Cleaner Greener China

November 19, 2009

Understanding China’s Position on Climate Change, and Repositioning Global Discussions

Filed under: Policies and Issues, Uncategorized — Tags: , , , — Rich @ 11:58 pm

Regardless of whether you believe COP15 still has hope, or is a predetermined failure, the fact is that in about 3 weeks a large number of scientists, environmentalists, policy makers, and cleantech funds are going to be in Copenhagen… and the world will be watching.

Even prior to the recent announcements from Singapore though, many had already begun gaming the outcomes, and hyping the need for China and the US to drive an agreement.  ANY AGREEMENT.

There have been countless articles offering analysis on what may happen.  Articles that are typically (Yes, I am stereotyping) one sided and promote either the views of the West (led by the U.S.) that China needs to step up to the plate or views from the developing world (led by China) that the West needs to own up to their past.

Recently, as part of their effort to help their clients understand the issues, Edelmen’s Shanghai Office developed their own white paper Leading to COP15: Understanding China’s position on climate change.  The goal of the project was to:

I am currently working on a White Paper on China’s climate policy and negotiation stance leading up to the COP15 talks in December. While a lot has been said recently about China’s green leadership, our aim is to provide a more “holistic” picture of what the issues and landscapes are on the ground in China, and how these are likely to influence China’s negotiation position in Copenhagen.

At 8 pages, this paper offers what I feel are some great insights for firms who are operating in China, or who are trying to understand the “China position“.  It is a paper whose bias is very middle ground, and does not look to promote either side (Chinese or West/ Environmentalist or Skeptic), but offers a pragmatic view of the issues that China is facing and how those issues define its approach.

One of my favorite conclusions being:

In short, to better engage stakeholders in China, the climate change debate must be reframed in a way that resonates with individual worldviews.

[..]

For consumers worldwide, ‘green’ works best when it is connected with something more ‘reallife’. In China, this means issues like personal health and product safety, cost-savings and social status. There is great potential to stimulate  grassroots momentum in China if we can link climate change with things people experience every day, such as air pollution. But more than this, the debate needs to empower consumers around the impact that can be achieved if 1.3 billion people make small changes to their everyday lives. Using more energy-efficient light bulbs is but one example of a new action proposition, which appeals to householders’ desire to save money, while also having a measurable environmental impact.

Interviewed as part of the project, and quoted twice, I spent about 30 minutes speaking with them about my own perspectives, and given the recent announcement from Singapore I wanted to elaborate on one portion of the conversation that I feel was most relevant to the apparent back step that was taken.

In the first line of report, I am quoted as saying “Carbon is not the problem per se. Carbon is the by-product of a number of different issues around environmental and economic sustainability

This is not a new line for me (as regular readers will know), however as I explained in other conversations, it is this point that I feel has not only been lost.. but ultimately is the reason for the collective step back.

In short, why I see this as the key issue is that as the world focuses on “carbon”, the ability to have a tangible conversation, develop tangible goals, create tangible steps forward, and take tangible measurements is largely lost as carbon is not actually the problem.

First, regardless of whether or not you believe “carbon” is the problem that should be focused on, it needs to be said that when we moved from carbon dioxide, methane, sulfur dioxide, and nitrous oxide to “carbon”, and “carbon” based solutions it had an effect: It has one again removed the public from the conversation;  it has made it easier to refocus discussions to technologies yet to be developed; it has lumped a number of issues together and created a log jam; and more importantly, it has create an intangibility to discussions and reports that have undermined the programming process.  Stymied discussions on CORE issues like Urban Planning, transportation, manufacturing processes, and so on.

Second, regardless of whether or not you believe in global warming, or the effect humans have on this process, the entire process in the West has been driven by intangible emotional connections to polar bears, ice caps, and future scenarios of apocalyptic collapse.  Again, it has isolate citizens from the conversation, even when they are being impacted, It is not about what is happening today, but about what will occur somewhere else, at some time in the future, and being too big to do anything about… without technologies and multilateral agreements.

Finally, and this leads to the core problem, scope shift.  Look at reports from 18 months ago, and then compare those to now.  There has been a shift in the messages.  From messages that were focus on what happens, globally, should we not make structural changes to economies and make the long term investments, to who benefits from those investments.  What was once about common good, has now shifted to who benefits today.

So, to sum up, the process has been focused on the byproduct, is not tangible to the average citizen, is too big for anyone, but has the potential for HUGE local economic benefits that should not be forfeited to others.

No wonder leaders decided to step back and reevaluate.

