Wind turbine

Carbon fiber material for wind turbine blades

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Carbon fiber material for wind turbine blades

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in GPM)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
In 2020 wind turbine blades account for 40.9% of the downstream demands of carbon fiber. (10)
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13)

Business Model Description

The carbon-fiber blades of wind turbines have stronger wind-catching capability, ensuring structural strength while avoiding deformation or collision with the supporting structure due to wind load. Business model: purchase raw materials like acrylonitrile, produce carbon fiber through complex procedures, and sell the product to complete turbine manufacturers and blade manufacturers.

Expected Impact

Using carbon fiber materials in wind turbine blades develops wind resources, reduce power costs, improve efficiency, reduce GHG emissions, create jobs

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

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Country & Regions

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Country
Region
  • China: Guangdong
  • China: Zhejiang
  • China: Guizhou
  • China: Shandong
  • China: Jiangsu
Learn more

Sector Classification

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Sector

Renewable Resources and Alternative Energy

Development need
China's current energy structure dominated by fossil energy. Fossil energy resources are limited and can release large amounts of carbon dioxide when burnt, accelerating global climate change and extreme weather events. Thus, renewable energy is crucial to China's green transformation and energy security.

Policy priority
The proportion of non-fossil energy in total energy consumption should be increased to about 20%. State Council's action plan for carbon peaking stated that wind and solar power generation, biomass power generation and heating should be developed. By 2030, the total installed generation capacity of wind and solar power will reach above 1200 gigawatts. (1)

Gender inequalities and marginalization issues
Renewable energy employs about 32% women, compared to 22% in the energy sector. (2)

Investment opportunities introduction
The IOAs in the renewable energy sector center around the utilization of solar energy, wind energy, and biomass energy.

Key bottlenecks introduction
The energy endowment and demand don't match. Hydropower generation is centralized in southwest China, while wind and solar energy are centralized in northern China, which is far away from the centers of consumption in the eastern and coastal areas. The instability of renewable energy poses a challenge to the consumption and stable operation of the grid.

Sub Sector

Alternative Energy

Development need
Wind power is the second most crucial renewable energy for China and plays crucial role in achieving China's carbon targets. However, its further development faces several challenges including: land-use limitation, wind curtailment. (3)

Policy priority
With increasing installed wind capacity, China's current policy focus has shift from giving subsidies to driving grid parity, promoting offshore wind power projects, as well as improving utilization rate and consumption. (4)

Gender inequalities and marginalization issues
Wind resources are unevenly distributed across China. Higher average wind speeds can be observed in the northeast, northwest, and southwest plateaus and coastal islands. (5)

Investment opportunities introduction
The IOAs in the wind power sector center around wind turbine manufacturing, and the operation of wind farms.

Key bottlenecks introduction
The intermittent nature of wind energy making it hard to be fully utilized. Most of China's rich wind resources are located in the north and west while the power demand is in economic centers in eastern and southern China, requiring long-distance transmission. (6)

Industry

Wind Technology and Project Developers

Pipeline Opportunity

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Investment Opportunity Area

Carbon fiber material for wind turbine blades

Business Model

The carbon-fiber blades of wind turbines have stronger wind-catching capability, ensuring structural strength while avoiding deformation or collision with the supporting structure due to wind load. Business model: purchase raw materials like acrylonitrile, produce carbon fiber through complex procedures, and sell the product to complete turbine manufacturers and blade manufacturers.

Business Case

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Market Size and Environment

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

In 2020 wind turbine blades account for 40.9% of the downstream demands of carbon fiber. (10)

Indicative Return

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

> 25%

The mean gross profit of carbon fiber companies such as Weihai Guangwei Composites, Sinofibers Technology, and Jiangsu Hengshen in 2020 is 57.5%. Zhongfu Shenying Carbon Fiber's gross profit margin in 2020 is 43%. The mean gross profit margin in 2020 of the CITIC carbon fiber sector is 62.6%. (11)

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Based on the data of the 1,500t/a polyacrylonitrile-based carbon fiber precursor project, the total investment is estimated to be around 180 million yuan, with a pre-tax payback period of 6.43 years and a post-tax payback period of 6.8 years.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Many domestic carbon fiber companies haven't made any big technological breakthroughs. The production line operation and the product quality are unstable. The are insufficient production outputs despite sufficient production capacity. Supply can't catch demand in the carbon fiber market. (12)

Impact Case

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Sustainable Development Need

Given the technological limitation, many low-speed wind resources are not yet developed. The current wind-catching capability of blades is poor, and the development efficiency is low. (7)

Gender & Marginalisation

On-grid and consumption capability falls behind and idle capacity in wind and restriction on power exists. In China, wind power development is extended to areas with low wind speed and sound on-grid conditions. However, the manufacturing cost is high. (15)

Expected Development Outcome

Carbon fiber and its compound materials are widely applied in wind turbine blade fields, especially in wind turbine generator systems' scaling and offshore development. (16)

Gender & Marginalisation

Using carbon fiber materials helps develop wind resources in low windspeed areas so that more regions can access clean, affordable wind power.

