November Newsletter


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A newcomer in the energy industry came into the spotlight today with its exclusive and unique service. Noether Associates, a leading energy consultancy based in Shanghai, China, has just launched its first issue of its monthly energy newsletter. Titled “China Energy Focus”, this newsletter will be free of charge for the first six months and can be downloaded through the Noether Associates website. It features articles translated from Chinese energy media on current and upcoming energy policies, new & developing technologies, and energy market trends. It also includes original content with interviews from energy experts and independent research done by Noether’s experienced staff.

Written by bilingual energy experts, this month's newsletter includes a range of article topics from new biomass energy created from daily urban waste to Zhejiang's green energy practices that aim to have 1% of its total energy from new energy resources by 2012, and an exclusive interview with one of China's leading green architects, Raefer Wallis, whose carbon-neutral boutique hotel in Shanghai, URBN, is the first of its kind in China. Additionally, the original research section titled “Noether Associates Insight” provides in depth research on Hybrid Electric Vehicles (HEVs) and its Chinese market.

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November Newsletter

  1. 1. China Energy Focus First Issue November 2009 Noether Associates
  2. 2. China Energy Focus 1st Issue November 2009 Noether Associates Table of Contents Letter from Noether Associates…..………………………………………………………………...... P1 Energy Leader Spotlight……….………………………………….......................................... P2 GIGA chairman and A00 Architecture Director—An Interview with Raefer Wallis SmithStreetSolutions Insight…………………………………………………………................... P4 Hybrid Electric Vehicles (HEVs) News………………………………………..………………………………………………………….……..….. P5 Energy − China’s Future Nuclear Power Plant Model − “Eat” Junk, “Vomit” Fuel − Clean Coal = Clean Energy? Emissions − Leading Up to Copenhagen - The Results of the United Nations Bangkok Conference − China Leading the Race in Reducing Carbon Emissions? Cleantech − Trading Technology for Entry into China’s Market − No Oil in China’s Universal Car Policies − Amending China’s Renewable Energy Law − Zhejiang: 1% of all Energy from New Energy Sources by 2012 − Shanghai’s Hongkou District: Energy Saving Industry Chain Upcoming Events…………………………………………………………………………………………….. P12 About Noether Associates………………………………………………………………………….……. P13
  3. 3. China Energy Focus Letter from Noether Associates The world is now transitioning into a clean energy economy, and China is at the forefront of this change. Our goal is to capture and deliver insight on China's economic activities surrounding research and development in new (clean) technology, renewable energy, and policies that will accelerate the growth of the China market. In this month’s newsletter, article topics range from new biomass energy created from daily urban waste to Zhejiang’s green energy practices that aim to have 1% of its total energy from new energy resources by 2012. Our newsletter hopes to provide short and profound articles that educate you on current clean energy topics in China. We go further to provide interviews with leading experts on energy matters in China, as well as original research on energy related issues. This month we bring you an exclusive interview with one of China’s leading green architects, Raefer Wallis, whose carbon-neutral boutique hotel, URBN, is the first of its kind in China. Read on to find out more! O. Koo Managing Partner, Noether Associates The winds of change are coming to China Noether Associates 1
  4. 4. China Energy Focus Energy Leader Spotlight GIGA chairman and A00 Architecture Director—An Interview with Raefer Wallis By: Krisanna Oopik Canadian architect Raefer Wallis, principal health, and the question of “compromised at A00 architecture firm, discussed the potential.” challenges and opportunities of sustainable Taking a deeper look at China, sustainable design in China, and what going “green” means architecture trends differ in China from the to him. He told of his past sustainable projects United States and other countries. In China, in China, his goal in future projects, and what the increase in attention towards sustainable continues to drive him today. Sustainable design began when health concerns became architecture in China continues to grow, and an issue. Wallis comments on the difference in the most important advice Wallis offers to trends in China by stating, people who want to “go green” is to implement “Sustainability is a Western import, and for us it’s practices incrementally and leverage what linked with ecology. Saving the trees, saving the other people have done. Wallis exemplifies his animals, saving the rainforest. For the Chinese, it own advice, and continues to incrementally (ecology) doesn’t mean much, it’s a low priority item; add new green materials or sustainable here it’s all about health. What tipped the scales was practices in