The agreement between Siemens AG and SPIC , one of China’s five largest energy groups, was signed on March 26 in Beijing. According to the partners, the agreement sets out several objectives: Both companies are to collaborate on high-tech demonstration projects e.g. the digitalization of power plants, hydrogen utilization projects, and smart energy management for a decentralized energy system. A supplier network will also be set up in China.

In addition, the German and Chinese partners will also jointly develop suitable Gas-to-Power projects worldwide. Just days before signing the agreement with SPIC, Siemens signed a Technology Collaboration agreement on heavy-duty gas turbines with SPIC subsidiary China United Heavy-Duty Gas Turbine Company (UGTC). Siemens believes that China is one of the world’s most important markets for gas turbines, because electricity demand in China is set to continue to grow over the coming years and the country’s government is determined to improve air quality by switching from coal to natural gas in its energy mix.