Africa's Largest Aluminum Smelter to Halt Production as Power Talks Collapse Wiping Out 580,000 Tons of Global Capacity; Sinopec and CNAF Merge to Create Full Jet Fuel Supply Chain Advantage
（2025/01/05—2025/01/11）
Author：Hao-Wang
International Energy News
1. Africa's Largest Aluminum Smelter to Halt Production as Power Talks Collapse Wiping Out 580,000 Tons of Global Capacity
The global aluminum industry is facing a severe power crisis. Following the breakdown of electricity price negotiations, Mozal, Africa's largest electrolytic aluminum plant, announced it will officially cease production in March 2026. This move will instantly erase approximately 0.8% (580,000 tons) of global production capacity, shifting the global aluminum market from a surplus to a severe shortage.
Electrolytic aluminum is often described by industry experts as "solidified electricity," as producing one ton of aluminum requires roughly 15,000 kWh of power. The core conflict behind this shutdown lies in the shift of resource-rich nations: governments are no longer willing to subsidize the profits of multinational corporations with cheap electricity and have proposed significant price hikes, while the enterprise can no longer sustain production as costs exceed the breaking point.
This is not an isolated incident. In recent years, from energy-stricken Europe to price-volatile Asia, aluminum plants worldwide have been forced to cut production due to surging power costs. Against the backdrop of "dual carbon" goals and rising energy sovereignty, the era of cheap power is fading. In the future, the lifeblood of global heavy industry will depend entirely on green, stable, and low-cost energy supplies. Those who can first secure clean energy sources such as hydropower, wind, and solar will gain the upper hand in the next round of industrial competition.
2.Venezuela Holder of World's Largest Oil Reserves Faces Industrial Paralysis Crisis
Despite possessing approximately 17% of the world’s proven oil reserves—totaling 303.4 billion barrels and ranking first globally—Venezuela’s energy industry has recently plunged into a severe paralysis crisis.
The country's resource structure is a major constraint, as over 70% of its reserves consist of "ultra-heavy crude oil," which is difficult to extract and refine and relies heavily on external diluents. Long-term dependence on a single resource has led to "path dependency," causing the contraction of non-oil industries and leaving the economy with extremely low risk resilience. As external blockades have recently intensified, the country’s daily crude oil exports have been nearly halved. With storage facilities nearing full capacity, the nation is being forced to consider production cuts.
Furthermore, due to a lack of technical investment and aging infrastructure, local refining systems suffer from frequent failures. Analysts believe that to break this "resource curse," Venezuela must shift from resource reliance to comprehensive development. Only by introducing heavy oil processing technologies, extending the petrochemical industrial chain, and actively expanding diversified international energy cooperation can the country seek a breakthrough and transform its reserve advantage into genuine economic momentum.
3. Algeria’s 220 MW Photovoltaic Project Successfully Passes Grid Connection Inspection
Recently, the Biskara 220 MW photovoltaic (PV) power station in Algeria, constructed by a Chinese enterprise, successfully completed its pre-grid connection inspection. This project is the first among 20 lots in the local regional project cluster to meet operational conditions, with all indicators aligning with the requirements of the local Ministry of Energy.
The project utilizes advanced N-type TOPCon PV modules and integrated inverter-transformer technology, boasting a total installed capacity of 220 MW. Once fully operational, the station is expected to deliver approximately 400 million kWh (400 GWh) of clean electricity annually, providing significant support for Algeria's green energy transition.
During the construction phase, the project team achieved full-cycle management from commencement to grid readiness through optimized design and strict quality control. As a successful practice of Chinese new energy technology and engineering standards in overseas markets, this project not only demonstrates efficient construction speed but also sets a technical benchmark for international cooperation in renewable energy across North Africa.
Domestic Energy News
1. Sinopec and CNAF Merge to Create Full Jet Fuel Supply Chain Advantage
On January 8th, the State Council officially approved the professional restructuring of Sinopec and China National Aviation Fuel (CNAF). This integration marks a deep synergy between the world's leading refiner and Asia's largest aviation fuel service provider, effectively dismantling industry barriers from upstream refining to airport terminal refueling.
The merger significantly enhances the operational efficiency of the entire industrial chain through the precise complementarity of production and supply systems. Estimates suggest that integrated operations could reduce aviation fuel circulation costs by 5% to 8%. This will not only alleviate the financial burden on airlines but also substantially strengthen national capabilities in energy emergency assurance.
This powerful alliance also injects new momentum into the green energy transition. By combining R&D and production advantages with a nationwide refueling network, the industrialization of Sustainable Aviation Fuel (SAF) in China is set to accelerate. This move supports the civil aviation industry’s emission reduction goals while enhancing China's influence and core competitiveness in the global aviation fuel market.
2. Power Sales Market Hits "Price Cap Storm" as Industry Enters Mature Phase
The domestic power sales market is undergoing a radical transformation. In response to frequent irregularities such as price-spread withholding, contract forgery, and predatory competition, several provinces including Jiangsu, Guangdong, and Shandong have introduced strict policies. These measures include retail price caps, excess profit-sharing mechanisms, and standardized flat-rate packages to exercise comprehensive control over profit margins.
This series of actions has ended the era of high profits for power sales companies that relied solely on "buying low and selling high." Data shows that wholesale-to-retail spreads in some regions have been squeezed to less than 0.01 yuan/kWh. In 2025 alone, over 200 non-compliant or uncompetitive power sales firms were forced out of the market. Regulatory oversight is shifting from loose initial entry requirements to refined, full-process supervision, forcing market players to transform from simple intermediaries into integrated energy service providers.
Rather than a setback for reform, these price caps signal the maturation of the power market. Moving forward, the core competitiveness of power sales companies will no longer depend on securing cheap electricity, but on providing value-added services such as energy-saving renovations, energy storage configuration, and power risk management. Market share is expected to consolidate among standardized, professional, and large-scale enterprises, promoting a healthy and stable national unified power market.
3. Energy Meteorological Service System Enters Fast Lane to Boost Renewable Energy Integration
The China Meteorological Administration and the National Energy Administration recently co-issued a guiding opinion to build a meteorological service system covering the entire energy supply chain. The plan sets clear milestones: by 2027, an integrated service system will be basically established; by 2030, key meteorological service technologies for hydro, wind, solar, and storage will reach international advanced levels, significantly enhancing the energy industry's capacity to handle extreme weather and utilize natural resources.
The guidance outlines 20 specific tasks across three dimensions: operations, services, and support. Operationally, it initiates a national census of wind and solar resources to create high-resolution maps and improve power generation forecasting accuracy. In terms of application, the focus is on monitoring "desert, Gobi, and barren" (Sha-Ge-Huang) bases, early warning for transmission corridors, and exploring services for new scenarios like virtual power plants and hydrogen energy. Simultaneously, both departments will optimize observation networks, strengthen AI research, and promote cross-departmental data sharing to develop independent forecasting models.
According to the division of labor, the meteorological department will focus on operational design, technical support, and disaster forecasting. Meanwhile, the energy department will coordinate industry demands, integrate meteorological factors into energy planning, and encourage energy enterprises to share data and implement disaster prevention measures. This system will provide a solid scientific foundation for the stable operation of China's energy system and the large-scale integration of renewable energy.
(Main news sources: CCTVNEWS APP, International Energy Network, China Energy Network, National Energy Administration, China Energy News)
