Foreign companies seek cooperation opportunities with China on energy transition

TAIYUAN -- At a recently concluded forum on low-carbon development in North China's Shanxi province, many foreign companies have expressed optimism about China's green energy transition, noting that they are actively seeking collaborative opportunities with the country.

The 2024 Taiyuan Energy Low Carbon Development Forum was held from Tuesday to Wednesday in the provincial capital of Taiyuan, with the China (Taiyuan) International Energy Industry Expo, a key component of the event, extending its run until Thursday.

The expo's dedicated area for international enterprises has become a highlight, drawing prominent exhibitors such as Air Products, BETEK, a leading manufacturer of tungsten carbide tools, and Sino Gas & Energy, known for its expertise in tight gas and coalbed methane exploration and development.

Air Products, an industrial gas, related equipment and application provider, entered the Chinese market in 1987.

The company has made significant investments in advanced production facilities in multiple cities across Shanxi, such as Changzhi, Linfen and Jincheng since 2013, contributing to sustainable and innovative development, according to Feng Yan, vice-president of Air Products China.

"We are very optimistic about the Chinese market, particularly in the context of energy transition," Feng said. "Hydrogen is a pivotal element for a green and low-carbon transition, and we are eager to expand our operations in China, leveraging our technology and expertise."

During the China-Europe workshop on clean energy transition held at the forum, attendees engaged in profound exchanges and lively discussions on energy transition collaboration.

In his keynote speech, Joseph Mansour, head of the International Energy Unit at the Department for Energy Security and Net Zero of the United Kingdom (UK) government, emphasized the longstanding history of energy cooperation between Britain and China, covering academic, policy, industrial and commercial partnerships.

"The UK looks forward to continuing collaboration with China in areas such as power market reform, offshore wind as well as carbon capture, utilization and storage, while also advancing cooperation in emerging fields like battery technology and hydrogen," Mansour said.

Xu Zhonghua, vice-president for TotalEnergies R&D for Asia, said that this year marks the company's 100th anniversary. As a global integrated energy company, TotalEnergies is undergoing a transformation, with over 50 percent of its research and development (R&D) budget dedicated to the development of low-carbon and clean technologies.

"TotalEnergies has been in the Chinese market for over 40 years, and our future investments in China will focus on low-carbon and new energy sectors," said Xu, adding that the company is actively investing in solar energy, wind power, energy storage and green aviation fuels, aiming to use its traditional energy expertise to drive innovation.

In recent years, China has achieved significant progress in energy transition. According to a white paper titled "China's Energy Transition," the proportion of clean energy consumption reached 26.4 percent of China's total energy use in 2023, up 10.9 percentage points from a decade ago. Over the same period, the share of coal consumption decreased by 12.1 percentage points.

Over the past decade, clean energy has contributed to more than half of the total increase in electricity consumption, reflecting a growing presence of green energy in China's energy mix.

China has vowed to tackle climate change and follow a steadfast path of green, low-carbon development. It has pledged to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.