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Mainland Firms To Increase Emission Reduction Projects

Mainland Firms To Increase Emission Reduction Projects
Future Of Carbon Credit Trade Dim As Global Pact Nears End

Eric Ng – Updated on Oct 02, 2008 – SCMP

The mainland is expected to supply more than half the credits for greenhouse-gas emission trading worldwide until 2012, but the future of such trade remains uncertain as no agreement has been hammered out for when the current global pact expires.

Emission reduction projects on the mainland would cut 116.83 million tonnes of carbon dioxide discharged in each of the next four years, or 52.17 per cent of the global total, according to United Nations data. That represents a sharp increase from 16.61 million tonnes in May 2006, or 30.67 per cent of the global total.

So far, 1,551 projects have been approved by Beijing while 269 projects have also been accepted by and registered at the UN, accounting for 23 per cent of the global total.

Developers of pollution-cutting projects earn so-called carbon credits that can be sold to polluters in countries with mandatory emission limits, primarily in Europe and Japan, which are committed to reduction targets.

Annual greenhouse-gas emission credits from the mainland would amount to more than US$2.5 billion under the Clean Development Mechanism (CDM), according to a report by World Wide Fund for Nature on China’s emission reduction credits market.

Beijing also collects a levy from a percentage of the credits depending on the type of project.

Feng Shengbo, an associate researcher at National Development and Reform Commission Energy Research Institute’s CDM Project Management Centre, said the government had so far collected more than 100 million yuan (HK$112.48 million), which would be used to help the nation combat climate change.

The most popular projects on the mainland include the replacement of ozone-depleting refrigerants, wind and hydro power generation and energy efficiency improvement.

Of the emission reduction volume in projects approved by the central government, about 23 per cent or 27.45 million tonnes came from the five national state-owned power generation firms.

China and India are among the developing nations that have ratified the Kyoto Protocol, a global pact on greenhouse gas reduction, but they are only required to report their emissions and are not committed to any targets.

The United States rejects emission limits set by protocol, but it is widely expected the country, together with China and India, which are among the world’s largest polluters, will commit to some form of reduction after the protocol expires in 2012.

However, Merrill Lynch director of Asia-Pacific commodities solutions Jennifer Jiang Hongbo said uncertainties over the regulatory environment after the protocol expired and Beijing’s ban on credit sales beyond that meant no such credits had been sold so far.

“This has brought valuation challenges for such trade,” she said. “In addition, the sellers prefer to save the credits for themselves ahead of potential emission reduction commitments by China.”

Power Struggle – Human and Environmental Cost For Chinese Booming Economy

Simon Parry – Updated on Sep 28, 2008 – SCMP

On average, 10 mainland coal miners die each day and while the government recognises the dangers posed by privately run mines, it needs to keep a booming economy supplied with fuel. Simon Parry reports on the human cost of doing so

The grubby, ramshackle clinic for injured miners is hidden away like a guilty secret at the end of a dirt track in a village near Datong, Shanxi province, China’s coal capital. Outside, Zhu Jiaching hobbles along on crutches and speaks through broken teeth about the day last September when luck was on his side.

“I was working underground when the scaffolding collapsed on me. My legs were broken and my teeth were smashed when I fell face down into the coal.” He points to his black and swollen upper lip. “I still have pieces of coal lodged in here.”

Zhu was carried unconscious out of the mine. He was one of the lucky ones. Last year, 4,000 mainland miners were killed in underground accidents. “A fortnight after my accident, there was another scaffolding collapse in the same stretch of mine,” the 39-year-old father of two says with a grimace. “Four miners were killed. All were from my home province.”

With no salary and only hospital meals to live off, Zhu is waiting to be well enough to return to his wife and children hundreds of miles away. “The mine manager came to see me a few weeks after my accident and offered me 10,000 yuan [HK$11,390] compensation if I took the money and went straight home,” he says.

“I refused. At the time I couldn’t even walk.

“The manager left and hasn’t been back. He won’t discuss the matter and I’ve been living in the hospital ever since. I want him to pay for the treatment to repair my broken teeth and give me proper compensation – then I’ll go home for good.”

In nearby Ganzhong village, Wan Mingyong, 35, smokes and chats with friends as he waits to begin his eight-hour underground shift. Luck was on his side too when, in another privately run coal mine in May last year, a wall of coal exploded in his face. Wan’s face and neck are still peppered with tiny lumps of coal.

“There was a roar and a bright flash and then I was blinded. Pieces of coal shot into my face like bullets and I was covered in blood. My first thought was `Am I blind?’ I spent a month in hospital but I was very lucky. I could have been killed,” he says.

“I was given 5,000 yuan compensation by the coal mine’s bosses. I wasn’t happy with it but what could I do? I had to look after my family so I got out of hospital as quickly as I could and went back to work at the coal face.”

