Power up with the US-China Energy Cooperation Program ECP, one of AmCham-China’s public-private partnerships, is an innovative cooperative program between the private sector and government By ECP T he US-China Energy Cooperation Program (ECP) is a commercial sectorinitiated public-private partnership under AmCham-China's umbrella that offers a unique platform to generate clean energy business. ECP is the only private sector-initiated, -managed and-financed non-governmental organization focused on US-China business development in the clean energy sector. Its mission is to leverage private sector resources to support the sustainable development of the energy sectors in the US and China through the development, deployment and commercialization of the clean energy sector in both countries. Since its founding in September 2009, ECP has grown from 24 to 47 member companies who come together in nine sector-based working groups through a unique bilateral government recognized platform to pursue sector-based business development objectives that are linked into both US and Chinese national clean energy priorities. Establishing the Public-Private Platform ECP’s unique public-private platform flows from the formal bilateral government recognition it gained soon after its founding from five US and Chinese government ministry-level agencies and the Presidents of both countries. In October and November of 2009 (during US President Barack Obama’s state visit to China), the US Departments of Commerce and Energy (DOE) and the US Trade and Development Agency (USTDA), together with the Chinese National Energy Administration (NEA) and the Ministry of Commerce (MOFCOM), signed bilateral Memoranda of Understanding (MOU) supporting ECP. The MOUs were recognized by the two Presidents in a joint statement, which cited ECP’s contribution to the two governments’ future collaboration in clean energy. ECP’s efforts were again endorsed during Chinese President Hu Jintao’s January 2011 state visit to the United States, in which the two Presidents highlighted the progress of ECP as part of the continued bilateral cooperation in advancing clean energy development. Using the Platform LP Amina, a founding member and co-chair of ECP’s Clean Coal Working Group, established a joint venture to pilot its patented poly-generation technology 2 2 | c h i n a b r i e f | o c t o b e r 2 0 1 1 ECP and its member companies and partners realize sustainable business by linking together clean energy sector development and planning with commercial project formulation, piloting and implementation. The working groups drive this process in their targeted sub-sectors, involving the member companies within each working group and at critical points obtaining Chinese and US government stakeholder input and feedback. The working groups have the following goals: • Define and detail their sector development road map over the short-, medium- and long-term under the framework of existing US-Chinese bilateral government agreements on energy, the environment and climate change. • Agree on specific business development priorities and objectives for the working groups within this roadmap, given these objectives. • Formulate a detailed work plan for the year, circulate to Chinese and US government stakeholders, then incorporate their feedback, ensuring that the initiatives are in line with national development priorities, plans and bilateral activities. In March 2011, the working groups presented their sector roadmaps, 2011 work plan objectives and implementation strategies at an unprecedented special day-long, off-site high-level working meeting with Energy Cooperation Program member list Working Groups Co-Chair(s) Members Clean Coal LP Amina; Peabody Energy AES; Albemarle; Baker Botts L.L.P.; Calera; Caterpillar; Celanese (China); Corning; Duke Energy; EPIC Clean Technologies; GE; LanzaTech; MaxEn Capital; TRAX International; UTC Clean Transportation Boeing (China); Corning; Cummins Caterpillar; Celanese (China); DuPont; Eaton; Honeywell; LanzaTech; Tenneco; UTC Decentralized Energy and Combined Cooling Heat Power Caterpillar; GE Capstone Turbine; Honeywell; UTC; Vanderweil Energy Efficient Building and Design United Solar; UTC AECOM (Asia); Applied Materials; Autodesk; Calera; Dow Chemical; DuPont; First Solar; GE; Honeywell; ICF International; Intel; Microsoft; Oshkosh/JLG; Owens Corning; Solatube; Solutia Energy Financing and Investment AECOM (Asia) AES; Baker Botts L.L.P.; Chartis Insurance; Dow Chemical; First Solar; GE; LP Amina; MaxEn Capital; Peabody Energy; Tang Energy; United Solar Ovonic; UPC Renewables; UTC Industrial Energy Efficiency Dow Chemical Caterpillar; Celanese (China); GE; Honeywell; ICF International; Intel; Rockwell Automation; Timken; UTC Smart Grid Honeywell; IBM; Intel AECOM (Asia); Boeing (China); CISCO Systems (China); Corning; Dow Chemical; Eaton; FuxingXiaocheng; GE; Rockwell Automation; UL (China); UPC Renewables Solar Power First Solar, Solar ETC Applied Materials; Corning; Dow Chemical; DuPont; Eaton; Honeywell; Solatube; Solutia; UL (China); United Solar Ovonic; UPC Renewables Wind Power Oshkosh/JLG; UPC Renewables AES; Baker