A number of soyabean crushing plants in China have been ordered to shut down as the government curbs energy consumption in a bid to meet stringent emission targets, industry sources told AgriCensus.
The Chinese provinces of Jiangsu and Tianjin were particularly hit as provincial governments curbed electricity supplies to the sector, according to the 23 September report.
Beijing introduced the curbs to meet the central government’s energy saving plan – formally called “Dual Control System of Total Energy Consumption and Energy Intensity” – to reach President Xi Jinping’s goal of carbon neutrality by 2060, the report said.
As part of the system, each provincial government was required to set an energy intensity target and build lists of high energy consumption and energy-intensive industries, China’s National Development and Reform Commission (NDRC) said.
Some provinces had been warned by Beijing that they were falling behind their targets and were urged to increase efforts to meet their environmental goals this year – leading some to enforce shutdowns at critical manufacturing sites, AgriCensus wrote.
Meanwhile, a shortage of coal in the domestic market and surging energy prices this year have also pushed local governments into rationing electricity usage to maintain stable energy supplies in the winter, according to the report.
Dozens of factories in industrial centres, such as Jiangsu, Tianjin and Zhejiang, have been ordered to cut or halt their operations, including some major soyabean crushing plants, according to industry sources and local media.
Local media reports said crushing plants operated by LDC, Beijing Grain Group and Jiusan had issued urgent notices on 22 September to halt operations due to power rationing, AgriCensus wrote.