Professor C. S. Kiang, ChairmanSustainable Development Technology Foundation

Economic Economic SecuritySecurity

Urbanization and Employment

Professor C. S. Kiang, ChairmanSustainable DevelopmentTechnology Foundation

THE ECONOMY AND THE THE ECONOMY AND THE ENVIRONMENTENVIRONMENT WHICH IS WHICH?

POPULATION GROWTHPOPULATION GROWTH

1950-2006 population > Last 4 million years population

ECONOMIC GROWTHECONOMIC GROWTH

GDP of the year 2000 > GDP of the entire 19th century

人类纪时代ANTHROPOCENEANTHROPOCENE

—— 人类正在改变地球 (Paul Crutzen): the current period that human activities have a significant impact on the environment

THE ECONOMY AND THE THE ECONOMY AND THE ENVIRONMENTENVIRONMENT WHICH IS WHICH?

1st

INDUSTRIAL REVOLUTION

I = P x A x T1

I = Environmental ImpactP = PopulationA = AffluenceT1 = Current Technology

= Extractive Linear Fossil Fuel Driven Abusive Wasteful

Focused on Labor Productivity

21st CENTURY

P x A T2

T2 = Future Technology

= Reusable,

Cyclic,

Solar Energy,

Hydrogen Economy,

Biomimetic Technology,

Efficient Technology, etc

I =

Triple CrisisTriple Crisis1. Global Economic Depression

– credit & debt – supply & demand – GDP – resource depletion

2. Climate Change– global warming– severe weather – natural disasters – impact on agriculture productivity

3. Social Equity– population – standards of living– wide gap of social wealth – social instability

Cultural Cultural DiversityDiversity

• Necessary for Future Cultural Advancement: coexist in harmony– Respect, Collaboration, and Preservation of Uniqueness

• China + India (½ of World’s GDP): 200 years ago = by 2050– Collaborate: create economic security, stability, and equity

• Cultural Complexity: African tribes = Chinese tribes (~55)– Respect: must understand the people are not the same

• Local Characteristics Global Impact– Knowledge and information from individual communities or regions of diversity

can be applied in other comparable locations as solutions in a globalized effort.

Imperative: Collaboration (new mold) > Competition (old mold)

COLLABORATIONCOLLABORATION

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CHINA (22% of world population but limited natural resources):• Ratio of World: 1/3 of cultivated land, 1/4 of water, 1/5 of

forest service, 1/10 of oil, 1/22 of natural gas• Of World Consumption: 1/8 of oil supply, 44% of cement,

31% of coal, 31% of crude steel, 25% of aluminum• China alone accounts for 6.6% of the global GDP (2006)

Competition - challengeCollaboration - opportunityTransparencyTransparency

Population DistributionPopulation Distribution

Need to create living spaces• Now: 50% of population (urban)

~650 million• By 2035: 75% of population (urban)

More than 1 billion

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New UrbanismNew Urbanism• China’s Stimulus Plan: develop domestic need• City Planning:

Generates small/medium businessesCreates more jobsCauses more money flowLeads to economic security

OPPORTUNITIES & CHALLENGESOPPORTUNITIES & CHALLENGESSino-US – Global Impact:

China: Early stage – knowledge-based economic development.Great potential – develop new energy technologies & low-carbon economy.

The US: Experienced – knowledge-based economic development.Established industry chain – enhances new technology innovations.

China & the U.S.: Largest GHG emitting countries Severe climate change consequencesSimilar low-carbon economy development experiencesEach announced new economic recovery plans

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OPPORTUNITIES & CHALLENGESOPPORTUNITIES & CHALLENGES

Sino-US Collaboration – Global Impact:

Sino-US collaboration new opportunities and new era of alternative energy technology & energy efficient development.

Sino-US collaboration success deliver strong message & set precedent for future global partnerships

Green Building & Sustainable Green Building & Sustainable CommunityCommunity

• Recognize and Respect Cultural Diversity• Collaborate as a Global Society

1. Exponential Population Increase: need for living space solutions

2. Resource Depletion– Solutions: Renewable Energy Sources & Recyclable Materials

3. Innovation + Traditional Technologies– Focus: food, shelter, and mobility

GREEN TECHNOLOGY AND RENEWABLE ENERGY

Conventional energy

Clean coal

Green gas

Oil

Nuclear

Renewable energy

Biomass

Biofuels

Geo-thermal

Hydro-electric

Solar

Wave

Wind

Energy infrastructure

Grid energy storage

Grid manage-ment

Smart grids

Trans-mission

Green buildings

Buildings and materials

Consumer devices

Displays

Demand side manage-ment-

Lighting

Clean water

Conser-vation

Desali-nation

Fresh water treatment

Waste water treatment

Water reuse

Clean industry

Advanced packaging

Clean design

Energy-efficient engines

Materials (bio, chemical,

nano)

Monitoring and

compliance

Production

Transportation

Energy storage (autos)

Fuel cells

Hybrid systems

Logistics

Structures

Vehicles

Expert Teams Data Bank

We will combine input from Partners and an initial broad market scan to prioritize 7 key sectors and a target group of sub-sectors for which to provide deeper exploration of opportunities

COLLABORATIONCOLLABORATION

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StandardStandardCreate a Standard for Urban Development:

– Measurable Criteria– Low-Carbon Emission Economies– New Renewable Energy– Recycle/Reuse:

• convert waste to fuel • continue water, paper, glass, plastic, and other recyclables processes

• Collaboration: • #1 country (USA - power/influence/economy) • #2 country (China - population/economy)

