China signs $50 billion U.S. dollars in oil projects this month

Martian

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China's coal-to-liquid (i.e. CTL) plants

China's CTL plants that convert coal into oil are economical around $50 U.S. dollars per barrel of oil (see CTLtec Asia 2009 - About Event | About Conference).


A coal-to-liquid plant operated by Shenhua Group in Ordos, Inner Mongolia autonomous region. [China Daily]

China plant to begin coal-to-liquid production - Pittsburgh Tribune-Review

"China plant to begin coal-to-liquid production
By Rick Stouffer, TRIBUNE-REVIEW
Tuesday, June 24, 2008

One of the world's largest coal producers will finish construction this year of the first coal-to-liquid plant built in 40 years -- but the $1.5 billion project isn't located in America -- it's in China.

The Shenhua Group will begin producing diesel fuel from coal later this year at the facility, located in Inner Mongolia, about 375 miles west of Beijing. The plant will convert coal into some 22,000 barrels of crude oil-like liquid per day, of which 70 percent will be pure diesel fuel.

Shenhua is years ahead of U.S. coal-to-liquid proponents, yet it still took the company 10 years to move from planning to production.

"China is not talking about coal-to-liquid -- it's doing," said Qingyun Sun, associate director of the U.S.-China Energy Center at West Virginia University.

Sun addressed 60 attendees to CTLtec Americas 2008, a two-day coal-to-liquid conference sponsored by Singapore-based Centre for Management Technology. The conference began Monday and continues today at Downtown's Omni William Penn Hotel.

"The Shenhua project is one of seven coal-to-liquid demonstration plants currently being developed in Western China, at a cost of some $12 billion," Sun said. Three facilities are Shenhua projects.

Sun listed the reasons why China is so heavily involved in coal-to-liquid, and those reasons, ironically, sound much like those offered by proponents in the United States.

The coal-to-liquid push is due to China's desire to be energy secure, to be able to use its most abundant fuel in an environmentally clean way, and due to logistical problems in trying to move coal around the country to where it's needed.

Peabody Coal Senior Vice President Fredrick D. Palmer said coal will be the basis for a new industrial revolution, likening it to the nation's first industrial revolution of the mid 19th century, in what's needed to satisfy future energy needs.

"Economic growth requires a new energy industry revolution, with trillions of dollars and millions of jobs invested in new coal power plants, coal-to-liquid and coal gasification, oil and natural gas, oil sands, nuclear plants, carbon sequestration, gas-to-liquid, oil shale and enhanced oil recovery processes," Palmer said."
 
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Martian

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China is Saudi Arabia's largest customer for oil

"Saudi Arabia exported more oil to China than to the United States last year." Saudi Arabia has spare capacity of 4 million barrels per day in production. By the way, one barrel of oil is 42 gallons.

"China's oil demand is set to grow by 900,000 barrels a day in the next two years. Chinese oil consumption reached 8.5 million barrels a day last year, compared with 4.8 million in 2000. It will account for a third of the world's total consumption growth this year."

"China is by far the fastest-growing oil market in the world."

http://www.nytimes.com/2010/03/20/business/energy-environment/20saudi.html?pagewanted=1

"China's Growth Shifts the Geopolitics of Oil
By JAD MOUAWAD
Published: March 19, 2010

Last summer, Saudi Arabia put the final bolt in its largest oil expansion project ever, opening a new field capable of pumping 1.2 million barrels a day — more than the entire production of Texas. The field, called Khurais, was part of an ambitious $60 billion program to increase the kingdom's production to meet growing energy needs.


(Photo: Richard Carson/Reuters)
Khalid al-Falih, chief of Saudi Aramco, says "the writing is on the wall" that China is the growth market for oil.


(Photo: Aramco, via Agence France-Presse — Getty Images)
The Khurais field is capable of pumping 1.2 million barrels a day and was part of a $60 billion program to increase production.

It turns out the timing could not have been worse for Saudi Arabia.

