- Gray hydrogen to be become greener
- Problematic sponge cities
- Green stocks pick up the pace
- No more online games during workdays for minors
- No more exams for children under eight
- Forsa: Majority for harder line on China
- Wang Yi: US to blame for terror resurgence
- Tools: What does the land transfer tax law mean for businesses?
- Executive Moves: Poggenpohl’s new CEO is an Asia expert
Today’s newsletter is dedicated to sustainability: hydrogen, sponge cities and green stocks.
Hydrogen is currently considered as the great hope for the energy transition – even in China. To date, no other country produces as much hydrogen as the People’s Republic. However, it currently mainly produces “gray” hydrogen. A coal region in northern China, of all places, is now set to change that. With the help of the sun, wind and a lot of money, Beijing wants to turn Inner Mongolia into a hub for green hydrogen. Frank Sieren shows which problems China still needs to solve down this path. European companies are currently the main drivers of innovation in this field, after all.
Xi Jinping had only been in office a short time when China’s state and party leader mandated the concept of sponge cities in his country. The reason for the order from the highest level: China is increasingly threatened by massive floods. But so far the “Haimian Chengshi” have not brought much relief. In her analysis, Ning Wang elaborates on the multifaceted problems of China’s sponge cities and how individual provincial governments are abusing the climate targets set by their superiors.
Whenever reports on China’s stock markets are published, analysts often resort to fierce expressions. In most cases, there is talk of a bloodbath among Chinese internet companies. But our team of authors in Beijing shows that this is not the whole truth, as there are also some winners: green stocks. Manufacturers of solar cells, wind turbines and electric cars currently benefit from ambitious climate plans set by China’s leadership. These are stocks that should not be missing from your portfolio, either.
I hope you enjoy our latest issue and gain new insights!
Green hydrogen from Inner Mongolia
China has approved an energy project for the production of green hydrogen in Inner Mongolia. In the future, it is supposed to sustainably produce gas in the future through wind and solar energy.
The plants near the cities of Ordos and Baotou will produce 66,900 tons of green hydrogen per year from 1.85 gigawatts of solar energy and 370 megawatts of wind energy, according to the Chinese Hydrogen Energy Industry Promotion Association. The region, where the majority of China’s coal has been mined to date, has about 3,100 hours of sunshine per year that can be used for generating solar power. It is also located along the route of Siberian continental winds strong enough to power dozens of gigawatt wind turbines.
These plants are expected to be ready for operation as early as mid-2023. It is the largest plant in China to date and one of the largest in the world. The exact costs are not yet known. What is clear, however, is that it is China’s largest state-owned hydrogen venture to date.