Wan is well aware of how lucky his escape was. “My brother-in-law was crushed when scaffolding collapsed on him in the same mine in 2004. He should have lived but was left to die in hospital on the orders of the coal-mine owner so that he wouldn’t have to pay more compensation,” he says. “We believe they may have even given him a lethal injection.

“At that time, if a miner died, his employer had to pay the family 50,000 yuan compensation. If a worker was crippled, the amount would be three times as high because he had to be paid disability benefit. So it was much cheaper to make sure that my brother-in-law didn’t survive and that’s what they did.”

The stories of Zhu and Wan are typical. The men are part of an army of workers labouring in privately run mines in Shanxi and Inner Mongolia, in northern China, helping dig up the coal that accounts for nearly 70 per cent of the energy needs for the world’s fastest-growing economy.

China has overtaken the US as the world’s biggest producer of greenhouse gases, according to a University of California study released earlier this year, and 75 per cent of its carbon-dioxide emissions come from the coal-fired power stations that are being opened at a rate of almost one a week.

Greenpeace will this autumn release what is expected to be a highly critical report on China’s overdependence on coal, warning that it is heading towards an environmental disaster unless it increases the price of coal – heavily subsidised to support the booming economy – to restrict its use.

“The price of coal should reflect the full cost of using coal,” argues Beijing-based Greenpeace coal campaigner Liu Shuang. “These power stations are causing serious air pollution. They are not only causing problems for human health but they’re polluting the water and land as well.

“Action must be taken soon. The government did everything it could to stop pollutants during the Olympics but this is a problem that is visible in Chinese cities every day. The Chinese government is taking the coal issue seriously, but it has not done enough.”

It is an industry that exacts a devastating price not only in environmental terms but in human terms. China has 5 million miners and the annual death toll, mostly in smaller, privately run mines, accounts for 80 per cent of all mining deaths worldwide. An average of 10 miners die every day on the mainland. Last Sunday, 37 miners were killed in a gas explosion at a private mine near Dengfeng city, Henan province. The same day, at least 19 miners died after a fire in a coal mine in Hegang city, Heilongjiang province.

Alarmed at the accident rates, the mainland in 2006 announced a series of measures to improve safety, increasing inspections, improving compensation for injury or death and ordering thousands of smaller mines producing less than 90,000 tonnes of coal a year to close. The idea is to concentrate production in state-run mines, which employ tens of thousands of miners and where both safety standards and the quality of the coal are easier to control. The policy has had a degree of success, with death rates in the industry falling substantially from a peak of almost 7,000 in 2002 to 4,700 in 2006 and less than 4,000 last year.

But this year, in the brown and barren hills of northern China, where the country’s biggest coal reserves lie, the huge trucks that move between the privately run mines are once again rumbling back and forth as dozens of mines reopen.

“Since the beginning of this year, when coal shortages became acute, mines everywhere have started opening again,” a retired mining supervisor in Datong says. “The government knows what is happening but provided they allow inspectors to visit every now and again to check on safety standards, they are turning a blind eye to it.”

The reason is overwhelming demand. The mainland needs every last lump of coal to satisfy the demands of its industrial revolution, its booming urban electricity consumption and the additional strain on resources that the Olympic Games in Beijing has had. On top of that, China has just had its harshest, coldest winter in half a century, causing fuel shortages so severe President Hu Jintao travelled to Datong to personally appeal to its 200,000 government mine workers to dig harder to help their snowbound compatriots.

“The president’s visit made us very happy,” says Li Mingxin, 58, a retired miner working as watchman at the Datong’s Xin Zhaoyiu coal mine – known as Government Coal Mine No 5 – where more than 10,000 miners are employed. “We felt very proud. The president of our country had come and asked us for more coal to help save the country, so we all made a special effort.

“Everyone gave up their Lunar New Year holidays. We increased production dramatically and all the coal went to the south for electricity production. We were very happy to be called upon to help at the time of our country’s great need.”

Sitting beneath a portrait of Chairman Mao in his watchman’s hut, Li – who spent 41 years working as a miner – frowns as he speaks of the dangers facing workers at the smaller, privately run mines. “Here, we have very few accidents because the attention to safety these days is much greater than in the past.”

“But the private mines are so small and they use mules and oxen to pull the coal carts from underground. There is also the risk of gas explosions because management is poor, ventilation isn’t good and the machinery to test the density of the gas is not good enough,” he says.

In Datong, the vast majority of workers in the 18 government-run mines are locals and in many cases, jobs are passed on from generation to generation, with the sons of miners being given priority for jobs.

Salaries are about 3,000 yuan a month, much higher than the national average, with a pension of 2,100 yuan for retired, long-serving miners such as Li. “Many men of my age have no salary at all while I receive a 2,100 yuan pension and another 500 yuan a month for working as a watchman,” he says. “We are paid like civil servants but we deserve it because of the duty we did for our country.”