Only two years ago, consumers were clamoring for more supplies, OPEC producers were straining to increase their output, and prices were rising to record levels. But now, for the first time in more than a decade, the world has more oil than it needs.

As demand slumped because of the global recession, Saudi Arabia was forced to shut about a quarter of its production. After raising its capacity to 12.5 million barrels a day, Saudi Arabia is now pumping about 8.5 million barrels a day, its lowest level since the early 1990s.

"2009 was painful for us as it was for everybody else," said Khalid A. al-Falih, the president and chief executive of Saudi Aramco, the kingdom's state-owned oil giant, and a company veteran who was promoted to the top post at the beginning of last year. "We experienced the same cash flow constraints that everybody did. But we adjusted quickly and, certainly, everything that was strategic to us was not touched."

The recession also precipitated a milestone for Saudi Arabia and the global energy market. While China's successful economic policies paved the way for a quick rebound there, the recession caused a deeper slowdown in the United States, slashing oil consumption by 10 percent from its 2005-7 peak. As a result, Saudi Arabia exported more oil to China than to the United States last year.

While exports to the United States might rebound this year, in the long run the decline in American demand and the growing importance of China represent a fundamental shift in the geopolitics of oil.

"We believe this is a long-term transition," Mr. Falih said in a recent interview. "Demographic and economic trends are making it clear — the writing is on the wall. China is the growth market for petroleum.

Saudi officials have said they favor prices of around $80 a barrel. Despite soft demand and high levels of inventories, oil futures in New York have averaged $75 a barrel over the last six months. On Friday, they closed at $80.68.

In the United States, some experts believe that energy-efficiency measures, as well as the government's push for biofuels and its plans to limit carbon emissions, are putting the nation on a long-term path to lower oil consumption.

The American talk about energy independence rankles Saudi officials, who maintain that the goal is unrealistic and could end up damaging energy markets by undermining investment now, thus leading to higher prices in the long run.

Mr. Falih said he welcomed energy-efficiency measures but insisted that fossil fuels would dominate energy demand for decades.

"I was here in the 1980s after the 1970s price shocks, and I remember all the debates," Mr. Falih said. "But ultimately the policies were reasonable. And the United States continues to search for that reasonable ground."

Saudi officials have recognized that structural changes are taking place in the United States. A few months ago, Aramco sold its storage facilities in the Caribbean, a signal that it was abandoning the East Coast market, according to analysts. (The Saudis stopped striving to be the top foreign supplier to the United States years ago. The kingdom now trails Canada, Mexico and Venezuela for exports to the United States.)

That is not to say the Saudis are cutting ties with the United States. Aramco is expanding its Motiva refinery, in Port Arthur, Tex., which it owns with Royal Dutch Shell, to increase its capacity to 600,000 barrels a day. That will make it the largest refinery in the United States, overtaking Exxon Mobil's Baytown refinery.

Edward L. Morse, an energy expert who heads global commodity research at Credit Suisse in New York, said the transformation was a healthy development in relations between Saudi Arabia and the United States. It also means the end of the "U.S. discount," where Aramco sold oil to American refiners for about $1 a barrel less than to Asia.

"The Saudis don't see the need to subsidize their oil exports to the United States anymore," Mr. Morse said.

Last year, Saudi exports to the United States fell to 989,000 barrels a day, the lowest level in 22 years, from 1.5 million barrels a day the previous year, according to the Energy Information Administration.

Meanwhile, Saudi sales to China surged above a million barrels a day last year, nearly doubling from the previous year. The kingdom now accounts for a quarter of Chinese oil imports.

Saudi Aramco recently inaugurated a huge refinery in the Fujian province, in the southeast coast of China, which is projected to receive 200,000 barrels a day of Saudi crude, and is looking at a second project in the northeast city of Qingdao.

It is also planning to build two refineries in Saudi Arabia, as joint ventures with Total and ConocoPhillips, that are primarily destined to ship products to Asia.

