“By 2025, the national gas storage capacity of intensive layout will reach 55 billion ~ 60 billion cubic meters, accounting for about 13% of natural gas consumption. Build a green and low-carbon transportation system, optimize and adjust the transportation structure, vigorously develop multi-modal transport, promote the medium and long-distance transportation of bulk goods “from rail to water”, encourage the use of clean fuels such as LNG in the field of heavy-duty trucks and ships, and strengthen the guarantee of clean energy supply in the transportation industry. It is emphasized that the LNG storage and transportation system in Bohai Rim region, Yangtze River Delta region and Guangdong Hong Kong Macao Bay area should be continuously improved, and the core is the construction of LNG terminal.”
PSRAnalysis. China’s LNG import volume in 2022 is expected to surpass Japan and become the world’s largest LNG importer. At the same time, China has built 22 LNG terminals. There are more than 200 LNG manufacturers in China, with an annual capacity of about 30 million tons.
“China has the largest automobile production in the world, the most complete industrial foundation, supply chain foundation, talent foundation and market foundation,” said Li Bin, chairman of Weilai automobile.
These factors provide China with a significant advantage in developing intelligent EVs, he said “In fact, if we can have the advantages of these four aspects at the same time, China is the only one in the world,” he added.
The penetration rate of new energy has exceeded 10% in 2021. From the trend, this target will exceed 20% in 2025. China’s penetration rate of intelligent electric vehicles in 2030 will exceed 90% in new car sales. In recent years, with the accelerated popularization of intelligent electric vehicles, the automotive industry will once again become the commanding height of scientific and technological innovation.
PSR Analysis: Today, new bus procurement is fully electrified. Buses have fixed routes, and the operation range is relatively stable. At the end of 2020, all buses in key regions and major cities have been replaced with new energy. The trend of bus electrification will continue to be promoted nationwide and gradually electric buses will replace diesel vehicles.
Considering that the running distance and working environment are relatively controllable, the market promotion of oil and electricity price difference, and the gradual completion of bus electrification, taxis will also accelerate electrification.
The second step is to accelerate the electrification of trucks such as urban logistics, environmental sanitation and muck trucks. The State Council proposes to promote green and low-carbon means of transportation, port and airport services, urban logistics distribution and postal express to give priority to the use of new energy or clean energy and strengthen the charging and switching facilities of new energy vehicles.
The penetration rate of private car electrification will also continue to increase. According to the current situation, electric vehicles can replace unified fuel vehicles in terms of price and mileage around 2025. At the same time, with the promotion of electrification in the field of public transport and trucks, driving the continuous improvement of infrastructure, the electrification of private cars will proceed more smoothly. PSR
Jack Hao is Senior Research Manager – China, for Power Systems Research
Electrification has become one of the important directions of green development within China’s construction machinery segment. Domestic construction machinery leaders have increased the development of equipment electrification and have launched a variety of electrification products.
Some professional organizations predict that by 2025 the penetration rate of main products may reach 25%. The electrification of construction machinery initially replaces conventional diesel engine drive with electric drive and then the hydraulic device is replaced by an electric device. Concrete mixers, truck cranes, muck trucks, excavators and wheel-loaders are the most easily electrically driven products, especially for small construction machinery.
Toyota reportedly has partnered with China’s BYD to develop an affordable electric car to launch next year. The Japanese automaker has widely been recognized as a laggard in the transition to electric vehicles. Years of betting on hydrogen fuel cells and hybrid vehicles has put Toyota behind on battery-electric vehicles.
Reuters reports Toyota is planning to release a “small and affordable electric sedan” in China next year:
The electric vehicle is reportedly going to be powered by BYD’s blade battery cells with LFP chemistry. LFP chemistry has improved enough in recent years that it is moving from mainly being used in electric buses to now electric cars. BYD’s blade battery has attracted a lot of attention – even from Tesla, according to reports coming out of China. A Toyota source talking to Reuters said that it is what is enabling the automaker to produce its first affordable all-electric car:
The 150-ton large-scale mining truck delivered by Weichai has accumulated more than 50,000 hours of trial operation, with a total mileage of more than 360,000 kilometers, a 70% increase in efficiency, and a 10% reduction in unit energy consumption.
