Jump into renewable energy industry! Zhou YC, Tang SJ, Zhang XT present Nankai University  2007.5
Why renewable energy <ul><li>Industry curiosity </li></ul><ul><li>Drainage of fossil fuel including oil and gas </li></ul>...
Reality and outlook <ul><li>The start-up phase compared with other countries </li></ul><ul><li>The renewable energy accoun...
Government focus on the big four biomass, wind, solar and water
Government-led technology trend
Economic Factor <ul><li>Renewable electricity price excess average is borne equally by all end-users. </li></ul><ul><li>Pa...
Biomass industry <ul><li>Biodiesel </li></ul><ul><ul><li>Target: The demand mount of Biodiesel will reach 20 million ton i...
Biomass industry <ul><li>Bioethanol </li></ul><ul><ul><li>Target   The demand amount of  fuel ethanol will reach 4,500,000...
Wind industry  policy <ul><li>Wind power concession project </li></ul><ul><ul><li>Start at 2003, totally four times till 2...
Wind industry <ul><li>Main player in wind farm business </li></ul><ul><ul><li>Big five State-owned power companies: China ...
Solar industry If the horse can not catch upon the sun, I will put the sun on the back of horse Khazaks herdsman use solar...
Hydro power industry <ul><li>Target </li></ul><ul><ul><li>Small hydro schemes are particularly popular in China, which has...
Which industry?  Screening criteria <ul><ul><li>Market </li></ul></ul><ul><ul><ul><li>High market potential, rapid develop...
<ul><li>Portfolio Optimization of the investment </li></ul><ul><ul><li>Biomass  Replace the existing oil esources  in the ...
Biomass feasibility plan <ul><li>Main business area </li></ul><ul><ul><li>Direct investment on biodiesel & bioethanol </li...
Wind feasibility plan Short term action <ul><li>Setup wind farm operation company </li></ul><ul><ul><li>Participate in win...
Wind feasibility plan  Medium-and-long-term action <ul><li>Purchase a manufacturer </li></ul><ul><ul><li>To get the core t...
Thanks <ul><li>To join with SK in China together </li></ul>
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Jump into Renewable energy industry in China

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Jump into Renewable energy industry in China

