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In Qingdao in Shandong province, AFD is supporting the development of a natural gas-fired trigeneration power plant. This innovative energy generation project aims to reduce the carbon intensity of the district heating system, while also reducing local pollutant emissions in the city.
Context

Qingdao, home to 8.7 million inhabitants and the leading economic center of Shandong province, is known for its high-tech industry, tourism and quality of life. In 2012, the Chinese government chose the city as one of the pilot cities for its Low Carbon City program.

In Qingdao, one third of CO2 emissions result from the residential sector and district heating. One of the program’s key actions is therefore to replace coal-fired boiler systems with efficient, low-carbon heating systems.

Description

AFD is assisting the authorities in this program by supporting the construction of a natural-gas fired combined cycle trigeneration power plant with an installed capacity of 86 MW. This power plant will supply electricity, steam, heat and cooling to companies and commercial and residential buildings in the Gaoxin high-tech area in the north of Qingdao.

The construction of the power plant will allow four coal-fired boiler systems currently in service in the area to be demolished.

Impacts
  • Improve public energy supply services in Qingdao to meet growing needs driven by urban sprawl;

  • Improve the energy mix at provincial and national levels by replacing coal with natural gas in power generation;

  • Reduce greenhouse gas emissions by an estimated 260,000 tons of CO2 per year;

  • Cut nitrogen dioxide emissions by two-thirds and eliminate sulfur dioxide, dust and particle emissions, thus reducing air pollution and improving living conditions for residents.

16/05/2016
Project start date
Qingdao
Location
Financing tool
20 000 000
EUR
Financing amount
Ongoing
Status
Kaiyuan Group
Beneficiaries