Beijing Enterprises Group Company Limited: developing clean energy to contribute to the blue sky of the capital

Company Profile
Beijing Enterprises Group Company Limited (hereinafter referred to as BG), established in January 2005, is a large municipal state-owned enterprises group, which is financed by Beijing Municipal People's Government and comprised of the former Beijing Holdings (Group) Co., Ltd., Beijing Enterprises Holdings Limited, and Beijing Gas Group Co., Ltd. after the reorganization. At present, BG has five Hong Kong-listed companies including Beijing Enterprises Holdings Limited, Beijing Enterprises Water Group Limited, Beijing Development (Hong Kong) Limited, Beijing Properties (Holdings) Limited, and China Gas Holdings Limited, and two A shares listed companies, Yanjing Beer and Huiquan Beer. BG has been selected into China’s Top 500 Enterprises for years assessed by China Enterprise Confederation and China Enterprise Directors Association.

Challenge
Natural gas is the cleanest fossil fuels. Compared with other fuels like coal and oil, natural gas has significant effect in reducing environmental pollution, decreasing the chances of acid rain and the content of inhalable particulate matters in the air, and improving the urban air quality. The gas supply industry in China started later than that in developed countries. Since the 1990s, our gas supply has grown substantially. In recent years, the heavy smog and haze have kept enveloping Beijing, the capital of China. Against such a situation, accelerating the spread of clean energy, reducing the emissions of pollutants and improving the atmospheric environment in the capital of China have become the responsibilities of gas enterprises.

Solutions
Beijing Gas Group Co., Ltd. (Beijing Gas), affiliated to BG, is a leading urban gas supply company in China. Providing the capital with nearly 8 billion cubic meters of natural gas each year, equivalent to replacing over ten million tons of coal, Beijing Gas has played an important role in improving the air quality of the capital. The company has energetically expanded the applications of its downstream fields like natural gas vehicles, CCHP (combined cooling, heating and power system) and others, contributing to the construction of ecological Beijing.

- Developing NGV to strengthen the control of automobile exhaust
The development of natural gas vehicles (NGV), as an important way to reduce air pollution, has been included in the major tasks of Clean Air Program. While focusing on the development of oil-gas station and natural gas station, Beijing Gas has speeded up the construction of infrastructures, and optimized the layout of fuel stations. The company pays equal attentions to the construction of fuels stations and the spread of NGVs, developing them in a coordinated way. It makes great efforts in developing and extending vehicle gas markets, and manages to form a complete industrial chain covering gas supply, distribution, sales and other links so that it can realize a virtuous cycle of vehicle gas business. While strengthening the modification to existing vehicles like buses, taxis, and driving school cars, the company has focused on extending the use of natural gas to passenger vehicles, sanitation trucks, cargo trucks and others.

- Speeding up the layout of distributed gas energy
Distributed energy is a high-efficient and environment-friendly way to use energy at the client side. In response to the national policy of transforming the development mode of energy and reorganizing energy structure, BG has positively developed distributed energy. It makes full use of its edges in resources to accelerate the development of CCHP distributed energy projects, giving full play to their features of “differentiated temperature to realize ladder-level utilization” to use the energy in a high-efficient way.
Beijing Gas takes it as a priority to develop high-end distributed energy projects as models in urban industrial parks, centralized tourist service areas, ecological parks and large commercial facilities. In the meanwhile, the company explores innovative business, financing and operating models, and enhances its competitiveness, control and influence in the markets to establish its dominance in the development of distributed energy.

- Ensuring a stable supply of natural gas
In 2013, Beijing Gas laid 214 kilometers of new pipelines and completed Xishatun and Xijimen natural gas station, which has further enhanced its capability of natural gas supply in the capital. As Datang Group Coal-based Natural Gas Plant and Tangshan LNG Plant start supplying gas to our capital, the gas supply pattern featured with “more gas species, sources and channels” has formed in China. The natural gas supply in Beijing, therefore, will be further ensured by such coexistence as domestic and imported gas, offshore and inland gas, and conventional and unconventional gas.

- Putting a lid on coal-fired boilers within the Sixth Ring Road
In six urban districts of Beijing, and in its outer suburbs and city-level industrial development zones with mature conditions, Beijing Gas is implementing coal-to-gas project, striving to achieve the objectives of no coal-fired boilers within the fifth Ring Road by 2014, and within the sixth Ring Road by 2015. In addition, it has cooperated with the competent government department to carry out boiler modification in six urban districts, the city-level industrial parks, the enterprises above designated size, and the outer suburbs and counties. By 2017, it will modify about 7000 MW of boilers, which will further reduce coal consumption in the city.

Achievements
In 2013, Beijing Gas completed the construction of gas pipelines and facilities which supported the modification of Gaojing Coal-Fired Power Plant, and realized clean energy transformation, equivalent to replacing 3.54 million tons of coal. In the meanwhile, the company transformed 26 sets of coal-fired boilers (a total of 1,890 MW) into clean-energy boilers, replacing 0.34 million tons of coal. More encouragingly, it achieved the objective of no coal-fired boilers within the Fourth Ring Road of Beijing, and increased gas heating area from 67% in 2012 to 72% in 2013.
In 2013, The CCHP systems in PetroChina Information Centre, Qinghe Hostipals, and other distributed energy projects were put into production. Among them, PetroChina Information Centre project was listed as China’s first CCHP distributed energy demonstration project by the National Development and Reform Commission. The system of PetroChina Energy Centre can produce 100,146.5 MW of electricity per year, equivalent to burning 34,900 tons of standard coal.

Prospect
BG will persist in its development purpose of “gaining a foothold in Beijing and serving the capital”, and contribute its share to developing a green and low-carbon Beijing.