his own projects. not an ecological event, it was a health event. In my mind, that was the milk scandal, and then the chicken Long before Wallis moved to Shanghai, his and egg scandals.” interest in sustainable design was rooted in his family values. Wallis states, “To be honest, Prior to these events, the Chinese media what inspired me to go green was education.” approached Wallis for an interview with regards Growing up in a family with parents who are to green topics once every three or six months; doctors, the importance of health was an after these health events, he was approached inevitable family value. Today, his two once every week for an interview on the same motivations to remain green are children and topic. Clearly demonstrating a correlation the daily impact the environment has on their between sustainable practices and health. Raefer Wallis URBN hotel Noether Associates 2
  5. 5. China Energy Focus Energy Leader Spotlight GIGA chairman and A00 Architecture Director—An Interview with Raefer Wallis The growing awareness of sustainable design in China has helped to launch a platform for sourcing green materials in China called GIGA (Green Ideas-Green Action), which allows people to find available green materials in China by using the transparent and neutral GIGAbase. Following his own strategy of incrementally going green, Wallis would introduce one green material or concept in each of his projects. However, each project turned out “GIGA was born in Shanghai on the 26th of April 2008 and became an to be a small research project in independent non-profit research foundation supported by the Western learning how to define which China Human Resources Development Foundation.” products were green and which were not. In China, this can be a challenge, because the qualifications for what makes a “green material” green is often not transparent, and certified green products are usually Western and not Chinese based. In the future, the Chinese government will have to take on a stronger role with regards to sustainable architecture to promote the increased use of green materials in China. Currently, the government does not provide any subsidies or policies to support developers with the initial cost of green projects. The government mandates the Green Star System, one of two existing green certifications for buildings in China, with the second being the LEED certification. The government is showing more acceptance in sustainability by allowing a few buildings to link their solar panels into the State Grid system, but this process requires copious amounts of paper work and requires a final approval. It is a step in the right direction, though. Domestic Chinese companies will also increase their production of green materials as demand increases, and the financial benefits become apparent to their bottom lines. Overall, the future of green materials and sustainable architecture in China appears to be promising, and will hopefully continue to flourish. Noether Associates 3
  6. 6. China Energy Focus SmithStreetSolutions Insight Hybrid Electric Vehicles (HEVs) Hybrid electric vehicles (HEVs) are a hot topic today, with a growing demand and availability in the market. HEVs reduce the use of petroleum fuel, and are one of the most popular clean energy solutions for automobile consumers. SmithStreetSolutions conducted research on the market trends and demand for HEVs, and concluded that while there is a growing demand, the demand is not necessarily located in China. In 2008, 80% of HEVs global sales were in the United States and Japan. However, Chinese manufacturers have launched their own plan to market HEVs in China, but little interest has been shown thus far from Chinese consumers. The main reason for this lack of interest is that there is no tax incentive for buyers in China, and the price is higher for an HEV compared to a traditional vehicle. If the Chinese government adopted policies to subsidize the auto manufacturers or provided tax incentives for consumers, the growth in the HEV market could be profound in China. One energy efficient car company; however, that is flourishing in China is BYD, a Chinese battery, mobile phone, and electric car company. BYD received global attention when Warren Buffett and Berkshire Hathaway decided to buy 10% of BYD last fall. In October, the BYD sedan (F3) became the bestselling sedan in China, and BYD has recently started selling a plug-in electric car that can go further than most other electric vehicles on a single charge, 62 miles, and can be bought for $22,000. To find out more, please refer to the Noether Associates website for the research deck correlated with HEVs research. Source: SmithStreetSolutions BYD F6DM model at the North American International Auto show in Detroit, December 2008 Noether Associates 4
