U.S. Relations with the People's Republic of China (2006)

U.S. Trade and Development Agency
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USTDA Initiatives Promote Clean Energy and Air Quality in China

BEIJING, CHINA - (May 24, 2006) Promoting clean energy production and the adoption of air emissions monitoring and emissions control technology in China's coal-fired power infrastructure are the objectives of three initiatives undertaken today by the U.S. Trade and Development Agency (USTDA). The initiatives, valued at $1.15 million, will support two separate investment analyses of high-priority facilities in Shangdong and Shanxi provinces, and the establishment of a forum for the exchange of information between U.S. and Chinese corporate representatives, government officials and regulators in the natural gas industry. The projects highlight increased U.S.-China cooperation in the environmental sector, especially in the context of the Asia Pacific Partnership for Clean Development and Climate.

In signing today's investment analyses grant agreements and announcing USTDA support for the natural gas forum, USTDA Director Thelma J. Askey stressed that these projects play a crucial role in enabling more cooperative arrangements between both countries in the area of environmental protection. She noted the importance of engaging the Chinese government and individual companies in promoting advanced technical solutions to reduce pollutant emissions and greenhouse gas production in China. "Through our joint efforts, we will achieve our mutual goals for environmental sustainability," stated Director Askey.

In Shandong Province, USTDA is providing a $515,300 grant for early investment analysis to support the Shandong Flue Gas Desulphurization Project. Vice Director General Zhang Bo and Director Askey signed an agreement today that officially conferred the grant to the Shandong Provincial Environmental Protection Bureau (EPB). The study will assist the Shandong Provincial EPB in defining the technical and financial aspects of installing flue gas desulphurization and particulate control technologies in eight existing coal-fired power plants in the province.

The opportunity to conduct the study for the Shandong Provincial EPB will be competed on the Federal Business Opportunities website at www.fedbizopps.gov. Interested U.S. firms should submit proposals according to the instructions contained in the Federal Business Opportunities announcement. The Shandong Provincial EPB will select the U.S. contractor that will provide the assistance.

In Shanxi Province, USTDA is providing $186,400 to partially fund early investment analysis on continuous emissions monitoring systems in coal-fired power plants and industrial facilities across the province. Deputy Director Liu Silong joined Director Askey in signing a grant agreement to officially confer the award to the Shanxi Provincial EPB. The study supported by the grant will assess the improvements mandated by recent environmental regulations. The Shanxi Provincial EPB has selected Thermo Electron Corporation's Air Quality Instruments unit of Waltham, Massachusetts, a global leader in environmental instrumentation, to conduct the study. In addition to the USTDA grant, Thermo Electron will provide additional resources towards the completion of the study.

In addition to today's grant awards, Director Askey's announced USTDA approval of $450,000 to support the establishment of a U.S.-China Natural Gas Training Program designed to promote greater commercial cooperation and policy exchange between the U.S. and Chinese industries. The program will involve specialized training for Chinese government officials, representatives from oil and gas companies and industry regulators on key issues related to gas industry development, technology, regulation and economics (including gas exploration and production, transportation and consumption).

The training program will feature a series of short-term training courses and an orientation visit that will bring senior Chinese officials to the United States. In addition to the USTDA grant that will be awarded, the program will include contributions from companies, industry associations, research institutes and relevant government entities from both countries.

Since 2001, USTDA has funded over 80 activities supporting important development objectives in China. The agency's China program targets development projects that represent opportunities for U.S. commercial involvement in the areas of transportation, energy, the environment, and other priorities.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.