Foreign and Military Affairs

China, US ink green energy deals

By Wan Zhihong (China Daily)
Updated: 2010-05-27 07:16

BEIJING - China and the United States on Wednesday signed eight green energy deals to enhance cooperation in the sector, a move analysts said would set examples for global collaboration in increasing energy efficiency and protecting environment.

An employee cleans solar panels at a power plant in Dunhuang, Gansu province. [China Daily]

The eight deals include aviation biofuel, distributed energy systems using natural gas as fuel, smart meters and cellulosic ethanol. Neither side disclosed the financial details of the deals.

As the world's two largest energy consumers, China and the US will also join hands for renewable energy development, said Zhang Guobao, head of National Energy Administration (NEA), adding that China will keep an open mind to develop the renewable energy sector.

The two countries have big potential for collaboration in the area, said Zhang. "The US has advanced technology, and China has a huge market."

The US and China will "take every angle" to ensure their cooperation in energy and environment, said US Ambassador to China Jon Huntsman.

Development of renewable energy is a must for China to achieve its two basic policies in energy and environment, which is to increase the use of non-fossil energy to 15 percent of primary energy consumption by 2020, and to reduce carbon intensity by 40 to 45 percent in 2020 from the 2005 levels, said Zhang.

In the renewable energy sector, China will continue to focus on the development of hydro, wind, solar, and biomass energy, he said.

A series of Chinese and US companies are involved in the eight deals. For instance, Applied Materials Inc and China Energy Conservation and Environmental Protection Group (CECEP) signed a memorandum of understanding to explore projects for accelerating the development and deployment of solar photovoltaic (PV) technology.

"With China's growing energy needs, our relationship with the CECEP represents a great opportunity to promote sustainable energy development through the optimal use of renewable energy generation with solar power," said Mark Pinto, executive vice-president and corporate technology officer at Applied Materials.

Analysts said Sino-US cooperation on green energy would set a good example for other countries. What's more, in terms of the world's energy market, cooperation between the two countries will help in developing new energies that can ensure global energy security.

China and the US have agreed to further promote cooperation on energy conservation and environmental protection so as to generate more "concrete results".

The two sides will strengthen energy efficiency cooperation in aspects including buildings, industry and consumer products, under the Framework for the 10-Year Cooperation on Energy and Environment, which was signed between China and the US in 2008, officials said at the First US-China Energy Efficiency Forum.