CleantechOpportunities for Flemish and Dutch companies in (South-) China

Cleantech re fers to the deve lopment , manufactur ing, distr ibut ion and use of technology (products, services and processes) that contributes to sustainable development as well as generates economic value.

Energy

Water

Waste

China is on of the largest and most dynamic markets in many sectors of clean technologies.

1.3 billion

9,7% annually

10% GDP

“Chinese Green Growth” benefit environmental industry5% GDP

Investment environmental industry 3% GDP

Guangdong: To develop a low-carbon society with an improved modernisation and sustainability capacity by 2020

Opportunities:

*High and selected technology solutions *Increasingly accustomed to international business *Long-term relationships and cooperation agreements

SME’S

Energy

66%0%

20%40%

60%80%

100%

2015 2020 2030 2050

renewables CoalNatural gas Petroleum

China’s Energy Consumption StructureRenewables will increase

2000-Law for Prevention and Control of Air Pollution

1997- Energy Conservation Law

2005-Renewable Energy Law

2009- Amendation of the Renewable Energy Law

2011- 12FYP targets reduce energy intensity by 16% and decrease carbon intensity by 2015.

2012-Publication of the State council’s China’s Energy Policy White Paper

It has widely been recognised that China’s massive investment in renewable energy will make China the largest market for hydropower, wind, solar technology, nuclear energy, and other clean-technology in both the short- and medium-term.

2015-2017: Guangdong province plans to increase its total investment in nuclear and clean energy projects by 147.4 billion RMB

Rich in renewable energy:

-14GW exploitable onshore and 11GW exploitable offshore wind energy

-2,200 hours of harvestable sunlight annually

-Biomass resources: 10 million- 15 million tons of straw and bagasse a year.

2014

CONTEXT

EnergySECTOR Status and Goals Opportunities Challenges

Wind*347,5 GWe by 2025

*2,78% of total national electricity consumption

* Strong interest for engineering knowhow

* In need for high solutions: system monitoring, trouble

shooting operations management

*Use of AP1000 reactors

*electricity grid infrastructure *still heavily relies on government subsidies

and policies *high costs, technical problems, a lack of skillful installers, and issues concerning

jurisdiction over maritime areas.

Solar (PV)*Steady rise of domestic demand

since 2009, 10,6 GW in 2014. *Annual rise of 20GW

*150GW by 2020

*solar distributed generation (DG) * In need for high solutions: system monitoring, trouble

shooting operations management

*overcapacity *problems with grid infrastructure * lack behind as regards key solar

technologies

Biogas*80% located in rural areas

*minor role *slow growth: 5,5 GW between

2006 and 2010 *13GW by 2015

*still not fully organised in terms of laws and market

*technological barriers *underinvestment in fuel supply and logistical infrastructure *food security *environmental concerns

WTE

*300 WTE plants operational by 2015

*China’s MSW will reach around 323 million tons by 2020 and 480

million tons by 2030. *WTE rate is 30%

* Technology and equipement improvement needed in: fly ash control, moisture’s management,

higher corrosion due to impurities in combustion gases

* Difficult to find locations for WTE facilities * doubts about safety * problems of poor waste classification, high

organic waste composition and moisture content

OPPORTUNITIES

WTEWaste-to-energy

positive impact of WTE on economic growth

77%-80% if China’s population will live in urban areas by 2050 (1.2 billion people)

Largest energy consumer and largest oil-importer

Global need to reduce carbon emissions

IncentiveChallenge

Large capital investment and high operating cost

China’s MSW classification system is less developed: higher organic composition and moisture content

Improve standards and practices of their incineration facilities and flue gas purification systems

public opposition: NIMBY Negative publication No public participation

Potential

Many Chinese cities face the problem of landfill space

Houshold-waste +10% each year

2800 megawatts of electricity wasted each year worth 3.9 billion USD

13th FYP gov will invest 41,4 billion USD on WTE incineration facilities

FOCUS

Water

61.5% of groundwater and

28.8% percent of key rivers were classed

as ‘not suitable for human contact’

Top 10 provinces total waste water discharge (100 million tons)

0! 25! 50! 75! 100!