  7. 7. China Energy Focus News – Energy China’s Future Nuclear Power Plant Model State Nuclear Power in China worked jointly with the China Huaneng Group to build the first advanced domestic pressurized water reactor nuclear power plant. The project, titled, “Third Generation Nuclear Technology,” has inspired five of the top electric power companies to switch to nuclear electricity. The project will be the first model project of its kind that will hopefully develop later into more pressurized water reactor nuclear power plants. This innovative technology will allow China to develop its own intellectual property rights in nuclear design, manufacturing, building and operations, and to develop an overall standard for nuclear power development. Source: Economic Information Daily, September, 2009 “Eat” Junk, “Vomit” Fuel The Dajiang Group Shanghai Shende Machinery Co. has created a new biomass energy source from everyday waste materials that will forever change the way we view “junk” or waste materials. In addition, they have developed a facility and equipment that are environmentally friendly to produce the new biomass energy. The innovative technology is described as being able to "eat" sawdust, straw, rice husks, and forty to fifty other kinds of waste, and "spit" it out as usable bio-fuels. Biomass, granulated fuel, can be made through the process of screening, crushing, drying, grinding, and molding daily urban waste, such as sawdust, straw, rice husks, and waste plastic film. The waste materials, or second-generation bio-fuels, used to produce this new biomass fuel are ideal, since they do not require arable land or food Truck being hoisted up to dump out saw dust, which products used by humans. In the future, bio-fuels can be used to make the new biomass fuel will help maximize the reusability of waste and may potentially replace resources such as coal, oil, and other non-renewable energy sources. Source: Jiefang Daily, September, 2009 Noether Associates 5
  8. 8. China Energy Focus News – Energy Clean Coal = Clean Energy? Whether or not clean coal is a green energy source is debated, since the process of cleaning and transporting the coal can be viewed as a polluting process. In China, Pu Hongjiu, the Vice Chairman of the China National Coal Association and Vice Director of the National Energy Expert Consultative Committee, argues that clean coal is an environmentally friendly process and should be emphasized and supported in the upcoming Twelfth Five Year Plan for China. Coal, which China relies on heavily as its primary energy resource, creates an immense amount of pollution. Hongjiu’s stance, however, is that coal can be cleaned and reused after burning, and that we should Protestors rally against the use of coal alter our view of coal as a polluting substance. This proposed solution, however, is not yet accepted by electric power companies in China, as they are unwilling to purchase clean coal. It is hard to blame the electric power companies, because the actual transportation of the clean coal is an environmentally unfriendly process. Pu Hongjiu insists that China could implement the use of coal gangues to fill coal mines, and reduce the impact of coal mining on the Earth’s surface. Overall, the emphasis of implementing clean coal in China’s Twelfth Five Year Plan could have a drastic impact on the future of coal use in China, and is a topic to pay attention to in China’s upcoming Five Year Plan. Source: Energy magazine, September, 2009 The inevitable link between coal and power for China Noether Associates 6
  9. 9. China Energy Focus News – Emissions Leading Up to Copenhagen - The Results of the United Nations Bangkok Conference October 9th was the conclusion of the action from developed countries on reducing United Nation’s 4th International Conference emissions is that their overall emission is on Climate Change in Bangkok, Thailand. The much larger than those of developing conference resulted in no significant progress countries. Therefore, the pressure in reducing at the policy level, and there was a lack of emissions is focused primarily on developed response in change from developed countries. countries. China holds the same position as Developed countries were unable to present developing countries in insisting that any satisfactory proposals for changing their greenhouse gas emissions from developed own emission reduction targets, increasing countries be reduced 40% by 2020 based on funds for climate change, or transferring 1990 emissions statistics. China has made its technology for programs in developing own commitment to save energy and reduce countries. Additionally, there was little emissions through China’s National Climate response towards recommendations Change Program, which proposes reducing its proposed by developing countries on emission gross domestic GDP energy consumption by reduction requirements, technology transfer 20% by 2010 based on 2005 statistics, and mechanisms, and other suggestions to benefit reducing other major pollutant emissions by programs in climate change. 10%. The concern with the lack of response and Source: Xinhua News Agency, September, 2009 China’s power plants are a major contributor to carbon emissions China Leading the Race in Reducing Carbon Emissions? Experts are saying that China has exceeded the European Union’s emissions reduction targets. The Chinese government has approved over 2,200 Clean Development Mechanism (CDM) projects through September 2009, and China has successfully registered more than 640 CDM projects with an emissions reduction of around 150 million tons. Yang Hongwei, director of the NDRC Energy Research Institute Center for CDM project management, commented on China’s development by stating, “If all 2,000 projects could be registered successfully, the emissions reduction is expected to reach 20 billion tons in the first commitment period. China’s CDM projects have made a great contribution to promote global greenhouse gas emissions mitigation.” The International Energy Agency estimates that if China achieves its proposed target of slowing down the emissions growth, that China will be the country with the largest reduction in emissions by 2020. Source: Daily Economic News, September, 2009 Noether Associates 7
