China's energy sector is enormous, with a total consumption of 5.72 billion tons of standard coal in 2023. Coal counts for 55.3% of China's primary energy mix but the share of renewable energy and natural gas is rising.
China has relied on imported crude oil and gas for many years. Energy security continues to be a key focus of China's 14th Five-Year Plan (2021-25). Domestic production is growing annually due to increasing expenditure towards exploration and production (E&P).
Energy Products: While Canadian energy products are currently being shipped to China, but there is still significant growth potential.
Shale and unconventional reservoirs: Local players have indicated that foreign solutions are being sought in the following areas: experience and expertise related to horizontal drilling and ultra-deep wells, fracking technology, high sealing performance and corrosion resistance for high hydrogen sulfide gas, and chemistry additives.
Hydrogen Fuel Cell (HFC): China is the largest producer and user of hydrogen in the world and is the world's largest HFC market.
Carbon Capture, Utilization and Storage (CCUS): It is well acknowledged that CCUS will become indispensable for China to achieve carbon neutrality goals.
Renewable Energy and Energy Storage: China's renewable energy development is expected to be large-scale and market-oriented, reducing reliance on government incentives.
Environmental protection: In addition to water, air and soil protection, solid waste and hazardous waste treatment will also be the government priority.
2030/2060
President Xi's goal to achieve carbon peaking before 2030 and carbon neutrality by 2060.
2920 gigawatts (GW)
By June 2023, China's total installed power capacity reached 2920GW: coal power 1390GW; hydro 422GW; wind 441GW; Solar 609GW; nuclear 57GW.
31 gigawatts
By 2023, China's installed new energy storage capacity reached 31GW, a 260% increase over 2022.
756 million tons
In 2023, crude oil consumption 756 million tons with a 73% import rate; gas consumption 392 billion cubic meters (bcm) with a 40% import rate.
17.5%
Renewable energy now accounts for 17.5% and natural gas for 8.6% in China's energy mix.
50,000 to 100,000
Number of hydrogen fuel cell vehicles during 14th five-year plan (2021-25), to exceed 1.2 million by 2035.
900 million tons
By 2023, China's refinery capacity exceeded 900 million tons and will likely reach 1 billion tons in 2024.
2.22 trillion
China's environmental protection industry revenue reached 2.22 trillion RMB (approx. 420 billion CAD), 63% are generated by 16,000 environmental service providers.
Energy security, energy transition and how realistic it is to reach net-zero goals continue to be hot topics among the industry players in China. Foreign products and services that can help local industry reach the dual carbon target have exciting potential in China. Many Canadian equipment and services companies are already having success in the market, but there is significant potential for growth.
For more information on energy sector in the Chinese market please contact bejingtdinfocentre@international.gc.ca.
