Energy Insider: Major Sodium Energy Storage Station Enters Operation, Battery Giant CATL Taps Into Shipping

This week’s Caixin energy wrap highlights several significant developments in China's climate and energy sector across policy, industry, and projects. Key areas include advancements in sodium-ion battery storage, CATL's ventures into electric shipping, challenges in transitioning Shanxi’s coal economy, Beijing’s promotion of green energy for EV charging, and China’s leadership in global wind and solar power generation.

China’s inaugural major sodium-ion battery energy storage facility commenced operations on May 11 in Nanning, Guangxi. This first phase of the Fulin Sodium-ion Battery Energy Storage Station, produced by HiNa Battery Technology Co. Ltd., has a storage capacity of 10 megawatt-hours (MWh), sufficient to meet the daily electricity needs of 1,500 households. When fully operational, the facility is projected to annually generate 73,000 MWh, lowering carbon dioxide emissions by about 50,000 tons. Sodium-ion batteries, which use sodium extracted from salt, are 30% to 40% cheaper to produce than lithium batteries, potentially reducing reliance on the more costly lithium [para. 7][para. 8][para. 9][para. 10][para. 11].

In another development, Contemporary Amperex Technology Co. Ltd. (CATL) is exploring the marine sector through a collaboration with French carrier CMA CGM SA. The agreement focuses on developing emission-reduction solutions, particularly in electric ships, commercial vehicles, and warehouse logistics. The cooperation, announced on May 8, includes plans for a joint venture to facilitate energy transition and industry upgrades. CATL, a critical supplier for major auto manufacturers like Tesla Inc. and Volkswagen AG, is broadening its business scope to include electric ships and aircraft [para. 13][para. 14][para. 15][para. 16][para. 17].

Shanxi province, China's top coal producer, is grappling with significant obstacles in transitioning to a clean economy. According to a study by the Shanxi Coshare Innovation Institute of Energy and Environment (SCIIEE), the region must reallocate a substantial number of laid-off workers, develop alternative industries, and secure more financial support. Between now and 2060, the province anticipates job cuts affecting 2.68 to 3.31 million workers and requires around 100 billion yuan ($13.8 billion) for a fair transition. To address these challenges, the study proposes clear transition timelines and financial incentives from non-government sources [para. 20][para. 21][para. 22][para. 23][para. 24].

In policy news, Beijing is stepping up efforts to encourage EV charging stations to utilize green electricity. The city plans to establish a trading mechanism to facilitate the use of energy from wind and solar sources. This initiative follows successful implementations in other regions, such as Jiangsu’s supply of green electricity to highway charging ports and Shanghai’s rollout of green charging pillars [para. 26][para. 27][para. 28][para. 29].

China continues to lead in the global renewable energy sector, generating 37% of the world’s solar and wind power in 2023. This growth is attributed to the rapid expansion of renewable capacity, with newly added wind and solar power accounting for 60% and 51% of global increases in these sectors, respectively. Without this expansion, carbon emissions from China’s power sector would have been 21% higher in 2023. The China Electricity Council predicts the nation’s power generation capacity to grow by over 300 gigawatts this year, driven by the growth of solar and wind installations [para. 31][para. 32][para. 33][para. 34][para. 35].

These updates underscore China’s robust efforts in advancing renewable energy technologies, addressing transitional challenges in its coal-dependent regions, and fostering international collaborations to mitigate climate impact.