Private mines – usually owned by county or village governments but leased to private companies – are staffed by migrant workers from poor provinces who move from mine to mine to find better salaries and conditions. They can earn up to twice the monthly salaries of their counterparts in state-run mines, taking home up to 6,000 yuan, but the high salaries come at a terrible price: accidents in privately run coal mines account for about 70 per cent of China’s mining deaths.

One miner who works as an explosives specialist in a private mine outside Datong rues the day he turned down the chance to work in a state-run mine because he wanted to maintain a higher salary.

“I didn’t realise at the time that if you work in a government mine for 10 years, you get a pension for the rest of your life,” says Yang Hua, 39.

“As migrant workers in privately run mines, we take greater risks and move from mine to mine. I will have to carry on working until I am 60 to support my family. It’s very different for the mine owners. They drive luxury cars and can make 10 million yuan in just one month. Because of the coal shortage, they have never been able to make so much money.”

Stung by the government criticism of their safely standards, private mines now operate amid tight security, behind high walls and fences, with teams of security guards patrolling the premises to keep unwanted observers away. “No one is allowed in without the owner’s written permission,” a security guard at one private mine says.

In the present sensitive climate, even government-run mines are reluctant to let outsiders visit. Even though guided underground tours are advertised on fading billboards outside the showpiece Government Mine No 9, an official at the visitor’s office eyes us suspiciously and says: “Sorry. We can’t take you in. Our visitor insurance has expired.”

When we assure him that our own insurance will cover the visit, he flicks distractedly through a pile of papers before looking up and announcing: “The tour is very time-consuming and expensive and there are only the two of you. I’m afraid we can’t afford to take you inside.”

Reflecting on the accident that crippled him just three months after he began work at a privately run mine outside Datong, Zhu says: “It happened because of neglect. The managers knew there were cracks in the scaffolding but they still made us carry on working beneath it.”

As a relatively new employee, Zhu was earning only 100 yuan a day to work underground, laying explosives to blast into virgin coal faces, and would work 26 or 27 days a month to earn money to send home to his family in western Sichuan province.

“I used to be a farmer but I have a daughter aged 17 and a son aged 14 and I couldn’t earn enough to pay for them to go to school, so I decided to come to the coal mine to work,” he said.

“Now my family is in an even worse situation because of what has happened to me. My wife has had to borrow money to pay for the education of our two children and we also have my parents to support. It is very hard for them. I will go back to farming when I recover – I can never go back to working in a mine.”

His wait for a fair payout could be a long one if the experience of other injured miners is anything to go by. “I’ve been in this clinic for five years since I broke my legs in an accident and I still haven’t received a proper settlement,” says He Yao, 65, from Inner Mongolia. “I’ll never work again now and I have three children to support – so I’m not going home to my family until I’ve got the compensation I deserve.”

For Wan, the trauma of his accident last year and his relative’s death in 2004 have left deep and permanent scars. “My brother-in-law was only 30 when he died and he had a seven year-old son. The family hired a lawyer and proved in the court case that he should have survived. In the end, they got compensation of 180,000 yuan for his death – more than three times what they were originally offered,” he says.

“We have higher safety standards too. The Olympic Games made inspectors stricter and they are doing more to guarantee the safety of workers. If they check a mine and it isn’t safe, they close it down. The government policy is good because the government is more concerned about the situation of mine workers.”

However, despite the new level of official concern, coal mining in China is like a game of Russian roulette. “I do this work because the salary is better than working in a factory but I risk my life earning the extra money,” says Wan, speaking at the end of his shift in the communal miners’ home outside Datong where he lives with his wife and 12-year-old son.

“Every day when I go to work, my family worries about me, especially after the accident last May. It is only when I come back home at night that they can relax, knowing that another day’s work is behind me and that I am safe from harm.

“I keep doing this because I need to pay for my son’s education. I became a miner because I didn’t have a choice. I want my son to go to university and find a good job. I don’t want him to suffer the same hardships as me.”

Red Door News

Imports Of Nuclear Power Opposed By Green Groups

Cheung Chi-fai, SCMP – Sep 15, 2008

Environmental activists have opposed further imports of nuclear-generated electricity from across the border under a new energy agreement with the mainland, though a power supplier has hinted it might expand imports.

The activists maintain that nuclear energy is an unsustainable and unsafe option for meeting rising energy demand, though it is increasingly being revisited as an alternative to ease global warming without compromising energy security.

The remarks came after Hong Kong and the central government sealed a deal last month to extend natural gas supplies to the city and ensure a continuous import of nuclear power – at a level no less than the current flow – from the Daya Bay nuclear station.