As I wrote in the comments section in Yale 360’s analysis of the Singapore announcement, there are 5 steps I believe must happen for us to move forward to a point where we can move forward on real programs that yield real solutions

1) stop using climate change as if that is the CORE PROBLEM.
2) stop using distant emotional appeals for change.
3) stop using catch phrases and technologies of the future as the only options.
4) negative externalities need to begin being priced into the system.
5)  We need to decide what is the goal.
6) We need to stop telling citizens that they can go about their day, and their government will take care of it.

If we take these steps, and take the time to reframe not only the problems we face (and how to address those problems), then I think you will see progress in the right direction.  Governments will come together to develop targeted agreements, corporations will work to invest in solutions that offer maximum benefit vs. maximum financial return, and CITIZENS will be in a position to where they can effectively rejoiin the conversation.

Then, and only then, do I feel forums like COP15 will be their most effective.

November 18, 2009

Chinese Cleantech Firms Opening Shop in US. Smart

Filed under: Greener Companies — Tags: , — Rich @ 8:53 am

With last week’s congressional fireworks display over the fact that a Chinese firm was going to be receiving TARP money to install the largest wind farm in Texas, and be reaping the majority of the jobs in the deal, it should come as no surprise that Chinese firms are now announcing investments in the US.

Chinese wind turbine firm plans U.S. plant

China’s A-Power Energy Generation Systems has signed a cooperation agreement with equity firm U.S. Renewable Energy Group (US-REG) to build a plant in the United States to supply wind energy turbines to renewable energy projects in North and South America.

The joint announcement in Washington late on Monday came three weeks after A-Power said it planned a $1.5 billion wind farm project in West Texas along with U.S. companies

Suntech to Create 30MW PV Module Plant in the US

Suntech Power Holdings Co., Ltd. yesterday announced that it would set up a 30MW photovoltaic (PV) module plant in Phoenix, Arizona, the US, becoming the first Chinese solar cell maker that owns the US-based factory.[...]The to-be-built PV module plant is featured with an annual production capacity of 30MW, accounting for 3% of Suntech’s total

Which puts them in a perfect position to service the market:

Arizona expects that 15% of its total energy consumption can come from the new energy by 2025, said an insiders at the New York-listed company, adding that another reason for Suntech’s decision to build a factory here is a relatively good R&D center in the state.

Looks like water has followed the path of least resistance again, and once these plants are open I predict interesting days. Given the U.S.’s history of using trade to its advantage, and some of the low cost border options that they have developed to reduce their C.O.G.S, it will be interesting to see how Chinese firms leverage their China based operations to attain cost efficiencies

November 17, 2009

Cleantech Investments in China Just Blowing in the Wind

Filed under: Greener Products, Greener Tech, Policies and Issues — Tags: , , — Rich @ 10:26 am

Rarely a day passes without a headline like Al Gore praised China and Japan on their climate leadership, which touts all that is great about China’s commitment to green, and how China’s leadership should serve as a model for others.

It was a recent topic of conversation between myself and an old friend who has been working with some of Europe’s leading brands in the space in fact, and our concern was simply that China was getting a pass by throwing out large investment numbers.. and little else. That while there was certainly a lot of positive progress occurring, that progress was largely overshadowed by the narrow band of reports focused on massive cleantech investments.

.. and this recent article by Caijing largely confirms what we have all be hearing. that while large investments are being made, and the equipment is going in, that these investments are performing well under their targets.. and at times are little more than show pieces.

The turbines were forced to shut down not because the Mongolian wind was too strong, or for mechanical reasons, but because the system for distributing power from Xilin Gol and other wind farms built in recent years in northern China is simply too weak.

When cold weather arrives, wind farms have to compete for transmission space on a power distribution grid buzzing with electricity generated by the region’s coal-fired thermal heating plants, which fire up in winter to supply heating for local residents as well as electricity.

According to EPIA, Inner Mongolia’s installed wind power capacity approaches 3.5 gigawatts, and currently nearly one-third of that is sitting idle. The remaining two-thirds capacity is supplied by turbines that run erratically, shutting off and on according to demand.

So, my question is. Should we be expecting more than the above before lauding the efforts, and handing out “green leader” labels? Or is this what the standards have come to?

.. and it this is what we have come to, what does this mean going forward for sustainability? Will we continue to applaud model projects, or should we expect to see where a form of international competition (or local) drives real programs to reap real returns?

November 12, 2009

Tianjin Staging Up for Cleantech

Filed under: Greener Companies, Greener Products, Greener Tech — Tags: , , , , — Rich @ 9:06 pm

Tianjin’s Economic Development Zone (TEDA) has been one of the premier investment zones in China, and keeping in mind their proximity to the new Singapore invested ecocity, it should come as no surprise that this would lead to some very large cleantech projects for TEDA.

