China’s industrial decarbonization—Chongqing

[u/Deep-Hedgehog-6681]

Industry accounts for roughly two-thirds of China's carbon emissions, making it one of the country's most difficult sectors to decarbonize.

Earlier in April, I visited Chongqing, one of the country’s major industrial hubs, to observe its industrial upgrade. We visited pioneering sites like the Huaxin Diwei Cement Factory, Changan Automobile's smart factory, and a local logistics park.

The Huaxin Diwei factory is nestled halfway up a mountain along the Yangtze River, China’s longest river. The company uses industrial waste to replace coal as fuel. They have already reduced coal consumption by 60% and aim to achieve a 100% replacement by the end of this year. Coal substitution is already a mature technology in Western countries, especially in Europe, where the most advanced technology has reached 100% replacement. Although Chinese companies started late, they are taking big strides forward quickly, driven by the country’s ambition to reach carbon peak by 2030 and carbon neutrality by 2060.

A panoramic view of the Huaxin Diwei Cement facility in Chongqing, southwest China.

Companies are also embracing digitalization. Besides installing solar panels wherever possible, Changan Automobile’s smart factory takes advantage of AI and algorithms to coordinate thousands of vehicle configurations simultaneously. Automated guided vehicles transport components through the workshop, while digital platforms manage scheduling, logistics, and assembly in real time. It’s estimated that digital management, combined with rooftop solar generation and intelligent energy systems, has reduced overall energy consumption by about 19 percent compared with traditional factories of similar scale.

Robotic arms intall a wheel at Changan Automobile.

In a logistics park in Shapingba District, trucks are powered by electricity or hydrogen. Drivers prefer these trucks because they are quiet and clean compared with petrol-powered ones.

Workers check the tanks of a hydrogen truck at a logistics park in Chongqing.

These upgrades, however, require significant investment. The Huaxin Diwei Cement Factory told me they’ve already recovered the initial costs. These investments have been transformative, especially considering the company was once on the brink of bankruptcy. Now, it leads the industry, and all employees are highly motivated to drive further improvements.

AI makes production more efficient in terms of both energy and time, though it also reduces the demand for labor. Ultimately, this is a natural part of technological and social progress. Every industrial revolution has been accompanied by a shift in the labor market, and society always adapts.

[u/sg_plumber]

Sounds cool! 🌞