China - Hubei Yichang Energy Transition and Industrial Decarbonization Project

Overview & Synopsis

Hubei Yichang Energy Transition and Industrial Decarbonization Project for the People’s Republic of China has the development objective of reducing greenhouse gas emissions from hard-to-abate sectors in Yichang City. Component 1: Decarbonization of the industrial sector will increase green power supply and optimize demand in industrial parks through Sub-components: rehabilitating ten small hydropower plants to enhance renewable generation; installing long-duration iron-zinc flow battery and fast-response flywheel energy storage to improve renewable energy integration and grid stability; extending distribution networks and microgrids to enable clean power access; and deploying virtual power plants and digital energy management to reduce and shift peak demand. Component 2: Decarbonization of the freight transport sector will establish a green zero-carbon freight corridor through Sub-components: constructing high-capacity charging hubs for long-haul heavy-duty trucks, adding passenger car charging stations, and piloting vehicle-to-grid capability to provide bidirectional services; and piloting hydrogen heavy trucks supplied by zero-carbon byproduct hydrogen to demonstrate technical and operational viability for future scale-up. Component 3: Decarbonization of the power sector will expand clean energy supply and pilot deep decarbonization through Sub-components: building a biomass combined heat and power plant and a clean heating pipeline to deliver renewable electricity and replace dispersed fossil-fueled boilers in nearby industrial parks; and piloting carbon capture, utilization, and storage to capture CO2 from biomass flue gas and mineralize it with construction solid waste and phosphogypsum to produce low-carbon building materials with durable storage. Component 4: Institutional reform, capacity building, and project management will strengthen the enabling environment and replication through Sub-components: supporting implementation of the 15th Five-Year Plan for dual control of carbon intensity reduction and carbon emissions, developing a Green Yichang strategy including pathways to zero-carbon industrial parks and a green hydrogen roadmap, delivering workshops and knowledge-sharing activities at city, national, and global levels, and building institutional capacity for the Yiling Economic Development Group, district, and municipal agencies for planning, implementation, monitoring, reporting, verification, and climate resilience.