Recently, Qingdao`s scientific development program "Research on vital production technologies and innovative materials of biodiesel" jointly undertaken by the Institute of Oceanoogy, Chinese Academy of Sciences (hereafter referred to as “IOCAS”) and Shandong Peanut Research Institute passed the examination and acceptance of Qingdao Municipal Science and Technology Commission.

The program was applied and funded in 2005. Through two years of efforts, vital production technologies like chemical method and fat enzyme method have been found. With oil extraction rate over 98% and glycerol purity up to analysis pure standard, various indicators of the biodiesel are superior to the existing bio-diesel standard GB/T20828-2007, and even reach the German bio-diesel standard. Through collecting 4 samples of alga materials with over 28% of oil content and 2 samples of peanut materials with over 62% of oil content, as well as researches on the abstraction of alga grease, a great deal of technical reserves has been obtained, which made encouraging progress in China’s utilization of alga energy. The project has completed small-scale test and medium-scale test, and has realized industrialization by transferring technologies to 9 companies in Beijing, Shanghai, Wuhan, Changsha, Langfang and Shandong. Research content and objective as prescribed in the research plan have all been met, and a number of independent IPR fruits obtained.

Energy crisis is an enormous challenge to the human kind in the middle of this century. Currently, the world still runs on fossil fuels like oil and gas, the most widely applied energy source, which plays a significant role in modernization of the human society. According to the latest estimation of the international community, stable oil supply in the world won’t last more than 20 years, and oil may be depleted in mere 50 years. As China is a country with relatively meager oil resource in the world, the research on bio-energy and new materials is particularly important.

The board of directors at China Gas Chen Yongjian said, the group is to actively search new energy projects like CBM and coal chemical projects in Inner Mongolia, Shanxi, Anhui and Guizhou. It expects to put in around 2 billion yuan per year starting this year. Including the 1 billion yuan it is investing in constructing pipeline networks, the company is expected to invest 3 billion yuan.

Chen Yongjian said, the group will actively develop new energy because currently China consumes a huge amount of oil. China needs to reduce oil import but the coal reserves in China are very rich. Therefore the group hopes to turn coal into methanol and dimethyl ether, which can be used as alternatives to diesel, gasoline and oil.

He said the group will actively pursue CBM mining, liquefaction, prospecting and coal chemical businesses. So far it has two CBM liquefaction projects. One of them has a daily capacity of liquefying 250,000 cubic meters of CBM. It is expected to go into production in August. The other project is to have a daily liquefying capacity of 250,000 to 900,000 cubic meters. He said each of these coal chemical projects and CBM projects are to be invested with 2-2.5 billion yuan in instalment.

CEO of China Power New Energy Liu Genyu said recently that the company`s earlier target of "3 x 1 million KW installed capacity" is too conservative. The new target is by 2010, the company will have 1.5 million KW of installed capacity, with another 1.5 million KW under construction, and 1.5 million KW in planning. Liu Genyu claims even this plan is still quite conservative.

According to market estimate, the cost of per KW installed capacity is about 8,000 yuan RMB. In this figure, the whole project will require an investment of 16.4 yuan and the company will need to bear the investment cost of around 4.8 billion yuan. He said the China Power New Energy company will mainly focus on small and medium sized hydropower and wind power projects, accounting for 50% of the company’s business. Hydropower will take up 300,000 KW and wind power 100,000 KW.

Liu estimates the small and medium sized hydro and wind power projects will account for 80% of the company’s overall business. The rest will be biomass and garbage insinuation power. The company will also take part in solar power project if the opportunity is right. In addition, his company is building two garbage insinuation power plants In Deqing, Zhejiang and Kunming, Yunnan. They can each process 400 and 1,600 tons of garbage everyday respectively. They are expected to go into production next year. He said the market average for investment into new energy is around 8-10%, and thecompany’s ambition is to bring maximum profit to its shareholders.

Recently, the People’s Government of Xuwei County signed an agreement in Guangzhou with the southern branch of China Power Investment Corporation (hereafter referred to as “CPIC”). CPIC will invest 6 billion yuan in developing wind power in Xuwei County. This is the largest investment project so far in Xuwen County. Party Secretary of CPIC southern branch and General Manager Li Tiezheng said that the company will go all out in preliminary wind measurement and project proposal and confirmation in an effort to ensure it begin construction within the year.

CPIC is one of China’s five power generation giants. It’s planned that the investment will fund the building of wind farms with a length of over 80km within 5 years in the coastal or mainland areas of Jinhe, Xiayang, Qianshan, Qujie and He’an in Xuwen County. Li said upon completion, the project can add over 100 million yuan in financial and tax revenues per year to the local governments.

With a large number of new energy vehicles appearing on the NDRC announcement for market launch preparation, there has been rumors that relevant government departments may announce favorable tax policies in the second half of this year to encourage consumers to purchase hybrid engine vehicles.

But spokesmen from the General Administration of State Taxation and NDRC indicate that while discussions are still being held on policies to promote new energy vehicles, there won’t be any new tax relief policy in the near future.

However the news of NDRC’s plan to announce favorable tax policies on new vehicles is not totally groundless. A the end of April, in the 164th product list announced by NDRC, 7 makes of new energy vehicles make their first appearance together, including 3 hybrid engine cars by Shanghai Volkswagen, Shanghai GM and China FAW Group Corporation and 4 makes of hybrid vehicles by China FAW Group Corporation, Beiqi Futon Motor Co. Ltd, Chongqing Chang’an and Dongfeng Motor Co. Ltd. Soon after that Shanghai GM announced that its LaCROSSE EcoHybrid (Tuku Forum) vehicle is to be launched in June.

The fact that these energy vehicles were granted permits for production with details of their makes and quantity is a sure sign that the government will be announcing relevant supportive policies.

