Weekly Energy Report

This week, from April 27 to May 2, several significant developments took place in the energy sector. The Ecological Environment Code Draft was presented for its first review at the 15th meeting of the 14th National People’s Congress Standing Committee on April 27. Additionally, the National Energy Administration announced measures to promote the development of the private sector within the energy domain, including a notification to support private enterprises’ participation in nuclear power projects and investments in hydropower, oil and gas reserves, and large bases like “Shagehuang.”

Project Updates

On April 27, the largest supercritical carbon dioxide pipeline project in China, the Jilin Petrochemical – Jilin Oilfield CO₂ Pipeline Engineering (Phase I), was launched. This project marks a significant milestone in carbon capture and storage efforts in the country.

Policy Developments

On April 28, the National Energy Administration released the China Hydrogen Development Report (2025), which states that national hydrogen production capacity is expected to exceed 50 million tons per year by 2024, with production surpassing 36.5 million tons. The report highlights a 9.7% year-on-year growth in electrolytic water hydrogen production capacity. By the end of 2024, over 600 renewable energy electrolytic water hydrogen projects are planned, with an established capacity of approximately 125,000 tons per year.

The report also indicates significant price advantages for hydrogen in demonstrated urban clusters, with average prices dropping to 27.4 yuan/kg on the production side and 45.7 yuan/kg on the consumption side. Additionally, more than 60 countries and regions worldwide have announced hydrogen strategies, showing a shift in China’s hydrogen industry from fossil fuel-based hydrogen production to renewable energy sources.

Industry Developments

On April 27, the Ministry of Science and Technology’s Fusion Center showcased advancements in nuclear fusion technology at the 16th China International Nuclear Power Industrial Exhibition. The display included models and core component samples related to China’s participation in the International Thermonuclear Experimental Reactor (ITER), demonstrating the nation’s commitment to innovation and international collaboration in nuclear fusion.

Project Progress

On April 27, Qinghai’s first green hydrogen production project successfully transitioned to commercial delivery. The “Delingha PEM Electrolytic Water Hydrogen Demonstration Project” by Huadian Group aims to commercialize renewable hydrogen production in Qinghai, facilitating the large-scale application of “green hydrogen” in transportation and industry.

On April 28, the China Petroleum and Chemical Corporation (Sinopec) began construction on its 30,000-ton carbon fiber project in Erdos, Inner Mongolia. Utilizing proprietary carbon fiber technology and the region’s abundant green electricity resources, this project aims to establish ten energy-efficient carbon fiber production lines by 2027. Once operational, it will supply critical materials to the wind energy, energy storage, and low-altitude industries, supporting the advancement of China’s new materials sector.

Personnel Changes

On April 27, Liu Jingshan was appointed as the Chief Accountant and a member of the Party Leadership Group of China Energy Investment Corporation.

Company Performance

On April 29, Northern Rare Earth reported a revenue of 9.287 billion yuan for the first quarter of 2025, a 61.19% increase year-on-year. The company also recorded a net profit attributable to shareholders of 431 million yuan, marking a remarkable rise of 727.3%. Furthermore, their net profit after excluding non-recurring items surged from 3.71 million yuan last year to 435 million yuan, an increase of 11,623%.

Acknowledgments

On April 28, a ceremony was held in Beijing to celebrate the 100th anniversary of the All-China Federation of Trade Unions, recognizing over 2,426 national labor models and advanced workers. Among the honorees, more than 200 individuals from the power sector and 146 from the petrochemical industry were acknowledged for their contributions.