Towngas and top battery maker CATL eye China’s growing demand for renewable energy storage systems

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Towngas and CATL plan to set up a joint venture to install energy storage systems in 10 industrial parks initially and also invest in energy-related projects

The venture will help the industrial sector’s green transformation and contribute towards the nation’s decarbonisation efforts, Towngas chairman Peter Lee says

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Energy storage systems store surplus electricity generated from solar and wind farms and play an important role in cutting down carbon emissions. Photo: Simon Song

Eric Ng

Published: 8:30am, 8 Jul 2021Updated: 9:53am, 8 Jul 2021

Hong Kong and China Gas (Towngas) and China’s largest battery maker CATL plan to set up a joint venture to install energy storage systems in industry parks, to tap demand from the growing renewable energy use and help the nation’s decarbonisation efforts.

The collaboration between Towngas and CATL also covers battery technology, semiconductor chips and joint investments in the energy space, Towngas said on Wednesday.

“Through the sharing and integration of resources, technology, talent and market applications, we will push forward the industrial sector’s green transformation and contribute towards the nation’s net zero carbon emission ambition,” Towngas chairman Peter Lee Ka-kit said.

The planned joint venture will initially focus on around 10 industrial parks, a Towngas spokesman said. Towngas, one of mainland China’s largest natural gas distributors, has around 300,000 industrial and commercial customers in China.

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CATL chairman Zeng Yuqun said there was huge room for growth in the energy storage business, as efforts to reduce carbon emissions were increasing globally to counter the threat of climate change.