Hydropower--A source of contention between Myanmar and China

I highly recommend people check out this article from the Asia Times that came out today.

Myanmar has suspended the construction of a major hydroelectric dam that is estimated to cost $3.6 billion (and to be funded by China). China is outraged and is accusing Myanmar of breaching their contract. 90% of the power from the dam was expected to be sold back into China. The dam was also a symbolic bellwether on Myanmar's stance on Chinese investment (including that pipeline the Natural Gas presentation talked about). On top of all this there is major debate about the environmental impacts both with climate change and glacial melt and potential for earthquakes.

http://www.atimes.com/atimes/southeast_asia/nb07ae01.html

Renewable Energy in Tibet

Renewable Energy in Tibet

If anyone else was as confused as I was to why Tibet stood out so much in the "Percent Electricity Generated by Renewable Energy by Province" graph in the Energy and Oil Presentation last Tuesday, here is a little insight to why that is the case.

According to the China Business Council for Sustainable Development:

"Tibet is rich in solar, geothermal and wind energy, while short of coal, gas and oil.

In cooperation with the United Nations Development Program and the Italian Government, Tibet has set up the largest geothermal power plant in China.

Local government is also undertaking a comprehensive appraisal, in preparation for the construction of a series of large-scale wind power stations."


Here is a link to a great paper about Tibet's prospects for renewable energy. The paper focuses on solar power but does a great job in conveying the overarching ecological and energy challenges in Tibet.


http://www.sciencedirect.com/science/article/pii/S1364032109000719


- Michelle Valentine 

China Olympic Standards, can it go back?

Remember when China hosted the olympics? This is a bit old but still pretty impressive.
Due to the Olympics, China experienced a stimulated economy due to increase in infrastructure and tourism. Even its environmental standard dramatically improved. One of the biggest concerns was the hampered air qualities due to factories. During the Olympics China shut down upstream industrial companies to help meet regulations for hosting the event. Granted it was short lived, can China, or at least Beijing, have pristine conditions and reduce it emissions?

This  article from ES&T talks about some of the fancy building that where build during the Olympics, how they had planned to reduce energy intensity by 20% by 2010, introduces its carbon program and ambition for reliance on wind.

oh and did i mention that professor Ortolano is featured in the paper? ;]

http://pubs.acs.org/doi/pdf/10.1021/es087183q  

China Reinforces Energy Supplies Through US

BEIJING—Chinese institutions unveiled three separate energy deals in North America and Europe on Thursday that underscore Beijing's continued interest in foreign assets as it looks for supplies to feed its booming economy.

State-controlled PetroChina Co., the Hong Kong-listed unit of China National Petroleum Corp., said it bought a 20% stake in a Canadian shale-gas project owned by Royal Dutch Shell PLC. Terms weren't disclosed. The deal marked the latest in a string involving North American shale-gas projects, which tap previously unreachable supplies and have transformed the U.S. energy industry.

Meanwhile, sovereign-wealth fund China Investment Corp. acquired a minority stake in asset-management firm EIG Global Energy Partners, according to the U.S.-based firm. A spokeswoman for CIC declined to immediately comment, and EIG didn't disclose financial terms or the size of the stake. EIG said it has investments in oil and natural-gas projects, as well as in alternative-energy technologies such as geothermal and wind power.

The investment involves no associated voting rights, EIG said, adding that CIC is also an investor in some funds managed by EIG.

In Spain, a unit of state-controlled China National Offshore Oil Corp. struck a deal with closely held solar-power-equipment maker Isofoton SA to create a joint venture that will develop solar-power projects mainly in China, a spokeswoman for Isofoton said. The venture's initial investment is estimated at $300 million for the development of 150 megawatts during 2012, and the funds will be provided by the Chinese company, she said. In addition, Cnooc will manufacture energy-storage batteries on a large scale for the venture.

The deals come as China looks to secure supplies in uncertain times. International pressure to curb business with Iran, a major oil supplier, and turmoil involving another supplier, Sudan, have called attention to China's vulnerability to disruptions in energy supplies.

China has moved cautiously recently—acquiring minority stakes and establishing joint ventures—after earlier attempts to make big purchases encountered significant political pressure and ultimately faltered, including a bid for U.S.-based Unocal, now part of Chevron Corp.

PetroChina said it bought the 20% stake in Shell's Groundbirch project, in northeastern British Columbia. PetroChina hopes to gain experience in the exploration and development of unconventional gas resources through its cooperation with Shell, the Chinese company said in a written statement. Groundbirch's natural-gas output is 125 million cubic feet per day, the company said.

Shell said the deal is the latest example of its strategic cooperation with PetroChina parent CNPC.

The acquisition comes days ahead of a visit to China by Prime Minister Stephen Harper of Canada. In December, Mr. Harper said Canada was "very serious" about focusing its efforts on selling oil and natural gas to Asian countries.

