You talk about it. We talk about it. The man in the street talks about it. People who have never set foot in China talk about it. Now China is set to do something about it. And just about everyone, one way or another, is going to get something out of it.
China herself estimates that pollution, through illness, death, and loss of productivity, costs the economy over ¥600 billion a year. In order to cut such losses, and happily to bring about immeasurable improvements to her citizens’ quality of life, China is set to announce a series of environmental investment measures that could total as much as ¥1.7 trillion.
The National Development and Reform Commission (NDRC) has outlined a plan that could bring about major improvements in air pollution levels across China’s developed urban areas.
Top of the list comes switching over a vast swathe of China’s coal IPPs (independent power producers) to become gas IPPs. Approximately 93GW of capacity is called for, at a cost of ¥4 million per MW, making for a total of ¥371 billion.
According to the NDRC, another ¥350 billion has been earmarked for installation of deNOx; technologies that process Nitrogen oxides and other hazardous waste pollutants. Broken down as ¥73 billion for the control of Sulphur dioxide, ¥53 billion for nitrogen oxides, ¥47 billion for dust, and ¥40 billion for Volatile Organic Compounds(VOCs), the initiative shall combat the soaring emissions from China’s power plants.
As a primary supplemental natural gas source, more coal-to-gas projects (largely coal-to-methane gas) are expected to be approved this year, possibly totaling some ¥119 billion. In addition to investing in renewables, new capacity for wind farms could be sped up as could the development of solar farms.
While the opportunities presenting themselves to those well placed within the environmental control industry are enormous, the NDRC has also hinted at possible punishments for the worst offenders, including the death penalty. Now that will get everyone talking about it.