Guangdong!Jiangsu!

Shandong!Zhejiang!Henan!

Sichuan!Hunan!Hubei!Hebei!Anhui!

In Guangdong, 20% of total wastewater

discharge is industrial and 80%

is domectic

20%80%

CONTEXT

Water OPPORTUNITIES !

Waste water treatment is desperately needed and endorsed by the Catalogue of Industries

for Guiding Foreign Investment.

EXAMPLE:Guangzhou Xi Lang Wastewater Treatment Plant: The

Guangzhou Wastewater Treatment Co Ltd, on behalf of the government of Guangzhou, partnered up with the US-based

Earth Tech, a subsidiary of Tyco International, one of the world's top 500 multinationals

Chinese companies are seeking technologies that can treat their waste water up to standards, this presents opportunities for Flemish and Dutch Companies

Sector Industrial Municipal sludge and sewage agricultural

Terms of investment

The sector is the business segment that is receiving the largest amount of funds from Chinese central government.

China’s recently announced the Action Plan for Water Pollution Prevention 2015-2020; the Plan propose US$6 billion in annual investment

China’s investments in wastewater collection and treatment systems have not been matched by complementary investment in sludge management.

Opportunities

Chinese companies are targeted for technological upgrades and forced to adopt clean production methods. Opportunities introducing engineering solutions that allow Chinese plants to have a better industrial process, to save water consumption, and reduce O&M daily costs

Chinese government has been trying to promote the introduction of PPP Projects.

MSW will increasingly be used for WTE

In the near future, sewage treatment will be a very profitable sector, internal market is not as ready as the industrial sector; strong presence of SOE, technology introduction (drying and burning solutions), price reform.

Probably the least profitable sector. Too much governmental controlled and it relies too much from national funds.

Water OPPORTUNITIES

Waste

China wants to move up the waste management ladder to more efficient recycling and closing the loop – circular economy.

Model cit ies: recycling systems featuring well laid-out networks, well-regulated management, diverse ways of recycling.

202027%

10%5%

14% 3%9%

32%

OrganicInorganicPaperFiberPlasticGlassMetalMoisture

Composition of MSW

25%

2%10%

7% 15%10%

8%

23%

Guangzhou

Shenzhen

Given priority in implementation of circular economy

coal power steelnonferrous metals

petroleum & petrochemicals

chemicalsbuilding materials

paper food textile

technology is required in these sectors for companies to meet these standards

CONTEXT

Sector status and goals opportunities challenges

Plastic waste

* Number one importer of waste plastics

* Consumption of plastic is increasing

* Regulations on annual waste plastic processing capacity of firms.

* Sorting and recycling technologies

* QC control knowledge for recycling plastic products

* Pollution control of plastic was recycling

* Finding the right sales channels

* EU technology needs to be adjusted to local needs

* IPR issues

Food Waste

* Food waste is around 50% of municipal waste in China

* Anaerobic digestion is used most as resource utiliser for food waste

* Feeding and composting for fertilisers

* Separating technology: food ends op being burned in

landfills

Waste OPPORTUNITIES

E-waste

+20%/y

Increasing Middle-class

60% of the e-waste is processed in informal recycling

Encouraged area of foreign investment.

Foreign companies are allowed to start Wholle-Foreign Owned Enterprises (WFOEs)

Preferential tax systems

15% deduction for CIT en HI-tech industries

FOCUS

SourcesChina’s Renewable Energy & Cleantech Market, Institute of Alberta, 2016.

Waste-to-Energy in China: Key Challenges and Opportunities, Zhang et al., 2015.

Tapping into China’s Greentech Market: Opportunities and challenges for SME’s, EUSME, 2017.

Kansenrapport Circulaire Economie (2016)

Out of the Scrapyard: How Foreign Involvement Can Help Solve China’s e-Waste Crisis – Dezan Shira & Associates

China Bets on Circular Economy – Global Recycling (2016)