Hong Kong has been consuming nuclear power since 1994 under a purchase agreement between CLP Power (SEHK: 0002) and Guangdong Nuclear Power Joint Venture Company, in which CLP had a 25 per cent stake through Hong Kong Nuclear Power Investment.

The agreement allows CLP to import up to 70 per cent of Daya Bay’s output.

In each of the past five years, CLP has imported between 4,700 and 5,100 gigawatt-hours at a price of about 50 cents per kilowatt.

Nuclear power and natural gas each account for about 20 per cent of Hong Kong’s total electricity supply, and 60 per cent comes from coal.

While Hong Kong imports nuclear power from Guangdong, CLP exports electricity to the province. In last year’s annual report, CLP said it wanted both to extend and expand the nuclear-import arrangement.

Edward Chan Yue-fai, a Greenpeace campaign manager, said Hong Kong would be taking the wrong approach towards clean energy by importing more nuclear power.

“We have strong reservations about expanding imports, as nuclear energy is neither safe nor sustainable,” Mr Chan said, citing nuclear plant incidents in Japan that jeopardised the safety of plant staff and nearby residents.

“It is too bad that the energy deal with the mainland did not include any renewable energy imports, like wind power. It is renewable energy we should expand, not nuclear.”

Hahn Chu Hon-keung, environmental affairs manager of Friends of the Earth, said the group was inclined not to support further imports, citing concerns about the disposal of nuclear waste and further efforts to conserve energy.

“We can’t just resolve one problem by creating another,” he said. “Instead of expanding our energy supply, we should consider managing our energy demand through conservation and efficiency.”

Besides, Mr Chu said, further imports might also be undesirable since the mainland still had a shortage of power.

A CLP spokeswoman said it was too early to tell if the company was going to increase imports of nuclear power. “We will further discuss arrangements on generation with the government and continue to explore opportunities to participate in nuclear energy in China.”

The company noted that the Daya Bay station operated in line with international safety standards, with no major incidents reported since commercial operations began in 1994.

China Passes U.S., Leads World in Power Sector Carbon Emissions – CGD

August 27, 2008 – the Carbon Monitoring for Action (CARMA) database

For press inquiries please contact Ben Edwards

WASHINGTON: China set a new world record this year, surpassing the United States as the world’s biggest emitter of CO2 from power generation, according to new data from the Center for Global Development (CGD). But on a per capita basis, U.S. power-sector emissions are still nearly four times those of China.

The data, from the first annual update of CGD’s Carbon Monitoring for Action (CARMA) database, show that China accounts for more than half of the increase in global CO2 emissions due to power generation over the past year, mostly due to a surge in construction of new coal-fired plants (*This number was revised on 8/28/08*).

According to the new CARMA data released today, Chinese power plants will produce about 3.1 billion tons of CO2 this year, up from about 2.7 billion tons in 2007(*This number was revised on 8/28/08*). Power plants in the U.S will produce about 2.8 billion tons of CO2 this year, about the same as last year. If all power plants currently planned in China and the U.S. are eventually built, China’s power-related emissions will exceed those of the U.S. by 40 percent, although on a per capita basis the U.S. would still be the far-and-away the larger polluter from power production. The U.S. emits much more than China from transportation, in both absolute and per capita terms, because of the heavy reliance on cars.

Globally power generation accounts for more than a quarter of all emissions of CO2, the main greenhouse gas causing climate change, and the proportion is rising quickly.

CARMA data show that global emissions of carbon dioxide (CO2) from power generation have grown more than 34 percent in the past eight years, to 11.4 billion tons per year from 8.5 billion tons in 2000, notwithstanding some improvements in efficiency and slowly growing reliance on renewable energy. Two-thirds of the increase since 2000 is attributable to a surge in emissions from China.

“The new data show that emissions from power generation are racing in the wrong direction,” says CGD Senior Fellow David Wheeler. “We urgently need to cut power-related CO2 emissions and to very rapidly bring down the price of proven, zero-carbon renewable power sources, such as wind and solar.”

The new data are cause for serious concern, including for China itself and for other developing countries. Climate scientists warn that the amount of CO2 and other greenhouse gasses in the atmosphere must be quickly stabilized to avert climate catastrophe, which will hit first and worst in the developing world, with declining agricultural productivity, droughts, floods, and rapid sea level rise hitting densely populated, low-lying regions.

The additional 2.9 billion tons of power-related CO2 emissions per year since 2000 is equivalent to the annual carbon emissions of Australia, France, Germany, Italy, and Spain combined.

The world’s top-ten power sector emitters in absolute terms are China, the United States, India, Russia, Germany, Japan, the United Kingdom, Australia, South Africa, and South Korea. If the 27 member states of the European Union are counted as a single country, the E.U. would rank as the third biggest CO2 polluter, after China and the United States.