Industrial Chain

• Upstream• Downstream• Development of Small/Medium Businesses

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Knowledge-Based Economic Development – Lay the foundation with 4 major endeavors:• Innovation• Intellectual Property• Transparency• Rule by Law

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TransparencyTransparency

Principles:• Proactive vs. Reactive• System Science, System Engineering &

System Management• Human Resource Development/Team • Building - Cooperative/competitive• Leadership Development

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TransparencyTransparency

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Transparency: ChallengesTransparency: Challenges

EconomyEnvironmentEquityEducation

Extension Service Stations

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Inter-discipline

Integration

Internationalization

Innovation

Transparency: ChallengesTransparency: Challenges

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CollaborationCollaboration

E东

W西

Unquantifiable Quantifiable

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COLLABORATIONCOLLABORATION

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The Broad GroupThe Broad Group• Chinese Prefabrication Construction Company• Value:

– Green – Cost and time efficient– Decreases resource waste – Safer building process and structure – Proven effectiveness against severe weather and natural disasters

• Heat-Pump Ventilation Technology• Future:

– World's tallest building, in China– Collaboration: New Urbanism (low-carbon emission cities)

Oberlin Project goals . . . Oberlin Project goals . . .

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Powerspan CCS Collaboration with China PartnersPowerspan CCS Collaboration with China Partners

• Entered Joint Venture with Huaneng Clean Energy Research Institute for CO2 Capture Project Mongstad (CCM) Technology Qualification Program (TQP) – Contract awarded Oct 2011

• Huaneng (largest power generator in China) has a capacity of over 125 GW and annual revenue of $41.5 billion (2011)

• The CCM project captures >1 MM TPY CO2 from a gas-fired CHP plant which provides 280 MW electric and 350 MW heat (~3% CO2 in flue gas)

• Entered Cooperation Agreement with Sinopec (Shengli Engineering and Consulting Company – SLECC) for ECO2 feasibility study for a 1 million TPY CO2 capture facility (~150 MW) on a new coal-fired plant

• Project to provide CO2 for EOR at adjacent Shengli oil field – scheduled feasibility completion Dec 2012

• Sinopec (largest oil company in China), ranked #5 on the Fortune Global 500 list, with $375 billion in revenue

Commercial Relationship SummaryChina – US CCS Collaboration Summary

Positives - Powerspan joint venture with Huaneng, China’s largest power generator, and cooperation agreement with Sinopec, China’s largest oil company, are WIN-WIN- China partners provide financial strength, low cost supply chain, access to favorable financing, accelerated deployment, and potential customers with large need- Powerspan provides advanced technology, market access and knowledge of western project requirements- Sinopec 1MM TPY unit could be one of first commercial scale CO2 capture units in world for EOR (CCUS)

Strategy - Priorities

- Focus on expanding partnerships with Huaneng and Sinopec to commercial scale projects in US, Middle East, and EU- Other China and US projects are in development phase

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World impact: a new model of sustainable economic development is imperative

Construction over the next 30 years• China's resource use and economic growth mainly in resource-based and

labor-intensive industries

In the next 3 decades

Will "develop a knowledge-based economy" transformation, innovation, respect for intellectual property rights, the law, to seek a breakthrough to increase transparency, build ecological demonstration city with Macau and Zhuhai will be the twenty-first century ecological demonstration city's development.

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转变需要过程、示范尤为关键

• 当前，中国正处在产业发展转型的关键时期，下三十年的发展不能再继续走过去三十年发展的老路，要转为以知识为主的经济开发，在创新、尊重知识产权、守法、增加透明度等方面寻求突破。

• 前三十年是以香港和深圳为代表的建设和开发，后三十年则是澳门和珠海的时代。

• 示范项目在经济方面显示的竞争优势最具说服力，而对成功的、有经济价值的示范项目的推广，势必将发挥其示范效应和积极影响，推进和谐社会的形成和发展。

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知识为主的经济开发

• 创新• 透明度 • 保护知识产权• 遵纪守法• 系统整合

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案例一：生命光源项目 （食）

• 现代都市农业： 实现城市土地的高效利用 确保农业安全生产

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案例二：太阳能城市项目（住）

优点：

技术已经相当成熟；发电成本也很有竞争性；被证明其在经济上是可行的；各方资金支持力度很大。

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这样较为成熟的项目，能促进中国城市转型，并实现民生、产业升级、节能、减排四大目标。

如果城市能够提供政策方面的支持，那么该项目的市场潜力非常大。

案例三：风 - 电 - 车项目 （行）

风力发电的优点是技术较为成熟、成本相对低、风力资源丰富，但弱点是稳定性差、不容易储存、对电网冲击大。而电动汽车的电池恰好可以解决风力发电的储能问题，同时又可以真正实现汽车的零排放。对交通和新能源的发展都具有突破意义。

但风电稳定性差、电池蓄电、智能电网等瓶颈仍客观存在。

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案例四：废物变能源项目

清洁能源公园：集合各类能源相关、低碳相关技术与项目，将研发、示范、应用和一站式服务融为一体，打造综合能源产业公园项目。

十条建议

1. 建立生态智慧城市开发基金2. 建立生态智慧城市数据管理中心3. 建立城市区域规划决策中心4. 建立中小企业孵化中心5. 建立综合能源服务园区6. 建立自然资源交易中心7. 建立区域性和全球性物流中心8. 建设宜居和谐示范社区9. 建设世界环境大学10. 建设生态旅游中心

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