MAN Energy Solutions is committed to accelerating its investment in China in the hydrogen, carbon capture and storage sectors to meet increasing renewable power demand in the country, as China's efforts in decarbonization offer the German company massive opportunities, said a top company official.
MAN Energy Solutions will be investing more in China in these areas, as well as heat pumps, to help the government achieve its climate goals within or even ahead of schedule, said MAN Energy Solutions Global CEO Uwe Lauber.
"China, the world's largest and fastest-growing producer of renewable energy for more than a decade, with a strong commitment to achieve net zero development, provides multinational corporations like MAN Energy Solutions with massive opportunities in the decarbonization sectors," Lauber said.
"We are willing to help the Chinese government accelerate its ambitious carbon peak and carbon neutrality goals with our expertise and technologies, and we are looking forward to more cooperation with local players to accelerate the green transition," he added.
Based in Augsburg, Germany, MAN Energy Solutions — a provider of decarbonization solutions for the marine industry and several other industrial sectors — began doing business in China 100 years ago.
It is already laying out carbon capture and storage demonstration projects in China in cooperation with local partners, which it expects will scale up in two to four years and reach a capacity of utilizing 500,000 metric tons of carbon dioxide each year.
"China is already developing carbon capture and storage and we want to be part of the journey, helping the government to accelerate the progress," he said.
Zhu Yi, a senior analyst at Bloomberg Intelligence, said that despite higher operating costs and capital expenditure needed to build the infrastructure, carbon capture and storage is one of the most effective ways for Chinese plants to achieve emissions cuts.
However, wider commercial application on a larger scale and the development of technology could reduce costs, which would promote the usage of carbon capture, utilization and storage (CCUS) among high-emissions industries, she said.
Lauber believes China is on the right track for green transition, and the goals of peaking carbon by 2030 and achieving carbon neutrality by 2060 can be achieved ahead of schedule with cooperation with global partners.
The company is in the early discussion stage with Chinese partners including China Petrochemical Corp, or Sinopec, the world's largest refiner by volume, as well as Hangzhou Oxygen Plant Group Co Ltd to further expand its business in the country.
Lauber said China currently remains the company's largest revenue resource, accounting for more than 30 percent of its global revenue last year, a figure that is expected to further rise as the Chinese government is committed to achieving net zero development.
"After more than 100 years of operations in China, which has become our biggest major customer, MAN Energy Solutions has proved to be a reliable partner to work with in decarbonization," he added.