Latest news with #green energy
Forbes
11-08-2025
- Business
- Forbes
Inside China's Coal Plants And Pollution Shuffle Game
China's popular status as a green energy giant isn't wholly accurate. Chinese exports and tier-1 cities are indeed encouraging testimonials for the potential of green energy, and nationwide developments do largely trend towards some sense of environmental responsibility. Simultaneously, in the Chinese interior, far from most foreign investment and tourism, China is undergoing a coal boom. A coal boom that is fueled more by nostalgia and domestic politics than economic the past few years, China has been ramping up its construction of coal plants, partially eschewing climate targets for greater domestic energy production. China's coal construction totaled an output of 94.5 GW in 2024, the highest number in 10 years, the equivalent of approximately 90 nuclear reactors. This impressive construction volume has created a problem; the sector faces significant dead weight loss and oversupply. Oversupply and overuse of coal are driving power prices below zero and pushing coal operators deeper into the red. Urban coal plants have been replaced with cleaner-burning gas, but coal has not disappeared. Instead, it has migrated westward to poorer rural regions. Massive plants now feed power back to the cities, at the expense of some of China's most vulnerable citizensChina's Coal DelugeChina is turning the clock backwards on its market-driven reforms; the country's coal boom isn't reflecting market pressures, but rather Beijing's top-down campaign for energy security. With the surge in coal plant construction, operational inefficiencies are undermining the industry's sustainability. China's average coal plant operating hours have fallen to 4,628 hours a year, or about 53% of a year. This means the average Chinese plant sits idle for nearly half the year, signaling severe a result, China's traditional coal heartlands are operating at a loss and are kept online by Beijing through government subsidies paid to power generators. This scheme has given China's coal industry a $14.9 billion boost. However, critics point out weak eligibility criteria that may extend coal-plant lifetimes unnecessarily and may prolong the dilemma, not rectify pressures from oversupply are also destabilizing coal markets. Coal prices have collapsed, reaching their lowest levels since 2021. In Zhejiang province, during CNY 2025 prices even went into the negative, dipping to an almost unprecedented level of -$0.03/kWh. Under China's electricity system, each province is responsible for balancing its supply and demand. Falling prices will ultimately cause a reduction in China's coal margins, with uneven impacts across counter these market challenges, Beijing is artificially boosting demand. The National Development and Reform Commission of China, the country's economic planner, asked domestic buyers to focus on purchasing from the northern regions to offset the excess supply there. It also directed a 10% increase in thermal coal reserves, stockpiles used for heating and electricity, continuing the trend of inflating demand. China is also motivated to make these changes to avoid supply chain disruptions of coal like those that led to winter energy shortages in 2021 and 2022. China's increasingly unsustainable dilemma between energy security and low-carbon goals is becoming more stark day by proliferation of coal and cheap domestic energy, no matter how inefficient, has another impact: increasing Chinese exports. With sometimes literally free energy, producers of green tech products in China, such as EVs and Solar Panels, have no choice but to look overseas. This embraces the core competencies of the traditional method of Chinese growth since 1979, export-led development, while simultaneously serving China's foreign policy objectives by burnishing its image as a green energy superpower providing renewable tech to the does have unintended side effects. If China is committed to the over-subsidization of energy production, it's improbable that manufacturers will find any incentive to become more energy efficient. Furthermore, if most