This product is equipped with a powertrain system consisting of Weichai Group’s 17-liter engine + 3300 Nm high torque 8-speed gearbox + 60-ton drive axle. The operation equals the output of two trucks, which significantly reduces the number of vehicles need for a specific job, greatly reduces operating costs, and brings considerable economic benefits to customers
The global energy structure has accelerated the adjustment to green energy, and the investment in traditional energy is insufficient. Under the influence of COVID-19, energy supply and demand are disrupted, exacerbating the contradiction between supply and demand, resulting in global power shortage.
China recovered from the epidemic earlier than many other countries and is now almost the only major manufacturer, so industrial power consumption has increased significantly. Power rationing is mainly to alleviate the power shortage and achieve the goal of energy conservation and emission reduction. China is dominated by thermal power generation, and there is a serious shortage of clean energy. There are still big problems in the energy structure.
PSRAnalysis: In 2021, China’s electricity demand will grow by more than 10%, which greatly exceeds the previously estimated demand growth of 6% to 7%. At present, the substantial growth of power demand has put great pressure on power supplies. Coal accounts for about 70% of China’s electricity consumption, but the output of coal is far lower than the demand for electricity.
Automaker VinFast is partnering with China’s Gotion High-Tech to research and produce batteries for electric vehicles as part of its vision to become a global brand.
According to a statement released by Vingroup, VinFast’s parent company, the two companies are planning to build Vietnam’s first lithium iron phosphate (LFP) battery plant. LFP is an iron-based battery that does not rely on rare raw materials such as cobalt or nickel. That makes LFP batteries much cheaper, although they have lower energy density than nickel-based chemistries.
According to Vingroup, Gotion is the leading manufacturer of LFP batteries in China, with eight research and development centers worldwide and 10 manufacturing facilities in China. Thai Thi Thanh Hai, vice chairman of Vingroup, said the partnership is key to VinFast’s ability to achieve supply chain autonomy.
Volvo Trucks expects to start production of the new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks in Taiyuan for local customers in China late next year. Volvo Trucks has agreed to acquire a subsidiary of China’s Jiangling Motors Co to produce trucks for the local market starting late next year. JMC Heavy Duty Vehicle Co, which includes a manufacturing site in Taiyuan, capital of North China’s Shanxi province, will be purchased for $120.4 million (780 million yuan), said the Swedish truck maker.
TAIWAN — Taiwan’s Sun Moon Lake is so low that parts of it have dried and turned to grass. Jetties that normally float are sprawled awkwardly on dry land, and tour boats are crowded at the tail ends of pontoons still in the water.
Usually one of the island’s most famous tourist destinations, the lake has recently become a star of a different kind. Following the worst drought in 56 years, it is now famous for all the wrong reasons. These days, Instagram influencers photograph themselves posing in a dust-colored, dinghy half-buried in a cracked and cratered lakebed…
But away from the quirky headlines, the situation is dire. Other reservoirs across central and southern Taiwan are effectively empty, down to 5% or less.
Taiwan has had drought before, but observers are hoping the severity of this one – which has lasted 18 months and threatens Taiwan’s economic lifeblood of semiconductor production – is enough to prompt real action on climate change.
Current and Future Supply Chain Concerns For Medium and Heavy Vehicles Will Be Discussed
Erik Martin
Chris Fisher
Power Systems Research April 21, 2021, produced a one-hour webinar with the Heavy Duty Manufacturers Association (HDMA) discussing current and future supply chain concerns, especially as they affect Medium and Heavy Commercial Vehicles.
The presenters included:
Chris Fisher – Senior Commercial Vehicle Analyst, Power Systems Research
Erik Martin – Director, Asia Region, Power Systems Research
Richard Anderson – Director, Market Research & Analysis, HDMA
