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2008 annual report - US Trade and Development Agency

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Promote <strong>Trade</strong><br />

Developing China’s Clean Energy Resources<br />

A 120 megawatt (MW) coal mine methane power facility<br />

is producing electricity in China based on the results of a<br />

<strong>US</strong>TDA-funded study. Approximately $ 40 million in U.S.<br />

exports were used in the development of the facility.<br />

The project was designed to further Chinese efforts to<br />

reduce greenhouse gas emissions, improve mine safety,<br />

<strong>and</strong> increase the capacity of the local power grid. <strong>US</strong>TDA<br />

supported the project with a grant to Shanxi Jincheng<br />

Anthracite Coal Mining Group (JMG), which funded a<br />

contract between JMG <strong>and</strong> SCS Engineers, Inc. of Long<br />

Beach, California. Under the contract, SCS Engineers<br />

defined equipment specifications for the project <strong>and</strong> facilitated<br />

the evaluation of bids by suppliers.<br />

The positive results of the <strong>US</strong>TDA-funded assistance<br />

<strong>and</strong> financing provided by the Asian <strong>Development</strong> Bank<br />

supported the award of a contract to Caterpillar Inc. of<br />

Peoria, Illinois, <strong>and</strong> its Chinese partner, Shanghai Electric.<br />

Caterpillar supplied U.S.-manufactured gas engines <strong>and</strong><br />

other equipment <strong>and</strong> services associated with the project.<br />

Following the success of this project, Caterpillar was<br />

selected to provide an additional 31 methane gas-powered<br />

generator sets to produce an additional 54MW of power<br />

at the Cheng Zhuang <strong>and</strong> Mei Gan Shi coal mines in<br />

Shanxi Province. “These projects are major steps forward<br />

in China’s road to sustainable development <strong>and</strong> demonstrate<br />

the benefits of positive bilateral trade relations<br />

between the United States <strong>and</strong> China,” said Rich Lavin,<br />

Caterpillar group president with responsibility for Asia.<br />

Overall, these projects represent important contributions<br />

in the development of clean energy solutions to meet<br />

China’s growing power needs. Moreover, they reflect the<br />

increasing cooperation between U.S. <strong>and</strong> Chinese energy<br />

sector interests under the Asia-Pacific Partnership for<br />

Clean <strong>Development</strong> <strong>and</strong> Climate, a priority energy <strong>and</strong><br />

environmental initiative.<br />

Caterpillar engines/generators<br />

were used in the construction<br />

of the Jincheng coal mine<br />

methane power facility in China.<br />

Annual Report <strong>2008</strong> 17

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