production of renewable technology is funneled into exports, it's unlikely to help China build up domestic consumption and middle-class purchasing power, both stated aims of the Communist Party. This continued over reliance on energy-subsidized exports, even in the high-tech sector, may signal that China is sleepwalking towards the notorious middle-income trap, which may temper its superpower Politics Of Coal In ChinaA young Mao Zedong got his start in revolutionary politics agitating for better conditions at the Anyuan Coal Mine, which evolved into a state-sanctioned site for red pilgrims. During China's civil war, when the Red Army was relegated to Shaanxi's mountains during the Yan'an period after the Long March, the party embraced its abundance of Mao and his strategists dug bunkers for safety, the coal they uncovered powered underground workshops. Years later, when the military turning point of the Chinese civil war occurred in Manchuria, the Red Army was purportedly carried to victory thanks to the heroic efforts of industrial and mining workers, especially in the coal these founding myths of the Chinese Communist Party were propagated, coal became tied with both communist legitimacy and modernization. The economically and environmentally rational thing, allowing coal to gradually fail and thus be replaced by cheaper and more efficient alternatives such as renewables, nuclear energy, or natural gas, would take an act of political courage. While politicians are rarely accused of being too courageous, this has been attempted in traditional method of heating in households has historically been in the form of small coal boilers. This began to change when China embraced a "coal to gas program" in 2013 to reduce pollution in densely populated areas. This is a pressing issue for China's population centers, as household air pollution from coal contributes to 420,000 premature deaths annually. Beijing's policy has been largely successful. By the end of 2020, more than half of households in the Jing-Jin-Ji cluster that had replaced their coal-based heating systems did so with natural displacement of urban coal on China's developed eastern seaboard is negligible when considering the rapid expansion of coal throughout the country. Rather than reducing national coal use, China has simply relocated much of its coal burning to less populated and less affluent areas. Ultimately, China's gasification policy has not reduced national coal reliance, as LNG still accounts for just 3% of China's overall energy mix, with piped gas similarly negligible. Gas currently lacks feasibility as a grid-displacing fuel outside of municipal heating. Gasification primarily served local smog control goals rather than a reduction in coal coal plentiful fulfills regional imperatives as well. In China's northeast (Dongbei / Manchuria) and in several inland provinces, especially Shanxi, Shaanxi, Gansu, and Hunan, coal subsidies keep millions employed. Allowing these areas, all of them historic hotbeds of support for the Chinese Communist Party, to experience economic dislocation is simply unthinkable to less populated regions, the consequences of pollution are more tolerable due to fewer households experiencing emissions. On China's periphery, regulation and enforcement is weaker, and coal producers often lobby local governments to keep regulations lax. This shift has hurt less affluent rural communities, as sulfur dioxide levels fall by 2.5% around closed plants and rise by 1.9% around plants that remain open. China is making a grim calculation on which populations can tolerate more changing coal and energy export policies are not a sign of progress, but are merely a shuffling of its environmental burdens. By moving pollution from the cities to the countryside and green tech from domestic use to foreign sales, the country preserves its dependence on coal while leaving rural communities to bear the cost in health and treasure. This shuffle game is both an indicator that Beijing's green tech lead is not as glitzy as widely believed and should be a reminder that exports and a few glossy cities cannot substitute for an understanding of the whole.
