Low-carbon focus drives growth of companies

Zhongyang Iron and Steel is now one of the environmentally friendly producers in Zhongyang county thanks to its focus on low-carbon development. [Photo by Li Lian for China Daily]

Accounting for nearly half of local GDP and creating more than half of local employment opportunities, private businesses in Shanxi are playing an increasingly important role in the province's economic transformation.

Economic transformation is now the most important strategy in this North China province. There is an emphasis on upgrading traditional industries toward efficient and clean production, and fostering emerging industries as new growth engines.

Zhongyang Iron and Steel, based in the county of Zhongyang, is an example of a traditional industry being upgraded.

For low-carbon and cleaner operations, the company is having a dust-removing and discharge-reducing facility constructed at its steelmaking plant.

According to an executive of the company, this is one of its key projects this year.

"Upon the completion of the project, we will see a substantial reduction in waste gas discharge," the executive said. "And the content of dust in emissions will be decreased to 10 milligrams per cubic meter, reaching a super low level."

He said many private businesses in Shanxi are in heavy industries like coal mining and steelmaking.

"We have comparative advantages in heavy industries and upgrading toward cleaner and more efficient operations is a practical approach to high-quality growth," the executive said.

He said Zhongyang Iron and Steel is also utilizing digital technologies to optimize its production process. It is also recycling to minimize consumption of resources and reduce its footprint on the environment, and developing more value-added and environmentally friendly products.

While manufacturers like Zhongyang are focusing on advanced manufacturing, private companies like Meijin Energy are shifting their operations to emerging industries.

Founded in 1981, Meijin used to be a major coal mining and coking enterprise in Taiyuan. It began to diversify into the hydrogen industry in 2017 and has since developed into one of the major hydrogen producers and hydrogen energy solutions providers in Shanxi.

Its product and service portfolio in the hydrogen industry now includes hydrogen-fueled vehicles, hydrogen storage and hydrogen filling stations.

Meijin's production plant for hydrogen-fueled vehicles began construction in September 2022. With a total investment of 1.8 billion yuan ($250 million), the facility mainly produces heavy-duty trucks. The first phase of the plant is now operational and can produce 5,000 hydrogen trucks a year.

Yao Jincheng, vice-president of the company, said that its trucks can travel about 400 kilometers on a full tank of hydrogen. "Its fuel cost is much lower than a diesel truck with similar loading capacity and more importantly, it has zero emissions."

Xiangrui New Energy, a company based in Taiyuan, is another example of how private businesses can stand out in cutting-edge sectors. It is providing digitalized solutions for the allocation of resources between energy producers and consumers.

When electric car drivers in Taiyuan are reminded by the car console that it's time to charge their electric cars, they might take out a smartphone and click on an app icon called Green Electricity. It tells them where cost-effective green electricity charging stations are available nearby. This app was developed by Xiangrui.

Wang Zhengtong, board chairman of Xiangrui, said green electricity generated from hydraulic, wind and solar power is favored by electric car drivers as it enjoys government subsidies. However, instability in power generation and low utilization efficiency are challenges the green electricity sector needs to address. Xiangrui is among the pioneers in Shanxi to offer solutions to these challenges.

"Using digital technologies, our platform is connected with power plants, power grids, charging stations and end users like drivers," Wang said. "Through the coordination of the platform, the power supply efficiency has been improved among various stakeholders."

Wang said the company's platform is now serving more than 3,000 corporate clients in Shanxi and beyond. Through the platform, the companies involved have provided 5.6 billion kilowatt-hours of green electricity to date, helping users save costs worth 851 million yuan and reducing carbon dioxide emissions by 4.49 million metric tons.

Li Lian, Deng Weiqiang and Yang Wenjun contributed to this story.