Monday, May 17, 2010

Indoor air kills 2.2 million young Chinese

Via Lynn Hildemann and Sandy Robertson.

---

Indoor air kills 2.2 million young Chinese: report

BEIJING (AFP) – More than two million Chinese youths die each year from health problems related to indoor air pollution, with nearly half of them under five years of age, state media cited a government study as saying.

The study released by the China Centre for Disease Control and Prevention said indoor pollution levels can often be 5-10 times higher than those measured in the nation's notoriously bad outdoor air, the China News Service said.


A baby wearing a mask is held at a hospital in Beijing. More than two million Chinese youths die each year
from health problems related to indoor air pollution, with nearly half of them under five years of age,
state media cited a government study as saying



This indoor pollution causes respiratory and other conditions that kill 2.2 million youths each year, one million of whom are under the age of five, the report said, citing the study released on Sunday.

AFP was not immediately able to obtain a copy of the study.
The study said dangerous indoor pollutants include formaldehyde, benzene, ammonia and radon.

It said formaldehyde posed the biggest threat. It is often found in building materials and new furniture in China and can be slowly released into indoor environments over the course of several years.

It said long-term exposure to such substances can cause a range of health problems including respiratory diseases, mental impairment and cancer, with young children, foetuses in utero and the elderly at most risk.
China's massive economic expansion of the past three decades has made it one of the world's most polluted countries as environmental and health concerns are trampled amid an overriding focus on industrial growth.

Countless cities are smothered in smog while hundreds of millions of citizens lack access to clean drinking water.

A 2007 World Bank report said 750,000 Chinese die prematurely each year due to air and water pollution -- a figure edited out of final versions of the report, reportedly after China warned it could cause social unrest.

URL: http://news.yahoo.com/s/afp/20100517/ts_afp/healthchinapollution

Saturday, May 1, 2010

Daily Article

The feature I wrote ran in the Daily yesterday. Unfortunately, the editing took away my voice, the excitement, and all of the fun parts (there's no way would willingly omit karaoke from the article), so I'm posting both versions.


http://www.stanforddaily.com/2010/04/30/powering-the-future/


The Coolest Field Trip Ever?
China Energy Systems Field Trips—CEE 276F—visited China during Spring break to get a firsthand look at its rapidly developing energy infrastructure. On Thursday night, they shared their experience with the Stanford community in a talk titled “Meeting the Energy and Environmental Challenge.”


“If there is one word for China it is ‘scale’,” said Stanford energy professor Jane Woodward.  Despite inhabiting a land area similar in size to the United States, China’s population is five times larger, and the majority lives in an area half the size of the US.  Consider the 9% annual economic growth, and the required supporting energy, electricity, urbanization, and manpower, you begin to get an idea of just how huge it is.

The scale—and rapid development—of China is what makes it a pivotal player in the global energy system.  Over Spring break, 30 Stanford students had the opportunity to see just how expansive China’s energy infrastructure is.  From March 19th to 31st, the China Energy Systems Field Trip class, or CEE 276F, traveled from the capital, Beijing to the far reaches of Inner Mongolia, Yichang, Shanghai, and seven provinces in between.  Led by Woodward and Director of Sustainable Energy Education Karl Knapp, the class, which has been offered three times, every other year during winter quarter, provides a unique opportunity during spring break for a more “hands on” approach to energy education.

“Students studying energy typically have fewer opportunities to see energy facilities for themselves, or to talk to decision makers in person.  Our visit to China is an effort to correct this unfortunate trend,” said Knapp and Woodward in a written overview of the trip.  MAP Royalty, a private firm that acquires and manages natural gas and renewable energy royalties, played a large role in funding the trip as one of its sustainable energy education initiatives.

“I have every reason to believe that this trip accomplished its goal of taking 30 Stanford students committed to spending their careers in the energy/environment arena – on a trip that they will never forget,” said Woodward, who also serves as CEO of MAP Royalty.

The trip proved to be an unforgettable experience for all students involved, myself included.  China itself is expansive, our trip could be summarized as “superlative.”  Whether it was the largest dam in the world, the leading solar thermal manufacturer, or the most efficient coal power plant in the world, we saw some truly unique places, and were able to put some of the facts we had learned about China in a real physical context.  But it wasn’t just the places that made the trip incredible.  It was the scope of the trip, and the breadth of information we were able to absorb in just twelve days.

