By Dennis Posadas
THERE are interesting developments in Chinese cleantech, and I will
discuss some headlines of interest that have been reported recently.
While I will continue to write about Philippine cleantech efforts in
renewables and energy efficiency, it is also important to take note of
what is happening in the region, and maybe some implications for us.
The first is a news report in the New York Times that First Solar, a
company that makes thin film solar photovoltaics, bagged a contract
to build the world’s largest solar installation in Mongolia. The rated
capacity of the solar plant will be 2GW (or 2,000 MW if you prefer),
and will be built using the non-silicon technology of First Solar.
Thin films like Cadmium Telluride are typically deposited on surfaces
like glass, and do not require silicon. The upside of thin films is
that you can make it into windows and basically coat a building with
it, at a cheaper price. The downside is it is only around 7%
efficient, as compared to 11% efficiency of silicon-based solar
photovoltaics, which means you need more cells and you need more space
(e.g. land). Another is that Cadmium is poisonous, and so while there
is no danger of leaching for the active life of the solar cell, the
cells have to be disposed of properly once these are past their useful
life of around 25 years.
The implication for us is that this particular project, because the
winner was a thin-film solar technology (which we do not make here as
far as I know) did not result in additional business for the local
Philippine operations of SunPower and Solaria, which make
silicon-based photovoltaics. However, if the 2GW China project is an
indication of future opportunities, maybe it will be good for the
industry as a whole.
The second, featured in both in MIT Technology Review and the New York
Times, is what the Chinese are doing with clean coal. It appears that
most of the plants being built in China these days are advanced
technology clean coal plants, which do not burn the coal directly
(which releases carbon dioxide) but instead, using an old pre World
War II process, converts coal into synthetic gas (similar to natural
gas). China has the world’s third largest coal reserves, after the US
and Russia. US Energy Secretary and Nobel Laureate Steven Chu has
promised to prioritize its adoption in the US as well. It is important
to stress that while the carbon dioxide emissions have been cut by a
large percentage, these new plants still emit carbon dioxide.
The Chinese have even built a small experimental plant to remove the
carbon dioxide from power emissions, and use it for softdrinks
carbonation. What a creative way to do carbon capture and storage!
Store it in our bodies when we drink it. Of course, we will eventually
release it back to the atmosphere. But seriously, the Chinese are also
looking at Carbon Capture and Storage (CCS), although I have not seen
any major advances yet in China in this arena. The implication here
for us is that if the Chinese can develop a better way, or an
alternative to CCS that cuts carbon emissions of coal, then maybe coal
can have a second life, particularly since we have a lot of it. But
that is, in my opinion, still in the realm of research. I do not
expect to see carbon capture and storage in the Philippines for a long
time; it is still very, very expensive, unless someone comes up with a
breakthrough.
In wind, China has doubled its capacity in the past few years and will
become the world’s largest market for wind equipment. Interestingly
enough, India, through a company called Suzlon Energy (you may have
seen their commercials on CNN) is now giving US and European wind
players like GE and Vestas a run for their money. Locally, I think we
should pursue the development of micro-wind and micro-hydro systems.
In electric vehicles, Fortune recently did a profile on a company
called BYD (Build Your Dreams) which Warren Buffett recently invested
in. In solar photovoltaics, Suntech, a Wuxi-based company which was
started by local government funds is now one of the largest solar cell
manufacturers in the world. The key learning for us here is that
Suntech was started by Chinese local government funds, not even
national government funds. The figure mentioned in Fortune was $4m,
which is doable even here. Maybe that is a learning we can use, but I
am not sure if local laws will permit that.
Finally, the UK Guardian recently reported that US President Barack
Obama may be in China this November to sign a major US-China cleantech
alliance accord, prior to the December Copenhagen climate summit.
While it is hard to convince the US Senate, which has to contend with
a strong oil, gas and coal industry lobby, to go green, it appears
that the Chinese see green as a way, not just to improve their
worldwide image in the climate arena, but to actually make some
serious green (as in greenbacks) out of it.
The question there is where does that leave us?
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Dennis Posadas is the editor of Cleantech Asia Online, and the author of Jump Start: A Technopreneurship Fable (Singapore: Pearson Prentice Hall, 2009)