India is also courting Saudi attention. After a visit in March to Riyadh by India's prime minister, Saudi Arabia outlined a goal to double its exports to India. The kingdom already accounts for 25 percent of the Indian market after its exports grew sevenfold from 2000 to 2008.

"Oil flows are shifting from West to East, and Saudi supplies that used to go to Europe and the United States are now headed for Asia," said Jean-Jacques Mosconi, the senior vice president for strategy at Total of France.

Brad Bourland, a former State Department official who heads research at Jadwa Investment in Riyadh, said: "Saudi Arabia used to be very much an American story, but those days are gone forever. That's just a reflection of a globalized world and the rise of Asia. They now see their relationship with China as very strategic, and very long term.

Some energy and security experts have pointed out that the Saudi government is keen on displacing Iranian oil sales to China to persuade Beijing authorities to back tougher sanctions against Iran's nuclear program, a position that has the support of the United States.

"We know the Saudis and others have delivered the message to the Chinese that instability in the gulf is not in their interest," Douglas C. Hengel, the deputy assistant secretary for energy, sanctions and commodities at the State Department, said last week during a conference in Houston.

But Jon B. Alterman, a Middle East expert at the Center for Strategic and International Studies in Washington, said that the falling dependence of the United States on Saudi oil could turn into a problem for the Saudis, because the United States guarantees their security in the Persian Gulf.

"The Saudis are particularly concerned about the shape of the global market where all the growth comes from the east and all the security comes from the west," Mr. Alterman said.

China's oil demand is set to grow by 900,000 barrels a day in the next two years. Chinese oil consumption reached 8.5 million barrels a day last year, compared with 4.8 million in 2000. It will account for a third of the world's total consumption growth this year.

While China is by far the fastest-growing oil market in the world, the United States is still the top consumer: despite the slump, Americans consumed 18.5 million barrels a day in 2009. That amounts to 22 barrels of oil a year for each American, compared with 2.4 barrels for each Chinese.

"To me, this is a long-term business," said Mr. Falih during the interview.

'And that is how I look at the United States and China — as markets for commodities that will be in demand for years.'"
 
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Martian

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Chinese focus on energy efficiency

A Yuhuan coal-fired plant is 45% efficient.

A Beijing trigeneration natural gas plant is 58% efficient.

Ethnic Chinese in America are striving to achieve the goal of 66% efficiency for solar cells via harnessing "hot electrons" in quantum dots. The current "theoretical maximum efficiency of [solar] cells is around 31 percent." "However, if one could remove the hot electrons before they cool, says study author Xiaoyang Zhu, a chemistry professor at University of Texas at Austin, "then you essentially shut down this heat-loss pathway, and you increase efficiency by more than a factor of two."

"Now researchers have shown that it's possible to harvest that energy before it escapes, meaning that engineers could one day develop next-generation solar cells with efficiencies of up to 66 percent. The research, funded by the Department of Energy, is described in the June 18 edition of the journal Science."

http://www.popularmechanics.com/science/energy/solar-wind/quantum-next-gen-solar-cells?src=rss

"How Quantum Dots Could Double Solar Cell Efficiency
Researchers have demonstrated a way to use quantum dots to significantly reduce the amount of energy that solar cells lose to heat, paving the way for future cells that are twice as efficient as today's technology. Here's how they did it.

By Mike Orcutt
June 18, 2010 4:24 PM


New research shows next-gen solar cells could more than double the efficiency of conventional silicon cells, shown here. (Photo from Flickr)

When it comes to turning sunlight into electricity, today's technology leaves lots of room for improvement. The most efficient solar cells on the market, which are made of silicon, convert less than 20 percent of the light that hits them into electricity, and the theoretical maximum efficiency of these cells is around 31 percent.

One reason for this low efficiency is that much of the incoming light contains energy that is too high for solar cells to capture, so it's lost as heat. Now researchers have shown that it's possible to harvest that energy before it escapes, meaning that engineers could one day develop next-generation solar cells with efficiencies of up to 66 percent. The research, funded by the Department of Energy, is described in the June 18 edition of the journal Science.