“We went all over China.  In one day we passed through four provinces in seventeen hours,” said Sam Ramirez, ‘10.  While the rate of four provinces per day was a one-time occurrence, all of our days were just as hectic, in the rare case when they weren’t even more so.

Despite the nonstop pace and limited sleep schedule, we managed to experience a bit of culture, most often in the form of karaoke.  “Evidently, karaoke is considered one of the basic human needs along with food, shelter and water,” said Brad Copithorne, MS ’10.  Indeed, there seemed to be a karaoke club within a block of, if not in, every one of our hotels.  Even our bus became a karaoke haven when Knapp figured out how to connect iPods to the bus’s microphone system.

I only hope no one recorded my performances.

********

As United flight 889 descended into the Beijing airport, I pressed my nose against the window.  Land use zoning regulations seemed nearly non-existent, as industrial complexes, garbage dumps, residential areas, and sheep pastures, all adjacent to one another, spotted the landscape below.

Once we touched down, 30 students, groggy with jetlag and armed with quarantine and foreign visitor forms, meandered slowly through customs.  After Charlie Lannin’s, ’11, brief detainment with Chinese authorities—something about a stuffy nose—we loaded into the bus, ready for the dusty, smoggy, coal-filled country awaiting our arrival.

Twenty four hours, an acrobat show—”a little known but pretty cool fact is that the Chinese can actually control gravity,” said Brenden Millstein, MBA/MS ’10—a duck dinner (complete with duck brain), Tiananmen Square and Forbidden City tours later, we met with some of the energy experts whose policy we had been studying so extensively in the winter quarter class.

In a traditional Chinese teahouse, we met with representatives from the Natural Resources Defense Council, (NRDC), a U.S. environmental NGO with offices in Beijing.  Woodward’s relationship with the NGO is what inspired and spurred the trip, and the meeting began to contextualize China’s expansive energy system in which we were about to immerse ourselves.

Over the next 10 days, we managed to fit in an exceptional amount of visits.  NRDC, WWF, Tsinghua University, Himin Solar, Goldwind, Petro China/Shell, Ordos Xingxing LNG facility, Guyang Damao Wind Farm, Three Gorges Dam, Waigaoqiao Coal Power Plant, and the Shanghai Energy Conservation Museum were only some of the organizations with whom we met or received a tour.

While I could write 20 pages about any one of the tours we received, the ones that stand out most vividly are the ones that are the largest, most remote, or most something in the world.

Take the Three Gorges Dam, for example.  If you’re envisioning a dam disappearing into the mist as it spans the Yangtze, an endless quantity of cement, and the most transmission lines you’ve ever seen in one place, then you’re spot-on. “[It’s] like the Hoover Dam, except five times as long (more than a mile across!), just as high (185 meters tall), and generates more than 10 times the power,” said Millstein.

Then there was the 5 GW coal power plant outside of Shanghai, which pumps out enough juice to provide 10% of California’s peak power demand.  With ultra super-critical (read: “clean”) coal technology, the Waigaoqiao Coal Power Plant is the second largest—and most efficient—coal plant in the world. But it doesn’t end there.

We also visited Ordos Basin in Inner Mongolia, the remote natural gas capital of China.  More natural gas is produced there than in any other region of the country, and we had the opportunity to tour one of the only inland liquefied natural gas (LNG) plants in the world.  The road to it was barely wide enough for our bus to avoid a head on collision with an LNG truck, but somehow we made it through unscathed.  “Neither our bus nor this tricycle vehicle fell off the road the way it felt we would,” said Woodward.

We also toured renewable power and manufacturing plants, primarily wind and solar facilities. “We dream that all Chinese people know and consume solar energy,” reads a Himin Solar—China’s dominant solar thermal manufacturer—billboard.  In a visit to Himin’s Dezhou headquarters, we experienced the dream in the form of a solar valley: a half-built city complete with high-end condos and a resort, running almost entirely on renewable energy.  Which makes sense, but kind of doesn’t since there’s not a lot of visible sunlight in China.  Or at least there wasn’t when we were there.