Here are three that they recently reported out as part of their monthly newsletter

1) THE LARGEST INTEGRATED WIND ENERGY EQUIPMENT PRODUCTION BASE OF VESTAS BUILT UP IN TEDA

Recently the largest integrated wind energy equipment production base of Vestas has been built up and unveiled in TEDA.

It is learnt that since its first blade factory set up in TEDA in 2006, Vestas has kept on expanding production facilities. Recently after completing the construction of its control system and machining plants and the expansion of its generator and blade plants, the production base has become the largest integrated wind energy equipment production base of Vestas in the world, with its products involving nacelles, blades, generators, control systems, and mechanical components. Meanwhile, the brand new tower component supply center has also been put to use. The production base will not only enhance the production capacity of Vestas in China but speed up the localization of its production and introduce the advanced wind energy equipment manufacturing technology to China so as to provide hi-tech and hi-quality wind turbines for Chinese and global markets.

So far the integrated wind energy equipment production base in Tianjin has been built into the most important production center of Vestas in the world and will help TEDA become an important technology and production base of wind energy and clean energy in China and even the world.

Vestas has investment over 1.8 billion yuan (nearly 220 million dollars), a part of its long-term investment, in the construction of its new plants and the expansion of original ones. So far Vestas has invested over 2.5 billion yuan (nearly 380 million dollars) in TEDA, which accounts for over 70 % of its total investment in China. By the end of 2009, the total investment of Vestas in China will exceed three billion yuan. (Tr. by Chen Yu)

2) CLEAN ENERGY VEHICLE PROJECT ARRIVES IN TEDA

Recently Tianjin Huanjie Auto Energy Co., Ltd. was approved to be established in TEDA and obtained its business license for enterprise’s legal person.

The company will engage in refittng fuel-driven vehicles into gas-driven ones, involving buses, refuse collection vehicles, taxis, state-financed vehicles, mobile machinery shops, etc. On the basis of the compressed natural gas (CNG) and liquefied natural gas (LNG) technologies of China National Petroleum Corporation and China National Offshore Oil Corporation, the company will propel the clean energy vehicle projects in the Tianjin Binhai New Area (TBNA) in an all-around way. At present, the company has set up two car modification plants in TEDA and the West Zone of TEDA to refit fuel-driven vehicles into gas-driven ones. By the end of 2010, it is expected to modify 8,000 vehicles (including taxis, state-financial vehicles, etc.) in the TBNA and 32,000 vehicles in downtown Tianjin, which will bring revenue of 54 million yuan and 136 million yuan respectively.

It is learnt that in 2009 the company has been chosen by Tianjin Municipal Science & Technology Commission to participate in the National Key Technology R&D Program and the Service Team for Clean Energy Vehicles. Moreover, it is not only a qualified company approved by Tianjin Municipal Government to refit fuel-driven vehicles into gas-driven ones but also an enterprise with class I qualification certified by General Administration of Quality Supervision, Inspection and Quarantine in the installation, modification and maintenance of pressure vessels as well as a member company in the industrialization projects of the R&D and modification of gas-driven vehicles and ships.

3) THE NEW PLANT OF KYOCERA (TIANJIN) SOLAR ENERGY CO., LTD. STARTS CONSTRUCTION

With 36.5 million dollars of investment, the new plant of KYOCERA (Tianjin) Solar Energy Co., Ltd. started construction on Oct. 28.

The project will cover a land area of nearly 29,000 m2 and a total construction area of 28,000 m2. After the completion of construction, the plant will specialize in the production of hi-tech and environment-friendly solar cell modules, with a planned annual production capacity of 240MW. The commencement of such a key project of Tianjin marks that the development of the green energy industry has reached a new level in TEDA.

Sidebar tangent.  Following the receipt of this newsletter, I also came across the article Tianjin Eco-City consortium to co-develop S$30m international school, an article that only enforces my belief that this will be the first successful China based ecocity project.

May 6, 2009

China to Triple Wind Energy Targets. Blowing Air? Or Generating Energy?

Filed under: Greener Products, Greener Tech, Uncategorized — Tags: , , — Rich @ 1:03 am

Perhaps one of te best things about this recession is that fact that commodity pricing and stimulus packages have essentially increased not only the affordability of many things, and for China that means big investments in wind energy.

China has set a target for renewable energy consumption of 40 percent of the market by the year 2050.

The news comes as it emerges that China will have 100 GW of wind power capacity by 2020, more than three times the 30 GW the government set as a target 18 months ago.

But, not a country to shy away from building the tallest, longest, widest, or most … of anything, Wang Jun, director of the National Energy Administration’s renewable energy department, said:

Renewable energy will become the mainstream power supply in 2050 from a supplementary role in 2010.” He envisaged a future with heating dependent on solar and geothermal power, cars driven using biofuels and families owning their own photovoltaic power stations, turning the country from the world’s biggest emitter of greenhouse gases to one of its smallest.

