China: ecoforum in Guizhou on cleaner coal
Published 4 August 2014
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Detail
Guizhou Province
Guizhou is one of China’s least developed but fastest growing provinces – in 2012 GDP growth exceeded 20% – and coal contributes 95% of its total energy generation. Nationally, whilst coal is falling as a percentage of the energy mix, China still uses as much as the rest of the world combined and will account for 40% of the world’s capital investment in coal over the next 20 years.
Pollution
Facing dire air pollution – where coal is chief suspect – the Chinese authorities are on a drive to clean up the environment. Addressing carbon emissions from coal and hastening the shift to gas is essential for global climate emissions targets. This is creating opportunities for UK companies and universities.
Ecoforum Global
At the request of Guizhou’s provincial leadership we took a delegation to present UK expertise in cleaner coal to the EcoForum Global, the largest event of its kind in China and annual highlight for provincial capital Guiyang. Attendees included state leaders and China’s Vice President Li Yuanchao whom we met with Lord Prescott, member of the EcoForum’s International Advisory Council. Working with the Local Energy Bureau over three days we ran an exhibition space, seminar, company calls and a business matching session.
Key outcomes included:
Technology sought!
China is home to some world-leading clean coal technologies but still needs more advanced and higher efficient solutions to coal mine exploitation (eg methodology, equipment, desulphurisation, safety management). In other niche areas, too, (boilers for coal-burning power plants, underground gasification, coal mine methane (CMM) purification, shale gas, compressed natural gas and liquid natural gas, distributed energy , CDM projects and carbon trading) there are business and research opportunities for the UK.
Facilitating the shift to gas.
Southwest China accounts for 10% of China’s national total of coal but over 25% of its CMM reserves. There is potential for UK technology and consultancy to help boost utilisation rates. Our activities have included dissemination of a Prosperity project on the commercialisation of CMM which featured in the US-China Energy Dialogue.
Carbon capture, utilisation and storage (CCUS).
Guizhou’s level of development means it is unlikely to be pioneering this work – that will happen in CCUS centres in Guangdong and Jiangsu – but Guizhou’s largest coal SOE, Panjiang Investment, agreed to explore academic collaboration and industrial piloting with Nottingham University.
China’s coal sector is evolving rapidly.
Privatisations are putting China’s coal enterprises on a new financial footing and challenging structures of governance. The UK has invaluable experience i expertise in IPOs and restructuring, and mergers and acquisitions. Further consultancy opportunities exist.
A new Prosperity project to translate, disseminate and bed down IEA Clean Coal Centre best practice was also launched. Multiple interviews for local and national media, as well as an OpEd in industry-leading China Energy News, helped get the message out. Transport and water aspects.
In a separate session we spoke alongside a Transport Minister about electric vehicles and dealing with congestion in the UK and announced a new Prosperity project to address congestion and emissions in China’s cities. Representatives from the Centre for Ecology and Hydrology met an Agriculture Minister and the Guizhou Agriculture Commission for discussions on the food-water nexus.
Comment
Prosperity projects are targeting China’s coal sector: boosting ambition and clarity around a coal peak; delivering policy recommendations and capacity building to deliver this; and targeting specific sectors to hasten the shift from coal to gas. Such projects also help UK companies take advantage of new trends.
UK attendance at the EcoForum was much appreciated. The convening of China’s national leaders and thinkers made it an excellent platform. The media gave good coverage to UK activities.
Opportunities for UK business in Guizhou province are extensive. The big business players in in Guizhou’s energy sector are transforming themselves from traditional energy companies to a higher level, becoming more international. This suggests opportunities in services such as corporate management.
Energy will remain as Guizhou’s biggest sector, and it has been announced that the province will be building two nuclear power plants, another area of potential collaboration.
Disclaimer
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