  1. 1. Jump into renewable energy industry! Zhou YC, Tang SJ, Zhang XT present Nankai University 2007.5
  2. 2. Why renewable energy <ul><li>Industry curiosity </li></ul><ul><li>Drainage of fossil fuel including oil and gas </li></ul><ul><li>Environment enforcement to curb the CO 2 emission </li></ul><ul><li>Government endorsement </li></ul><ul><li>Central government’s long term plan and determination to develop the renewable energy </li></ul>
  3. 3. Reality and outlook <ul><li>The start-up phase compared with other countries </li></ul><ul><li>The renewable energy account for 0.1% of total energy consuming in 2005 </li></ul><ul><li>Target for year 2020:renewable energy account for 30% of the electrical power supply </li></ul><ul><li>The annual increasing rate of renewable energy over 25% </li></ul>Via China Renewable energy medium-and-long-term development plan
  4. 4. Government focus on the big four biomass, wind, solar and water
  5. 5. Government-led technology trend
  6. 6. Economic Factor <ul><li>Renewable electricity price excess average is borne equally by all end-users. </li></ul><ul><li>Partially tax concession. </li></ul><ul><li>Partially subsidies. </li></ul><ul><li>Small hydro power could receive long-term loans from National Development Bank. </li></ul>
  7. 7. Biomass industry <ul><li>Biodiesel </li></ul><ul><ul><li>Target: The demand mount of Biodiesel will reach 20 million ton in 2010. </li></ul></ul><ul><ul><li>Main player CNOOC, Beck fuel </li></ul></ul><ul><ul><li>Many projects </li></ul></ul>The total products of the projects constructed will be about 3 million ton 600,000 Ton Guofengoil 750,000Ton Qingjiang Bioenergy Smaller project
  8. 8. Biomass industry <ul><li>Bioethanol </li></ul><ul><ul><li>Target The demand amount of fuel ethanol will reach 4,500,000 ton per year in China . </li></ul></ul><ul><ul><li>Main player </li></ul></ul>CNPC COFCO The total products is about 1.02 million ton at present Others
  9. 9. Wind industry policy <ul><li>Wind power concession project </li></ul><ul><ul><li>Start at 2003, totally four times till 2006, 3 mKW </li></ul></ul><ul><ul><li>Still improving, with balace on low price and industry growth </li></ul></ul><ul><li>Equipment manufacturing localization </li></ul><ul><ul><li>In newly build wind farm, more than 70% of local equipment manufacture is needed. </li></ul></ul>… industry insiders believed that at that time(2020), it could be 170 million kilowatts . Arthouros Zervos Chairman Global Wind Energy Council
  10. 10. Wind industry <ul><li>Main player in wind farm business </li></ul><ul><ul><li>Big five State-owned power companies: China Guo Dian, LongYuan Group, DaTang Group, etc </li></ul></ul><ul><ul><li>Private company: Farsighted Group </li></ul></ul><ul><ul><li>International companies: Airtricity </li></ul></ul><ul><li>Main player in wind turbine manufacturing business </li></ul><ul><ul><li>International manufacturers: Vestas, Gamesa, Enercon, GE Energy </li></ul></ul><ul><ul><li>Domestic manufacturers: XinJiang Goldwind </li></ul></ul>
  11. 11. Solar industry If the horse can not catch upon the sun, I will put the sun on the back of horse Khazaks herdsman use solar photovoltaic cell to generate power Target : Five times that in 2005 Dominate in the western rural area Three players in Photovoltaic : GE, BP solar, SunPower One dominate player in Solar heating : HuangMing
  12. 12. Hydro power industry <ul><li>Target </li></ul><ul><ul><li>Small hydro schemes are particularly popular in China, which has over 50% of world small hydro capacity. </li></ul></ul><ul><li>Challenge </li></ul><ul><ul><li>Unsettled in the preferential policy for this industry </li></ul></ul><ul><li>Main player </li></ul><ul><ul><li>World’s first class equipment manufacturer </li></ul></ul><ul><ul><li>Large influx of private capital recently. </li></ul></ul>
  13. 13. Which industry? Screening criteria <ul><ul><li>Market </li></ul></ul><ul><ul><ul><li>High market potential, rapid development in industry commercialization </li></ul></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><ul><li>Large room for technology advancement and reasonable knowledge transfer feasibility </li></ul></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><ul><li>Stable revenue and high-rewarding profit in the future </li></ul></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><ul><li>Permission of foreign capital and no monopoly from domestic </li></ul></ul></ul>
  14. 14. <ul><li>Portfolio Optimization of the investment </li></ul><ul><ul><li>Biomass Replace the existing oil esources in the future automobile world. </li></ul></ul><ul><ul><li>Wind Clean, centralize power generation in this century . </li></ul></ul>Biomass Wind Power Solar Hydro Market √ √ × √ Technology √ √ √ × Finance √ √ × √ Competition √ √ √ ×
  15. 15. Biomass feasibility plan <ul><li>Main business area </li></ul><ul><ul><li>Direct investment on biodiesel & bioethanol </li></ul></ul><ul><ul><li>Define the business role as producer </li></ul></ul><ul><li>Main action </li></ul><ul><ul><li>Establish joint venture with state-owned company Setup refine factory </li></ul></ul><ul><ul><li>Research on suitable material and it’s refinery technology </li></ul></ul><ul><ul><li>Seek stable and diversity material supplier </li></ul></ul><ul><ul><li>Cooperate with automobile industry to commercialize biofuel. </li></ul></ul><ul><ul><li>Set up nationwide distribution channel </li></ul></ul><ul><ul><li>Eye on international demand </li></ul></ul>
  16. 16. Wind feasibility plan Short term action <ul><li>Setup wind farm operation company </li></ul><ul><ul><li>Participate in wind power concession project </li></ul></ul><ul><ul><li>Contact local government to operate small wind farm </li></ul></ul><ul><li>Onshore & near-shore farm operation </li></ul><ul><ul><li>Investment: 8000~10000RMB/kilowatt </li></ul></ul><ul><ul><li>Runtime: 20 years </li></ul></ul><ul><ul><li>Electric sell price: about 0.477RMB/watt in past concession project </li></ul></ul>
  17. 17. Wind feasibility plan Medium-and-long-term action <ul><li>Purchase a manufacturer </li></ul><ul><ul><li>To get the core technology </li></ul></ul><ul><ul><li>To cut down equipment price </li></ul></ul><ul><li>Operation large-scale offshore wind farm </li></ul><ul><ul><li>More wind power generation </li></ul></ul><ul><ul><li>Longer wind turbines life </li></ul></ul><ul><ul><li>High technical threshold </li></ul></ul>
  18. 18. Thanks <ul><li>To join with SK in China together </li></ul>

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