The reason?  Air pollution.  With the “super efficient” coal power plants, abundant renewable energy resources, and government incentives for clean power, it’s easy to forget that two new coal plants are coming online every week in China.  Until you go outside—then it’s impossible to forget. “No sun either, just an angry red blotch futilely trying to break through the gray-yellow mono-cloud of particulate matter holding the world hostage in the strong arms of haze,” as Millstein put it.

********

Twelve days, seven provinces, five power plants, two manufacturing plants, and endless particulate matter exposure later, we boarded the plane back to San Francisco.

Despite the dominance of coal, visible in sky and city, our trip showed how committed China currently is to a renewable energy future.  Through scale, speed, and low cost—the themes of Thursday’s presentation—China is rapidly developing an expansive renewable energy system.

But the rise of renewable energy in China wasn’t the only sign of hope we encountered on our journey.  “I think my favorite thing on this trip has actually been the group of 30 engineers I've been traveling with. Everyone is super warm, welcoming, fun/interesting to talk to, smart, stunningly non-cliquey and open, and every single one is trying to stop climate change,” said Millstein.

Given Stanford’s amazing sustainable energy education and the incredible group of people with whom I journeyed through China, I would say it’s a challenge we’re willing to confront.

Wednesday, April 21, 2010

Challenging China in Rare Earth Mining

Challenging China in Rare Earth Mining

The New York Times
April 21, 2010
By Keith Bradsher


On a high plateau wandered by burros and jack rabbits an hour’s drive southwest of Las Vegas, a chasm hewn from volcanic rock sits at the center of an international policy debate.

The chasm, in Mountain Pass, California — 400 feet, or 120 meters, deep — used to be the world’s main mine for rare-earth elements, minerals crucial to military hardware and the latest wind turbines and hybrid gasoline-electric cars. Molycorp Minerals, which owns the mine, announced Monday that it had registered with the U.S. Securities and Exchange Commission for an initial public offering to help raise the nearly $500 million needed to reopen and expand the mine.

Molycorp is making a big bet that its mine, now a rusting relic, can be made competitive again. Global demand is surging for the minerals. And customers, particularly the U.S. military, are seeking alternatives to China, which now mines 97 percent of the world’s rare-earth elements.

Sunday, April 18, 2010

Chinese Dams in this issue of "Science"

Science 12 March 2010:
Vol. 327. no. 5971, p. 1311
DOI: 10.1126/science.327.5971.1311

NEWS OF THE WEEK

ECOLOGY:

Severe Drought Puts Spotlight on Chinese Dams

Richard Stone
XISHUANGBANNA, CHINA—Smoky haze hangs over the hills in this subtropical corner of China bordering Laos and Myanmar. The smoke is familiar: During the dry season, farmers across Yunnan Province burn fallen leaves, banana fronds, and more to make ash-based fertilizer. More unusual here, and more troubling, are the sickly yellow bamboo stands and the exposed bed of the Lancang River. "It's the worst drought in that region since 1949," the founding of the People's Republic of China, says Lu Juan, vice director of the Institute of Water Resources and Hydropower Research in Beijing.
Southwest China's monsoon-driven climate doesn't bring much precipitation in autumn and winter. But this year's dry season—coupled with a late start and early end to last year's rainy season—has left the region parched. Yunnan officials estimate that some 6 million people are short of drinking water and that the dry spell has ravaged winter wheat and other crops, inflicting $1.5 billion in losses.
The drought's effects have spilled across China's borders, stoking tensions with neighbors and prompting scientific debate. Rice yields in Thailand are expected to take a big hit, and the Mekong River—the name for the Lancang south of China—is in many stretches less than a meter deep, its lowest level in decades, making it impassable to tour boats and cargo ships. Researchers worry about how the low water level may affect fisheries and critically endangered species such as the Mekong giant catfish, which in the coming weeks would normally spawn in the upper Mekong.
Environmental groups in Thailand and elsewhere lay at least part of the blame on China's doorstep. They claim that China's management of a series of dams on the Lancang has aggravated the unfolding crisis. The Thai media has helped stir up emotions; one editorial in the Bangkok Post last month was headlined "China's dams killing Mekong." Yet Chinese engineers and some other scientists say the criticism is unfounded.
Rising tensions in Asia could usher in a protracted regional conflict over resources, especially as many key rivers cross several borders. In Asia, "competition for transboundary water utilization will be fierce," says He Daming, director of the Asian International River Centre of Yunnan University in Kunming. China will be at the center of many squabbles. With some 110 rivers and lakes straddling its borders with 19 countries, says He, "China is the most important upstream riparian country in Asia, even in the world."
A major feature in this vast waterworks is the 800,000-square-kilometer Lancang-Mekong basin, home to some 60 million people. From glacier-fed headwaters on the Qinghai-Tibetan plateau, the Lancang wends 2160 kilometers through southwestern China before entering the Golden Triangle region of Burma, Laos, and Thailand. The river finally spills into the South China Sea off Cambodia. In the late 1980s, China began work on eight cascades, or hydroelectric dams, on the Lancang's lower reaches, aiming to supply 15.6 gigawatts a year. Four have been completed, including Xiaowan, the tallest at 292 meters.


