Chinese energy giants launched an initiative to accelerate CCUS deployments

On November 26, an initiative dedicated to innovation and development of CCUS was launched in Beijing. 26 Chinese state-owned energy companies, universities, and research institutes, led by Petrochina and China Huaneng Group, participate the initiative.

China Huaneng Group Co., Ltd (Huaneng Group), is a key state-owned company established with the approval of the State Council. The company is one of the Five Largest utilities in China. By the end of 2023, the company has an installed power generating capacity of 243GW, including 142GW coal power. As China government has set carbon peak and carbon neutral targets for 2030 and 2060, China’s coal power plants are feeling the pressure to decarbonize their businesses, or confronting increasing operating cost in the future.

Huaneng Group has been developing CCUS technologies for years. From 2021 to 2023, multiple pivot demonstration projects were successfully completed to achieve near-zero emission target. Currently, Huaneng Group and Petrochina are cooperating to develop 1.5 million ton per annum CCUS demonstration project in Londong Energy Base in Ningxia province. CO2 would be captured from local coal power plants and transported to Petrochina’s oil fields nearby where it would be injected underground permanently.

Besides Londong project, Petrochina has other two commercial scale CCUS projects under construction in Shaanxi and Gansu province, which are expected to be operational by 2025. However, the launching of the initiative suggests more Chinese energy and utility companies are making plan for their first CCUS project.