Zhou Kang on the future layout of China's environmental protection, county waste incineration power generation project is one of the key
Recently, Zhou Kang, chairman of China Environmental Protection Group, accepted an interview with the media. He explained the history, current situation and future of solid waste industry development, and analyzed the opportunities and challenges. In addition, it introduces the future development direction of China's environmental protection, such as promoting the construction of waste incineration power plants at county level, emphasizing the investment in wet waste treatment, and paying attention to the carbon assets generated by "carbon neutrality".
China Environmental Protection Group Co., LTD. (" China Environmental Protection Group ") is a wholly-owned subsidiary of China Energy Conservation and Environmental Protection Group Co., LTD. (" China Energy Conservation or Group Company "). Founded in 1985 by the former State Environmental Protection Administration, the company was transferred to China Energy Conservation in 1997. Since 2000, the company has entered the fields of solid waste, water, new materials, etc. In 2012, it determined the main business of solid waste treatment. After more than 20 years of professional development of solid waste industry, the main business covers five major sectors, including household waste incineration and power generation and collaboration, agricultural and forestry biomass power generation, organic waste recycling, sanitation business, environmental engineering services, with solid waste treatment research and development, design, equipment technology, investment, construction, operation of the whole industry chain integration capabilities. As the national team and leader of the solid waste industry, the development of China Environmental Protection Group closely follows the development of the industry, and leads and promotes the development of the industry with its own innovative development. Recently, China Investment Reporter interviewed Zhou Kang, chairman of China Environmental Protection Group, and asked him to interpret the history, current situation and future of solid waste industry development, and analyze the opportunities and challenges.
Q1: The solid waste industry itself is changing as business models and lifestyles change. How do you view today's solid waste industry?
A1: Waste disposal is created and optimized as cities develop. Garbage and human society are concomitant. The initial disposal method is sanitary landfill. With the expansion of the city, the former landfill suburbs into the city, the waste siege problem slowly emerged. In this context, how to effectively use land resources, and reasonably solve the problem of garbage, has become a new challenge faced by the industry.
The state has put forward three requirements for waste treatment: harmless, reductive and resource-based. In the beginning, the waste was treated harmlessly through sanitary landfills to reduce its impact on human life and health. With the increasing amount of garbage, "reduction" has become a new topic. However, through incineration, the material mass that needs to be buried at the end is about 3% of the total amount of original waste, which greatly reduces the volume of waste. At the same time, thanks to the "chelating and curing" technology, the fly ash generated during the combustion process (containing heavy metals and organic matter that is difficult to decompose) can be harmless treatment, eliminate secondary pollution, and finally realize the terminal disposal of all waste. The third is "recycling", that is, through incineration power generation and other ways to generate energy for secondary use.
In fact, the logic of the development of solid waste treatment industry is very clear: first solve the problems harmful to human beings, then carry out "reduction", then solve the problem of "recycling", and finally achieve "ecological". In the past, rural waste disposal was just a matter of finding a remote place to dump. The realization that untreated dumping affects groundwater led to a push to enclose and cover the waste. At the same time, the landfill waste will ferment to produce biogas, which can be used as landfill gas to generate electricity, further promoting the introduction of western advanced incineration technology, through incineration to achieve waste reduction and recycling. Now, under the guidance of ecological civilization, solid waste treatment has a new requirement of "ecological". In the future, with the deepening of human knowledge and technological progress, there may be new developments.
Q2: What do you think are the challenges and opportunities in the development of solid waste industry?
A2: Overcapacity in the industry is the first problem we face today. According to the 14th Five-Year Plan for the Development of Urban Solid Waste Sorting and Treatment Facilities, the incineration and treatment capacity of urban solid waste should reach 800,000 tons per day by the end of 2025. According to relevant national statistics, the incineration capacity of urban household waste in 2021 has reached 891,100 tons/day, and the processing capacity has exceeded the 145th scale target. That means more competition in the waste industry. In the past, garbage disposal enterprises helped the government dispose of garbage and collected disposal fees, but now garbage disposal enterprises need to take the initiative to seize garbage resources. In some areas, the shortage of refuse supply within the scope of franchise agreements has emerged. Second, the decline of state subsidies in the waste incineration power generation industry has a certain impact on the whole industry. For waste incineration power generation projects, the generating capacity reaches 82,500 hours or the project has been put into operation for 15 years, whichever is the earliest, and the exceeding hours or operating years will no longer enjoy the state subsidy. From January 1, 2021, all new projects in the industry will be allocated and determined through competition; For projects newly included in the scope of subsidies, the subsidy funds shall be shared by the central and local governments, and the proportion of the subsidies shall be determined reasonably by region. The central government's share shall be adjusted year by year and withdrawn in an orderly manner. In addition, after 2020, the state renewable energy subsidies are in arrears, which brings a great burden to the operating enterprises. Industrial overcapacity, national policy adjustment, which is currently facing a major problem, but also forced industry quality and upgrading.
Q3: As a state-owned enterprise, what is the self-positioning and future development direction of China Environmental Protection Group?
A3: As a central enterprise with energy conservation and environmental protection as its main business, Song Xin, Secretary of the Party Committee and chairman of China Energy Conservation, requires the whole system to think and plan from the height of promoting ecological civilization and building a beautiful China as the main force and national team, and unswervingly strengthen, improve and expand the main business. We should actively lead green and low-carbon industries in technological, model and institutional innovation, and speed up the building of a world-class energy conservation, environmental protection and health industry group. This also sets the main tone for the development of environmental protection in China.
The future development of the company is mainly planned in the following directions: First, to promote the construction of county-level waste incineration power plant. The second is to pay attention to the investment in wet waste treatment. Third, focus on the carbon assets generated by "carbon neutrality". The fourth is digital transformation.