Some environmental groups contend that the Mekong flow regime has been altered by dredging and dam construction, suppressing fish catches. Living River Siam, a nonprofit based in Chiang Mai, Thailand, has called on governments to "immediately stop all works on hydropower and river development on the Lancang-Mekong."
Yet the dams on the lower Lancang reduce runoff only during the rainy season, when reservoirs are filling, according to Chen Guanfu of Hydrochina Corp. Dry season water releases should increase river volume by 35%. "There are a lot of accusations that the dams in China are exacerbating the current low water levels, but the Chinese have informed [downstream nations] that they will not fill any reservoir during the dry season," says Roger Mollot, a fisheries expert with the World Wide Fund for Nature in Vientiane, Laos. The dams would also help rein in flooding, says Zhou Shichun of the General Institute of Hydropower and Water Resource Planning and Design in Beijing.
The biggest ecological impact could be less sediment swept downstream as silt accumulates in the reservoirs. But that would be a good thing, Zhou insists: It would "facilitate irrigation and navigation" on the Mekong. Others, however, point out that decreased sediment loads will likely lead to erosion of downstream riverbanks and the Mekong Delta.
Hydropower authorities have taken ecological effects into consideration, Zhou says. Work on one dam—the Mengsong Cascade, which would be sited nearest the border—has been postponed indefinitely, he says, to protect four species of migratory fish, including the giant pangasius (Pangasius sanitwongsei), whose conservation status is uncertain (Science, 22 June 2007, p. 1684). The freshwater goliath has not been reported above the Mengsong dam site, so the other dams would not affect it, Zhou says.
The first victim of an ecological crisis could be the Mekong giant catfish, which has been on the ropes for years. "It isnot clear if the current drought conditions will impact successful spawning of the wild population of giant catfish, but low water levels may make them more vulnerable to fishing pressure," says Mollot.
Things may get worse due to climate change. After examining weather and tree ring data, Fan Ze-xin, a tree physiologist at Xishuangbanna Tropical Botanical Garden, has found that in the past 40 years Yunnan has grown warmer and drier—a trend that started long before the dams were built. In a nature reserve near the botanical garden, he grabs leaves from a seedling; dry as parchment, they disintegrate. "Some of these leaves are fresh," Fan says. "I haven't seen it as bad as this."

Thursday, April 15, 2010

China + Brazil = Oil!

Just a random doc that may pique some people's interest.
More international cooperation beyond Shell & PetroChina.



Cooperation Agreement with China
 
 
 
Rio de Janeiro, April 15th, 2010 – Petróleo Brasileiro S.A. – Petrobras announces that today it signed a Strategic Cooperation Agreement with China Petrochemical Cooperation (SINOPEC) and China Development Bank Corporation (CDB) aimed at assessing mutually beneficial opportunities on the areas of cooperation. The Agreement is a development of the Memorandum of Understanding (MOU) signed between Petrobras and SINOPEC on May 19th, 2009.
 
The Agreement includes the cooperation between Petrobras and Sinopec in the following areas: Exploration & Production (E&P); Downstream; Petrochemical and fertilizers; and Services and Procurement.
 
In the E&P area there stands out the intention of the parties to assess future partnerships, including the possibility of selling part of Petrobras’s interest in blocks BM-PAMA-3 and BM-PAMA-8, located in the Pará-Maranhão Basin.
 