Primary SDGs addressed

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.2.1 Renewable energy share in the total final energy consumption

Current Value

The share of non-fossil energy in China's primary energy consumption reached 15.9% in 2020. (17)

Target Value

The "14th Five-year Plan" stated that the share of non-fossil fuel in China's total energy consumption should be increased to around 20%.

Secondary SDGs addressed

Climate Action (SDG 13)
13 - Climate Action

Directly impacted stakeholders

People

By lowering the per kWh cost of electricity, more people can afford renewable energy. (18)

Planet

Using carbon fiber materials in wind turbine blades can improve blade strength and adaptability to harsh environments, reducing waste rates while increasing wind energy utilization efficiency.

Indirectly impacted stakeholders

People

Achieving China's wind power development goals will bring tremendous environmental and social benefits. In 2050, when CO2 emissions reductions reach 1.5 billion tons, wind power will create about 720,000 jobs. (19)

Outcome Risks

The traditional way of decommissioning can generate pollution; once decommissioned, it is also difficult for the blades to be melted or reshaped, making them hard to be recycled. (9)

Impact Risks

The high price of carbon fiber will lead to the high costs of wind turbines. The bottleneck issue of large-scale applications is yet to be solved.

Impact Classification

B—Benefit Stakeholders

What

Investment can reduce cost of wind power electricity generation while improving the efficiency so that more people can assess clean energy and reducing emissions.

Risk

Training for people in other industries should be provided to empower their transfer into emerging industries. The training programs should care for gender and marginalized groups. (20)

Impact Thesis

Using carbon fiber materials in wind turbine blades develops wind resources, reduce power costs, improve efficiency, reduce GHG emissions, create jobs

Enabling Environment

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Policy Environment

The country would improve the R&D and application of high-performance fibers, such as carbon fiber, and their composite materials; a good policy environment for the future technological progress of the carbon fiber industry should be provided. (21)

Ministry of Science and Technology supports the technological development and application of resin-based carbon fiber composites; supports research on low-cost materials and high-efficiency technologies such as large-tow carbon fiber, fabrics, and large-gram prepreg. (22)

The country should make breakthroughs in high-performance fibers, high-strength and high-conductivity heat-resistant materials, corrosion-resistant materials, large-sized silicon slices, and electronic packaging materials. (23)

Financial Environment

Financial support should be provided to develop new materials like carbon fiber and composite materials; Market-based, diversified funding mechanisms should be encouraged to guide social sectors. (24)

Carbon fiber manufacturers recognized as high-tech enterprises are subject to an income tax rate of 15.00% on taxable income.

Regulatory Environment

The key components used in all new on-grid wind power projects should go through type certification following the "Wind turbines—Conformity testing and certification” (GB/Z25458-2010). The certification process should be carried out by authorized institutions.

Develop the technical standards for the preparation of T800, M55J and other industrial-level carbon fiber; Carry out research on high-strength and high-modulus carbon fiber testing methods; Provide a standard basis for carbon fiber application, selection, and shaping. (24)

Carbon fiber projects should be made public according to the "Guidelines for Public Disclosure of Government Information on Environmental Impact Assessment of Construction Projects (for Trial Implementation)".

Marketplace Participants

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Private Sector

Zhongfu Shenying Carbon Fiber Co., Ltd., Weihai Guangwei Composites Co., Ltd., Sinofibers Technology Co., Ltd., Jilin Chemical Fiber Group Co Ltd, Lanzhou Bluestar Co., Ltd., Sinoma Science&Technology Co., Ltd., Wuxi Paike New Materials And Technology Co., Ltd.

Government

Government: Shandong: focus on the development of high-performance, low-cost carbon fibers, the development of intelligent, green manufacturing technology of fibers and composites, the industrialization of high-temperature-resistant thermoplastic composites.

Non-Profit

China Chemical Fibers Association Carbon Fiber Branch

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map

China: Guangdong

The target locations were identified according to the comparison of policy index and development need index of Wind Technology & Project Developers, utilizing natural language processing (NLP) to show key regions with stronger political will and greater development need.

China: Zhejiang

The target locations were identified according to the comparison of policy index and development need index of Wind Technology & Project Developers, utilizing natural language processing (NLP) to show key regions with stronger political will and greater development need.

China: Guizhou

The target locations were identified according to the comparison of policy index and development need index of Wind Technology & Project Developers, utilizing natural language processing (NLP) to show key regions with stronger political will and greater development need.

China: Shandong

The target locations were identified according to the comparison of policy index and development need index of Wind Technology & Project Developers, utilizing natural language processing (NLP) to show key regions with stronger political will and greater development need.

China: Jiangsu

The target locations were identified according to the comparison of policy index and development need index of Wind Technology & Project Developers, utilizing natural language processing (NLP) to show key regions with stronger political will and greater development need.

References

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