CSC is devoted to improving environment and innovating technology for green energy in order to win in the trending global competition of low-carbon economy. Focused on developing and popularizing various energy-saving products, CSC achieved considerable results in environment protection, resource recycling, and energy integration.
“Rail transit” is one of the best transportation solutions for energy saving and carbon reduction. CSC participates in public construction, upholds corporate responsibility, and carefully evaluates the participation in rail projects in accordance with policies. CSC cooperates with local governments to provide citizens with a light rail transit system that is safe, comfortable, convenient, and environmentally friendly. For example, the rolling stock of Danhai/Ankeng light rail transits are designed and manufactured by Taiwan Rolling Stock Co., Ltd in cooperation with foreign manufacturers. With a gradual increase in the proportion of localization and the establishment of light rail transit procurement guidelines led by the Railway Bureau, these projects create new opportunities for the future design and manufacture of light rail rolling stock.
In consideration of energy security, green economy, and environmental sustainability, the government has set a goal of achieving 20% renewable energy by 2025, and the capacity of solar photovoltaic (PV) will reach 20GW. CSC actively responded to the renewable energy policy. In October 2016, CSC combined companies within the group to establish the CSC Solar Corp., which is responsible for promoting the development of CSC's solar power generation business.
Based on solar power generation, CSC Solar starts with using the 80-hectare rooftop of all group companies' plants, and with sufficient sunlight in the central and southern regions of Taiwan, it is estimated to have a total power capacity greater than 80 MW. The construction will be completed in 3 years. The annual power generation is expected to reach more than 102 million kWh, achieving the vision of reducing carbon emissions with green power.
At present, CSC Solar has established a professional solar photovoltaic team as a project system supplier with EPC technical and engineering capabilities. The team is able to carry out integrated planning and detailed design of photovoltaic systems, and provides system design, construction, supervision, operation and maintenance, and professional consulting based on site requirements and environment, providing customers with stable power generation efficiency and comprehensive services. As of the end of 2022, CSC Solar has installed a capacity of approximately 62 MW on the roof of CSC's plant, which is currently the largest rooftop solar photovoltaic project site of a single company in Taiwan. Since September 15th 2017, the cumulative installed capacity of the solar photovoltaic system by CSC Solar at the CSC Group (14 companies including CSC, Dragon Steel, Chung Hung Steel C.S. Aluminium Corporation, China Steel Machinery Corporation, CHC Resources Corporation, China Steel Chemical Corporation etc.) had reached 92.4 MW, and the cumulative power generation had reached about 430 million kWh. In the future, CSC Group can contribute at least 105 million kWh of green electricity and 53,000 tonnes of CO2 reduction annually.
Along with the national renewable energy policy promotion in the future, CSC Solar will construct the roof-type solar photovoltaic stably and seek for the chance to develop the ground-based PV power stations. The best operational target for CSC Solar can be identified through SWOT analysis and move towards the center of operations and maintenance of the CSC group. In addition, we will simultaneously extend our tentacles to companies related to each of CSC's industrial chains and establish a large-scale rooftop solar photovoltaic operation system.
After the establishment of CSC Solar Corp., the short-term goals are mainly focused on completing the construction of CSC Group's 80MW rooftop solar photovoltaic system from 2017 to 2019. In addition to achieving the short-term three-year goal, the management team has a long-term mission and vision which is to further develop solar photovoltaic fields and green energy related industries. The relevant development strategies from the short-term to long-terms and technical regulations are set out as follows:
In addition to the aforementioned green business development, other green related businesses and technologies focusing on reducing CO2 emissions are as follows:
| Event | Summary | Performance | Prospect |
|---|---|---|---|
| Honley Auto Parts Co., Ltd. |
CSC worked with strategic shareholders in establishing an automotive hot
stamping parts plant. Combining strategic shareholders, CSC established automotive hot stamping parts plants in Pingtung, Changchun, Chongqing, Kunshan and Foshan. |
Increase the sales of CSC automotive steel products and contribute to energy saving and carbon reduction for the automotive industry. | The trend of automobile light weighting energy consumption,
reduction, the needs of safety requirement of car structure; and the rise of EVs
are very clear. Honley recently joined MIH Open Platform. In addition, other than hot stamping components, Honley also develops aluminum plates and warm/hot-forming components. The quality of aluminum material and energy-saving steels were enhanced. |
| Fukuta Elec. & Mach. Co., Ltd. | Fukuta is the primary motor core supplier of TESLA. The key material, electric steel sheet, of Fukuta's motor core has been supplied by CSC exclusively from the very beginning of TESLA's trial production. | TESLA is the global leader in EVs. Environmental protection is not the only appeal of TESLA's EVs as they have received good reviews in the market for their performance and safety. TESLA sold approximately 1.31 million EVs worldwide in 2022. | The EV industry has enormous growth potential in the global trend of green energy. |
With countries around the world actively promoting carbon neutrality to achieve net zero carbon emissions in response to the challenge of climate change, the Taiwanese government announced its plans to amend the Greenhouse Gas Reduction and Management Act and include its goal to achieve carbon neutrality by 2050 into this piece of legislation in 2021. As far as energy policy is concerned, the Taiwanese government is actively promoting the green energy industry and has drawn up plans to achieve an installed offshore wind power capacity of 5.5GW by 2025 and an annual development capacity of 1.5GW from 2026 to 2035. With a view to making contributions to environmental sustainability in line with the government’s green energy development policy, CSC has engaged in areas related to steel for offshore wind power installations and those in which it is capable of engaging through a series of initiatives, including setting up SDMS, a subsidiary of CSC, to engage in the manufacture of underwater foundations; establishing CSPC, another subsidiary of CSC, to develop Zone 29 Offshore Wind Farm and participate in Taiwan International Windpower Training Corp. (TIWTC) led by Taiwan International Ports Corp.; facilitating wind turbine system suppliers through CSPC to build a local parts supply chain; and supporting the development of a local supply chain for underwater foundation parts through SDMS to seize business opportunities in green energy.