When light hits a solar cell, a fraction of its energy is absorbed, exciting electrons in the cell's material and knocking them free. An electric field then forces the free electrons to flow in a specific direction, producing electric current. The energy that is absorbed is determined by what scientists call the bandgap—a limited range of energies the cell's material can capture.

But sunlight is composed of particles, called photons, representing a very broad range of energies. The energy from photons too high to be absorbed takes the form of high-energy electrons—or, as scientists call them, "hot electrons"–and is lost as heat. However, if one could remove the hot electrons before they cool, says study author Xiaoyang Zhu, a chemistry professor at University of Texas at Austin, "then you essentially shut down this heat-loss pathway, and you increase efficiency by more than a factor of two."

To accomplish this, the group used nanoscale (less than 100 nanometers, or 10-9 meters) crystals of a compound called lead selenide. Like silicon, lead selenide is a semiconductor, meaning it absorbs light energy within a certain bandgap, or range of energies. But semiconducting nanocrystals, also known as quantum dots, exhibit very different properties than their larger counterparts. For one thing, they can hold on to a hot electron for a longer period of time, stretching out the amount of time it takes for the electron to cool. In fact, previous research has shown that quantum dots can increase the lifetime of hot electrons by as much as 1000 times.

Once a hot electron is confined within a quantum dot, then comes the hard part: removing it so its energy can be harvested. The electron likes to stay inside the quantum dot, Zhu says, "so we needed to find something that would attract it out." For this role, the researchers chose titanium oxide, a well-studied compound known for its ability to accept new electrons. Then came the really hard part: arranging the lead selenide quantum dots and titanium dioxide in such a way that their chemical interactions would induce electron transfer.

Not only was the transfer successful, it was also very fast. If verified, this result makes highly efficient quantum dot solar cells more realistic, according to Tianquan Lian, a chemistry professor at Emory University who was not part of this study, and whose research revolves around the use of nanomaterials for solar energy conversion. This is the first demonstration that, in principle, the vital electron transfer step is possible, he says.

The ultimate goal, Zhu says, is called a "hot-carrier solar cell," which could convert up to 66 percent of incoming light into electricity. But many scientific and engineering steps remain before such a cell can be commercially developed. One challenge is to figure out how to transfer the hot electrons to a conducting wire. "This is science that has really striking implications, but implication is not application yet," Zhu says, adding, 'I'll be extremely happy if, in my lifetime, I see [hot-carrier cells] on roofs.'"
 
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Martian

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China to Import More Russian Coal, Lend $6 Billion

China to Import More Russian Coal, Lend $6 Billion - Bloomberg

"China to Import More Russian Coal, Lend $6 Billion
By Bloomberg News - Sep 7, 2010 5:09 AM ET


China became a net coal importer for the first time in 2009 after overseas deliveries more than tripled to a record 125.8 million tons from a year earlier. Photographer: Qilai Shen/Bloomberg

China, the world's biggest coal consumer, agreed to increase imports of the commodity from Russia by two-thirds in return for a $6 billion loan.

Russia will raise shipments to China to at least 15 million metric tons annually in the next five years and more than 20 million tons in the following 20 years, according to a Russian Energy Ministry statement. Deliveries surged 15-fold to 11.8 million tons last year, accounting for about 10 percent of China's total imports.

Russia will use the loan to finance investments by domestic coal producers in return for a guarantee to increase supplies to China, Russian Energy Ministry spokeswoman Irina Yesipova said today by telephone. China, which uses coal to make steel and to fuel 80 percent of its power plants, is seeking to boost imports from countries including Mongolia and Australia to meet demand.

"It is strategically important for China to boost coal imports from neighboring counties including Russia to secure energy supply," Wu Jie, a coal analyst at Orient Securities Ltd., said by telephone from Shanghai. "The purchase won't have too big an impact on the domestic market and prices, given the moderate increase."

