GEI Introduces Energy-Saving Model for China’s Steel Industry

BEIJING (Sept. 27, 2008) –Global Environmental Institute (GEI) promoted an innovative new model and opportunity for energy-saving in China’s steel industry at their seminar, “Developing Market-based Tools for Energy Efficiency Investments in Metallurgy Industry” on September 28, 2008.

GEI’s Executive Director, Mme JIN Jiaman explained that the model aims to achieve the goal of energy-saving and emissions reduction in China’s steel industry and to provide the industry with effective methods to achieve sustainable development.

“China’s steel industry is a ‘No. 1’ that accounts for a large potion of the country’s energy consumption and pollutant emissions. It is a tough job for the industry to achieve the goal of energy-saving and emission reduction [on its own] … We have been keeping our eyes on energy-saving projects in China’s industries since GEI’s establishment in 2004, and we have created a successful business operation model by pooling together funds management that suits China, and have run a successful pilot study in China’s cement industry.” – Mme JIN Jiaman

The new innovative business operation model GEI developed involves implementing many small energy-saving projects in one industry by using the Clean Development Mechanism (CDM) as financing method and finding an Energy Service Company (ESCo) to operate the projects.

Expert Insight

Ms. Wang Yanjia, a professor from Tsinghua University, reported on the status of energy-saving and emissions reduction in China’s steel industry;

Mr. Jiang Yuanfu, Deputy Secretary General of ESCO Committee of China Energy Conservation Association, explained in detail the Energy Management Contract model (i.e. the ESCo Model);

Mr. Chen Shiping, GEI’s Energy and Climate Change Program Officer, introduced GEI’s energy efficiency investment project in the cement industry, CDM and the possibilities of implementing similar projects in the steel industry.

Corporate Presentations

Representatives from three front-running companies in the development of energy-saving technologies — Beijing JC Energy & Environment Engineering Co., Ltd, Siemens Ltd., China and Dalian EAST Energy Project Co. — delivered separate presentations on coke dry quenching technology, variable speed drive technology and waste heat recovery technology.

Specialists from the energy service and equipment industries, along with investors and institutions, also attended the seminar. They also discussed the challenges and opportunities Chinese steel companies may encounter in energy-saving and energy efficiency endeavors. The seminar provided a platform for all parties to explore effective methods to realize the Chinese steel industry’s sustainable development potential.

Moving forward, GEI will continue to promote a sustainable steel industry:

“After conducting research on the energy efficiency investment market, we hope to introduce the new innovative financing model to China’s steel industry as well. By doing so, we hope to help [the industry] find an effective new method to achieve energy-saving, emissions reduction and sustainable development targets.” – Mme JIN Jiaman