Yunnan is the largest province in electrolytic aluminum production capacity in China
In the last month of 2021, Shandong Weiqiao venture group and Yunnan provincial government successfully signed a cooperation agreement on the project of green and low-carbon demonstration Industrial Park. Weiqiao venture group transferred its 600ka electrolytic aluminum production line in Binzhou City, Shandong Province, with a total electrolytic aluminum production capacity of 1.93 million tons to Luxi County, Honghe Prefecture, Yunnan Province. This is another big cooperation with Yunnan Province after Weiqiao venture group withdrew its 2.03 million tons of electrolytic aluminum production capacity in Binzhou at the end of 2019 and transferred to Yanshan County, Wenshan Prefecture, Yunnan Province. So far, only the electrolytic aluminum production capacity transferred by Weiqiao venture group to Yunnan Province has reached 3.96 million tons.
According to public statistics, Yunnan Aluminum Co., Ltd., a subsidiary of Chinalco group, has an electrolytic aluminum production capacity of 3.05 million tons. In addition, Chinalco group announced last year that it also transferred 138000 tons of electrolytic aluminum production capacity index of Shandong Huayu company to Yunnan Province. Up to now, the electrolytic aluminum production capacity scale of Chinalco group in Yunnan Province is 3.188 million tons.
In addition, the 900000 tons of production capacity transferred by Shenhuo Group to Funing County, Wenshan Prefecture in 2019 and the 350000 tons of production capacity transferred by its sub group to Heqing County, Dali Prefecture, Yunnan Province has a total of about 8.398 million tons of electrolytic aluminum compliance capacity by the end of 2021.
According to incomplete statistics, by the end of November 2021, the total capacity of electrolytic aluminum in China was about 42.83 million tons. China's electrolytic aluminum production capacity is about 45 million tons. Although Yunnan Province is a corner, its electrolytic aluminum production capacity has reached about one-fifth of the country's total production capacity, far surpassing the important aluminum areas such as Shandong Province, Henan Province, Xinjiang Uygur Autonomous Region and Inner Mongolia Autonomous Region, and truly becoming the largest electrolytic aluminum production capacity Province in China.
The plan of high-profile layout of electrolytic aluminum production capacity in Yunnan Province began six years ago. In 2016, the outline of the 13th five year development plan issued by the Yunnan provincial government mentioned that during the 13th Five Year Plan period, we should pay close attention to the opportunities of industrial transfer, adhere to the selective orientation of industrial undertaking, innovate the system and mechanism, optimize the industrial undertaking environment, strengthen investment attraction, build an open industrial platform, and attract industries to accelerate the transfer to Yunnan Province, Orderly undertake the transfer of electrolytic aluminum industry, extend the industrial chain, and make hydropower aluminum a provincial resource-based industry development demonstration, environment-friendly model and leading upgrading benchmark.
In addition to the superior advantages of hydropower resources, in order to implement the plan, Yunnan Province has successively issued special policies such as the implementation opinions on promoting the integrated development of hydropower and aluminum materials and the scheme on implementing preferential price full development to promote hydropower consumption. It is clearly proposed that all enterprises entering Yunnan with their own electrolytic aluminum production capacity index will enjoy the policy of "preferential price and full payment", that is, electrolytic aluminum will enjoy a special preferential price of 0.25 yuan per kwh in the first five years, and the linkage policy between electricity price and aluminum price will be implemented after the expiration of the period, while aluminum deep processing will enjoy a special preferential price of 0.20 yuan per kWh. At the same time, it is clearly proposed that the goal of introducing and developing electrolytic aluminum industry is 6 million tons to 8 million tons.
Stimulated by the effects of various preferential policies and green and low-carbon effects, electrolytic aluminum production capacity indicators everywhere began to gather in Yunnan Province. Although under the requirements of the notice on improving the stepped electricity price policy of electrolytic aluminum industry issued by the national development and Reform Commission in 2021, Yunnan Province cancelled the preferential electricity price policy previously promised for electrolytic aluminum industry, driven by the "double carbon" goal and relying on the absolute advantage of green hydropower energy, it still successfully achieved the goal of electrolytic aluminum capacity transfer.
At present, the scale of electrolytic aluminum production capacity in Yunnan Province has become a foregone conclusion, but "building nests and attracting Phoenix" is only the beginning. How to "solidify nests and raise Phoenix" and make the attracted production capacity projects stay and develop well is a more critical proposition facing Yunnan Province.
To develop electrolytic aluminum well, we should not only consider the advantages of hydropower, but also consider the influence of multiple factors such as the stability and sustainability of electric energy, the supply capacity of upstream resources, the consumption capacity of downstream market and the bearing capacity of regional environmental protection. Only by comprehensively considering the development of all factors of the industry as far as possible, can these capacity projects be rooted for a long time.
At present, although Yunnan Province has excellent hydropower resource endowment and superior development conditions, the problem of power supply in dry season is still great. The dry season of Yunnan Province is from December to May of the next year, and the power generation in this period accounts for only one third of the total amount of the whole year. That is to say, at this time, a large number of other electric energy is needed to supplement and balance hydropower, so as to meet the demand of the sustainable power consumption characteristics of the electrolytic aluminum industry. In recent years, Yunnan Province has mostly used thermal power as a supplementary channel for Hydropower to stabilize hydropower fluctuations through the way of "frequent occurrence in dry seasons and less occurrence in wet seasons". However, in 2021, the rising coal price reduced the inventory of power plants to a new low in recent years, and the supply capacity of thermal power is seriously scarce, resulting in the power cut-off and production restriction of electrolytic aluminum projects that have been put into operation, The new electrolytic aluminum project planned to be put into operation is delayed, which not only misses the best investment return period for enterprises, but also is more unfavorable to the development of ensuring supply and stabilizing price for the whole electrolytic aluminum industry. In the future, with the introduction of electrolytic aluminum projects completed and put into operation one after another, as a power consuming province with a capacity of more than 8 million tons of electrolytic aluminum, the power supply pressure of Yunnan Province will be greater and greater. If a large-scale power cut-off and power restriction occurs again, the consequences will be worse.
Therefore, facing greater challenges, Yunnan Province should make full preparations. For example, accelerate the construction of wind power, photovoltaic, solar energy and other electric energy suitable for the local environment, and take multiple measures to solve the problem of insufficient local hydropower in dry season as soon as possible.
In addition, we should coordinate the upstream and downstream development of the aluminum industry chain. The relative concentration of electrolytic aluminum production capacity will bring greater challenges to the upstream and downstream supply and consumption ends of the industrial chain, which needs special attention.
More importantly, we should pay close attention to the local environmental tolerance and deal with the harmless disposal of solid waste and the discharge of "three wastes" such as waste gas and wastewater.
At present, Yunnan Province should not only meet the title of a major aluminum Province, but should take multiple measures to supplement the short board as soon as possible, so as to be stable and far-reaching. According to the planning and layout of electrolytic aluminum production capacity in Yunnan Province, the electrolytic aluminum production capacity of Yunnan Province will reach about 10 million tons at the end of the 14th five year plan. Therefore, it is hoped that Yunnan Province will become bigger and stronger at the same time, and finally lead China's aluminum industry to achieve high-quality and sustainable development.