It might be the world’s biggest emitter of greenhouse gases and the global leader in energy consumption, but China is rapidly rising as an international leader in investment and manufacturing in the clean tech sector. It just goes from strength to strength, writes Ken Hickson in the latest issue of Australia China Connections, the Bilateral Business Bulletin. He also reports on the current trade mission to China by Australia’s solar city Townsville.

China has passed the US this year to become the world’s biggest energy consumer, according to new data from the International Energy Agency, which reflects both China’s decades-long burst of economic growth and its rapidly expanding clout as an industrial giant.

China is also rapidly rising as a world leader in investment and manufacturing in the clean tech sector.

While Australia might not figure large in global terms for investment in clean tech, it is seen as a place of innovation and inventiveness. The quality of its research and development in clean tech makes it ideally placed to both attract investment in this sector but also to contribute to developments in massive manufacturing and consuming markets like China. (Remember that the solar giant Suntech had its beginnings in Australia).

Global investment in clean technology will rise 35 percent this year, according to a report published by research firm Datamonitor. New Energy Finance predicted global clean tech investment in 2010 would reach US$160 billion, compared with $125 billion in 2009

The Cleantech Group says investment in this sector fell in 2009, but it fared better than many other industries and has overtaken biotech and IT as the largest venture capital investment categories.

While US dominance of the sector slipped to 62 percent of investments against 72 percent in 2009, China saw its share of global clean tech investment rise to 6 percent.

China also boasted the largest Merger and Acquisition deals (in clean tech/energy) over the past year, with 23 transactions worth a total of US$5.4 billion.

China has initiated new laws that require its power grids to buy power from renewable plants and wind farms, or face very stiff fines. This will result in even more investment in the renewable energy sector.

There is little doubt that China is rapidly becoming a leader in the new green industrial revolution, following the example of Germany, which has also managed to maintain a strong position in manufacturing (note its automobile industry leadership).

In the global Clean Tech Survey by Cleantech Investor and Norton Rose, the US, followed by China, are seen as the countries that will benefit most from private equity driven investment in clean tech. The same survey noted that energy efficiency is the sub-sector expected to attract the most money in the immediate short term, with wind generation and solar next on the list.

China will also find that it has increasing opportunities to invest in clean tech beyond its borders, and Australia is crying out for outside investment in a sector heavily represented by innovation and energy, but lacking sufficient Government recognition and incentives.

What do we mean by Cleantech?

Energy generation – solar, wind, geothermal, biomass, hydro, wave & tidal

Energy Efficiency – building efficiency, smart grids, waste heat recovery

Energy storage – transport & stationary applications

Waste recycling – organic matter, plastics & electronics

Emissions reduction – trading & offsetting, filter systems & technology, carbon emissions & foot-printing

Water – waste water filtration, desalination, water saving/efficiency

Clean tech materials – biodegradable materials & packaging

Clean tech enabling systems – clean combustion technology, measuring & control technology

Next generation biofuels – algae & cellulosic ethanol

From Townsville with Love and Clean Energy

Every day of every week there are trade missions from all parts of the world descending on China’s cities determined to exploit the opportunities to learn and do business. But few would be as determined as a Townsville group to get a sustainability business message across and see where its particular clean and green applications and innovations can find a home in China writes Ken Hickson.

Townsville in tropical north Queensland seems a long way – in more ways than one – from the bustling and booming cities of China, like Shanghai, Changshu and Dezhou. But there’s growing interest from a bunch of enthusiastic and innovative businesses from the small city of less than 200,000 to explore opportunities in China.

Twenty Townsvillians are braving language and cultural differences to embark on a business and life-changing experience, on a mission this month (September) to attend the Solar City Congress in Dezhou and visit the rapidly expanding solar city, as well as visit the World Expo in Shanghai and the “big-sister” city of Changshu.

Lying in the Yangtze Delta, which is the most economically developed area of China, Changshu enjoys the advantage of being adjacent to Shanghai, the economic center of China, and other big cities such as Suzhou, Wuxi and Nantong. With a mild climate and fertile land, it has a good harvest every year, thus got its name as Changshu, meaning “good harvest all the time”.

But the Townsville delegation to China is not only visiting its sister city – with a population of 1.2 million – but also focussing a lot of attention on Dezhou Solar City where 80 percent of the city has solar hot water. And that’s the venue for the Dezhou Solar City Congress.

Solar and the heat from the sun is important to Townsville, not only because it is in the tropics and has a thriving tourist industry due to its location close to the world heritage listed Great Barrier Reef, but because it is one of Australian’s dedicated solar cities.

Its solar city status and commitment to a renewable energy future contrasts with its role as a major port for export of mineral concentrates and sugar, and its proximity to the rich North-West Minerals Province, which collectively contribute more than A$10 billion to the economy each year.

The solar project, which largely revolves around the off shore Magnetic Island, trials a range of initiatives that aim to reduce wasteful energy usage, increase solar energy usage and cut greenhouse gas emissions by more than 50,000 tonnes.

The Townsville team’s visit to Changshu will include visits to nearby solar  technology plants, including one of the famous Suntech facilities in China, founded  in 2001 by leading solar scientist Dr. Zhengrong Shi, who, Australians  like to remind the world, was educated at the University of New South Wales where he developed his particular “brand” of solar technology.

Aside from the Dezhou Solar Congress, the trade mission will also visit several big companies in Dezhou related to renewable energies: Himin Group, Bright Air-conditioning Co., Ltd., Jupiter Wind Composites Co., Ltd., Zhongli New Energy Science Co., Ltd. and Century Wind Energy Equipment Co., Ltd. 

Dezhou is also home to the “One million solar roofs” and “solar bathrooms in thousand villages” project. Almost all downtown residential buildings have solar water heaters on their roofs – with an impressive view of one million solar roofs proof of Dezhou’s dedication towards being a world solar city.

Learning from China as well as exploring opportunities for trade in products and services in the clean tech sector will be the main purpose of the visit and the Townsville team includes some very innovative and enterprising tropical Queensland businesses, including Ergon Energy’s Solar City Manager Ian Cruickshank who will exchange experiences at the conference on Townsville’s Solar City.

Other Queensland businesses being represented through the Townsville mission to the Dezhou Solar conference include project management consultancy Revere Projects, Allsafe Energy Efficiencies Products, rock and solar geology exploration company Rocsol, VRM Biologic, Funnel shipping business, My Clean Sky (a carbon offset provider specialising in air travel), sustainability consulting firm SEA O2, Cafalo, boutique ecological design & project management firm Zingspace as well as representatives from the Townsville City Council.

For all the articles in the latest issue of Australia China Connections, go to the website:

Source: www.chinaconnections.com.au