ENERGY PLAN : Based on a U.S. Congressional – Executive Commission on China, which held a series of Issues Roundtables in late 2004, it was estimated that 12 Chinese mine workers die for each and every million tons of coal produced. The majority are killed by methane gas explosions while within the coal mines. China Business Weekly reported in July 2000, “To stop gas explosions, China emits 6 billion cubic meters of methane from mines annually, seriously polluting the environment…” Last year, instruments on the world’s largest environment-monitoring satellite, the European Space Agency’s Envisat, revealed the world’s largest quantity of nitrogen dioxide was hanging over Beijing and northeastern China. Because the country emits more methane from its coal mining than any other coal producing country, China pollutes the earth’s atmosphere with about one-third of the full total annual emissions of methane. In line with the US Environmental Protection Agency, methane traps heat twenty times significantly more than carbon dioxide, which impacts global warming.
Energy Efficiency Appliances
On March 6th, People’s Daily reported, “Shanxi, China’s largest coal-producing province, plans to put the brakes on the further expansion of coal mining in the next five years.” Shanxi Governor Yu Youjun at a recent press conference announced, “We cannot continue the rough method of development any longer and must limit coal production strictly with the guidance of scientific notion of development.” While only slightly reducing the country’s aggressive GDP growth, China has instituted reforms to maximize its energy efficiency and minimize environmentally friendly damage and loss of human life. Not only is the country stamping down on the factors behind these problems, it wants western technology to simply help be efficient.
Since September 2005, Shanxi shut down nearly 5,000 illegal mines and fined or imprisoned significantly more than 1,200 operators, including 60 local officials. Coal produced about 70 percent of China’s energy supply in 2005. The Chinese government worries China’s dependence upon coal could rise above 80 percent over another five years. The united states is second and then the U.S. as a net importer of petroleum. Nontraditional sources are now being encouraged to wash up the environmental surroundings and reduce China’s dependence upon foreign oil. StockInterview.com has widely discussed China’s scramble for uranium as the country has embarked upon probably the most aggressive nuclear power program since the United States in the 1970s.
Why is Energy Efficiency Important ?
Alongside nuclear energy, China hopes to exponentially expand its natural gas program as a way of lowering its astronomical quantities of air pollution. Chinese Premier Wen Jiabao told the National People’s Congress earlier this month that the country’s growth rate would be reduced to 7.5 percent over the country’s next five year plan. Economic growth reached nearly 10 percent in 2005. The strain imposed on China’s natural resources and labor has been taking its toll. According to the next five-year plan, China’s government policy will concentrate on developing a resource-efficient and environment-friendly society. Their idea would be to sustain the high output while reducing waste.
That might not be so simple. On February 20th, China Daily reported, “The majority of China’s gas-fired power plants are on the verge of closure because of shortage of natural gas.” Wang Yonggan, secretary general of China Electricity Council, said nearly 40 percent of China’s power plant capacity remained unused due to the not enough gas supplies. Wang warned an idea drafted the National Development and Reform Commission to boost China’s gas power opportunity to 30 gigawatts by 2010 (up from 10.7 now) would make “such targets impossible to reach,” due to the gas shortfalls.
Coal Bed Methane Gas Development
Among the most serious reforms being addressed would be the energy crisis inside context of the environmental stigma now connected to China. Coal is a problem because, as toxic because it is known as, it assists fuel China’s growth, literally. Though the dark rock has its bright side. Adopting the examples from the U.S. coal industry, predominantly in New Mexico’s San Juan Basin, Wyoming’s Powder River Basin, and Alabama’s Black Warrior Basin, and the modern rise of Alberta’s Horseshoe Canyon, China has aggressively moved into the growth of its coal bed methane gas industry. The degasification of coal can but not only increase mining safety, nevertheless it is an economic way of natural gas production.
Within a 2005 report issued by the Federal Reserve Bank of Dallas, coal bed methane is it being taken very seriously instead energy source with strong growth potential inside the U.S. energy mix. “Geologists refer to it continuous gas, however it is otherwise known as unconventional gas or simply weird gas. Whatever you want to refer to it, you need to give it due respect for its growing importance. The Department of Energy reports the share of unconventional gas doubled from 17 percent of Lower 48 natural gas supplies in 1990 to 35 percent in 2003. By 2025 it really is projected to generally be 44 percent— matching the role of conventional gas—with the rest of the 12 percent of domestic supplies imported.”
By 2010, China hopes to boost its dependence upon cleaner burning fuels, just like nuclear and natural gas. However, the greatest immediate growth, for example over the next several years, is likely to derive from natural gas. Recent statistics show natural gas to generally be about 3 percent of China’s energy mix. Numerous announcements within the last 2 yrs have been made that the continent wants gas in the energy mix to reach 8 percent or more. In case you have traveled to China, there is no secret the continent is due to dire necessity of cleaner burning fuels. Official statistics reveal that China uses 2.45 a great deal of water to create a large amount of coal. Coal bed methane, a byproduct, is normally wasted. In 1996, China established China United Coalbed Methane (CUCBM) to harness that byproduct as well as reduce the toxic pollution and alarming fatalities, generated by coal mining.
