The Clean Air Task Force (CATF) is working in China and elsewhere in Asia to speed a global transition to low-carbon coal technology, by facilitating the development of joint business ventures between innovative energy companies and research institutions in Asia and the West.
Coal Presents Enormous Climate Challenges …
We need decarbonized coal if we want to stabilize the global climate. Carbon dioxide emissions from coal-fired power stations are the single largest driver of global warming on the planet, accounting for about 40 percent of man-made CO2 emissions from energy use. If carbon emissions from coal power are not reduced substantially in the next two decades, global warming cannot be seriously addressed.
Coal, however, will remain a key source of energy for years, especially in some of the world’s largest economies. The United States and China, which together produce half of the world’s coal-fired power emissions, control almost a third of world’s coal reserves and have built their energy sectors around large fleets of coal-fired generating stations. Coal use by China is expected to double in the next 20 years.
… And Can’t-Miss Opportunities
Because coal-based power is responsible for such a large share of global CO2 emissions, the development and deployment of technologies that allow us to get energy from coal without the emissions will be a huge step toward climate change mitigation.
CATF believes that partnerships between companies from China and the West are crucial to accelerating the commercialization of low-carbon coal-based energy generation. The countries’ shared reliance on coal creates many challenges – along with some critically important opportunities. Energy companies in North America, Asia, Europe, and Australia have enormous experience and expertise working with coal, and are similarly motivated to develop technologies and techniques that will preserve a role for coal in a carbon-constrained world.
Moreover, the environmental and economic benefits of transitioning to clean energy will be smaller and slower to materialize if Western and Chinese companies do not work together. The climate challenge will be solved by multiplying opportunities for rapid development and deployment of low-carbon generating technologies, not by restricting engagement between companies in the world’s most dynamic economies. Investments by one country reduce the cost of that technology worldwide, increasing the likelihood that CCS will be widely deployed in time to help avert the worst consequences of climate change.
CATF’s China Project tackles this challenge with a staff of senior scientists, technology experts, lawyers, MBAs, economists, and public outreach professionals based in the US and China. CATF also collaborates with dozens of internationally recognized technical, research, and economic consulting organizations.
The organization’s efforts in China are led by Ming Sung, CATF’s Beijing-based Chief Representative for Asia Pacific. Sung is a long-term coal gasification expert, dating back to his work on US ERDA’s coal conversion program in the 1970s. Sung managed the development of large petro-chemical projects for Shell, including a large project in Shanghai, and then helped expand AspenTech’s China-based R&D work on industrial process engineering simulation software. Prior to joining CATF in 2008, Sung was the VP for technology at ENN Group, a dynamic privately-held China energy company. Through his strong ties to key energy companies and policymakers in China and the US, Sung has been instrumental in the formation of several promising CCS-related joint ventures between firms in China and the West (described in more detail below).
CATF’s work has received favorable notice from state and federal decision makers, industry, and the media; we are frequently consulted by agencies and elected officials from across the political spectrum, and have been cited by The New Republic as a “respected” voice on clean air policy.
The China Project at CATF builds on China’s current leadership in low-carbon coal technologies that will be essential to addressing climate change and energy security. For example, the first commercial scale IGCC power plant with CCS, called GreenGen, is under construction in Tianjin and will feature gasification technology developed by the Thermal Power Research Institute (TPRI). TRPI technology is also being used to retrofit a Shanghai power plant with one of the world’s largest post-combustion capture systems. An underground coal gasification (UCG) pilot and commercial project (coal to methanol) built by ENN Group in Inner Mongolia is helping to demonstrate UCG’s ability to significantly lower the cost of coal-to-power with CCS. Meanwhile, Shenhua Coal is developing a large-scale geologic carbon sequestration project at a new large coal-to-liquids plant in the Ordos Basin, and the East China University of Science & Technology has successfully licensed its gasification technology to Western project developers (as has TPRI).
Through an ongoing series of meetings, conferences, and briefings in the United States and China, CATF is working to familiarize key companies and institutions in the West with these kinds of projects and, more broadly, with the technological and industrial prowess found in the Chinese energy sector. CATF’s efforts have also provided Western technology developers – especially those looking for opportunities to commercialize advanced gasification systems – with a platform for engaging potential Chinese partners.
To coordinate these efforts, CATF founded the Asia Clean Coal Initiative (2007) and the Asia Clean Energy Innovation Initiative (2009). ACCI and ACEII have hosted invitation-only Executive Roundtables in Beijing, Cambridge, Palo Alto, and Hangzhou, and have co-sponsored broader events in the US and China. The Roundtables assemble the most innovative and entrepreneurial companies in the field, and have helped bring about several promising joint enterprises.
In November of 2010, CATF led a delegation of public, private, and non-government leaders from Texas, the Gulf States and Kentucky to China. This visit focused on carbon capture storage (CCS) technology and policy through facility tours and meetings and was designed to promote exchanges between Chinese and American government officials and collaboration between Chinese and American companies.
The delegation included approximately 30 state elected officials and regulators, executives from energy companies and representatives from non-profit organizations.
This trip achieved several goals:
• Helped to understand the vital role CCS will need to play in climate policies both in the US and in China.
• Understand the availability, cost and reliability of Chinese coal and CCS technology, which is advancing at extraordinary speed.
• Allowed US leaders to meet with Chinese energy companies and government officials to learn about China’s climate policies.
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This effort – building strategic cross-border partnerships that can reduce low-carbon coal technology costs and accelerate CCS deployment – is the crux of CATF’s China Project. By combining the extensive work CATF has done envisioning and developing a pathway to widespread CCS deployment in the US with our substantial engagement with Chinese energy leaders (spearheaded by Ming Sung), CATF has played a key role in bringing about some of the most interesting recent ventures between North American and Chinese energy companies.
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AEP-Huaneng Power Group
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AEP-State Grid
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Southern Company / KBR – Dongguan Tianming Electric Power Company
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Duke Energy – ENN Group
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ZEEP – ENN Group
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Future Fuels – Thermal Power Research Institute
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Duke Energy – China Huaneng Group
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HTC PureEnergy – Suntracing Clean Energy
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Duke Energy – State Grid Corp. (in negotiation)
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In addition to the project facilitation work described above, CATF frequently meets policymakers and key stakeholders in the US and China to discuss the opportunities associated with CCS-related joint ventures between companies in both countries.