Nuclear

• China’s State Council has approved the construction of a new nuclear plant in its eastern coastal region, the latest step in Beijing’s plan to include more clean energy in the country’s consumption mix.  In the first phase of the Haiyang nuclear power station in Shandong province, two reactors will be built, both using Westinghouse Electric’s AP 1000 third generation technology.

Oil

• China has acquired a £600m stake in Kazakhstan’s second biggest oil producer, which is developing 41 oil and gasfields in the country and has 1.8 billion barrels of reserves.

Wind

• The Swedish industrial company SKF reported that it had received orders worth more than £29m from Chinese wind turbine manufacturer Sinovel Wind Co.  The contracts concern the supply of main shaft bearings and sealing systems for 3MW wind turbines, and are part of a partnership agreement.

• China is on track to meet ambitions targets for moderating greenhouse gas emissions, according to a report by independent climate change think-tank E3G.  Reforestation and a low-carbon transport sector, as well as improvements in energy efficiency and investments in renewable power, had combined to restrict the growth in its anticipated greenhouse gas emissions, said E3G.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources. 

Environmental considerations are increasingly moving to the fore and now play a part in many of the market research projects we undertake.  Here is an update on recent environmental news stories from within China:

• The European Commission plans to establish an investment scheme, possibly a public-private partnership, to co-finance the design and construction of a power plant to demonstrate carbon capture and storage technology in China.  Funding of up €50m (£44m) will go into the construction and operation phase of the plant, which could cost a total of €300-€550m (£260-£480m).  The remaining funding is to be sought from China, EU and other European states and industry, said the Commission, inviting support.

• One of the USA’s largest coal-burning power companies, Duke Energy Corp, has signed a deal with China’s largest utility, China Huaneng Group, to develop ways to cut greenhouse gas emissions.  The two countries currently account for 40% of the world’s total emissions.

• The Chinese government will offer retailers a 50% subsidy for using energy-saving lights, according to Taiyuan Bureau of Commerce.  Taiyuan is one of 10 Chinese cities that began a pilot project last year to promote energy savings in the retail sector.  Using energy-saving lights will allow Taiyuan’s retailers to save about £5.5m annually, it is claimed.

• China is turning from a 100% importer of power plant catalysts into the world’s largest supplier, reports the US analyst McIlvaine Company.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.

Coal

The European Commission announced that it would provide financing of up to Euro50m (£47m) to help China build a coal-fired power plant equipped with new technology to give it near-zero emissions.  Europe deems the carbon capture and storage technology, which is in its infancy, to be a key factor in fighting climate change, and a demonstration plant would be particularly significant in China, which produces and uses huge amounts of coal.

Oil

Tianjin’s municipal government announced recently that its Binhai New Area would be one of eight state strategic crude oil reserve bases.  China Petrochemical Corporation (Sinopec) will begin to build the bases within this year.

Power

China’s power generation rose 3.6% year on year in June, ending eight consecutive months of decline since October last year, according to the State Grid Corporation of China (SGCC).  The increase demonstrated a strong rebound, compared to a 3.5% fall in May.  The country’s total power generation reached 309m MW in June, according to the SGCC’s power dispatch centre.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.