U.S. DEPARTMENT OF ENERGY

OFFICE OF POLICY AND INTERNATIONAL AFFAIRS

DOE – China Bilateral Cooperation

As of October 2003

Objectives:

• Promote energy security interests between two largest energy consumers
• Increase market opportunities for U.S. companies and technologies
• Deploy clean energy technologies
• Leverage U.S. science and technology (S&T) investments through mutually beneficial cooperation
• Positively influence China’s nuclear nonproliferation, export controls, nuclear safety and health, and environmental and waste management

Areas of Collaboration:

China is among DOE’s major cooperative partners. DOE has six S&T cooperation agreements/protocols and 12 annexes with China. Areas of collaboration include the following:

1. High Energy Physics Implementing Accord (MOST/CAS principal counterpart)

Bilateral cooperation in high energy physics initiated in 1979. DOE has signed subsequent agreements with the Ministry of Science and Technology (MOST) and the Chinese Academy of Sciences (CAS) to cover cooperation in these fields. This cooperation has resulted in the creation of a world-class accelerator at the Institute for High Energy Physics in China.

2. Protocol on Nuclear Physics and Controlled Magnetic Fusion (MOST counterpart)

Cooperation initiated in 1983 and covers information and scientist exchanges related to plasma physics, fusion technology, advanced design studies and material research. Due to budget limitations on both sides and the recent SARS outbreak, exchange visits in the areas of Fusion Technology and Power Plant Studies were postponed. Communications are continuing among U.S. and PRC contacts for future exchanges.

3. Fossil Energy Protocol (MOST principal counterpart)

DOE and MOST signed the Protocol for Cooperation in Fossil Energy Technology and Development and Utilization in 2000 to replace the 1985 agreement. The Protocol covers information exchange and joint research and development (R&D) projects related to power systems, clean fuels, oil and gas, energy and environmental technologies and climate science. The Permanent Coordinating Group met in Beijing in 2001 and approved a program of work, including an Integrated Gas Combined Cycle (IGCC) briefing, electricity grid modeling, scrubber manual, oil and gas technologies training and certification workshop, carbon sequestration study (in the June Carbon Sequestration Leadership Forum (CSLF), China as one of CSLF Charters), pollution control workshop and climate data preparation and analysis. The next Coordinators Meeting is scheduled for late November 2003. Cooperation resulted in contract for $2 billion worth of DOE developed coal liquefaction technology.

4. Energy Efficiency and Renewable Energy Protocol (MOST principal counterpart)

Cooperation in renewable energy includes rural energy development, wind energy, renewable energy business development, geothermal production and use, renewable energy policy and planning. Cooperation has resulted in installation of demonstration wind and solar energy systems, $5.3 million in commercial sales of geothermal heat pumps, training and certification workshops for wind energy technologies, resource assessment training and renewable energy business workshop. Upcoming activities include a wind concession workshop in Guangzhou, development of policy incentives to increase renewable energy applications and assistance with clean energy planning for 2008 Beijing Olympics.

Energy Efficiency. DOE and the National Development and Reform Commission (NDRC) co-chair the Energy Efficiency Steering Committee, which oversees energy efficiency activities. The Steering Committee has met three times, in 1997, 1999 and 2001. Ongoing cooperation includes development of energy codes for buildings in China’s Hot Summer-Cold Winter zone, collaboration with the United Nations Industrial Development Organization (UNIDO) in an electric motors pilot project and development of efficiency standards.

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Energy Efficient Building Demonstration Project (MOST primary counterpart)

In 1999, DOE and MOST signed a Statement of Work to build an Energy Efficient Demonstration Building. Under the agreement, the Chinese partner will build a normal building, and U.S. private firms will provide engineering, materials and technology to bring it to higher specs, to achieve energy savings of 35%. In July 2001, DOE and MOST signed the final documents that enable the project to enter construction phase. China will contribute $7.5 million in kind and U.S. private firms will contribute $4 million in kind to the project. Groundbreaking took place in February 2002.

5. Peaceful Uses of Nuclear Technology (NDRC principal counterpart)

In 1998, DOE and NDRC signed the Agreement on Cooperation Concerning Peaceful Uses of Nuclear Technologies (PUNT), activating the 1985 Peaceful Uses of Nuclear Energy Agreement. From July 31 to August 2, 2002, DOE, SDPC and China Atomic Energy Authority (CAEA) held the first Joint Coordinating Committee (JCC) Meeting and its Workshop under the PUNT Agreement. Both sides have identified the following areas for cooperation: Nuclear Technology, Export Control, Nuclear Emergency Management and Safety and High-Level Waste Management. Planned activities were stalled because of the SARS outbreak and visa issues. The second JCC is tentatively scheduled for winter 2003.

6. Protocol on the Exchange of Energy Information (NSB primary counterpart)

DOE and National Statistics Bureau (NSB) signed the Protocol in 2000. The Protocol covers information exchange and technical assistance related to energy information, analysis, and modeling. Because of budget constraints, activities have been limited to collaborative visits.

7. Cooperation on the Beijing 2008 Green Olympics

DOE and China have held preliminary discussions about cooperation on the deployment and application of clean energy technologies and strategies to be deployed during the 2008 Olympics. On September 10, 2002, Vice Mayor Lin of Beijing and Vicky Bailey, Assistant Secretary for Policy and International Affairs, signed a Statement of Intent to cooperate on clean energy technology deployment for the 2008 Olympics. Vice Mayor Lin also proposed that a U.S.-China Joint Working Group (JWG) be established to develop further cooperative activities. As a follow-up to Vice Mayor Lin’s proposal, the first JWG planning meeting took place on December 5-6, 2002, with representatives from multiple U.S. agencies (DOC, EPA, USDA, FTA) to identify areas of cooperation that are of mutual interest. The JWG has identified the following eleven areas for potential cooperation:

Natural gas technology coalition

Fuel cell, hydrogen, and electric vehicles

Green building rating system

Energy and resources planning for the Olympic Park

Urban Transportation

Energy efficient demonstration building

Air quality

Weather

Water

Clean Coal

Beijing-Chicago Friendship Cities Initiative

U.S. Teams have developed draft proposals for their counterparts’ review. Despite the SARS situation in China, dialogues from both sides are continuing. The second JWG took place on October 22, 2003. A draft Protocol between DOE and MOST, including its provincial agency, the Beijing Science and Technology Commission, is currently under review.