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BP Agrees To Help China Better Utilize Its Coal
November 28, 2008 |
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BP and the Chinese Academy of Sciences are to establish the Clean Energy Commercialisation Centre joint venture in Shanghai, with an investment of CNY500 million to exploit clean energy technologies developed by Chinese research institutions.
Located in the CAS Shanghai Pudong Science and Technology Innovation Park, the BP and CAS joint venture will have an equity split of 49:51.
Subject to final government approvals, the CECC joint venture is expected to be established in early 2009.
The center will draw on the expertise and experience of both partners to integrate individual energy-related technologies - such as coal gasification and conversion, carbon capture and storage, coal bed methane and underground gasification - developed by CAS institutes and other organizations both within and outside China, into competitive integrated manufacturing systems and solutions.
After signing the agreement Tony Hayward BP group chief executive stated that world class technologies are now emerging from China's research institutions. He added that this center, has the potential to play a significant role in delivering local energy solutions to address issues that have a global impact.
Li Jinghai, vice president of CAS commented that deploying technologies to exploit its coal resources more effectively and efficiently is one of the greatest challenges facing China. He expects that innovative solutions will bring positive impact not just to China, but also to the global economy, supporting the goal of energy security, and environmental stewardship.
The CECC will also serve as an international platform for further collaboration among research institutes, enterprises and other institutions to improve indigenous Chinese innovation capabilities and market applications in areas such as clean coal conversion, zero emission technologies, and carbon capture and storage.
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New paradigms like hybrid cars providing generation and battery storage for residents and businesses will provide the infusion of financing to move these technologies forward. China is in a unique situation to capitalize on the hardware development and controlling strategies. The auto industry needs a economical natural gas compressor for clean hybrids.