Chinese AI company Baidu and China Gas are collaborating to accelerate smart energy transformation.

Baidu and China Gas Holdings have inked a cooperation agreement to drive digital and intelligent transformation in the energy and power sector with innovations based on Baidu’s AI cloud. The companies will also explore business opportunities that contribute to achieving a peak in carbon emissions and ultimately carbon-neutrality.

With a global focus on smart energy and environmental protection, cloud and AI technologies are emerging as invaluable for enhancing efficiencies, unlocking value and reducing carbon footprints. Under the first stage of their partnership, worth RMB936m, Baidu will expedite China Gas’ move to the cloud and harness its AI capabilities to build customised applications including smart monitoring, smart scheduling, gas usage prediction and smart customer services.

“With over 40 million users, China Gas has its sights set beyond gas to new AI technologies and services for public benefit,” said Yong Huang, executive president of China Gas.

Haifeng Wang, Baidu’s chief technology officer, added: “We are in a golden era in which digital technology and traditional industries are deeply integrated. Baidu’s AI cloud will leverage its competitive advantages to enable digital transformation, accelerate intelligent upgrades and empower thousands of industries that drive the national economy and support people’s livelihoods and society’s well-being.”

The parties will set up the China Gas Digital Technology Committee to incorporate industry practices as industry standards. They aim to incorporate initiatives from Baidu into China Gas to train professionals and management specialised in digital transformation.

Baidu plans to establish digital management systems for China Gas, including proprietary cloud, AIoT, big data and AI middle office with the assistance of inspection robots, smart energy and industry apps.

They aim to create an ecosystem that draws enterprises such as home appliance makers, car makers, property operators and manufacturers in large industrial parks.

Together, they hope to develop standards for carbon emissions peaking and neutrality while deepening cooperation with governments and enterprises.

As one of the top four cloud infrastructure providers in China, according to Canalys, Baidu offers a suite of cloud services differentiated with AI. In July 2021, Baidu executed an upgrade in its AI cloud setting it up for success working across different industries, including internet, media, telecoms, financial services, transportation, logistics, education and manufacturing.

China Gas is one of the largest trans-regional comprehensive energy suppliers in China engaged in investment and construction, operation and management, warehousing and logistics, trading and distribution businesses of various gas and new energy projects. The group, with piped natural gas as its major business, has managed to build a scope of business that includes liquefied natural gas, compressed natural gas, liquefied petroleum gas, natural gas thermoelectricity, distributed energy, energy management, value-added service and equipment manufacturing.