China Huaneng Group Co., Ltd., abbreviated as CHNG or Huaneng Group, is one of the five largest

state-owned State ownership, also called government ownership and public ownership, is the ownership of an industry, asset, or enterprise by the state or a public body representing a community, as opposed to an individual or private party. Public ownersh ...

electricity generation Electricity generation is the process of generating electric power from sources of primary energy. For electric utility, utilities in the electric power industry, it is the stage prior to its Electricity delivery, delivery (Electric power transmi ...

enterprises in China, administrated by the

State Council State Council may refer to: Government * State Council of the Republic of Korea, the national cabinet of South Korea, headed by the President * State Council of the People's Republic of China, the national cabinet and chief administrative auth ...

. It engages in the

investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

construction Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and com ...

operation Operation or Operations may refer to: Arts, entertainment and media * ''Operation'' (game), a battery-operated board game that challenges dexterity * Operation (music), a term used in musical set theory * ''Operations'' (magazine), Multi-Ma ...

and

management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...

power generation Electricity generation is the process of generating electric power from sources of primary energy. For utilities in the electric power industry, it is the stage prior to its delivery ( transmission, distribution, etc.) to end users or its stor ...

assets and the

production Production may refer to: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (goods and services) * Production as a stati ...

and sale of

electricity Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described ...

. In 2012, the company was ranked 246th on the ''Fortune'' 500 list.

History

China Huaneng Group Corporation was founded in 1989 as the holding company for a series of companies of that under the supervision of of the State Council of China, including Huaneng Coal Corporation and Huaneng International Power Development Corporation, etc. The group was part of a project that replacing oil fired power plant to coal power plant (). In 1993, the corporation was under the dual supervision of the and the State Planning Committee. In 1995, Huaneng Coal Corporation became a separate state-owned enterprise group that under the provisional supervision of the State Planning Committee, as

Shenhua Group Shenhua Group Corporation Limited was a Chinese state-owned mining and energy company. Shenhua Group was founded in October 1995 under the auspices of the State Council of the People's Republic of China. It was the largest coal-producing compan ...

. China Huaneng Group was then became the subsidiary of the State Power Corporation of China, a mega-conglomerate that replacing the commercial function of the Ministry of Power Industry. In 2002, the State Power Corporation of China was dismantled as groups of companies of power grid (such as

State Grid Corporation of China The State Grid Corporation of China (SGCC), commonly known as the State Grid, is a Chinese state-owned electric utility corporation. It is the largest utility company in the world, and as of 2022, the world's third largest company overall by re ...

and

China Southern Power Grid China Southern Power Grid Company Limited (CSG; ) is one of the two Chinese state-owned enterprises established in 2002 according to the precept to reform the power system promulgated by the State Council, the other being State Grid Corporatio ...

) and power plants (such as the big five power groups, Huaneng,

China Huadian China Huadian Corporation (Huadian Group; ) is one of the five largest state-owned power generation enterprises in China, administrated by SASAC for the State Council. It engages in the generation and supply of electricity and heat, and the de ...

China Datang Corporation China Datang Corporation (CDT) is one of the five large-scale power generation enterprises in China, established on the basis of former State Power Corporation of China in 2002. It is a solely state-owned enterprise directly managed by the SASA ...

China Guodian Corporation China Guodian Corporation (Guodian; ) is one of the five largest power producers in China, administrated by SASAC for the State Council. It is engaged in development, investment, construction, operation and management of power plants and power gen ...

and

China Power Investment Corporation China Power Investment Corporation also known as CPI Group was one of the five largest state-owned electricity producers in mainland China. It was administrated by the State-owned Assets Supervision and Administration Commission (SASAC) of the ...

) In the same year the leader of the mega-conglomerate, Gao Yan had fled China after being investigated for corruption. Huaneng also received some assets from State Power Corporation of China, such as the hydroelectricity company now known as , a listed company since 2017. In 2005, Huaneng also acquired the controlling stake (after the deal owned 51%) of from a subsidiary of the , becoming the indirect parent company of listed company (Mengdian Huaneng). In 1994, it also saw the formation of two listed subsidiaries,

Huaneng Power International Huaneng Power International, Inc. (HPI), commonly known as Huaneng Power, is a Chinese electric power company. It was established in 1994 by the China Huaneng Group, one of the five largest power producers in China. It engages in the development, ...

(HPI) and

Shandong Huaneng Power Development Shandong ( , ; ; Chinese postal romanization, alternately romanized as Shantung) is a coastal Provinces of China, province of the China, People's Republic of China and is part of the East China region. Shandong has played a major role in His ...

. Their

American depositary share An American depositary receipt (ADR, and sometimes spelled ''depository'') is a Negotiable instrument, negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets. ...

s were listed on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...

. HPI later also started

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

s on the

Stock Exchange of Hong Kong The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repo ...

as well as the

Shanghai Stock Exchange The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...

. The shares of Huaneng Power International was owned by aforementioned Huaneng International Power Development Corporation, but in recent years China Huaneng Group also owned some shares directly. HPI also merged with Shandong Huaneng Power Development in 2000. In 2011 China Huaneng Group floated its wind power subsidiary Huaneng Renewables on the Stock Exchange of Hong Kong.