Since offshore wind power is a renewable energy industry with the highest demand for steel, CSC not only produces high-quality steel for use in wind farms, but also invests in SDMS and CSPC.to expand its business, funds the establishment of TIWTC to nurture related talents, and utilizes its core competencies to support the cultivation of Taiwan’s offshore wind power industry chain. CSC realizes the development of local wind power professionals and technological upgrading in local industries through collaboration with local supply chain manufacturers and the combination of related experience and technical resources at home and abroad, thereby promoting the development of the local economy.
The most important components of offshore wind farms are the underwater foundations and wind turbine generators (WTGs). Stable offshore electricity generation relies on underwater foundations installed in the ocean. Underwater foundations weigh 1,000 tonnes and above. Besides supporting its weight, the foundations must be able to withstand earthquake, typhoon, ocean current, and corrosion to allow WTGs to stably operate for 20 years and above. Kaohsiung has a complete steel construction supply chain. Along with its harbor transportation, Kaohsiung has the advantage of steels fabrication for the jacket foundation. Therefore, CSC’s subsidiary SDMS has set up a dedicated production line for underwater foundations and employed foreign welding technicians to personally impart European welding techniques to local technicians. Foreign consultants are also invited to offer guidance to local supply chain manufacturers and teach them the know-how on component and parts assembly, welding, measurement, and non-destructive inspection, thereby supporting local manufacturers and promoting industrial upgrading. In other words, SDMS not only serves as the starting point in the localization of the wind power industry, but is also an extension of the downstream steel industry. Apart from the underwater foundation industry, CSC’s other subsidiary CSPC is also charged with promoting the localization of wind turbine system manufacturers and local collaboration in the production of wind turbine components in Taiwan, which can indirectly drive steel demand in related industries. In order to implement the government’s localization policy of offshore wind power industry, CSC promoted the localization policy of offshore wind farm through the efforts of CSPC and SDMS to reach the achievements as below:
CSC and Copenhagen Infrastructure Partners (CIP) jointly invested in CSPC to promote the localized production of wind turbine components. With the advancement of localized supply, CSC expects to provide wind turbine components through local Taiwanese suppliers. At the same time, CSC pursues development with a pragmatic approach based on its existing core competencies and seeks collaboration with experienced overseas manufacturers in wind power components and parts when needed, such as nacelle cover and spinner cover (Atech Composites and Fassmer), towers (Chin Fong Machine and CS Wind), transformers (Shihlin Electric and ABB), and switch (Shihlin and Mitsubishi) etc. in wind turbine components.
Jacket foundation facility accounts for a higher proportion of total costs and has stricter quality requirements. Therefore, SDMS collaborates with well-known foreign steel construction experts to established production line in Xing Da Harbor. CSC is also dedicated to local manpower to provide consultancy to and support downstream manufacturers to establish a complete supply chain. SDMS is expected to achieve continuous production and match the jacket foundation demand for the domestic offshore wind farm developers.
| 2022 | Progress |
|---|---|
| Sing Da Marine Structure Corporation | Sing Da Marine Structure Corporation delivered 6 jacket foundations that were 100% domestically produced in August 2022. |
| Zhong Neng Offshore Wind Farm | The 45.2 billion TWD in project financing for Zhong Neng Offshore Wind Farm in July 2022 overcame the challenge of long-term loans with complex contract structures, and gained the trust and support of a syndicate of 20 domestic and foreign banks without the participation of an export credit agency. It was the first offshore wind farm project financing in Taiwan with a state-owned bank serving as the arranger. The project currently has the highest local content in Taiwan, and is also the first offshore wind farm project in Taiwan to obtain a green loan. It also gained recognition from the international financial magazine The Asset, and won the Renewable Energy Deal of the Year - Offshore Wind. |
CSC invested 6.8 billion TWD in 2018 to establish Sing Da Marine Structure Corporation (SDMS) and holds 100% shareholdings. SDMS set up at the “Kaohsiung Marine Technology Industrial Innovation Zone” in Xingda Port to build offshore wind power jacket foundation plants, heavy-duty wharfs and office buildings, with an annual production of about 50 jacket foundations. It is the first offshore substructure factory in Taiwan.
