improve the initiative of enterprises to save energy and reduce carbon, and force backward production capacity to accelerate the exit.

Increase fiscal and financial support for key coal-consuming industries. Overall funding to increase energy saving and coal reduction major action, major demonstration, major projects support. Strengthen the functions of financial incentives and tax guidance, support technological innovation in the new energy industry, and support the transformation and upgrading of enterprises with capacity clearance. Innovate investment and financing channels, encourage banking and financial institutions to give full play to the structural adjustment role of financial supervision, make full use of monetary policy tools, and enhance the ability to innovate financial products and service methods. Vigorously develop transitional finance and build a multi-level transitional financial service system.

To strengthen the role of scientific and technological innovation in key coal-consuming industries. We will increase investment in research and development, devote ourselves to the overall theoretical research and industrial innovation of the source of technology, strengthen the research and promotion of industrial application of energy-saving and low-carbon technologies, and expand new growth space for improving the efficiency of resource and energy utilization and the level of green and low carbonization with science and technology.

According to the development status of key coal-consuming industries, Liu Qiang, the deputy first generation of the Children's Investment Foundation in China, believes that energy conservation, carbon reduction and pollution reduction are both interrelated and have their own priorities. In terms of the situation in Shandong Province, coal pressure is one of the difficult bones. In the future, Shandong Province still needs to take the key coal consumption industry as the starting point, look at the problem from the perspective of development, change the mode of production, adjust the industrial structure, and continue to explore how to solve the problem of green development, including how to deal with the stock and increment, and develop the green industrial chain.