Russia Vs. Australia

China became a net coal importer for the first time in 2009 after overseas deliveries more than tripled to a record 125.8 million tons from a year earlier. Its coal purchases from Russia cost an average of $87 a ton last year, compared with $111 a ton for cargoes from Australia, according to customs data. Russia was the fourth-largest supplier after Australia, Indonesia and Vietnam, the data show.

Russia and China signed the coal-supply and loan agreements at the end of August, according to the Russian statement. The $6 billion loan will help Russia fund new mining equipment, develop resources in the nation's Far East and build coal-transportation links including railways, the China Coal Transportation and Distribution Association said today in a report on its website.

The countries will also set up joint ventures to develop coal resources in Russia and conduct research into coal-to- liquids technology, according to the Chinese report. Russia will cooperate on exploration with Shenhua Group Corp., China's largest coal company, the association said, without elaborating.

Drive the Industry

"This agreement is beneficial for all coal producers in Russia," said Alexander Pukhaev, an analyst at VTB Capital in Moscow. "It could act as a key factor driving forward the development of this sector."

OAO Mechel, Russia's biggest producer of coal for steelmaking, may benefit from the Chinese loan because it needs funds for its Elga mining project in eastern Siberia, Pukhaev said. Steelmakers OAO Severstal, Evraz Group SA and OAO Novolipetsk Steel might also be interested as they seek to develop coking-coal deposits in Siberia's Tyva region, he said.

OAO Siberian Coal Energy Co., Russia's largest coal producer, said last September that it increased exports to China 10-fold in the first nine months of 2009.

Electricity demand in China grew 22 percent in the first half from a year earlier as economic growth rebounded to 10.3 percent in the second quarter and 11.9 percent in the first.

--Winnie Zhu in Shanghai. With assistance from Henry Meyer in Moscow, and Wang Ying and Baizhen Chua in Beijing. Editors: Amanda Jordan, Alastair Reed

To contact the reporter on this story: Winnie Zhu in Shanghai at [email protected]"
 

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China-Russia crude oil pipeline begins operations


Russian Prime Minister Vladimir Putin opens the Russian section of the Russia-China oil pipeline in the Amur region on Sunday.

China-Russia crude oil pipeline begins operations

"China-Russia crude oil pipeline begins operations
The Associated Press
Sunday, August 29, 2010; 11:40 PM

SHANGHAI -- Russia has opened its section of a crude oil pipeline from eastern Siberia to China, a major step in expanding energy cooperation between the neighboring powers.

The 1,000-kilometer (625-mile) pipeline will connect Russian oil fields with Daqing, a major oil production base in northeastern China.

"For China, this will help stabilize its energy supplies and security. For Russia, this offers a new market for exports to the Asia-Pacific region, especially dynamic and developing China," the state-run China National Petroleum Corp. quoted Russian Prime Minister Vladimir Putin as saying, in a statement issued Monday on its website.

Russia is the world's biggest energy producer and China is the world's largest energy consumer, overtaking the United States last year. Although Europe remains Russia's largest export market for gas and oil, both Beijing and Moscow have been seeking to diversify their energy sources and markets, despite a long history of mutual suspicion and tensions.

Speaking at the ceremony Sunday in the Russian city of Skovorodino marking the pipeline's opening, Putin said cooperation would not be limited to oil exports. Russia welcomes Chinese help in exploiting its abundant resources in the Far East and in expanding refining and marketing, he was quoted as saying.

The Chinese segment of the pipeline is still under construction but is expected to begin operations before the year's end, the statement said.

Eventually, the pipeline is to provide 30 million tons of oil a year to China, with exports to the Asia-Pacific region expanding to a total of 50 million tons a year, Putin was quoted as saying.

During a visit by Putin to Beijing late last year, Russia signed dozens of commercial pacts worth $3.5 billion and set the framework for a separate, multibillion-dollar agreement to build two natural gas pipelines to China from gas fields in Russia's Far East that would provide supplies almost matching China's current consumption."
 

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