In Downstream and Petrochemical, the parties intent to assess opportunities for partnership in the Petrochemical Complex of Rio de Janeiro – Comperj, besides the possibility of new oil supply contracts to SINOPEC.
 
In addition, the Agreement includes the cooperation with CDB in relation to the possibility of bilateral financing under the scope of the Cooperation Agreement, to be negotiated between the parties by Petrobras demand.
 
Sincerely,
Investors Relations

Wednesday, April 7, 2010

More Capital/Overcapacity for Wind in China?

From the Wall Street Journal's China RealTime Report
(March 31, 2010)


Gone With The Wind: Capital for China’s Turbine Makers

“A great wind is blowing, and that gives you either imagination or a headache.” Catherine the Great surely was referring to capital raising for China’s wind turbine makers. As Dow Jones Investment Banker reports, for them, a headache is more likely.

Wind turbines in Gansu province, China
Last year was a good time for China when it became the largest wind market by annual installed capacity at 13 gigawatts, according to the Global Wind Energy Council.

Unfortunately that growth heralds overcapacity for Chinese turbine makers, suggesting a shake-out for some smaller names after 2009’s aggressive build out. That should, of course, play to survivors’ advantage in the long-term.

Meanwhile, for the clutch of wind-farm operators reportedly toying with a Hong Kong listing the business outlook is probably better, though the recent IPO market hasn’t been forgiving.

Favorable macro-tailwinds and preferential policy over the last five years have helped China’s wind industry. For example, farm operators are aided by on-grid tariffs for wind being higher than fossil fuels’, while local component-makers gain from rules ensuring at least 70% of turbine components by purchase value are made domestically.

And in the seven years to 2008 electricity generation grew at a compound annual growth rate of 12.8%, eclipsing China’s real GDP CAGR of 10.5% over the period.

And the bad news?

First: friendly market-share rules don’t translate into supporting margins when new entrants flood in.
Turbine makers, for example, have increased from six before 2005 to around 70 today. Meanwhile Xinjiang Goldwind Science & Technology Co. Ltd., one of the country’s top three turbine manufacturers by sales, saw its Ebit margins decline to 16.7% last year against 21.5% in 2006.

Smaller, unlisted firms likely experienced a similar trend, aggravated by lower margins given their higher operating leverage.

With farms shifting toward larger turbine sizes manufacturers are being pushed into capex for new production and R&D in an already highly competitive market.

Additionally, big farm operators gravitate to suppliers with a performance history, which favors larger, established outfits. China Longyuan Power Group Corp. - China’s largest wind-farm operator by capacity - sourced three-quarters of its turbine capacity from Gamesa and Goldwind at the end of June last year. This implies the domestic component sector is primed for realignment, especially among the second tier makers. That isn’t a great backdrop for listings or capital raising but survivors’ margins should benefit from less competition.

Wind farm operators -China Huaneng Group and China Datang Corp,’s renewable power unit - may have better prospects given superior earnings visibility over turbine assemblers.

Longyuan floated in Hong Kong in December. It has outperformed the MSCI China index by 5.9% since debuting - yes, with a somewhat erratic trajectory -making it one of the Hong Kong’s more successful IPOs since December.

A composite index of renewable energy power providers China Windpower Group Ltd. and China Power New Energy Development Co. has outperformed the MSCI China by about 30% over the past six months.
However, in contrast with most of Asia, both mainland and Hong Kong equity markets have logged negative returns since January and foreign fund flows into Chinese equity markets have been poor lately, underscoring the tougher environment for IPOs there.

Moreover, internal rates of return for 50 megawatt farms are around 10%, industry observers say, which sounds respectable, until you read Credit Suisse’s estimate that a 40%-equity financed 50MW Chinese wind farm probably generates a return on equity of some 4-6%.

That could be juiced with leverage but, with Chinese monetary and lending policy tightening, that mightn’t be so easy or appealing for equity investors.

So Chinese wind farm operators may still have their work cut out convincing investors that now is the time to bet on wind.

– Jamie Miyazaki

http://blogs.wsj.com/chinarealtime/2010/03/31/gone-with-the-wind-capital-for-chinas-turbine-makers/