  10. 10. China Energy Focus News – Cleantech Trading Technology for Entry into China’s Market The Chinese government’s concern about lacking innovation in domestic Chinese technology companies has become apparent after a policy was implemented making it more difficult for foreign companies to enter China’s market. Chinese technology companies currently lag in development, and the fear that foreign companies will dominate China’s technology market is becoming a reality. In response to this growing concern, the Chinese government has enacted the “Market Entry in Exchange for Foreign Technology R&D” policy. The policy provides assistance to China’s local market, and opens the barriers that prevent technology development in China from benefiting from foreign technology R&D. China’s local companies are suffering from the presence of foreign companies in the technology market, therefore, the policy would require foreign companies to assist in China’s technology R&D and provide a percentage of their profits from the Chinese market. Xiaolian, a scholar at the American Economy Institute at China’s Academy of Social Sciences, commented that China should not be reduced to buying or asking for technology only from the United States; there are other countries that can supply equal or greater value in technology R&D. With the current global climate crisis, the potential for controlled technology exchanged between countries is a viable option that could be a possibility in the future for China. Overall, China hopes the US will reduce its technology transfer costs, and China will continue to limit the number of foreign technology companies entering the China market. With the current global climate crisis, the potential for controlled technology exchanged between countries is a viable option that could be a possibility in the future for China. Overall, China hopes the US will reduce its technology transfer costs, and China will continue to limit the number of foreign technology companies entering the China market. Source: Energy magazine, September, 2009 Discussing technology exchange between the US and China Noether Associates 8
  11. 11. China Energy Focus News – Cleantech No Oil in China’s Universal Car Wang Binggang speaks at China’s Second Green Energy Automotive Development Summit Forum The rapid demand in China’s growing auto market calls attention to the need for an alternative energy solution in the future. The growing demand for petroleum used by automobiles and subsequent fuel shortages has become a common concern, and was voiced by Wang Binggang, an expert team leader in energy saving and new energy auto project, at China’s Second Green Energy Automotive Development Summit Forum. Wang Binggang stated, “We cannot rely on petroleum in the coming popularization of automobiles in China. We must develop new energy to meet the coming energy needs.” Resource constraints are only one part of the problem for China, the other being the stock quantity of cars. China’s future demand in the auto market contrasts from previous market demands in Europe or America in that a growing resource crisis and vastly larger demand in the market are being experienced simultaneously. China’s 450 million cars only amount to half of those in Europe, but this number will continue to increase. In order to meet the growing demand and resource constraints for China’s energy market, developing new energy solutions is required. Research on China’s auto market is already being explored, but the question is how these benefits will have global impact. Source: China Petrochemical News, September, 2009 Noether Associates 9
  12. 12. China Energy Focus News – Policies Amending China’s Renewable Energy Law The completed draft of China’s Renewable Energy Law is positive in enhancing support for policies in wind, solar photovoltaic, and other energy related industries, but it fails to include the solar thermal industry. Huang Ming, a solar energy industry leader in China, appealed to the National People’s Congress to not overlook the importance of developing the solar thermal industry in parallel with the solar, photovoltaic, and wind power industries. China’s solar thermal market is the largest in the world, and its technology is more enhanced than that of China’s photovoltaic and wind power industries. There are 6,000 enterprises in China associated with the solar thermal industry, and with the number of