91天堂原創

China has maintained its position as the world鈥檚 greentech leader despite continuing global economic volatility and slowing domestic growth, with vast unconventional domestic gas reserves, including shale gas and coal-bed methane, potentially easing the country鈥檚 energy shortfall.

The latest analysis by The China Greentech Initiative (CGTI) -聽The China Greentech Report 2012聽- reports that while the greentech sector faces macroeconomic challenges, China鈥檚 overwhelming need for energy and environmental technology will continue to propel rapid growth in greentech markets.

The report cites China鈥檚 鈥渦rgent鈥� needs in energy and environment driving developments. The country now imports over half of its oil, in addition to its over-reliance on coal, producing high emissions of carbon and other air and water pollutants.

China鈥檚 domestic conventional gas production is described as 鈥渟tretched to the limit鈥�, but vast unconventional domestic gas reserves, including shale gas and coal-bed methane, could ease China鈥檚 gas shortfall, which is expected to grow nine-fold by 2015. The industry would however need to overcome major pricing, regulatory, distribution and water challenges.

Allan Zhang, director, PwC Sustainability and Climate Change, is a specialist in environmental policy and economics in China. He commented:

鈥淭he basic fact is that to ensure energy security and supply, China has no choice but to develop and use new forms of energy to meet the growing and seemingly insatiable demand. Technological advances over the years have made wider use of unconventional gases possible, and opened up new sources of energy supply, although many technical hurdles still exist.

鈥淐ompanies with experience of advanced technologies, or management skills in exploring Coalbed Methane projects on a large commercial scale will be in a great position in the market. The lack of experience and know-how of the Chinese companies in dealing with unconventional energy such as shale gas offer the European and American companies the chance of riding on China's rapid development.鈥�

Other findings from聽The China Greentech Report 2012听颈苍肠濒耻诲别:

• Private equity and venture capital investments in China鈥檚 private water sector increased from US$ 50 million in 2010 to US$ 400 million in just the first four months of 2011.聽
• Wind and solar farms costs have fallen dramatically: onshore wind farms in China can now be completed for around RMB 7000/kW and photovoltaic (PV) system costs have decreased from RMB 74,000/kW in 2007 to less than RMB 13,000/kW in late 2011 with costs continuing to drop.聽
• Though China鈥檚 green building market is small, building energy efficiency policies will likely lead to rapid industry expansion over the next five years.聽
• China began the Construction Phase of its 2009 - 2020 Strong and Smart Grid Plan in 2011, initiating the world鈥檚 largest effort to build a reliable, efficient and smart grid.

Given the scale andrapid growth of China鈥檚 energy needs, to secure its energy supply, China hascontinued an earlier trend of overseas expansion, with companies going abroadfor energy deals in the areas of oil and renewable energy. The deals in 2011also highlighted a new push for investing in basic infrastructure, such asEuropean water and power grid utilities, to achieve asset diversification andfinancial returns.

Adapted from a press release by

Read the article online at: /business-news/21052012/feeding_the_giant/