The Chinese government promised that CO2 emission intensity would be reduced by 40%-45% by 2020 compared to 2005.
At the same time, by 2020 the share of non-fossil energy consumption target is 15%, which would mean fossil fuels still accounting for 85% of the energy mix.
For China's energy and chemical industry, how to develop CO2 Capture, Storage and Utilization (CCSU) technology, and how to realize the efficient and clean use of coal, will be the important issues over the next 10 years.
In recent years, several CCSU projects were demonstrated. North Dakota's Great Plains SNG plant has cooperated with Canada Weyburn Oil field on CO2 Enhanced Oil Recovery (CO2-EOR) since 2000. BP and TOTAL also have started a CO2 Capture & Sequestration (CCS) demonstration.
In China, Huaneng has built two CO2 capture projects in Beijing and Shanghai, respectively, by the post-combustion CO2 capture of a coal fired power plant. China Power Investment also completed a CO2 capture pilot in Chongqing. Shenhua Group started its CCS project in Ordos near to its CTL plant. PetroChina and Sinopec also launched CO2-EOR pilots, while China United Coalbed Methane (CUCBM) built a CO2 to improve oil recovery (CO2-ECBM) pilot.
In addition, Japan's Mitsui Chemicals uses CO2 and H2 for methanol production, which is an actual implementation of Methanol Economy - advocated by Nobel laureate George A. Olah, and Mitsui is seeking partners for further industrialization. Jinglong-CAS and CNOOC have successfully used CO2 to produce biodegradable plastic.
In 2010, a research team from NDRC and the Chinese Ministry of Finance announced a report on "China Carbon Tax Framework Design." As the report proposed, by 2012, the Chinese government may initiate a tax of RMB 10-20 per ton of CO2 to industrial firms.
The CO2 Capture, Storage & Utilization Conference will be held by ASIACHEM Consulting from September 15-16, 2010 in Shanghai, China. The upcoming event will focus on China's Carbon Tax design and policy and its impact on industries (power generation, coal chemicals and petrochemicals, steel, cement etc.), the technology & economics of CO2 Capture, Storage & Utilization projects, the update & outlook of CO2-EOR, CO2-CBM and CO2 chemical utilization in China. The delegates will be arranged to visit the CO2 based Bio-degradable Polymer Plant - Jinlong-CAS, which is the joint venture between Jiangsu Jinlong and the Chinese Academy of Sciences (CAS).