PetroChina, Cnooc and China Petroleum & Chemical Corp.—known as Sinopec—have all invested heavily in Canada's oil and natural-gas patch during the past two years. In January, PetroChina paid 680 million Canadian dollars (US$681 million) to buy the 40% of the MacKay River oil-sands project in northern Alberta that it didn't already own. Last year, Sinopec paid C$2.2 billion for Daylight Energy Ltd., a Canadian conventional oil and natural-gas company.

North America's energy sector has been transformed in recent years by the ability of natural-gas producers to crack tight rock formations known as shale by injecting streams of water and chemicals. At the same time, companies are also pushing ahead quickly to unlock the billions of barrels of oil trapped in Canada's vast reserves of oil sands.

http://online.wsj.com/article/SB10001424052970204662204577198674138535712.html

China Opens The Doors To Public Involvement In Hydropower Planning Process

In advance of our presentation on China's nuclear and hydropower resources this coming Tuesday, I thought it would be relevant to post this article from last month by Reuters.  


China's Ministry of Environmental Protection has issued a notice to developers of hydroelectric projects across the country that "projects should be planned 'comprehensively' and must pay attention to 'economic and ecological benefits, local and overall interests (as well as) immediate and long-term interests.' "  This would involve a decision-making process for new project development that includes all potential stakeholders, including residents that could be affected by the dam or impounded reservoir.  On paper, this process sounds similar to the United States Federal Energy Regulatory Commission's (FERC) licensing process for new and existing hydroelectric projects, and reflects a continuing gradual shift away from the completely "top-down" infrastructure decision-making process that has historically prevailed in China.  


Our group intends to simulate one of these stakeholder conferences for a hypothetical project development on Tuesday, and each of you will get your chance to "wear a hat".  These types of licensing processes literally take years in the United States, but we will just have to make the most of our time in class!      


The article also discusses the general sentiment for additional "big hydro" in China at the moment, including the apparent trade-off between hydro and nuclear in the current planning process.  

http://www.reuters.com/article/2012/01/17/china-hydropower-idUSL3E8CH2AC20120117

China Workers Abroad Becoming Easy Prey

During the oil and gas lecture last week, the issue of Chinese investments into Sudanese oil and the high risk exposure that accompanies them were brought to light. This Bloomberg article, released yesterday, shows how apropos that topic of discussion turned out to be.

Reports are arising of Chinese workers being kidnapped and held for ransom, and an apparent willingness by companies/government to pay those ransoms may be exacerbating the situation. A rebel attack on a Chinese encampment in Sudan has prompted members of the Foreign Ministry and representatives of CNPC to speak with Sudanese government officials regarding the safety of their workers abroad. It will be interesting to see how China will address these situations, and how it may affect their future foreign investment decisions

http://www.bloomberg.com/news/2012-02-01/chinese-workers-easy-prey-in-africa-as-growth-sending-more-citizens-abroad.html

China orders 7 pilot cities and provinces to set CO2 caps

China’s National Development and Reform Commission started a pilot program for seven cities and provinces to set CO2 caps to prepare for local pilot carbon markets. These pilot programs will include overall caps, implementation plans, and dedicated funds to support the programs.

-Khalial Withen

The article:

(Reuters) - China has ordered seven provinces and cities to set caps on greenhouse gas emissions in preparation for the launch of local pilot carbon markets, according to a notice issued by the country's state planning agency on Friday.

The National Development and Reform Commission requested the cities of Beijing, Tianjin, Shanghai, Chongqing and Shenzhen, along with the provinces of Hubei and Guangdong, to set "overall emissions control targets" and submit proposals as to how the targets will be allocated.

The provinces and cities have also been ordered to set up a dedicated fund to support the project and to draw up comprehensive implementation programs, the notice said.

An implementation plan drawn up by Guangdong, China's biggest CO2-emitting province, has already been approved by the State Council, the country's cabinet.

It commits the province to increasing the share of non-fossil fuels to 20 percent of total energy consumption by 2015, and to cutting the amount of carbon dioxide produced per unit of economic growth -- carbon intensity -- by 19.5 percent.

China as a whole has pledged to reduce carbon intensity by 17 percent over the 2011-2015 period, and said it is committed to using "market mechanisms" in order to reach the target.

It aims to bring 2005 levels of carbon intensity down 40-45 percent by 2020.

Besides the seven official pilot projects, there are more than 100 entities across the country trying to establish their own regional CO2 emissions trading platforms, including the coal-rich province of Shaanxi and the northeast port city of Dalian.

(Reporting by David Stanway; Editing by Ken Wills)

http://www.reuters.com/article/2012/01/13/us-china-carbon-idUSTRE80C0GZ20120113