The promotion and application of high-efficiency energy-saving and emission-reduction equipment are crucial to achieving the overall goals of China’s "Eleventh Five-Year" Plan for energy conservation and pollution reduction. Despite the government's strong emphasis on sustainability, the market for such equipment still faces significant challenges in widespread adoption. The author observed that while manufacturers in this sector have grown more active compared to previous years, true large-scale implementation requires not only government support and corporate commitment but also a shift in mindset among producers. They must embrace a comprehensive service-oriented approach, enhancing their technical capabilities and customer support to meet industry demands.
The State Council’s "Circular on Printing and Distributing Comprehensive Energy-Saving and Emission-Reduction Work Programs" reaffirmed key targets: reducing energy consumption per unit of GDP by approximately 20% and cutting total emissions of major pollutants by 10% during the "Eleventh Five-Year" period. It outlined specific strategies for energy efficiency in power, water, and energy-intensive industries, emphasizing tax incentives and reward-punishment mechanisms to encourage green practices. For instance, preferential tax policies like VAT input tax credits were introduced for investments in energy-saving equipment, offering substantial benefits to sectors like desulfurization technology, which typically has low profit margins. Additionally, financial institutions were encouraged to provide credit support for projects related to the circular economy, environmental protection, and energy-saving technological upgrades.
Experts predict that within the next five years, 30% of global orders for energy-saving and emission-reduction equipment will come from China, with the market size expected to reach $300 billion. This makes China one of the most promising markets for such technologies. The steel industry, being energy-intensive, is the largest consumer of these devices. Over the past few years, several advanced energy-saving technologies have been widely adopted in China’s steel sector, including dry quenching, dry dust removal systems, and the comprehensive utilization of by-product gases and solid waste. Moreover, equipment such as sewage treatment plants, exhaust gas purification systems, and dust control units have also seen increased use.
Energy-saving and emission-reduction efforts in the steel industry are mainly driven by two approaches: reducing resource consumption and optimizing industrial structures to shift toward a more sustainable growth model. While these measures are important, the ultimate goal requires deeper economic restructuring and faster transformation of growth patterns. Advanced technologies and equipment are essential for long-term success, prompting many steel companies to establish energy management centers (EMS) to optimize energy use, reduce costs, and improve operational efficiency. Baosteel’s EMS, for example, has demonstrated the effectiveness of centralized energy management, showing that China can match international standards in this area.
Despite these advancements, Chinese steel companies still face challenges when compared to their global counterparts. One key issue is the reliance on the blast furnace-converter process, which consumes twice as much energy and emits 3.8 times more COâ‚‚ than the electric furnace method. Additionally, the heavy dependence on coal as an energy source presents both a problem and an opportunity for energy-saving equipment manufacturers.
However, the path to widespread adoption is not without obstacles. Some companies sell energy-saving equipment without proper support or follow-up, leading to underutilization. In Yulin, Shaanxi, a company developed over 10 patented energy-saving technologies for coking, yet sales remained limited. Some clients even used the equipment solely for inspection purposes. A cost-benefit analysis showed that upgrading old coking equipment could save money in the long run, but high initial investment and uncertain returns deterred many buyers. Furthermore, the lack of supporting technologies and poor maintenance after installation often led to inefficiencies, undermining the purpose of the equipment.
According to the China Energy Conservation Association, weak local government support, low corporate awareness of energy efficiency, high equipment prices, and inadequate follow-up technologies all hinder the promotion of energy-saving solutions. These issues are not isolated, indicating a broader need for systemic improvement in policy, education, and infrastructure to fully realize the potential of energy-saving and emission-reduction technologies in China.
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