In today’s Talking Points: Australian coal gasification technology to be trialled in China, as Carbon Energy secure new joint venture; Wind power tipped to deliver up to 14 percent of China’s energy by 2030, meeting three-quarters of China’s renewable energy target; BHP investing $9.5 million into CCS research in China; and, Chinese oil and coal outputs reduced as economic rebalance shifts focus away from energy intensive industry, low global oil prices bite.
Australian coal gasification technology to be tested in China
Australian company Carbon Energy has secured a joint venture with Chinese energy player Beijing Jinhong Investment, paving the way towards a commercial demonstration project based in China. Carbon Energy’s technology, which has been banned in its home state of Queensland, converts coal at depths too deep to mine into gas, which can be pumped to the surface. Under the agreement, JinHong will contribute $US30 million ($A40.71 million) towards commercialising the technology. “The vast Chinese market is a logical target for Carbon Energy as China is estimated to consume approximately half of global coal consumption,” said a Carbon Energy spokesperson.
Read more at Yahoo Finance.
Wind power could deliver 14 percent of China’s energy by 2030
Wind power has the potential to deliver up to 14 percent of China’s energy by 2030, according to a study by researchers from Tsinghua University and MIT. The study, published Monday in the journal Nature Energy, showed wind power could deliver 11.9 percent of China’s primary energy demand by 2030 and up to 14 percent if the flexibility of the nation’s coal powered generation was improved. The study looked at not just wind energy potential, but the factors affecting its integration into the grid. The modeling indicates China could surpass its 20 percent renewable energy target by a wide margin, once hydro and solar are taken into account.
Read more at the Washington Post.
BHP Billiton funds research program in China on carbon capture use and storage
BHP Billiton will fund a $9.5 million research program in carbon capture use and storage (CCS) to reduce emissions from coal in Chinese industry. The research will focus on the application of CCS in the steel industry and on solving the economic issues that have limited CCS’s effectiveness to date. BHP Billiton Chief Executive Dr Andrew Mackenzie said global demand for carbon-dioxide intensive industries like steel and cement production will continue to climb given the increasing global population and urbanisation. The International Energy Agency forecasts 75 percent of global energy will still be derived from fossil fuels in 2040. “Together we share the challenge of how to continue to provide affordable energy and basic resources while limiting climate change,” said Dr Mackenzie at the program launch.
Read more at The Australian.
China cuts back on crude oil, coal outputs
China reduced crude oil production by 7.3 percent in May to 16.87 million metric tons. Coal output has also decreased as the Chinese economy shifts toward consumer-led growth, with the government leading initiatives in eliminating industrial oversupply and controlling pollution. Gordon Kwan, head of Asia oil and gas research at Nomura Holdings Inc. in Hong Kong, said the decreased domestic output indicates Chinese oil drillers are responding to low global prices. The effect of this is expected to balance global oil markets.
Read more at Bloomberg.