Sept. 22 (Bloomberg) -- China, the world’s biggest energy consumer, plans to invest 400 million yuan ($62.6 million) on projects that capture, utilize and store carbon dioxide in the five years ending 2015 to help reduce emissions.
The amount, double that spent in the preceding five-year period, could lead to 2.3 billion yuan in private investment in the industry during that time, compared with the 1 billion yuan invested between 2006 and 2010, Minister of Science and Technology Wan Gang said today at a conference in Beijing.
The government is encouraging the technology to help to cut the amount of carbon it emits per unit of economic output by as much as 45 percent in 2020 from 2005 levels and reduce oil imports. The technology, also known as CCUS, gathers carbon dioxide for underground storage or is used for other purposes including enhanced oil recovery to prevent it from being released in the air.
The government is drafting a development plan for the industry, Wan said. He didn’t say when China will complete the draft.
“The emission-cut targets will boost the carbon capture, utilization and storage industry,” Xie Zhenhua, a vice chairman of the National Development and Reform Commission said at the conference today. “The industry’s development needs government capital and policy support.”
Chinese companies have been developing demonstration projects using the technology. China Huaneng Group Corp., the country’s biggest electricity company, has been operating a 3,000 metric-ton facility in Gaobeidian, Beijing since 2008. PetroChina Co., the nation’s largest oil producer, can store about 100,000 tons of carbon annually at its Jilin oilfield.
Alstom SA, the third-largest maker of power equipment, and China Datang Corp. agreed to develop two trial projects to capture carbon dioxide from power plants and store it in China’s two biggest oilfields, the Levallois-Perret, France-based equipment company said yesterday.
China is pushing for an international multilateral climate fund to promote cooperation and transfer of the technology, Xie said. The industry needs to increase its scale to help reduce the costs and energy consumption of the technology, Xie said.
China isn’t considering implementing a carbon tax at the moment and is prioritizing the setting up of a carbon trading market, Xie said after the conference.
-- Baizhen Chua and Feifei Shen Editors: Baldave Singh, Stephen Cunningham
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