A groundbreaking multi-energy project in Zichuan district of Zibo, Shandong province, is transforming derelict mining sites into a model of sustainable development, with experts hailing its potential for replication elsewhere in China and across Asia.

"This project helps transition away from a traditional industry to one of high-value creation. I can see that there is a very well thought-out plan to come up with a tailored solution," said Joonho Hwang, director of the energy sector office, Sectors Department 1, Asian Development Bank, who recently conducted field research for the project.

Hwang highlighted the innovative approach of repurposing old mines for energy storage alongside renewable energy generation.

Located in Dakui Mountain, the project utilizes the elevation differences of abandoned mines and their water resources to operate a pumped storage power station.

"By using the power storage station, we not only properly treat mine wastewater, but also generate electricity for project use," said Liu Zhenping, director of the Zibo branch of Huadian Shandong New Energy Co Ltd, which has invested in the project.

The wastewater, maintaining a stable temperature of around 15 C year-round, is harnessed by an intelligent heat pump system to provide clean energy for regional heating.

Additionally, a large photovoltaic power station has been installed on the mountainous terrain, combining solar power generation with agricultural cultivation beneath the panels.

The project also capitalizes on the heat from mine wastewater to support a smart greenhouse for rose cultivation.

The 1,300-square-meter greenhouse operates year-round, transforming the once-barren site into a flourishing flower industry base.

"The flower industry has driven the coordinated development of related sectors such as packaging, livestreaming e-commerce and cultural tourism, providing former miners with new jobs," said Liu.

"I have a stable income now by working at the flower base eight hours a day," said Sun Fei, adding that the job allows her to balance work with childcare duties.

"The project has a significant potential for scalable impact, demonstrating how abandoned mines can be revitalized," said Wang Zhigao, senior program director of the Low Carbon Cities Program, Energy Foundation China.

As China works toward its carbon peak and carbon neutrality goals, with an estimated 15,000 mine shafts scheduled to close by 2030, the Zichuan project offers a model for sustainable repurposing of industrial sites.

Once reliant on coal, Zichuan now faces the challenge of 195 closed mine shafts and 64 abandoned mining sites.

"The energy project not only drives the transition to cleaner energy, but also promotes economic diversification, delivering both ecological and social benefits," said Zhang Ning, director of the Zichuan District Development and Reform Bureau.

It is expected to reduce carbon dioxide emissions by 18,000 metric tons annually and provide jobs for nearly 1,000 local people.

"Our project's return on investment looks really promising with a payback period of around seven years," said Liu.

In addition to achieving an annual profit of 40 million yuan ($5.5 million), it is expected to stimulate nearly 10 billion yuan in upstream and downstream industrial investments across the district, fostering the integrated development of agricultural, industrial and services sectors, said the district government.