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Siemens Energy keen to help fulfill carbon goals

By ZHENG XIN | China Daily | Updated: 2021-05-06 09:03
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The Siemens Energy AG section at an industry expo in Shanghai. [Photo/CHINA DAILY]

The ongoing energy transformation in China and its carbon neutrality pledge present opportunities as well as challenges for multinational corporations like Siemens Energy AG, and the company will continue investing in the country's renewable energy sector to support Beijing's carbon neutrality ambitions, a top company official said.

"The China market is obviously very important, which is estimated to make up roughly 50 percent of the large gas turbine market worldwide. It is also one of the countries really making the coal-to-gas transition, providing safe energy supplies to industries and people," said Christian Bruch, CEO of the company.

Siemens Energy AG sees massive opportunities in China in energy infrastructure construction including power transmission and renewable energy, said Bruch, adding that the company will continue to work together with local partners to provide efficient solutions for energy transformation and environmental requirements.

He said that with China's renewable energy market developing rapidly in recent years, Siemens Energy wants to benefit from future expansion of the market, including the hydrogen sector.

Siemens Energy has already worked closely with its Chinese partner State Power Investment Corp, one of China's top five power producers, bringing its first megawatt-level green hydrogen production project to China to help guarantee hydrogen supply for public transport in Yanqing district, Beijing, during and after the Winter Olympics events in 2022.

The company said in March that it would install 22 distribution transformers at China's first commercial 66 kilovolt offshore wind farm-Yuhuan offshore wind power project phase 1-located off Taizhou, Zhejiang province.

"So far, more than 50 percent of Chinese offshore wind selections are based on our technologies or through our Chinese partners," he said.

"We have some 1,500 hydrogen compressors supplied and installed in commercial projects. We operate around 50 gas turbines already today, partly on hydrogen," he added.

"We will continue to use our knowledge to contribute to the booming renewable energy market in China."

Bruch said China is likely to be the biggest player in the world's offshore wind market very soon, which provides plenty of development opportunities.

"Managing energy transformation can only be successful if we enter global multi-partnerships, modernize conventional technologies as effective interim solutions, and develop even more innovative, green technologies. We are obviously with our Chinese partners looking at how we can best do this and build it out," Bruch said.

Tang Sisi, an analyst at research firm BloombergNEF, said China's carbon neutrality pledge highlights the importance of decarbonization in China's energy industry.

Many international corporations have been stepping up efforts to align their core businesses with Chinese market demand, and the pledge is also becoming a strategic focus for more Chinese as well as multinational companies, Tang said.

Siemens Energy said in April that it would establish a collaboration mechanism with CLP Group, China National Offshore Oil Corp and Shenzhen Energy Group Co Ltd to accelerate energy transformation in the Guangdong-Hong Kong-Macao Greater Bay Area-one of the regions with the highest degree of openness and vitality in China, the company said.

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