In per capita terms, emissions from the U.S. power sector are the second highest in the world. Americans’ electricity usage produces about 9.5 tons of CO2 per person per year, compared to 2.4 tons per person per year in China, 0.6 in India, and 0.1 in Brazil. Average per capita emissions from electricity and heat production in the EU is 3.3 tons per year. Only Australia, at greater than 10 tons per year, emits more power-related emissions per person than the U.S. In many developing countries, per capita power consumption is extremely low, and millions of people lack access to electricity at all.

In one of the few encouraging findings, the CARMA data reveal that carbon intensity—the amount of carbon emitted per unit of power produced—shows signs of declining in some major countries, including China, India, Russia, and South Africa. But the decline is not nearly fast enough to offset the rapid growth in power consumption.

“Higher fuel prices lead power companies to improve the efficiency of fossil-fueled plants whenever possible. But those measures are inherently modest and total global emissions continue to grow rapidly,” said CGD researcher Kevin Ummel, who manages the CARMA database. “The needed shift to renewable and low-carbon alternatives is happening far too slowly to avert dangerous climate change.”

Carbon intensity has declined in Europe since 2000—from 965 to 941 pounds of CO2 per megawatt-hour of electricity—but is actually projected to rise in the future to 983. The U.S. shows a similar pattern, with carbon intensity declining slightly early in this decade and now beginning to rise again. “Europe’s projected increase in carbon intensity is disconcerting and reflects a growing reliance on coal as oil and natural gas prices rise,” said Wheeler. “Given Europe’s past leadership in renewable technologies, this move back to coal is a serious blemish on an otherwise encouraging record.”

CARMA provides the estimated CO2 emissions of more than 50,000 power plants worldwide, based on publically disclosed emissions data and a model utilizing plant-specific fuel types and technologies. The CARMA website shows ranked lists of plant-level emissions globally as well as for countries, states, provinces, and cities. For the U.S., CARMA includes additional data for counties, metro-areas, and congressional districts. The database also includes information on the corporate ownership of plants. Since the data-intensive site was launched last November more than 300,000 visitors have explored and downloaded the data at www.CARMA.org.

The company data is important to investors, because power companies that utilize low-carbon technologies—like hydropower, nuclear, wind, and solar—face fewer potential climate-related liabilities, such as carbon charges under future regulation. CARMA makes it easy to find these companies: large power producers with low-carbon intensity earn a large Green icon, while large power producers with high CO2 intensity earn a large Red icon.

The Dirty Get Bigger
The top-ten power companies in the world in terms of power sector emissions include five in China, two in the U.S., one in India, one in South Africa, and one in Germany. The world’s biggest corporate carbon emitter is China’s Huaneng Power International, whose plants pump out about 285 million tons of CO2 per year, far more than the 227 million tons produced by all of the power plants in the United Kingdom combined and almost as much as the entire continent of Africa (335 million tons).

The United States’ biggest CO2 emitter is Southern Co. with annual emissions over 200 million tons, followed by American Electric Power Company Inc. at 175 million tons, and Duke Energy Corp. at 112 million tons.

According to Ummel, “A number of power companies have expressed desire for national policies to limit emissions and promote alternative energy,” he said. “But without financial incentives for big emitters to change their behavior, they continue operating and building carbon-intensive plants – and Earth’s climate moves closer to the breaking point.”

CGD president Nancy Birdsall says that the new CARMA data highlights the urgency and importance of reaching an international agreement that provides resources and technical support for poor countries to grow economically and reduce poverty, while also stabilizing and eventually reducing emissions.

“The rich countries created this problem and will have to take the lead in solving it. But the rapid growth in developing country power sector emissions reminds us that we won’t be able to avert rapid climate change, and the harm it will cause to the world’s poorest people, without also finding a way to enable poor countries to both grow and cut emissions,” Birdsall said. “Like it or not, we are all in this together and currently we are headed in the wrong direction.”

Carbon Caps Demanded

Peter So – Updated on Apr 07, 2008 – SCMP

Greenpeace wants the government to impose a legal cap on carbon dioxide emissions from power plants after a survey found more than 80 per cent of people agreed with the move.

Of the 514 people polled, 70 per cent were concerned with the effects of global warming on Hong Kong.

Activist Frances Yeung Hoi-shan said the government should regulate emissions from power plants.

The group urged electricity companies to cut their emissions by 15 per cent from 2006 levels by 2020.

Research by the Environmental Protection Department shows power plants account for more than 60 per cent of the city’s carbon dioxide emissions, which had increased 14 per cent in the past decade.

On Thursday, the Legislative Council will discuss an amendment to the Air Pollution Control Ordinance to regulate emissions from power plants, including sulfur dioxide and nitrogen oxide.

However, emissions of carbon dioxide will not be regulated, according to government proposals.

