Inner Mongolia's Energy Revolution: Breaking Boundaries and Embarking on Expeditions

Deep News11-20

Across the vast landscapes of Inner Mongolia, beyond the sprawling "coal seas," one encounters breathtaking vistas of photovoltaic "oceans," wind turbine "forests," and futuristic green hydrogen industrial chains paired with energy storage stations. These scenes collectively outline a systemic transformation in Inner Mongolia's energy development.

With coal reserves accounting for over a quarter of China's total, wind energy potential representing about 57% of the nation's technical capacity, and solar resources making up roughly 21%, Inner Mongolia is leveraging its unparalleled natural endowments during the 14th Five-Year Plan period. Seizing the opportunities of the energy revolution, the region is advancing through a three-pronged strategy: upgrading traditional energy industries, scaling up renewable energy, and strategically positioning itself in future energy sectors.

**Traditional Energy: New Shoots on Old Trees** Is coal merely black? In Inner Mongolia, through clean and efficient utilization, black coal transforms into white polyethylene pellets, transparent cling film, and even multicolored products. This metamorphosis stems from the region's pioneering efforts in "coal-to-chemicals," establishing a modern coal-chemical industry system centered on coal-to-oil/gas, coal-to-olefins, and fine chemicals. By 2024, over 100 million tons of coal were locally converted, driving a green transition in traditional energy.

"Coal-to-chemicals technology enhances clean and efficient coal utilization, which is crucial for national energy security," said Yu Jianliang, General Manager of Shenhua Baotou Coal Chemical Co., Ltd. The company’s coal-to-olefins demonstration project employs domestically developed technology to convert 3 million tons of coal annually into 1.8 million tons of methanol, further processed into 600,000 tons of polyethylene and polypropylene pellets, generating around 6 billion yuan in revenue.

Downstream products—ranging from plastic storage boxes and toy models to medical devices and protective gloves—showcase coal’s versatility. "Our coal-derived olefins are used in countless daily products, proving coal’s transformative potential," Yu added.

In Ordos’ Yijinhuoluo Banner, the Tianjiao Lüneng 500 MW photovoltaic project repurposes subsided coal-mining land into a solar farm intertwined with ecological restoration. "This project merges environmental rehabilitation with renewable energy, fostering agritourism and specialty farming," explained Xue Feng, Deputy General Manager of Inner Mongolia Yizheng New Energy Technology.

To promote green and intelligent coal mining, Inner Mongolia has adopted techniques like backfill and water-preserving mining while accelerating smart mine upgrades. Currently, 61% of active mines are green-certified, and 74% are intelligent.

**Renewable Energy: Harnessing the Desert’s Potential** Deep in the desert, photovoltaic panels stretch like waves toward the horizon, turning barren land into sprawling "green power plants." Inner Mongolia has seized the renewable energy boom, becoming China’s first region to exceed 100 GW in installed capacity last year. Today, its renewable capacity stands at 150 GW, surpassing thermal power.

At a polysilicon plant, production manager Yu Xiufeng highlighted innovations like the silane fluidized bed process, which slashes energy use by 30% compared to traditional methods. The region now hosts a full photovoltaic supply chain—from silicon refining to module assembly—turning quartz sand into solar panels shipped worldwide.

In the Tengger Desert’s southeast, China Huadian’s 2 GW solar project spans 53,800 mu, generating enough electricity for 1.3 million households annually. "Our ‘PV + desert control’ model combines energy production with ecological restoration," said Wang Jun, Party Secretary of Huadian Inner Mongolia Tengger New Energy.

Sand fixation is critical in the Tengger, where annual evaporation (2,000 mm) dwarfs rainfall (<200 mm). "PV arrays act as sand anchors, reducing wind speed and evaporation while fostering hardy vegetation," noted Hong Guangyu, a researcher at Inner Mongolia’s Forestry Academy.

By 2024, Inner Mongolia had treated 19.54 million mu of desert, achieving a daily peak of 60,000 mu—a testament to its "desert-to-gold" approach.

**Future Energy: Hydrogen and Storage Paint a New Landscape** In July, the country’s largest green hydrogen-ammonia project—Envision Chifeng Zero-Carbon Hydrogen Industrial Park—began operations, producing 320,000 tons of green ammonia annually. This milestone marked the shift from pilot projects to commercial-scale green hydrogen-ammonia production.

Inner Mongolia is rapidly advancing green hydrogen, ammonia, and methanol industries, integrating renewable power generation with hydrogen production and storage to address grid stability. "Green ammonia bridges agriculture and zero-carbon fuels, decarbonizing industries like shipping and steel," said Zhang Lei, Chairman of Envision Group.

The region now boasts 60,000 tons/year of green hydrogen capacity, aiming to become a national hub for hydrogen production, equipment manufacturing, and applications.

Meanwhile, utility-scale energy storage is gaining traction. Projects like Ulanqab’s 1,050 MW/6,300 MWh and Hulunbuir’s 1,000 MW/4,000 MWh storage stations are among 34 launched in 2024 alone. "Energy storage stabilizes grids amid renewable fluctuations," said Hu Chengdong, Deputy Director of Inner Mongolia’s Energy Bureau. By year-end, storage capacity hit 10.32 GW, projected to exceed 16 GW by 2025.

**Market Reforms and Green Power Trading** Inner Mongolia leads in green electricity trading, settling 76.2 billion kWh in 2024—topping China’s rankings. It has also pioneered cross-provincial ultra-high-voltage green power deals and multi-year contracts with key consumers in Beijing, Tianjin, and beyond.

"Building a modern energy economy is a monumental task," said Cao Siyang, Director of Inner Mongolia’s Energy Bureau. "We will leverage our strengths to safeguard national energy security and contribute to China’s modernization."

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