Shanghai Unveils Ambitious Plans for US$60-billion Energy Equipment Industry by 2029

Shanghai aims to grow its energy equipment industry to 400 billion yuan (US$60 billion) by 2029, as the city pushes to develop advanced technologies and expand its presence in global markets.

Under a three-year (2027-2029) action plan, Shanghai looks to build three industrial clusters in Minhang and Songjiang districts as well as the Lingang Special Area, each with an annual output of at least 100 billion yuan. It also aims to develop 10 flagship products, including microreactors, industrial gas turbines capable of burning fuel with a high proportion of hydrogen, and 25-megawatt floating wind turbines for deep offshore waters.

The city will target four broad areas: advanced nuclear energy; hydrogen-based energy; solar power, energy storage and gas turbines; and upgrades to wind and thermal power equipment.

On nuclear energy, the plan calls for advances in small reactors, fusion technology and key components. For hydrogen, it seeks to strengthen the equipment supply chain from production and storage to transportation and use, while supporting fuel cells and green fuels.

Shanghai also wants to advance perovskite solar cells, long-duration energy storage and hydrogen-powered gas turbines. In wind and thermal power, priorities include larger offshore turbines, more flexible coal-fired power plants, carbon capture equipment and advanced power transmission technologies.

The plan encourages companies to test new equipment in industrial parks, data centers, transport and other settings. It also calls for greater use of artificial intelligence in equipment design, manufacturing and maintenance.

To help local manufacturers expand overseas, Shanghai will support international certification, participation in setting of global standards and the establishment of overseas research centers.

By 2030, the city aims to lift the industry's annual output above 500 billion yuan and establish itself as a leading hub for energy equipment innovation and international expansion.