Operations

The company oversees the national government's interests in 10 subsidiaries, including a 51% stake in

. Through subsidiaries it develops and operates more than 130

thermal A thermal column (or thermal) is a rising mass of buoyant air, a convective current in the atmosphere, that transfers heat energy vertically. Thermals are created by the uneven heating of Earth's surface from solar radiation, and are an example ...

wind power Wind power or wind energy is mostly the use of wind turbines to electricity generation, generate electricity. Wind power is a popular, sustainable energy, sustainable, renewable energy source that has a much smaller Environmental impact of wi ...

and

hydropower plant Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined and ...

s. In addition to its power-generation business, the company enters other sectors, including energy-related mining, financing, transportation,

information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...

, and renewable energy researches. The company's investment division ranks the 15th in China by revenue and the 21st by asset size. The company owns the

Changjiang Nuclear Power Plant Changjiang Nuclear Power Plant () is a nuclear power plant in Tangxing Village of Haiwei Township, Changjiang Li Autonomous County in the province of Hainan. It is the first power plant of its kind in the province. History Construction of the ...

in partnership with

China National Nuclear Corporation The China National Nuclear Corporation (CNNC; ) is a state-owned enterprise founded in 1955 in Beijing. CNNC's president and vice-president are appointed by the Premier of the People's Republic of China. CNNC oversees all aspects of China's c ...

, as well as the Beijing Huaneng Thermal Power Station. The latter, however, is to be closed by 2016 as part of

Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

's plan to eradicate pollution.

Environmental projects

A sophisticated and expensive technology is to convert coal to gas and strip out the carbon dioxide before the gas is used to generate power. It has a billion dollar project underway called the GreenGen project led by China Huaneng Group, that is scheduled to go online by 2011 at the latest.

Acquisitions

In March 2008 CHNG acquired Singapore-based Tuas Power from

Temasek Holdings Temasek Holdings (Private) Limited, or simply Temasek, is a Singaporean state holding company owned by the Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in assets u ...

for US$3.04 billion. It was resold to China Huaneng Group's listed subsidiary

in the same year. In November 2008 CHNG bought 50 per cent stake in InterGen from India's

GMR Group GMR Group is an Indian multinational conglomerate headquartered in New Delhi. The group was founded in 1978 by Grandhi Mallikarjuna Rao (G M Rao) and comprises several companies including GMR Infrastructure, GMR Energy, GMR Airports, GMR Ent ...

for $1.2 billion.

Structure

Beijing Headquarter

The headquarter of Huaneng Group is located on the

Chang'an Street file:50th anniversary of PRC 1.jpg, 250px, Chang'an Avenue hosts military parades. Here are armoured fighting vehicles leaving Tian'anmen Square during the 50th anniversary of the People's Republic of China, 1999 National Day parade. Chang'an ...

, only about 3 kilometers from

Tian'anmen The Tiananmen (also Tian'anmen (天安门), Tienanmen, T’ien-an Men; ), or the Gate of Heaven-Sent Pacification, is a monumental gate in the city center of Beijing, China, the front gate of the Imperial City of Beijing, located near the ci ...

. In the headquarter, there are several subsidiaries and departments to take charge of different types of business. Major departments in the Beijing headquarter include: * Department of General Administration * Department of Capital Operations and Equity Management * Department of Supervision * Department of Development * Department of Safe Production * Department of Auditing * Department of Budget and Planning * Department of Environmental Protection, Sciences and Technology * Department of Political Affairs * Department of Legal Affairs * Department of Engineering * Department of Operations * Department of Finance * Department of Human Resource * Department of International Cooperations * Labor Union

Subsidiaries

The Huaneng Group runs several subsidiaries corresponding to various types of energy industries. Most of those subsidiaries are based in the Beijing headquarter. * Huaneng International Power Development Corporation * Huaneng Properties * GreenGen *

(It is listed on the

Hong Kong Stock Exchange The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...

and

. It is the Group's main thermal power subsidiary, holding about one third of the Group's installed thermal capacity.) * Huaneng Energy and Transportation * China Huaneng Group Clean Energy Research Institute * Huaneng Renewables (having a capacity of over 10 GW

and 800 MW solar power as of 2017) * Huaneng Capital Service ** Huaneng Guicheng Trust * China Huaneng Group Fuel * Huaneng Nuclear Power Development Company * Huaneng Technology Innovation Center * Huaneng Coal Industry Company

Regional Branches

In addition to Beijing headquarter, Huaneng Group also have branches and companies in at least 29 different provinces or

autonomous regions An autonomous administrative division (also referred to as an autonomous area, entity, unit, region, subdivision, or territory) is a subnational administrative division or internal territory of a sovereign state that has a degree of autonomy— ...

of China. Those regional branches and companies are in real charge of local power plants and electricity generation in each province or region, as well as some other related business. Currently, Huaneng's regional companies and branches include:

Research

China Huaneng Group also takes on science and technology researches in energy-related fields. The company's current research directions and interests include: * Advanced high-efficiency thermal power generation technology * Thermal power generation environmental technology * Coal-based low-carbon conversion technology *

Wind power Wind power or wind energy is mostly the use of wind turbines to electricity generation, generate electricity. Wind power is a popular, sustainable energy, sustainable, renewable energy source that has a much smaller Environmental impact of wi ...

development *

Hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, converting the Pot ...

development *

LNG Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...

Renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...

and new energy *

Shale Gas Shale gas is an unconventional natural gas that is found trapped within shale formations. Since the 1990s a combination of horizontal drilling and hydraulic fracturing has made large volumes of shale gas more economical to produce, and some a ...

* Coal mining technology * Energy system * Energy-related information technology

References

External links

{{authority control Electric power companies of China Government-owned companies of China Companies based in Beijing Chinese brands Chinese companies established in 1989 Xicheng District Energy companies established in 1989