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Economic Watch: North China energy base accelerates green shift from coal to clean power

Source: Xinhua

Editor: huaxia

2025-09-07 01:11:45

BEIJING, Sept. 6 (Xinhua) -- Stepping into the wind turbine assembly plant at Ming Yang Smart Energy Group's industrial park in Baotou, north China's Inner Mongolia Autonomous Region, visitors are greeted by orderly production lines and busy workers. Robotic arms swing methodically, while digital screens display real-time production data.

The park has established a complete industrial chain covering research and design, manufacturing and quality testing, according to He Changguo, manager of the firm's northern regional manufacturing center. Since 2008, wind turbines produced in the park have been deployed in more than 100 projects across China.

This facility epitomizes the accelerating pace of Inner Mongolia's green transition. Rich in coal and central to China's energy supply, the region accounted for more than one-quarter of the nation's coal output in 2024. This wealth of resources fueled decades of growth but also tied the region to high-polluting and resource-heavy industries.

In recent years, however, the nationwide low-carbon push has set the region on a new course. By tapping its abundant wind and solar resources, the region is cultivating fresh momentum for growth. Once renowned for its coal reserves and desert environment, Inner Mongolia is now dotted with vast arrays of solar panels and wind turbines.

So far, over 30 companies similar to Ming Yang Smart Energy Group, which operate full industrial chains in the new energy sector, have taken root in the region. In 2024, the added value of large-scale new energy and related industries rose by 20.1 percent compared with 2023, and that of new energy equipment manufacturers surged 42.4 percent year on year.

Gong Mingzhu, director of the regional Development and Reform Commission, said Inner Mongolia has established a comprehensive industrial chain for wind, solar, hydrogen and energy storage equipment manufacturing, effectively positioning the region to embark on a new chapter in industrial development.

As new energy industries gain momentum, Inner Mongolia is also transforming its traditional coal-based sectors, shifting from simple extraction toward a more diversified and cleaner industrial system.

A plant in Ordos exemplifies this transformation. Built by Inner Mongolia Baofeng Coal-based New Material Co., Ltd., the facility synthesizes olefins -- a class of chemical compounds serving as key raw materials for industrial products from plastics to textiles and aerospace components -- from coal.

With an annual production capacity of 3 million tonnes, this facility stands as the world's largest single-site coal-to-olefins project, according to the company.

Notably, the plant employs green hydrogen at scale to replace fossil fuels in olefin production, reducing carbon dioxide emissions by 6.3 million tonnes annually.

In 2024, Inner Mongolia's modern coal chemical industry output exceeded 100 billion yuan (about 14.07 billion U.S. dollars), while the region ranked first nationwide in both coal-to-gas and coal-to-olefin production capacities.

"Simply mining and selling coal cannot fully realize the value of Inner Mongolia's energy endowment, nor can it meet the requirements of building a modern country," said Hu Chengdong, deputy director of the regional energy bureau.

It is imperative for Inner Mongolia to transition from an extractive growth model, shift from factor-driven to innovation-driven development, and propel traditional industries toward higher efficiency and greater value, Hu added.

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