The promotion and application of high-efficiency energy-saving and emission-reduction equipment are essential to achieving the goals set under China's "Eleventh Five-Year Plan" for energy conservation and pollution reduction. Despite the government's strong emphasis on these initiatives, the market adoption of such technologies has not been as smooth as expected. The author observed that although there are more manufacturers now producing energy-saving and emission-reduction equipment compared to previous years, widespread implementation still requires more than just government support. It also depends on the willingness of user companies to embrace these technologies and the ability of manufacturers to adapt their strategies, improve service quality, and build a customer-centric approach.
Recent policy documents, such as the State Council's "Circular on Printing and Distributing Comprehensive Energy-Saving and Emission-Reduction Work Programs," have reinforced the targets of reducing energy consumption per unit of GDP by about 20% and cutting major pollutant emissions by 10% during the Eleventh Five-Year Plan period. These policies outline specific measures for key industries like power, water, and energy-intensive sectors, while also emphasizing the development of tax incentives and reward-punishment mechanisms to promote energy efficiency. Additionally, the notice highlights preferential tax policies, such as VAT input tax credits, for investments in energy-saving and emission-reduction equipment. This is especially beneficial for low-profit industries like desulfurization equipment manufacturing, which could see significant gains if these policies are effectively implemented.
Moreover, the notice encourages financial institutions to provide credit support for projects related to the circular economy, environmental protection, and technological upgrades aimed at energy saving and emission reduction. Experts predict that over the next five years, China will account for 30% of global orders for such equipment, with the market size reaching $300 billion. As one of the most energy-intensive sectors, the steel industry is expected to be the largest consumer of energy-saving and emission-reduction technologies in the country.
In recent years, several advanced energy-saving technologies have been widely adopted in China’s steel industry, including dry quenching, dry dust removal from blast furnace gas, and the comprehensive utilization of by-product gases and solid waste. In addition, various equipment such as sewage treatment systems, exhaust gas purification devices, and dust removal units are being actively deployed. Energy-saving efforts in the steel sector are mainly driven by two approaches: improving efficiency and adjusting industrial structure to accelerate economic transformation. However, long-term success requires deeper economic restructuring, faster changes in growth models, and a shift in GDP composition.
To support this transition, many steel companies have established Energy Management Systems (EMS) to optimize energy use, reduce costs, and improve productivity. Companies like Baosteel, Angang, and Wuhan Iron and Steel have already implemented or are in the process of building such centers. These efforts have shown that China is catching up with Japan in terms of energy management practices.
Despite these advancements, the Chinese steel industry still faces challenges when compared to its international counterparts. One key issue is the reliance on the traditional blast furnace-converter process, which consumes twice as much energy and emits 3.8 times more COâ‚‚ than the electric furnace method. Additionally, the energy structure remains heavily dependent on coal, creating both challenges and opportunities for the energy-saving equipment market.
However, the market for energy-saving and emission-reduction equipment is not without obstacles. Some manufacturers face difficulties in selling their products due to high costs, limited market awareness, and weak local government support. For example, a company in Yulin, Shaanxi, developed several patented technologies for coking processes, but sales remained low, with some equipment left unused after purchase. While the cost savings from these technologies can be significant, companies often hesitate due to upfront investment and concerns about long-term operational costs.
Another challenge is the lack of follow-up support for energy-saving equipment. Many enterprises fail to upgrade their supporting systems after installation, leading to inefficiencies and even higher energy consumption. According to an engineer from an iron and steel company, the technical support required for these systems is often inadequate, making it difficult for users to fully benefit from the technology.
Overall, while the potential for energy-saving and emission-reduction equipment in China is huge, the path to full adoption remains complex. It requires not only policy support and technological innovation, but also a stronger commitment from both manufacturers and end-users to drive real change.
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Anyang Xinhai Metallurgical Refractory Co., Ltd , https://www.xinhaialloy.com