enterprises increasing, it is essential for a set of standards for the industry to be implemented and mandated. The solar thermal industry is competitive globally, and if China chooses to ignore this industry in its Renewable Energy Law, the country may face drastic consequences, such as losing its global advantage in thermal solar power. Source: Zhongxin, September, 2009 Zhejiang: 1% of all Energy from New Energy Sources by 2012 Zhejiang Province, a coastal province to the south of Shanghai, has implemented the “6+1 Program”, which will accelerate the popularization Solar Panels in Zhejiang and application of new energy sources in the province. Specifically, this will involve the implementation of one million rooftop power generators, 100 MW of wind power, one million square meters of solar water heaters, 100 road solar lights, and one million square meters of ground source (water) heat pumps and air-conditioners. The goal by 2012 is to have over 1% of the province’s energy consumption from new energy sources, and a total of 350 MW of new energy generating capacity, with 50 MW from photovoltaic power and 300 MW from wind power. The solar water heaters will cover an area of over 10 million square meters, with ground source (water) heat pumps and air conditioners covering an area of over 5 million square meters, and will have an annual output of 100 million cubic meters of methane. The large-scale implementation of green energy in Zhejiang Province provides a platform for future guidelines for implementing similar energy projects in other Chinese provinces. Source: China Energy Network, September, 2009 Noether Associates 10
  13. 13. China Energy Focus News – Policies Shanghai’s Hongkou District: Energy Saving Industry Chain Shanghai’s Hongkou District aims to The Hongkou District government will allot connect the district’s energy saving industry specific funds for energy-saving and emission within the next 3 to 5 years. The district’s reduction projects. In addition to direct location, in downtown Shanghai, has ideal support, there will also be new policy resource advantages for energy saving guidelines. Recently, 30 buildings were listed projects with old-style buildings and on an energy-saving plan and began factories in the area, which has attracted cooperation with the Shanghai Environment many environmentally friendly enterprises to Energy Network. It is estimated that in the take part in their reconstruction projects. In next 5 or 6 years, the annual value of energy- the first half of 2009, the revenue of saving industries in Hongkou District will reach Hongkou District’s new Energy Saving $2 billion. These organizations help make Industry reached $200 million. The services Hongkou a promising environment for available in the Hongkou area include R&D improving energy efficiency in Shanghai. energy-saving and environmental protection Source: Jiefang Daily, September, 2009 technology, monitoring and diagnostics, engineering design and operation, energy consulting, energy management, and energy related trade and financial services. In May, a cleantech industry park was formally opened, and has become the home of both national and municipal-level energy-saving organizations, such as the Shanghai Environment Energy Network, Shanghai Energy Efficiency Center, and the Shanghai Science Exhibition Hall. The park has built a service platform offering: exhibition, integration, distribution, and services. The Shanghai Environment Energy Network will focus on the exchange of technology regarding energy emissions in property, while the Shanghai Energy Efficiency Center will take the responsibility of encouraging energy management and energy-saving production, communicating energy efficiency information, providing Shanghai-taking the lead in energy savings consultant and research services, and executing government projects. Noether Associates 11
  14. 14. China Energy Focus Upcoming Events November 2nd- 3rd China Clean Energy Summit Beijing November 5th Chongqing International Construction Summit Chongqing November 11th- 13th 2009 International Polysilicon and Photovoltaic Industries Summit Huainan November 18th-20th 2009 International Photovoltaic Solar Energy Conference and Exhibition Beijing November 18th- 20th The First China International Clean Energy Technology and Equipment Exhibition Beijing November 24th-27th GreenBuild China 2009 Shanghai dex.jsp November 25th- 26th Clean Energy Trends Asia 2009 Shanghai Noether Associates 12
  15. 15. China Energy Focus About Noether Associates Noether Associates is a leading Shanghai-based energy consultancy with expertise in the China energy market. We seek to drive change through our energy insight by empowering companies to make energy and cost- efficient decisions, regardless of size or industry. Our energy experts provide emissions analytics across industries, and knowledge on how energy is generated, distributed, and consumed, enabling your company to make smarter decisions. Our services extend further to provide both you and your customers sustainable designs to make your products greener. For more information, please refer to our website at Noether Associates 13