“The government refused to regulate power plants’ carbon dioxide emissions, saying that it would increase electricity costs and bring technical problems,” Ms Yeung said.

Meanwhile, the Democratic Party has called for the government and bus companies to speed up measures to reduce air pollution.

Party legislator Sin Chung-kai said there was no government policy to regulate the phasing out of old diesel buses and state subsidies were needed. Kowloon Motor Bus, the city’s largest bus company with 4,000 buses, plans to phase out its dirtiest vehicles in six years, including more than 500 buses predating Euro emission standards.

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On 31 March 2007, more than 2 million Sydney businesses and households turned off their lights for one hour – Earth Hour – sending a powerful national and global message that it’s possible to take action on global warming.

At 8pm on 29 March 2008, Earth Hour goes global, with cities and towns around the world taking stand on the greatest threat our planet has ever faced, and millions of people uniting to turn the tide on global warming.

Help increase Hong Kong sign ups! Hong Kong only have 352 sign ups at the time this article was posted! Check out Earth Hour Sign Ups by Country here: http://www.earthhour.org/about/ranking

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China Welcomes Us To Our Future Armageddon

By David DuByne – Posted Thursday, 17 January 2008 – On Line Opinion

I present to you a vision of the future: China has already leapfrogged to where we in the West will be within a decade, using coal to power our economies and cities as conventional worldwide oil production continues to decline. The pollution is the sight and smell of economic growth.

There are only 270 days left until the opening ceremony at the Beijing Olympics. Between now and the time when the torch is lit and the “Green” games start, 38 new pulverised-coal fired power plants will open.

Statement after statement about how this Olympiad will be environmentally friendly, and the amazing lengths China is going to regarding alternative energy power generation in Beijing, is plastered around the news media daily. That is the truth – well, half of it. Media releases seem to conveniently leave out the other half of the information: While there is tremendous focus on this single city in Green development, the remainder of the country is left behind in a haze of contaminants and smokestack particulates settling on nearly every square centimetre of land except a few isolated pockets in remote mountainous areas.

On one hand, China claims to the world it is going green to help us all against climate change and pollution control. But reading the newspapers – for example, “Nation not a Threat to World Energy” in the China Daily – paints a different picture. That article boldly claims that coal accounts for 70 per cent of the country’s energy needs and with proven reserves of one trillion tons, these reserves can satisfy Chinese demand for the next 100 years.

We need to look deeper into the mind set of Chinese society to understand why this is happening and why coal use is set to intensify as our planet experiences a further drop in conventional crude oil production.

Making face

Chinese society is complex in ways Westerners overlook or do not understand. “Mianzi” or “face”, for example, is the biggest stumbling block to our understanding consumption patterns of commodities and electricity usage in modern China. “Mianzi” is best explained as reputation, social standing or how others see you in their eyes. The Chinese are pre-occupied with “mianzi” to the point that decisions made in life are all about appearance. This includes government and business decisions. In order to continue with a roaring economy that pollutes along the way, China has to “make face” with Western governments showing they are committed to help solve their own pollution problems from within.

This is their front face, what lies behind is the true face. There are always two faces to everything in China.

Construction of hundreds more pulverised-coal-fired power plants assures coal will likely remain the fuel of choice for many decades in China. Despite the economic, social, and environmental problems coal creates, it is the fuel that will allow the Chinese energy sector to continue expanding along with coal affiliated mega-corporations involved in power generation, utilities, railroads, mining – and all the jobs in between – listed on the Hong Kong, Shenzhen and Shanghai stock markets.

Unemployment is the biggest concern for the central government at the moment using an economic growth policy focused on creating as many jobs as possible supersedes environmental protection every day of the week.

Renewable energy

China’s national renewable-energy law went into effect in January 2006, offering financial incentives for renewable energy development. Chinese authorities want to generate 16 per cent of their energy needs from renewables by 2020; this includes small and large scale hydropower, wind, biomass, and solar power. Gargantuan expansions of nuclear power and coal to liquids projects are on the books as well.

Forecast coal output is expected to reach 2.7 billion tons in 2010. In the first half of 2007, China generated 1,122 billion kilowatt hours (kw/h) of electricity, up 13 per cent from last year. During the six-month period, hydro-electric generators provided a total of 156 billion kw/h, increasing 22 per cent year on year; thermal-electric generators provided 940 billion kw/h, up 12 per cent; nuclear generators provided 26 billion kw/h, up 15 per cent, according to the China Electricity Council (CEC). Even at 16 percent renewable energy generation by 2020 the enormity of coal consumed to generate over 6 billion kW will increase total coal usage exponentially compared with today.

