Climate finance: China’s Ping An Bank lends US$25 million to Inner Mongolia steel maker to capture carbon emissions
- The loan will help fund a pilot carbon capture, utilisation and storage project with Baotou Iron and Steel Group
- Project aims to reduce carbon-dioxide emissions by 365,300 tonnes per year, equivalent to the absorption capacity of 19 million trees
It is the first carbon capture, utilisation and storage (CCUS) project “encompassing the whole [supply] chain of China’s steel industry,” with a total annual processing capacity of 2 million tonnes of waste gas when completed, the bank said on Tuesday.
When the 500,000-tonne-a-year first phase, which began construction last year, is completed, it is expected to help Baotou reduce carbon-dioxide emissions by 365,300 tonnes per year, according to a statement from the bank. That is equivalent to the carbon-absorption capacity of around 19 million trees.
“CCUS technology plays a key role in achieving carbon neutrality as it effectively reduces carbon emissions by capturing it from industrial emission sources and either using it or injecting it into geological formations for storage,” the bank said.