Big dreams in a big country.  Like Texas.. but BIGGER

April 20, 2009

Shanghai to Add 254,000 kw of Wind Power

Filed under: Greener Tech — Tags: , , — Rich @ 9:50 am

With the World Expo less than a year away, Shanghai has now begun the process of topping off its green goals by installing 34 wind turbines 92 meters high near the Shanghai East China Sea Bridge.

The first of a number of planned wind farms, the article states that a total of capactiy 293,000 kw will eventually be online, 1.5% of Shanghai supply.

More interesting though is the fact that the article states Shanghai is now investing in energy storage technology:

According to Zhou Yongxing, manager of the Shanghai Municipal Electric Power Company, the city is not only investing enormous sums in the development of wind power, but also is funding other green projects such as transmission of clean, renewable energy to Sichuan Proince, solar power, and research and development on urban grid energy storage systems.

Perhaps an indication that Shanghai is now looking to bring in solar as well?

March 25, 2009

First Hotel Designed as Carbon Neutral is … Designed

Filed under: Greener Companies, Greener Products — Tags: , , , , — Rich @ 8:22 pm

In another, don’t pop the bubbly story, Patel Architecture Inc. announced that they have completed the design of a 5-Star China Hotel To Be Carbon-Neutral

For those of you who are saying… Wait a minute, URBN hotel in Shanghai is the first carbon neutral hotel, you would be right… and wrong.

Where this story really is interesting, is that per the announcement, it appears that this facility will not require the purchase of carbon offsetting and will deploy a lot of technology to make it carbon neutral by operation and design:

The design provides for wind turbines on the upper portion of the tower and massive array of photovoltaic panels covering the entire south façade. In the basement is a provision to incorporate a fuel cell power generator that would run on clean natural gas to efficiently produce electricity and heat for hot water. The proposed groundbreaking design of the 373-key Mayland Seaside Hotel would make it the first hotel in the world to be completely carbon-neutral.

To be completed by 2012 – 2013, I look forward to seeing what changes/ compromises are made to bring the project to market.

March 4, 2009

Ooo.. Ahh.. New Shenzhen Building Powered by Solar Panels and Wind Turbines

Filed under: Greener Companies, Greener Products — Tags: , , , — Rich @ 11:34 am

In another example of the fact that anything is possible through technology, money, and design, Coop Himmelblau has put forward this creation:

The facade’s design is driven by solar and wind powered energy generation. The second skin of the building will be lined with photovoltaic cells and will feature mechanisms to provide natural ventilation, reduce wind pressure, shade the interior from sun and display multimedia banners. The use of sun and wind as renewable energy sources will increase energy efficiency and reduce reliance on fossil fuel energy.

Of Course, that just leaves a couple 10,000 other buildings in Shenzhen to retrofit…Anyone know of a retrofit project in progress?

February 12, 2009

China’s BOOMING Wind Power Market

Filed under: Uncategorized — Tags: , , — Rich @ 3:37 pm

It began with a run up of wind stocks (perhaps aided by some hot air), and more recently the discussion has been on the fact that the largest wind farms in the world are now being planted in China.

BOOMING WIND POWER MARKET AND INDUSTRY IN CHINA by Shi Pengfei of the Chinese Wind Energy Association is an 8 page paper stocked with everything an investor in China’s wind industry would want to know: data, names, an uber-optomistic outlook on the industry, and some good recommendations for China’s leadership as they look to meet their 2020 goal:

The national target should be in terms of energy production, not only the installed capacity. Incentive policy to power grid enterprise is necessary to convert them from constraint to more active. In the near term to create a stable market for establishing the capability of domestic component and wind turbine manufacturing industry is the priority in China.

To meet the requirement of 3% of electricity from non-hyro renewable energy in 2020, wind power installation should be 100GW, wind resource, land area and capability of wind turbine production will be available in the next decade, major barrier would be power grid issue, new incentive policies for individual wind turbine owners and power grid enterprises are needed, R&D on tideland wind farm and “Large scale non-grid wind power system” maybe provide new opportunities.

To realize 100GW wind power installation and 200TWh of electricity from wind in 2020 is possible.

January 29, 2009

Renesola and Vestas Sign More Deals in China

Filed under: Greener Tech — Tags: , , — Rich @ 10:11 am

With all the discussion on how bad the cleantech market has been with the financial crisis, it is good to see that both Vestas and Renesola are both still finding markets in China at a time when China’s energy consumption is on the decline.

Perhaps we will see in a couple years, when the demand comes back up, the full environment value of these investments.

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