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CUCBM is really a sole professional company together with the exclusive to certainly explore and develop coalbed methane resources in joint ventures with foreign companies. It’s controlled jointly by PetroChina Energy Company and the China Coal Energy Group Corporation. CUCBM is actively developing China’s coal bed methane industry by drawing upon the expertise, technology and capital of the foreign partners. “More dangerous technologies should be deployed to make certain reliable power supplies,” Ma Songde, China’s vice minister of technology and science told Associated Press at the end of February. “By developing these technologies, you can resolve issues restricting growth and enhance growth.” China is actively seeking foreign investment and cooperation in power generation, particularly clean energy.
To provide a light hydrocarbon, coal bed methane is among the cleanest options for energy. Published reports show that China’s coal bed methane (CBM) resources, buried with a recoverable depth of 2000 meters, are estimated at approximately 36.81 trillion cubic meters. China provides the world’s third largest CBM resource. Following behind the United States, oahu is the second country to have conducted large-scale field quest for coal bed methane. According to a new March 9th article in People’s Daily, “China’s coal bed methane industry made important headway in 2005.” About 340 CBM wells were drilled all over the country. That would possibly not sound astonishing when compared to the quantity of wells drilled in Canada, during the identical year, which surpassed the 3,000 level for the very first time. Because context, China remains nearly a virgin territory for CBM. CUCBM has become actively partnering when using the world’s giant oil companies yet others to educate yourself regarding their vast CMB reserves. In 1998, Texaco (now Chevron-Texaco) was the first one to partner with CUCBM and generated geological studies, exploratory wells and development contracts.
Consequently, CUCBM has become extremely selective in choosing its joint venture partners to create the ultra-valuable Production Sharing Contracts (PSCs). After attracting oil majors along the lines of Texaco and Conoco-Phillips, only a complete of 26 Production Sharing Contracts happen to be awarded to foreign-owned companies. Total coverage of such contracts now extends about 34,000 square kilometers of China’s below surface coal basins. Foreign companies have investment greater than $150 million in the contracted blocks. CUCBM hopes to ramp up coal bed methane output by 2010 to aid meet the national gas growth target of 10 billion cubic meters.
Pacific Asia Energy Corporation
The pioneer Canadian publicly traded company awarded a Production Sharing Contract was Pacific Asia China Energy Inc (PACE), which props up PSC through its wholly owned subsidiary, Asia Canada Energy Corp. Pacific Asia China Energy, which trades on Toronto’s Venture Exchange below the ticker symbol of PCE, also holds an extra PSC through another wholly owned subsidiary China Canada Energy Corporation. It’s the previous which interested us, their Guizhou Project in southern China. In speaking with Dr. David Marchioni, one in every of Canada’s leading CBM geologists, he explained of CUCBM, “The Chinese government doesn’t want to hand out resources in order to who don’t take desperate measures with them.
They desire them developed. They need to have gas. They need to have energy.” Dr. Marchioni helped co-author “An Assessment of Coalbed Methane Exploration Projects in Canada,” published from the Geological Survey of Canada. He can be president of Petro-Logic Services in Calgary, whose clients have included the Canadian divisions of Apache, BP, BHP, Burlington, Devon, El Paso Energy, and Phillips Petroleum, among others. He is another director of Pacific Asia China Energy is overseeing their CBM exploration program in China. But are usually strategy here? If Alberta currently is turning the corner and putting itself about the map as being a serious CBM contender, why would one in every of Canada’s top CBM geologists get excited and pursue a house in southern China.
Energy Efficiency and Conservation
“We have use of a huge resource for little money,” said Dr. Marchioni. “As opposed to paying poisonous for the concession this size, we paid limited fraction of that. Comparably, the project at Guizhou can have cost as many as $200 million to accumulate in Alberta.” China needs to attract foreign capital, that will be generous beforehand, but did PACE get hold of pig during the poke? We questioned him for the potential size for the resource. Marchioni responded, “The layman may believe those are actually big numbers, nonetheless only have to view the state reports. These are the basic numbers those guys think.” He was looking at the Sproule assessment for the resource, which offered a three-case scenario, starting at nearly 1 billion cubic feet and reaching the maximum greater than 11 trillion cubic feet.
Still, their assessment for just a “most likely scenario” has been a hefty 5.2 trillion cubic feet. Marchioni added, “People were numbers we originally thought we, and they have been confirmed.” The size of is big in such cases? “I do think we could fully support some large plant of some sort,” Marchioni explained. “This can be more of the long-term thing where choosing investigating a vital industrial development. Selecting looking with the idea to have enough money yourself or you do reel in partners to carry out such thinggs as liquefied propane or major gas-fired power station, liquefaction of coal.” Marchioni was quite excited about the CBM project in Guizhou, “These are common big projects, nevertheless the resource maybe there is with supporting a great project. Because of the resource is indeed , huge, you are able to support a project like that. There also are lots of potential industrial users for gas during the region.” China Daily reported South China, from where the Guizhou province is at, is facing gas shortage problems due to the high energy demands of Guangdong province. And what does PACE bring around the Chinese? “Hopefully, they’ll offer an operating CBM project or two contributing clean burning fuel for their energy mix, which can be really what they really want,” answered Marchioni. “We also bring entry to outside technology from locations that are producing CBM.”
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