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China to Boost Funding to Reduce Emissions at Coal Power Plants

The Wujing power station in Shanghai. Photographer: Raul Ariano/Bloomberg (Raul Ariano/Bloomberg)

(Bloomberg) -- China is planning to increase financial support for projects to reduce emissions at coal power plants through methods including burning biomass and green ammonia. 

A first phase of projects starting construction next year will target a 20% reduction in emissions per unit of electricity generated, according to a joint release by the National Development and Reform Commission and National Energy Administration. By 2027, such upgrades should be able to reduce emissions intensity by 50%, potentially putting the plants on par with cleaner-burning natural gas. 

The release doesn’t indicate how much funding will be available for the transformation or how many coal power plants will be targeted. 

The projects highlight China’s efforts to balance its climate goals with its reliance on the dirtiest fossil fuel. While coal’s share of power generation is shrinking amid a surge of new cheap wind and solar, government officials have said the fuel will remain essential to balancing those intermittent sources and providing energy security.

In addition to projects that would blend in as much as 10% of carbon-neutral fuels like biomass or green ammonia, carbon capture technology could also be used, according to the release. 

--With assistance from Kathy Chen.

©2024 Bloomberg L.P.