| Green Revenues of the CSC Group in 2022 | January 1, 2022 to December 31, 2022 | Unit: Ton/Thousand TWD | |||
|---|---|---|---|---|---|
| Department | Company | Item | Description of revenue | Revenue (after write offs) | As a percentage of revenue |
| Group Total | Green revenues of the CSC Group | 87,880,485 | 19.55% | ||
| Non-green revenues of the CSC Group | 361,687,003 | 80.45% | |||
| Consolidated operating revenue of CSC | 449,567,488 | 100.00% | |||
| Steel Department | CSC | Green steel products (has external energy saving and carbon reduction benefits) |
1.High-strength or functional steels 1-1Steel for wind power |
13,376 | 0.00% |
| CSC CSCI Steel Corporation India Pvt. Ltd. |
1-2Steel for electric vehicles or
scooters. |
4,388,844 | 0.98% | ||
| CSC |
1-3 Other high-strength or functional steels: such as motor vehicles, boats, and buildings. |
18,962,384 | 4.22% | ||
| CSC |
2.Steel with fewer reprocessing procedure: such as non-lead patenting steel, steel requiring no further quenching, and wire requiring no further drawing annealing. |
13,441,130 | 2.99% | ||
| CSC |
3.Steel with higher endurance 3-1Steel with higher endurance also has high
recycled content. |
177,831 | 0.04% | ||
|
3-1Other steel with higher endurance: such as high-temperature endurance, anti-corrosion, wear resistance, and plating steel. |
37,047,041 | 8.24% | |||
| CSC | Track/Light Rail |
4.Revenue from the construction, design, maintenance, and operation of light rail, MRT, and railway. |
2,138,481 | 0.48% | |
| Green revenue of Steel Department | 76,169,086 | 16.94% | |||
| Non-green revenue of Steel Department | 278,118,229 | 61.86% | |||
| Operating revenue of Steel Department | 354,287,315 | 78.81% | |||
| Other department | Kaohsiung Rapid Transit Corporation InfoChamp Systems Corporation China Steel Machinery Corporation Union Steel Investment Corporation |
Track/Light Rail |
1.Revenue from construction, design, maintenance, and operation of MRT or light rail. 2.Revenue from other track transportation equipment |
2,293,471 | 0.51% |
| China Steel Solar Tech Co., Ltd. | Solar Power | Installation of solar PV systems and revenue from electricity generation. | 482,189 | 0.11% | |
| Sing Da Marine Structure Corporation | Wind Power | Revenue from underwater foundation manufacturing. | 566,084 | 0.13% | |
| InfoChamp Systems Corporation | Environment monitoring system | Revenue from providing environment quality monitoring equipment and systems. | 214 | 0.00% | |
| Himag Magnetic Corp. (HIMAG) | Catalyst products | Revenue from sales of catalyst products (such as SCR and ammonia decomposition catalyst). | 14,743 | 0.00% | |
| China Steel Chemical Corporation | Energy storage products | Revenues from the design, development, manufacturing, installation, or operation of energy storage products include lithium ion and other advanced batteries and their materials. | 766,364 | 0.17% | |
| China Ecotek Corp. (CEC) | Environmental protection projects |
1.Water treatment, engineering, and facilities 2.Air pollution remediation 3.Resource recycling equipment construction 4.Other pollution remediation and improvements to environmental protection facilities |
1,066,957 | 0.24% | |
| CHC Resources Corp. (CHC) CHC Resources Vietnam Co., Ltd. |
Waste recycling |
1. Revenue from waste collection, management, and disposal equipment and services. 2.Revenue from slag processing and purchase/sale, air-cooled BOF slag and blast furnace slag recycling, and soil and groundwater pollution remediation. |
6,381,770 | 1.42% | |
| China Steel Structure Co., Ltd. (CSSC) | Green Building | Revenue from green building design, development, and manufacturing, and revenue from improving building energy efficiency, or revenue from products that help buildings obtain international green building certifications (e.g. LEED and BREEAM). | 92,417 | 0.02% | |
| Gains Investment Corporation | Green finance and investment | Revenue from investments and environment improvement related financial tools. | 47,189 | 0.01% | |
| Green revenue of other departments | 11,711,398 | 2.61% | |||
| Non-green revenue of other departments | 83,568,775 | 18.59% | |||
| Operating revenue of other departments | 95,280,173 | 21.19% | |||