China Resources Power Holdings Co., Ltd.：Building a “CR Model” for Circular Economy

Company Profile
 
Founded in August 2001, CR Power Holdings Co., Ltd. (CR Power) was listed on the Main Board of the Hong Kong Stock Exchange on November 12, 2003. As a flagship Hong Kong-listed company under CR Group, on 8 June 2009, the Company formally became one of the constituent stocks of the Hang Seng Index, making it the only Chinese invested power company admitted to the Hang Seng Index. The company invests in, develop, operate and manage thermal power, wind power, hydropower, coal and distribution-type energy projects in areas in China with high economic development levels or rich coal resources. By the end of 2015, CR Power has had a total asset of 208.09 billion Hong Kong dollars with the investment covering 19 provinces, autonomous regions and municipalities directly under the central government. CR Power was elected among one of the Platts Top 250 Global Energy Companies for consecutive 9 years. 
 
Challenge
 
Fuchuan County, Guangxi Zhuang Autonomous Region, is a typical mountainous region with the main source of revenue from agriculture. It is also one of the poverty alleviation projects supported by China. The few iron mineshave caused severe pollution and damaged the environment. It is a pressing issue for this region to strike a balance between environmental protection and economic development.
 
The traditional power enterprises are facing severe challenges due to economic slowdown, strengthened environmental protection and reduced coal-powered electricity fee. As a coal-fired state-owned power enterprise, CR Powermust give full play to its diversified businesses and make breakthroughs to find the new economic growth points through industry collaboration.
 
Solutions
 
During the two sessions in 2010, Guangxi Zhuang Autonomous Region and CR Group reached consensus on circular economic industrial park building in Hezhou, Guangxi. Both sides agree to introduce China Resources Snow Breweries into the Park, committed to “waste reduction and resource recycling”. With such recycling economic development requirements in mind, the two sides have built a recycling economic industry chain of “power plant-cement plant-brewery plant”.
 
The three projects in the industrial park belong to the three listed subsidiaries of CR Group. As a result, the projects have different appeals and industrial models, as well as differentiated demand in project planning, land use, project approval, industry support, supporting policy, etc. To address these problems, CR Group and Guangxi Zhuang Autonomous Region set up a steering group. As a leading company in the construction site of the demo zone, Resources Power (Hezhou) Co., Ltd. worked to help set up the steering group and further promoted the project.
 
By the end of 2012, three enterprises in the industrial park-- Resources Power (Hezhou) Co., Ltd., China Resources Cement Holdings Limited and China Resources Snow Breweries (Guangxi) Co., Ltd, have gone into operation, and the coordinated recycling work has entered an operation phase. Based on advanced production technology and measures on energy& water conservation and consumption reduction, we achieved low consumption, high energy efficiency and low emissions. Meanwhile, the three enterprises conducted resource recycling and coordinated production to reduce repetitive investment, land use, pollution emissions. In this way, they have recycled the waste and protected the environment.
 
During the construction, the circular economy industry chain has started to play its part: the cement plant provided cement to power plant and brewery plant while the waste was recycled by power plant to reduce the land use.
 
The power plant provided vapor and industrial water to the brewery plant and flue gas desulfurization gypsum to the cement plant. In addition, the coal ashes and slag are cement additive to improve the cement quality.
 
The cement plant made full use of the industrial and household garbage to provide the power plant with limestone for desulfurizationand the waste diatomite could become the fuel for the cement plant.
 
Achievements
 
The circular economy industrial park in Hezhou, Guangxi has created a new model for circular economy in CR Group and Guangxi Province. After years’ efforts, the industrial park has received a number of rewards, thus become the model for circular economy in Guangxi and even China. Alongside that, the industrial park also serves as the model for cooperation between central SOEs and local government. The park also well represents the support of central SOEs for underdeveloped regions.
 
Social Benefit
 
Targeted poverty alleviation based on industry to boost the local economy. In 2013 and 2014, the total industrial output value of the three enterprises were 5.74 billion yuan and 4.16 billion yuan, accounting for 69.8% and 62.7% of the total industrial output value of Fuchuan County. In 2015, the tax revenue hit 344 million yuan, 53% of the total tax revenue of Fuchun County, which has significantly driven the local development. Meanwhile, the three enterprises offered about 1,000 jobs to ease the local employment pressure. Moreover, the enterprises have built close ties with local colleges and universities, such as Guangxi Electrical Polytechnic Institute and Hezhou University, to provide students with internships. At present, employees from Guangxi take up 55% of the total employees.
 
Meanwhile, the annual cement output of the industrial park reached 2 million tons, beer 100,000 tons, limestone flour 300,000 tons, coal ashes 920,000 tons and flue gas desulfurization gypsum 440,000 tons. It takes a truck fleet to deliver the goods, which has significantly boosted local logistics.
 
Economic Benefit
 
Win-win coordination to forge ahead with green transformation. The construction struck a balance among material supply, water use and waste recycling, and avoided the overlapping construction of various facilities. In this context, we have saved 1,050 mu of land and 86.68 million yuan in terms of construction expense. 
 
During the operation, the three enterprises could reduce energy consumption equal to 290,000 tons of standard coal, conserve 780,000 tons of water, treat 2630,000 tons of waste water, and cut 4,250 tons of oxynitride emissions, 730,000 tons of carbon dioxide emissions and 60,000 tons ofsulfur dioxide. Through the recycling of industrial waste, the three enterprises has achieved zero pollutant emission. Due to energy conservation and circular economy, Guangxi particularly awarded the leading enterprise in the industrial park--Hezhou power plant with 200 hours of power per year.
 
Prospect
 
At present, CR Power is still seeking for the best model for circular economy. Due to the lack of permission to sell electricity, the economic benefit of straight power supply is for us to wait and see. After the electricity supply reform, circular economy will further seek for its best development model.
 
After the success of the industrial demonstration zone of circular economy in Guangxi, a group of circular economic industrial parks based on the integration of coal and power are going through the planning phase. Liuzhi Power Plant project started the construction at the end of 2014, while the 4×660MW project of Bijie Power Plant in Guizhou, approved by Guizhou Development & Reform Commission and Chongqing Development and Reform Commission in March 2015, will contribute to the power supply to China’s eastern region and ensure the steady power supply in Guizhou.