Predictions for substitution levels of hundreds of millions of kilowatt hours to be reached are “mianzi” driven and notoriously uncertain, if not overstated, to “gain face” on the international stage. Feasibility studies of these projections are in question especially with severe water shortages plaguing the country. Talk of the country being able to reduce its reliance on coal is disheartening when one looks at the increases in coal mining, usage and importation in the last two years, which were at the highest levels ever.
Lies, damned lies and statistics

Half-truths are so common in China that there is no negative stigma attached to lying, especially if it is to “save face” for your family, self or country. For example, six months ago China forbade ethanol production using human consumption grain crops because droughts and floods were set to decrease the season’s harvest. Two months ago, with food prices becoming too high, the government sold stored grain at auction onto the market to bring down prices.

Amazingly, just a few days ago I read that this year’s crop harvest was a bumper harvest and grain production had increased year upon year from 2004. This is considered “saving face” by telling a half-truth. The Chinese government wouldn’t want anyone to think negatively about them since they weren’t able to grow a record harvest, so by the loosest possible definitions of “harvest”, using released stored grain figures added to this year’s harvest, the numbers came up as a bumper year.

Rural electrification is mainly where the use of renewables will be concentrated. Base metals and commodities prices make it un-economical to run electric lines into the countryside throughout the nation. For China this is a win-win situation, first by “gaining face” internationally and, second, by saving money and commodities in the process. The downside is once installed, these devices are non-job creating: they are self functioning.

You can see the “mianzi” card being played with China joining the AP6, the Asia Pacific Partnership on Clean Development and Climate. Commencing in January 2006, the AP6 brings together China, the United States, Australia, India, Japan, and the Republic of Korea in an agreement based on clean energy technology co-operation regarding coal and carbon capture and storage (CCS) technologies. Personally I feel China is unlikely to invest in CCS systems for coal plants or heavy industry in the next decade or two due to the cost and using CCS at the new Coal-to-Liquids (CTL) projects would slow down production, but the partnership strengthens their reputation globally.
Seeking a balance

Within China there has been a public call for a balance between economic growth and environmental protection. One political manoeuvre is to move polluting industries and antiquated factories out of urban areas. This is coded language for moving the polluters to the countryside, where sulphur dioxide, nitrogen dioxide, plus other contaminants can diffuse more quickly: but a side effect is that it coats the food producing areas, on which most cities rely for food production, with particulate.

Meanwhile, when industry pollution is moved out of town to clean the air it is replaced with vehicle exhaust fumes from the 16,000 new cars which hit the roads every day.

Conservation has not been mentioned once in the Five-Year Plans of the central government. Conservation = non-consumption. The number one agenda is job creation to keep social stability, so conservation is not considered an option; it is not talked about and it will never be discussed. Some of my students who argue in favour of conservation, when asked about the possibility of turning off all of the neon lights around the city firmly said it just wouldn’t be China without the lights. They are part of Chinese culture.

It has been suggested that the Chinese are waiting for world political pressure and trade sanctions before addressing this problem in a meaningful way. It would then appear that by responding to this pressure they were conceding to world demands. My response to this is a resounding “Not likely!” This is because it would involve “losing face” by backing down and doing something at the behest of Western governments.

Instead, China makes pre-emptive decisions that appear to be doing something to help solve the problem with renewable energy, when in reality they are doing the opposite: increasing their reliance on coal for primary electricity generation. Coal is also used for source heat in smelting and the heavy-manufacturing industries. It is a primary resource for home heat in the country side. Many Chinese also use it for cooking.

Life-giving force

Coal is by no means the sole cause of China’s pollution. Many other industrial pollutants add to the mix. According to a New York Times article, “Only 1 per cent of China’s 560 million city dwellers breathe air considered safe by the European Union, according to a World Bank study of Chinese pollution published in 2007”. I am obviously living in the bad air 99 per cent. The energy and life-giving force from the sun is literally blocked out by polluted skies for weeks on end.

Electricity consumption continues to skyrocket even though nearly every resident in China knows there is a problem. Again “mianzi” is at play. Displays of wealth and glitz are considered “face gainers”, showing off the new $500 mobile phone or driving the latest 7 Series black Mercedes are at the top of the list for individuals. Rapid expansion of the economy means taller buildings being built in the cities, which need more elaborate light displays after dark consuming even more electricity. New freeways crisscrossing the country are lined with triple-sided billboards displaying endless consumer goods every 500 meters that light the night sky.

“Mianzi” is its own feedback loop. Development needs to be ever bigger and more ostentatious to show progress. This in turn drives the need to build more power plants to satisfy demand for a wealthier population. Take note: the wealth generation is in its infancy and credit cards are still considered a new thing.

I sometimes hear the argument that China could effectively leapfrog over the West in developing sustainable energy and growth if its citizens get hooked on renewable power before they join the middle classes, and if its existing middle classes can learn to conserve energy before they can afford two cars. This doesn’t take “mianzi” into account. Money and physical possession are deeply ingrained in culture and religion.

