Date: Jan 31, 2011
When Chinese President Hu Jintao visited Washington on Jan. 19, 2011, he and President Barack Obama reinforced their cooperative relationship on clean energy and climate change. Building on the bilateral success of the Cancun Agreements, the leaders agreed on a new $45 billion trade and investment package between the two nations that will include a number of energy efficiency development projects. U.S. Secretary of Energy Steven Chu also used the state visit to meet with his Chinese counterparts and advance the progress of ongoing collaborative energy research projects.
Duke Energy Partners in China’s Eco-City
As part of this package, Alliance Associate Duke Energy entered into an agreement with China's ENN Group -- a clean energy company with ventures in distribution, solar energy and energy technologies -- to work collaboratively on the development of China’s new Eco-City in Langfang, China. The city, located along the southern border of Beijing, will use high-efficiency buildings and transportation, as well as clean generation and carbon sequestration, to showcase the potential of committing to clean technology. Through this collaboration, the companies hope to capitalize on Duke’s innovative strengths and ENN’s experience in large-scale deployment of energy technologies.
“Today’s agreement exemplifies what’s possible when the U.S. and China collaborate on energy technologies for the 21st century,” said Duke Energy Chairman Jim Rogers in a press release. “Together we seek to demonstrate how these next-generation technologies can transform the way we live.”
U.S.-Chinese Companies to Build High-Efficiency Coal Plant
Duke Energy wasn’t the only American energy company to benefit from agreements made during China’s visit. The $45 billion trade and investment agreement also will include projects with General Electric Co., American Electric Power, Alcoa and Westinghouse Electric Co., among others.
In one project, U.S.-based Peabody Energy will team up with Silicon Valley-based Calera Corp. and China Huaneng Group – China’s largest power generator. This partnership will create a new 1,200 megawatt high-efficiency power plant and adjacent coalmine while employing Calera’s carbon sequestration technology. This technology turns CO2 emissions into a cement mixture that can be used in building materials, making the sequestration more cost-effective.
New Efficiency Research Builds on Cooperative History
On the eve of Hu’s visit, Chu took the opportunity to weigh in on over three decades of scientific cooperation between the United States and China. Energy, Chu said, is an important part of that relationship.
“Cooperation with China on clean energy is good for Americans and good for the world. As the world’s largest producers of energy, consumers of energy and greenhouse gas emitters, the energy and climate challenge cannot be solved without the United States and China. What we do – or do not do – in the coming decades matters to the entire world,” Chu said.
According to Chu, the strengths of the United States and China are complementary. The United States leads the world in innovative technologies, thanks to its universities, national laboratories, businesses and financial and legal infrastructures. Meanwhile, China has become an expert on swift, large-scale deployment of technologies. Moreover, China provides an opportunity for new technologies to be tested and developed to scale, Chu said.
Recent cooperation on energy research between the two countries is the result of a November 2009 initiative launched by Obama and Hu. The flagship of this effort is the U.S.-China Clean Energy Research Center, which focuses on efficiency in buildings, among other priorities.
The Sputnik of Energy Efficiency
China’s individual investments in clean energy technologies present both challenge and opportunity for the United States, according to Chu. In terms of energy efficiency, China excels in high-voltage transmission lines, which are more efficient and carry more power than those commonly used in the United States. China also has become a global leader in high-speed rail – with the fastest trains and the largest rail network in the world. Further, China is rapidly deploying ultra-supercritical coal combustion plants, which have fewer emissions and greater efficiency than coal plants used in the United States. In fact, Shanghai claims to have achieved 45 to 48 percent efficiency in some coal plants, while the very best U.S. plants are about 40 percent efficient.
Chu refers to these achievements collectively as a Sputnik moment, referring to the Soviet satellite which initiated the space race. China has demonstrated what is possible with serious dedication to energy efficiency and clean energy investment. Chu’s message indicated that to have a chance at keeping up (and surpassing) countries like China, the United States must invest in energy efficiency with a renewed effort fueled by American innovation, which in turn will create jobs, spur economic growth and make America more energy secure. Or else, America will be left behind.