The Guardian
11-08-2025
- Business
- The Guardian
Australia's time has come to be a green energy intensive export superpower
One really big idea is to take the steps necessary to see Australia become a renewable energy superpower by exporting green energy intensive products such as green iron, green aluminium, green transport fuels and green fertilisers. Australia is blessed with some of the best solar and wind resources with world-best availability factors, and comparatively little of this is needed domestically. These significant resources can be used to make energy intensive exports. The key point to understand is that in the fossil fuel world it is low cost to transport, for example, our iron ore, coking coal, gas and thermal coal to north-east Asia where they are used to make iron and steel. In the net zero world, however, it is extremely expensive to export the renewable energy, and the hydrogen to replace coking coal, which are needed to make green iron. So green iron should be made where the renewable resources are and where the hydrogen is made – in Australia. The change in transport costs flips the economics so that it is logical that more value adding occurs in Australia. The benefits for Australia and the world are enormous. Significant investment is required, many skilled workers are needed, and our productivity will be boosted as the technology and learning-by-doing sees continuing improvement in making these products. The world benefits as well because if we realise our green energy intensive export potential Australia can produce products that will reduce world emissions by up to 10%. Countries that do not have the renewable resources to decarbonise themselves will rely on Australia playing its role, just as we have by being the world's largest exporter of coal and gas combined. Sign up: AU Breaking News email The only downside is that we do not know how quickly countries will meet their international commitments and decarbonise. The faster they do, the larger the opportunity for Australia. Australia as an energy intensive green export superpower is extremely practical. Indeed, its time has come. Continually talking about the superpower opportunity without projects emerging encourages scepticism and sees other countries gain an advantage over us that they should not have. Other countries are starting projects and gaining the learning-by-doing lessons we should be benefiting from. What is needed is for the government to support early projects with 15-30% innovation capital grants, and to provide initial support to make up for the lack of a world carbon price. If you believe in the climate science that fossil fuel use damages our environment, it is ridiculous that products that do not damage the environment are competing with those that do without the latter paying for the damage they cause. While not a necessary component of this big idea, this could all be paid for, with considerable money left over, if Australia introduced a carbon price. This would see Australia decarbonise in an easier and much less costly way than we are now. There are minimal political risks apart from where the government obtains the small amount of money to fund this. The funding is small as only the first few projects will qualify for the innovation grants, and Australia's green energy intensive exports, once we have made a start, can respond to overseas carbon pricing, as will soon apply in Europe with the introduction of its Carbon Border Adjustment Mechanism, and as is emerging in other countries directly or via increasing green product mandates which have the same effect. Whereas decarbonising Australia involves some politically difficult decisions, what is not to like about Australia value adding more in Australia, with new jobs outside our cities, and a continuing boost to productivity and prosperity? The only downside is talking about it but not taking the steps to bring it about. Rod Sims is the chair of the Superpower Institute. He is an expert advisor to the Treasury's competition taskforce and to the UK's Competition and Markets Authority on digital issues. From 2011 to 2022 he was chair of the Australian Competition and Consumer Commission
Daily Mail
28-07-2025
- Business
- Daily Mail
Not very green, Keir: PM joins Trump for 250-mile flight across Scotland in Air Force One for Aberdeen dinner date after meeting to discuss trade, Gaza
Keir Starmer risked the wrath of green groups and his own backbenchers tonight as he joined Donald Trump for a 250mile flight in Air Force One just so they could have dinner together. The Prime Minister waved as he boarded the US presidential Boeing 747 at Prestwick tonight after talks and a chaotic press conference at Trump's Turnberry golf resort. The president advised his 'not too liberal' friend to cut taxes and immigration if he wanted to beat Nigel Farage at the next election. And he gently pressed the PM on giving the go-ahead for new oil and gas exploration in the North Sea, while slamming funding for wind power. The PM stood up for green energy hours before boarding the ageing American behemoth, which is built for long-haul journeys rather than a short hop across Scotland. 