Regarding this news, a spokesperson from NDRC Department of Industries Vehicles Section has made a clarification. All relevant supportive policies are still in discussion so there is no timetable for the announcement of such policies.

Insiders believe the reasons administrative departments are being cautious about such supportive policies are to protect the interest of local car manufacturers. Although China FAW Group Corporation, Chang’an and Qirui and other domestic manufacturers have already researched and built hybrid engine vehicles, there is still some distance to catch the multinational car manufacturers like Japan. If such policies are announced now, Toyota and other companies will have absolute market advantages in China.

Deputy Head of NDRC Du Ying made an appeal yesterday, calling all nations to prioritize food safety and to exercise reasonable control in transferring biomass into energy.

At the 16th ministerial meeting of UN Sustainable Development Conference, Du Ying indicates that the current rise of food price is directly linked to the twist in the international trading system. Developed countries should implement effective measures to reduce the twist in the trade of agricultural produce, to improve the trading conditions of developing countries so that they could play to their strength and encourage development through trade. The international community should work together to safeguard the international grain trading system so it remains normal and stable.

Recently, Laiyang Forestry Bureau, in cooperation with a bio-energy technology company in Shandong, built 100,000 mu of biodiesel raw material forest bases in street offices of eight towns like Guliu, Heluo and Muyudian in the mode of "company + base + farmers", and signed agreement with farmers on planting Pistacia chinensis Bunge. They also planned to build 500,000 mu of Pistacia chinensis Bunge bases with an annual output of 30 million plants, on barren hills, abandoned beach, woodland, field ridge and green belts in other cities or counties to realize scalized development.

Pistacia chinensis Bunge is a type of good raw material for biodiesel. Through the repeated experiments of a bio-energy technology company in Shandong Province, biodiesel made from Pistacia chinensis Bunge can be up to both standards of American biodiesel and domestic light biodiesel. Relevant data shows that during the bearing period, the per unit yield of Pistacia chinensis Bunge can be up to 1,200kg/year. As more than 1 tons of biodiesel can be produced from 3 tons of seeds, 200,000 tons of biodiesel can be produced for 500,000 mu of plants with a per unit yield of 600,000 tons of seeds per year.

New traffic warning lights, powered by solar energy, have been installed on the corner of a road in Harbin, capital city of northeastern China`s Heilongjiang province, local website northeast.cn reported. The lights, flashing in red and blue, can effectively prevent cars from crashing into the fence around the park.

Sichuan is one of the most active provinces applying for nuclear power stations, but the earthquake may enable the national government to be more cautious on the siting of nuclear power stations. An expert from China Electric Power Information Center told Financial Network reporter that “The earthquake may enable the national government to be more cautious on the siting of nuclear power stations.”

Unreasonable energy structure

Sichuan seeks for developing nuclear power

In recent years, many central provinces and cities have applied for the construction of nuclear power stations, among which Sichuan is one of the most active.

Experts believe that Sichuan`s energy structure is unreasonable, with the installed capacity of hydropower stations occupying the highest proportion of the total. In 2007, the installed capacity of hydropower stations in Sichuan is 18.8 million KW, accounting for 62% of the total. However, to change the energy structure, the available solutions are thermal power and nuclear power. Because of the lack of coal resources and the unsmooth outsourcing channel, to develop nuclear power has become an important policy for Sichuan Province to change the energy structure.

"Sichuan has many unparalleled and inherent advantages on developing nuclear power compared with other provinces”, said a local official. Sichuan not only boast Nuclear Power Institute of China (NPIC) integrating scientific research, experiment and design, but also Southwest Power Design Institute with rich designing experience in conventional islands, Dongfang Electric Corporation providing whole sets of power generation equipment for the second-phase of Ling Ao Nuclear Power Plant and Yibin Nuclear Fuel Production plant.

Siting conditions for nuclear power plants

Significant geological influences

An expert from Electricite De France, the world`s largest nuclear power company, once said in an interview that the principal requirement for nuclear power plant siting is geological condition, namely, out of the seismic zone. According to a Xinhua news report, the world’s largest nuclear power station Kashiwazaki-Kariwa Nuclear Power Station, 9km away from the epicenter of the strong earthquake jolting Niigata, Japan on July 16, 2007, caught fire and had a minor leak. Although the affiliated Tokyo Electric Power Co., Ltd showed soon that “the amount of radioactive matters contained in the leaking water is within the Japanese statutory standard, thus causing no damage to the environment” But the accident still draw widespread attention.

A source from NDRC revealed that in addition to energy-deficient provinces, provinces like Sichuan, Hunan, Hubei, Jiangxi, Chongqing and Guangxi also submitted proposals on developing nuclear power to NDRC. According to the "Nantong Daily", Li Ping, subprefect of Peng’an County and Sichuan NPC representative revealed on the 1st session of the 11th Sichuan Provincial NPC: “The suggested preferred site for Sichuan nuclear power project—Sanba in Peng’an County has been approved by the National Electric Power Planning & Design Institute”

Recently, Penglai Huarun wind power generation project jointly invested by Huarun Electric (Wind Power) Development Co., Ltd and Hong Kong Renewable Energy Investment Co., Ltd began construction.

The project has a gross investment of 590 million yuan, with the total installed capacity of 48,000 KW wind turbine generator unit including 15 ones in 2,000 KW and 10 ones in 1,800 KW. Meanwhile, a 220 KV booster station and a comprehensive building will also be built. The annual power generation will be around 110 million degrees, sales revenue 83.9 million yuan and tax revenue 8.6 million yuan upon completion. At present, the 220 KV booster station and the comprehensive building have begun basic construction, and the basic construction of wind turbine generators will be launched successively, completed by the year-end and achieve grid-connected power generation.