Carbon fiber material for wind turbine blades
Carbon fiber material for wind turbine blades
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.
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Country & Regions
- China: Guangdong
- China: Zhejiang
- China: Guizhou
- China: Shandong
- China: Jiangsu
Sector Classification
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.
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)
Wind Technology and Project Developers
Pipeline Opportunity
Carbon fiber material for wind turbine blades
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
Market Size and Environment
In 2020 wind turbine blades account for 40.9% of the downstream demands of carbon fiber. (10)
Indicative Return
> 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
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
> USD 10 million
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Impact Case
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
7.2.1 Renewable energy share in the total final energy consumption
The share of non-fossil energy in China's primary energy consumption reached 15.9% in 2020. (17)
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
Directly impacted stakeholders
People
Planet
Indirectly impacted stakeholders
People
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
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
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
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
China: Guangdong
China: Zhejiang
China: Guizhou
China: Shandong
China: Jiangsu
References
- (1) State Council, 2021, Action Plan for Carbon Dioxide Peaking Before 2030
- (2) IRENA, 2019, Renewable energy: a gender perspective. https://www.irena.org/publications/2019/Jan/Renewable-Energy-A-Gender-Perspective
- (3) Forward Intelligence, Market Foresight and Investment Strategy Report of China's Wind Power Industry, https://bg.qianzhan.com/report/detail/f7fa9c50850a4f16.html?v=footer2"
- (4) Guiding Opinions of the State Council on Accelerating the Establishment of a Sound Economic System with Green, Low-carbon and Circular Development (No. 4 [2021] of the State Council), http://www.gov.cn/zhengce/content/2021-02/22/content_5588274.htm
- (5) XNY365, http://www.xny365.com/zhuanjia/article-53293.html
- (6) Zhu Linzhi, Chen Ning, Han Hualing. Keys Problems and Solutions of Wind Power Accommodation [J]. Automation of Electric Power Systems, 2011, 035(022):29-34.
- (7) National Energy Administration, http://www.nea.gov.cn/2017-05/12/c_136277303.htm
- (8) Research on Carbon Fiber for Civilian Use Industry: Re-discussing the Growth and Cyclicality, https://baijiahao.baidu.com/s?id=1735026738751455804&wfr=spider&for=pc
- (9) No large-scale recycling measures exist while a large number of wind turbine blades are on their way to be scrapped, https://view.inews.qq.com/a/20220628A058HR00?refer=wx_hot
- (10) Carbon fiber industry: Wind power drives the development, and the downstream application market is booming, http://www.ahcjxc.com/news/577248.htm
- (11) Zhongfu Shenying Carbon Fiber Co., Ltd.'s Prospectus, http://quotes.money.163.com/f10/ggmx_688295_7931189.html
- (12) Carbon fiber industry special report: long-term demand is promising and the domestic effective supply is stable, https://baijiahao.baidu.com/s?id=1728873696575284064&wfr=spider&for=pc
- (13) Wind power blade cost analysis, market analysis, and glass fiber/carbon fiber development trend analysis, https://baijiahao.baidu.com/s?id=1689296723816998165&wfr=spider&for=pc
- (14) General introduction to the wind power blade production capacity and competition pattern, https://xueqiu.com/2552037283/195847276
- (15) BJX.com.cn,,https://news.bjx.com.cn/html/20170209/807354.shtml
- (16) in-en.com, https://wind.in-en.com/html/wind-2409633.shtml
- (17) Meitanshijie, https://view.inews.qq.com/a/20220105A0BZ4000
- (18) BJX.com.cn,,https://news.bjx.com.cn/html/20171011/854532-1.shtml
- (19) Wind power installed in China in 2050 is estimated to reach up to 1 billion kWh, CQVIP, http://www.cqvip.com/QK/93961X/20132/45734422.htmlhttp://www.cqvip.com/QK/93961X/20132/45734422.html
- (20) Wind Power as an Important Engine for Achieving Global Economic Recovery, https://new.qq.com/rain/a/20200526A0PTQ800
- (21) Xinhua News Agency, The Outline for the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035,http://www.gov.cn/xinwen/2021-03/13/content_5592681.htm
- (22) Ministry of Science and Technology, 2021, Response to Proposal No. 2146 of the Fourth Session of the 13th National People's Congress, https://www.most.gov.cn/xxgk/xinxifenlei/fdzdgknr/jyta/202109/t20210924_176998.html
- (23) National Development and Reform Commission, 2020, Guiding Opinions on the Expansion of Strategic Emerging Industry Investment, Developing New Growth Points, https://www.ndrc.gov.cn/xxgk/zcfb/tz/202009/t20200925_1239582_ext.html
- (24) New Material Standard Pilot Action Plan (2018-2020), CNKI, https://www.cnki.com.cn/Article/CJFDTotal-QCGJ201804010.htm