'We believe in a mix, and obviously oil and gas will be with us for a very long time, and that'll be part of the mix, but also wind, solar, increasingly nuclear (power),' he said. The flight will land at RAF Lossiemouth, due to Aberdeen Airport having too short a runway for the 747, which burns up to 11 tons of fuel per hour. It was the PM's second flight of the day, having arrived in Scotland from Switzerland, where he watched the Lionesses retain their Women's Euros title last night. The Prime Minister waved as he boarded the US presidential Boeing 747 at Prestwick tonight after talks and a chaotic press conference at Trump's Turnberry golf resort. The PM stood up for green energy hours before boarding the ageing American behemoth, which is built for long-haul journeys rather than a short hop across Scotland. Without any awkwardness about playing one mate off against the other the president used the hour-long televised bromantic encounter to tell the PM to cut taxes and stop 'murderers and drug dealers' from coming to Britain. While Sir Keir sat beside him with an impassive look on his face he also attacked subsidies for wind power and - gently - suggested he should back fresh drilling for oil and gas in the North Sea instead. He was full of praise for the Prime Minister and the way he was running the country, despite their ideological differences, saying Sir Keir was was 'liberal ..but not too liberal' in his approach. Mr Trump added: 'I think the one that's toughest and most competent on immigration is going to win the election, but then you add… low taxes, and you add the economy. '(Sir Keir) did a great thing with the economy, because a lot of money is going to come in because of the deal that was made. But I think that, I think that immigration is now bigger than ever before.' The president had earlier told Sir Keir Britain and the rest of Europe it must stop illegal immigration to avoid 'ruin' as the two leaders met in Scotland today. Mr Farage is not meeting Mr Trump during the visit. The American leader attacked Mayor of London Sir Sadiq Khan as a 'nasty person' and hailed both Sir Keir and Nigel Farage as 'great men' as the leaders took a series of questions across domestic and foreign affairs. The president also indicated that the US may not impose heavy tariffs on British pharmaceuticals, telling reporters that 'we certainly feel a lot better' about the UK working on drugs that will be sold in the States compared to other nations. The president had earlier said that he thinks Sir Keir, who has been in office for more than a year, will be 'a tax cutter.' The president had earlier spoken out as he met Sir Keir and Lady Victoria on the clubhouse steps at his Ayrshire golf course. During the president's 'working holiday' in the country of his mother's birth he spoke to reporters as bagpipes played in the background. He spoke out about the humanitarian crisis in Gaza - which the leaders will discuss further - and had criticism for Vladimir Putin over the Ukraine war. But he also addressed the wider issue of immigration facing Europe he added that it was becoming a 'different place' - and praised Sir Keir for taking a strong stance against it. 'This is a magnificent part of the world, and you cannot ruin it, you cannot let people come here illegally,' the president said.
South China Morning Post
19-07-2025
- Business
- South China Morning Post
UK start-up Barocal wins US$1 million TERA-Award for green energy innovation
UK-based start-up Barocal, which specialises in energy storage and conversion, won the US$1 million top prize at this year's TERA-Award, created by Hong Kong tycoon Peter Lee Ka-kit. Lee is on a mission to discover unicorns in green energy development and innovation through his platform, aiming to tackle one of the world's most pressing challenges: climate change. Now in its fourth year – the TERA-Award – established by Lee's family office, Full Vision Capital, received a record 785 submissions. In the previous three years, TERA-Award received around 1,000 applications in total, according to Alan Chan, executive chairman of the TERA-Award organising committee and managing partner of Full Vision. 'The reason we established this competition is that we're looking for the next batch of unicorns who could be the super-connector, to connect people and solve the climate problem,' said Chan. Huang Wenxiao (right),CEO and co-founder of Feon Energy, winner of this year's TERA-Award silver prize. Photo: Handout Lee, the co-chairman of Henderson Land Development, is the eldest son of the recently deceased Lee Shau-kee, the founder of the company. Full Vision Capital focuses on investing in smart energy solutions and innovative environmental technologies.
South China Morning Post
18-07-2025
- Business
- South China Morning Post
Hong Kong to reclaim 190 hectares of land to make space for modern industries
Hong Kong authorities have proposed reclaiming 190 hectares of land in waters off the western New Territories for the development of four core modern industries in a bid to create future growth in a sluggish market. The Development Bureau said on Friday that the government was open to any financing model for the reclamation work in two areas, near Lung Kwu Tan and in Tuen Mun West. The land will be earmarked for developing industries such as green energy, advanced construction, the circular economy and modern logistics, with the first area of land expected to be ready as early as 2029. The area to be reclaimed is equivalent to the size of 10 Victoria Parks in Causeway Bay. 'We have to consider the market's interest in taking up the projects without any residential sites in the areas … Even if the market is more cautious, the government is planning to fund the reclamation works on its own,' a bureau spokeswoman said. 'If we cannot find any suitable model for the private market to participate in the project, the government will take up the responsibility.'
