China’s Fuel Production

1. China’s Fuel Production By your fellow class mates Nic & Seb

2. China’s Coal & Oil Deposits

3. Energy Production in china • Most of the energy production in China is comprised of coal, which in 2006 accounted for 76.7% of total energy production. • Imports of coal show no sign of slowing with a 15.6% increase in imports of coal last month (September 2010)

4. Is It Sustainable • China’s export-driven economy consumes large amounts of energy and other resources. To meet this rising demand, the power sector has increased it capacity a staggering 12 percent per year in the past decade. • Coal has become abundantly available within China, coal provides three-quarters of the country’s electricity and will remain the primary energy source for the foreseeable future. • China’s Rapid energy growth is unsustainable under the current economic structure • Climate Change has added to china’s coal demand. Colder winters and Warmer summers means the overall energy consumption is increasing, as heating is increased in winter, and air-conditioning increased in summer. • Morally the huge energy consumption isn’t sustainable, mining accidents killed nearly 3,900 people and injured many more in 2007 • Behind China’s large production and consumption of coal, lie expensive and worrying environmental and social costs which haven’t been accounted for • Pollution affected water, land and air around mines • Buring of coal led to emissions of mercury and acid rain • China’s coal industry has hidden annual costs of $250bn (£159bn) in terms of damage to health and the environment

5. Some Issues • Accidents and damage to health & the environment produce hidden annual costs of $250bn to China’s coal industry. Pollution and environmental damage accounted for 10% of China’s GDP in 2006 • 2007 saw 3,800 deaths in Chinese coal mines • Emissions of sulphur dioxide are the highest in the world, which not only causes acid rain but respiratory and cardiovascular diseases • Pollution from burning oil and coal has meant that only 1% of China’s urban population (560mil) breathe in air that is considered safe by the EU. - Beijing has 141 micrograms of PM10 pollution per cubic meter (EU recommends anywhere above 40 is unsafe) • China can not meet its oil needs and has to import vast quantities (June 2010 imports were 5.4million barrels a day) • Increasing demand for oil and “diminishing” global supply will only mean that oil prices will rise further

6. In The News • 26/10/10 • A new tax law is in consideration to reduce car tax for cars with smaller engines (<1.6ltr) and to increase tax considerably for cars with larger engines (>2.5ltr). "The main aim of the law is to reduce energy consumption through effective fiscal and tax measures“ - Jia Kang, Ministry of Finance. • http://www.chinadaily.com.cn/china/2010-10/26/content_11455933.htm

7. More In The News • 20/10/10 • In the ongoing challenge to find more coal reserves for Chinese use, two of the big players in the Chinese coal industry have teamed up to carry out a 5-year R&D project into a supposed 10billion tonnes of coal reserves in Queensland, Australia. • http://www.chinadaily.com.cn/bizchina/2010-10/20/content_11435105.htm

8. Worth a Look • http://blogs.ft.com/energy-source/2010/01/14/could-china-fall-out-of-love-with-coal/ • http://www.chinadaily.com.cn/china/2010-02/10/content_9459274.htm • http://www.chinadaily.com.cn/china/2010-10/25/content_11455780.htm