Botts L.L.P.; Dow Chemical; GE; Rockwell Automation; Tang Energy; Timken; UL (China); UTC o c t o b e r 2 0 1 1 | c h i n a b r i e f | 2 3 including five coal-fired power plants in the city of Guangzhou. Furthermore, the company was awarded a bid to install pollution controls for Beijing’s Cao Qiao power plant. Once commissioned in April 2012, the 700 megawatt facility will have one of the lowest nitrogen oxide emission rates in the world. Another founding member, California-based Solatube, has become a leading force in creating a new niche green market through ECP. The company produces patented daylighting devices that use advanced optics to bring natural lighting into interior building spaces. When Solatube first arrived in China in 2009, the daylighting industry was nonexistent. To develop the market, the firm sought to establish the design standards of its industry, which would then spur demand for its products. However, it faced the challenge of obtaining the necessary government recognition because its technology was untested in China. In 2010, Solatube became a founding member of ECP and joined in ECP’s Energy Efficient Building and Design Working Group. Through the working group, Solatube participated in a US government-funded mayors training mission to the US in September 2010 that sent 19 mayors to the West Coast, where they visited Solatube customer sites and saw demonstrations of its unique daylighting technologies. Following the trip, Solatube landed its first government project in Xinxiang City, Henan province for the design and installation of daylighting units in two buildings in the Pingyuan Development Zone. Solatube also participated in a working group-organized USTDA-funded trade mission to the US in November 2010 that took members of the China Green Building Council (CGBC), Ministry of Housing and Urban Development and Tsinghua University Architecture Design and Research Institute to the East Coast to observe the technologies and products of fellow working groupmembers first-hand. The mission resulted in Solatube capturing a 20,000-square meter project in Shanxi commissioned by Tsinghua University. In addition, Solatube is currently collaborating with the CGBC in the drafting and revision of three separate building lighting standards that now include daylighting systems. When asked about ECP’s value, Solatube General Manager Catherine Zhou puts it best: “ECP gives small and medium enterprises, especially those leading a new industry, the leverage needed to work with the government, reach out to the Chinese market and get results.” ECP’s unique, bilaterally-recognized, sector-based planning process has empowered member companies to further opportunities in developing, deploying and commercializing sustainable clean energy business in the US and China. officials from NEA, MOFCOM and the National Development and Reform Commission (NDRC). Chaired by NEA Vice Administrator Qian Zhimin, the meeting was attended by global, Asian and Chinese senior executives of ECP member companies. It also included an appreciation luncheon for outgoing NDRC Vice Administrator and NEA Administrator Zhang Guobao, a strong supporter of ECP and one of the signatories to the bilateral MOUs recognizing ECP in 2009. The groundbreaking event marked the beginning of an annual dialogue between ECP and its Chinese government partners. Delivering Results ECP’s unique, bilaterally-recognized, sectorbased planning process has empowered member companies to further opportunities in developing, deploying and commercializing sustainable clean energy business in the US and China. For LP Amina, a North Carolina-based firm that develops advanced technology emission reduction solutions for coal-fired power plants, ECP has provided the platform for the firm to gain critical recognition from key stakeholders, including those within government.“Without ECP, it would have been very difficult for us to stay on the path outlined by policymakers,” said Will Latta, LP Amina’s China-based managing director. As founding member and co-chair of ECP’s Clean Coal Working Group, LP Amina led the development of the clean coal industry roadmap that outlined sector-focused carbon abatement strategies throughout the industry value chain. Using the ECP platform, the working group then shared the roadmap with the NEA and DOE as well as key executives from Chinese power sector commercial entities to identify common areas of interest. The bilateral engagement enabled LP Amina to establish a joint venture to pilot its patented polygeneration technology in Shanxi province. The technology can curtail greenhouse gas emissions at coal-powered plants by as much as 25 percent while simultaneously generating cost-competitive chemical feedstock. Once fully operational, the Shanxi-based project will annually generate half a million tons of chemical feedstock, valued at over US $250 million. Another outgrowth of these efforts is LP Amina’s acquisition of a number of de-nitrification projects, 2 4 | c h i n a b r i e f | o c t o b e r 2 0 1 1 For more information and to get involved with ECP, please email ecp@amchamchina.org or visit www.uschinaecp.org