China: Looking to a New Era in Energy

25 Jun

China is one of the world’s largest economies, with industrialisation and development on a scale not seen anywhere else in the world. However with this vast development the country requires huge supplies of reliable energy and in a world where energy supplies are dwindling and the price ever-increasing, this is no mean feat.

One of China’s main aims now is to both diversify their energy usage, whilst simultaneously securing supplies of energy from pre-existing sources. This has led to news stories of energy deals between China and the large energy rich nations, and scientific reports detailing potential new ways to generate energy in the county.

One of the most interesting recent reports was one that detailed plans to use chicken waste to meet some of China’s energy demands. In principal it is not a new idea; biogas has been put forward as an alternative source of energy for many years. However the application to China’s vast, industrial scale farming is new. Outside of Beijing there is a chicken farm housing over 3 million chickens, which provides 70% of Beijing’s eggs everyday. With 3 million chickens the farm produces 212 tonnes of chicken manure per day. This manure is then processed so that the methane can be extracted for energy purposes and the remaining waste can be turned in fertiliser.

With China’s large-scale agricultural production the potential for biogas is huge and with China’s push towards finding alternative sources of energy it provides a cornerstone of its diversification policy. However the bigger issue for China is energy security in the short-term and as such, relations with states in the Middle East and Africa, both of which contain vast resources of fossil fuels, have never been more important.

In some cases, such as Sudan, China have moved in their companies, and large numbers of its people into the country to secure a supply of fossil fuels to China by personally managing the supply route. However in other areas China has had to work with the countries to secure deals that ensure an energy future for China. The most recent are negotiations with Qatar, a major supplier of liquified natural gas (LNG) to China. The Qatari government are seeking to invest $5bn into Chinese capital markets, much of which would be reinvested from the profits of LNG. This deal all though not a direct energy deal is completely wrapped up in the energy debate. China’s foreign investment cap is currently at $1bn, however officials are believed to likely allow the Qatari request and many believe this is because China needs to looks to future relations with states, like Qatar, for their own energy future.

China’s energy future is clearly critical to their future development and maintenance as the world’s leading industrial power, however with such a dwindling supply of energy and such high demand this future is unsure. China will have to both seek diversification, with projects such as Three Gorges Dam and new biogas schemes becoming critical elements of their energy policy, whilst also appealling to nations worldwide to maintain their energy security.

By Peter Banham

One Response to “China: Looking to a New Era in Energy”

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  1. South Sudan: What is it Like One Year On? « A Little View of the World - July 9, 2012

    […] heavy investment from nations such as China, who are looking to secure their energy futures, the potential to develop the economic infrastructure is huge and so the economic future many […]

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