China’s Shangdong Province Unveils New Capacity Cut Targets in Coal and Steel Sector

China seems to be genuinely making efforts to curb the pollution levels in the country, especially since past three years. After announcing new production cuts targets for Jiangsu, Guangdong, and Hebei province, China’s eastern province Shandong province has divulged new targets to cut coal and steel production capacity, eliminate outdated aluminium smelters and switch to a cleaner source of energy as part of its anti-pollution campaign.

According to the latest reports, the Shandong province has unveiled its three years plan (i.e. till 2020) which includes crude steel capacity cuts of 3.5 MnT, pig iron production capacity cuts by 600,000 tonnes, and coal production capacity cuts by 16 MnT to 140 MnT (from the current level of 156 MnT).

As a part of its efforts to switch from polluting coal for energy production, the province has planned to increase its natural gas and liquefied natural gas (LNG) imports with an intention to boost the provision of natural gas to 15.8 billion cubic metres by 2020. To this, Shandong Environmental Protection Bureau has added that more than 70% of heating provided in the winter months to rural areas would be derived from clean energy sources by 2020.

In case of transportation of coal from the ports, the province has planned to shift from roadways to rail or waterways which are less polluting by the end of this year whereas iron ore, coke and other heavy commodities would be mainly transported via rail before the summer of 2020.

The bureau has said that it would accelerate plans of major aluminium smelters including Shandong Weiqiao, a unit of China Hongqiao Group, the world’s top producer of the metal, and Xinfa Group to complete the construction of exclusive use railway lines for their freight.

Shandong’s environmental action plan has been announced after China’s State Council last month unveiled its three-year plan to cut coal consumption, boost electric vehicle sales and further shut outdated steel and coke capacity.