Romance, China-style

I will agree with the leapfrog jump, though. As oil reserves worldwide are depleted and as economic hardship sets in, coal will be used as liberally elsewhere as it is here in China. Coal is plan B for our world economy, not solar, not wind, but a resource that is plentiful, that requires no new invention or technological breakthrough that will allow a continuation of economic growth.

We are all in the fix together. We purchase products manufactured in China every day, and I don’t know of any joint venture or production facility that would be established if it was only to be powered with wind or solar. Industry requires a constant, reliable power source and will settle for nothing less. Coal takes the lion’s share in the Land of Dragons, and it will continue to do so.

Everything you have heard about the high levels of pollution is true and becoming worse by the day.

Electricity demand is insatiable; the construction industry is barely able to keep up with demand; and pollution levels are expected to double or possibly triple by 2015. This is truly an un-believable statement: if it is true than there will be nothing left living in this part of the world.

As peak oil starts to affect our planet’s economy, what I see here, right now, is what the future holds for us worldwide. No government will let their country crash and burn economically if there is a viable alternative.

I present to you a vision of the future: China has already leapfrogged to where we in the West will be within a decade, using coal to power our economies and cities as conventional worldwide oil production continues to decline. The pollution is the sight and smell of economic growth.

Looking at the future in front of me, gazing from my downtown balcony holding my girlfriend’s hand, I think to myself, “Construction crane silhouettes in the smog at sunset. How romantic.”

First published as “A Shell Game of Coal Dust and Green Olympics” at 321 Energy on January 12, 2008.

David DuByne teaches business English in Chongqing, China while keeping an eye on energy, commodities and bio-fuel production in Asia. His website – Dave’s ESL biofuel – is devoted to bio-fuel and oil depletion.

Clean Coal Technology: How It Works

BBC – 2005/11/28

When burned, coal is the dirtiest of all fossil fuels but a range of technologies are being used and developed to reduce the environmental impact of coal-fired power stations.

Collectively, they are known as clean coal technology (CCT).

CARBON CAPTURE AND STORAGE

Despite the improving efficiency of coal-fired power stations, CO2 emissions remain a problem.

Carbon capture and storage (CCS) involves capturing the carbon dioxide, preventing the greenhouse gas entering the atmosphere, and storing it deep underground.

A range of approaches of CCS have been developed and have proved to be technically feasible. They have yet to be made available on a large-scale commercial basis because of the costs involved.

COAL PREPARATION

Coal arriving at a power plant contains mineral content that needs to be removed before it is burnt. A number of processes are available to remove unwanted matter and make the coal burn more efficiently.

Coal washing involves grinding the coal into smaller pieces and passing it through a process called gravity separation.

One technique involves feeding the coal into barrels containing a fluid that has a density which causes the coal to float, while unwanted material sinks and is removed from the fuel mix. The coal is then pulverised and prepared for burning.

GASIFICATION

Coal gasification plants are favoured by some because they are flexible and have high levels of efficiency. The gas can be used to power electricity generators, or it can be used elsewhere, i.e. in transportation or the chemical industry.

In Integrated Gasification Combined Cycle (IGCC) systems, coal is not combusted directly but reacts with oxygen and steam to form a “syngas” (primarily hydrogen). After being cleaned, it is burned in a gas turbine to generate electricity and to produce steam to power a steam turbine.

Coal gasification plants are seen as a primary component of a zero-emissions system. However, the technology remains unproven on a widespread commercial scale.

REMOVING POLLUTANTS

Burning coal produces a range of pollutants that harm the environment: Sulphur dioxide (acid rain); nitrogen oxides (ground-level ozone) and particulates (affects people’s respiratory systems).

There are a number of options to reduce these emissions:

Sulphur dioxide (SO2)
Flue gas desulphursation (FGD) systems are used to remove sulphur dioxide. “Wet scrubbers” are the most widespread method and can be up to 99% effective.

A mixture of limestone and water is sprayed over the flue gas and this mixture reacts with the SO2 to form gypsum (a calcium sulphate), which is removed and used in the construction industry.

Nitrogen oxides (NOx)
NOx reduction methods include the use of “low NOx burners”. These specially designed burners restrict the amount of oxygen available in the hottest part of the combustion chamber where the coal is burned. This minimises the formation of the gas and requires less post-combustion treatment.

Particulates emissions
Electrostatic precipitators can remove more than 99% of particulates from the flue gas. The system works by creating an electrical field to create a charge on particles which are then attracted by collection plates. Other removal methods include fabric filters and wet particulate scrubbers.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/sci/tech/4468076.stm

Published: 2005/11/28 14:05:16 GMT
http://news.bbc.co.uk/1/hi/sci/tech/4468076.stm
© BBC MMVIII