A research group focused on the energy industry and its impact on air pollution said the Chinese government’s decision to no longer provide financing for overseas coal projects has resulted in the cancellation of at least 15 coal-fired power plants in recent months. The group said China’s investments are so far-reaching that the change in policy could result in more than a third of all new global coal-fired power projects outside of China and India being abandoned.
The Helsinki, Finland-based Centre for Research on Energy and Clean Air (CREA) on April 22 said those projects, which were all in the planning stages and had been earmarked to receive Chinese financing, equipment, or both, would have provided about 12.8 GW of power generation capacity. The group said its research shows another 37 GW of capacity, currently in a pre-construction phase, also could be canceled.
Two questions arise from this policy. One, what does this do to China’s deal with Russia for more gas and oil for power needs? If you are going to have a domestic source vis a vis coal why would you buy a lot of oil or gas?
Second, Beijing already has a horrible air pollution problem with air quality alerts lasting for weeks at a time. While we know that the Communist Party could care less about the public health, other than how it effects industrial productivity, eventually it has to cause “lost time” for businesses.
One, what does this do to China’s deal with Russia for more gas and oil for power needs? If you are going to have a domestic source vis a vis coal why would you buy a lot of oil or gas?
The article was about the financing of power plants in Africa and Southeast Asia, not Chinese power production.
The article was about the financing of power plants in Africa and Southeast Asia, not Chinese power production.
Yes, but your post titled “China Promotes Coal” was responded to by Jaak with the post showing that China has cancelled coal fueled power plants in other countries. The two are tied together by the fact that same time China is willing to burn coal for their own needs they are limiting the use of coal by other nations.
So, is it the case of China saying; Do as I say and not as I do?
Does this look like promoting coal?
Or will this policy stand allow China to say that they are cutting CO2 emissions by not building these plants in other countries?
The article was about the financing of power plants in Africa and Southeast Asia, not Chinese power production. — Yes, but your post titled “China Promotes Coal” was responded to by Jaak with the post showing that China has cancelled coal fueled power plants in other countries. The two are tied together by the fact that same time China is willing to burn coal for their own needs they are limiting the use of coal by other nations.
To go back to your original question (what does this do to China’s deal with Russia for more gas and oil for power needs?) I would say very little.
It does not involve coal.
The financial deals to build power plants do not supply China with anything except interest earned and local influence.
Building power plants outside of China opens a market for Chinese coal and increasing the demand for coal around the world would support a higher price with regards to this commodity.
China’s need for gas and oil supplies is directly tied to its need for more electricity to satisfy a growing demand. If China makes a turn to more coal for power generation than that DECREASES the need for Russian petroleum supplies.
Hence the question arises as to what happens to China’s total need for additional supplies?
Building power plants outside of China opens a market for Chinese coal and increasing the demand for coal around the world would support a higher price with regards to this commodity.
China is a net coal importer (300+ million tonnes last year) so in that sense it works against them. They offer financing and technical assistance to countries in Africa and Asia to gain political influence, part of their belt and road initiative. Based on their own experience they know these countries need lots of electricity to climb up the development ladder.
China’s need for gas and oil supplies is directly tied to its need for more electricity…
Nat gas, yes. Oil, no, as it is used for transportation and the chemical industry.
If China makes a turn to more coal for power generation then that DECREASES the need for Russian petroleum supplies. Hence the question arises as to what happens to China’s total need for additional supplies?
China definitely needs more coal. IIRC, they had to institute rationing this last winter. For the next 11 months, starting today, they have eliminated import tariffs on coal in order to build up supplies. www.reuters.com/business/energy/china-cut-coal-import-tariff…
Any additional imports of oil and gas (especially at distressed prices) from Russia would help the Chinese; the big question is getting it there. There are a couple of Siberian pipelines, probably at capacity, and shipping by sea involves getting it out of Russia. A lot of shipping firms aren’t handling Russian oil anymore.
Longer term, I could see a number of projects over the next decade that use Chinese financing to build pipelines between China and Russia.