In this issue, we cover record-breaking green certificate transactions, the launch of a pioneering carbon reduction loan in Shenzhen, and significant funding achievements in hydrogen energy and green ammonia synthesis.

Record-Breaking Green Certificate Transactions

According to the Southern Power Grid recently, at the Guangzhou Electric Power Trading Center's Green Power Green Certificate platform, 654 entities including Guangdong Energy Group and Shenzhen Energy Group completed transactions for 24.82 million green certificates, equivalent to approximately 24.8 billion kWh of electricity. Source here.

  • This represents China's largest single batch of green certificate transactions and the first large-scale inter-regional green certificate transaction between Guangdong and new energy companies in Gansu, Ningxia, and Xinjiang provinces.
  • This transaction is equivalent to reducing carbon dioxide emissions by approximately 19.84 million tons, promoting grid integration and wind and photovoltaic power consumption. It also helps new energy companies gain additional revenue by selling green certificates, stimulating investment in new energy.
  • From January to June this year, the southern region's green power green certificate transactions reached 41.2 billion kWh, a 6.2-fold increase compared to last year, surpassing the total scale of last year.

Over 2,000 power users participated in green power consumption. The region also organized cross-city green certificate transactions with Hong Kong and Macau, with a total of 20,000 green certificates traded so far, optimizing the allocation of green resources over a larger area.

The price of green power transactions has been declining, now almost equal to the average price of coal-fired power transactions.

Implications for the Future of the Green Electricity Certificate:

  1. Regional and Cross-City Collaboration: Large-scale inter-regional transactions and cross-border deals with Hong Kong and Macau reflect increasing geographic cooperation, leading to more efficient green resource allocation.
  2. Environmental and Economic Benefits: Significant carbon emission reductions and financial benefits for new energy companies will drive further investment in renewable energy projects.
  3. Competitive Pricing: Declining green power prices, now nearly equal to coal-fired power prices, enhance the competitiveness of renewable energy, attracting more buyers and supporting a low-carbon economy.

Shenzhen Launches 'Carbon Reduction Loan' to Propel Green Finance and Support SMEs

On July 3, Shenzhen hosted the "Green Beautiful Shenzhen, Carbon Initiates a New Journey" event, officially launching the Shenzhen Enterprise Carbon Account and introducing the "Carbon Reduction Loan" product. At the event, eight banks, including the Industrial and Commercial Bank of China, Bank of China, and Huaxia Bank, signed the first batch of "Carbon Reduction Loan" pilot cooperation agreements with eight enterprises, totaling 310 million RMB in credit. Source here.

The "Carbon Reduction Loan" is a novel credit product designed to incentivize companies to reduce carbon emissions. Key features include:

  1. Based on Carbon Account Ratings: The system calculates a company's carbon emissions using its invoice data and generates a carbon rating report, which is integrated into the loan approval and pricing processes.
  2. Differentiated Loan Conditions: Offers preferential loan terms, including interest rates, durations, and amounts, based on the company's carbon reduction performance. Companies with significant reductions benefit from better loan conditions.
  3. Targeted Incentives: Links loan interest rates to the company's carbon reduction achievements, providing precise incentives for companies to adopt greener practices.

Impact on Small and Medium-Sized Enterprises

  1. Reduced Financing Costs: Provides SMEs with lower financing costs through favorable loan terms.
  2. Enhanced Competitiveness: Advantages in carbon reduction and financing costs help improve market competitiveness.
  3. Addressing Carbon Calculation Challenges: Utilizes a digital carbon account system to accurately measure carbon emissions, enabling SMEs to participate in green finance.

Financial incentives will encourage more companies to reduce carbon emissions, aiding the overall economic shift towards low-carbon practices. Shenzhen's success could set a benchmark for the nationwide promotion of green finance.

Recent Advances and Major Funding in China's Renewable Energy Sector

Hefei Liguyu New Energy Co., Ltd. Completes Pre-A Round Financing

Hefei Liguyu New Energy Co., Ltd. raised tens of millions of RMB in a Pre-A round led by Tianying Capital, with ZhenFund also participating. The funds will be used for an organic liquid hydrogen storage and transportation demonstration line and for developing biomass-based FDCA technology. Source here.

Established in June 2021, the company focuses on hydrogen energy storage and renewable energy projects. It has completed an 8000-hour continuous test for small-scale organic liquid hydrogen storage, meeting industrial standards. The company collaborates with East China University of Science and Technology and holds core intellectual property rights. Founder Guo Yong, a nationally recognized young talent, leads the team.

Ningbo Leiden Cryogenics Co., Ltd. Completes Angel Round Financing

Ningbo Leiden Cryogenics Co., Ltd. secured tens of millions of RMB in an angel round from Shenzhen Qifu Angel Private Equity Venture and Ningbo Angel Guidance Fund. The funds will be used to develop zero-evaporation liquid hydrogen storage tanks, liquid hydrogen generators, superconducting liquid hydrogen storage demo prototypes, and team expansion. Source here.

Founded in 2020, the company focuses on cryogenic and superconducting technologies for hydrogen energy. It collaborates with top domestic universities and laboratories for research and product development.

Anhui Zhongke Hesheng Green Energy Co., Ltd. Achieves Breakthrough in Green Ammonia Synthesis

Anhui Zhongke Hesheng Green Energy Co., Ltd. has made a breakthrough in flexible green ammonia synthesis equipment. The company is working on China’s first kiloton-scale green ammonia synthesis demonstration project. Zhongke Hesheng received multi-million RMB funding from Chenta Capital for company setup, team building, and technology development, with Yundao Capital as a financial advisor. Source here.

Stay tuned for more updates on groundbreaking developments in the renewable energy sector in China.

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