China has recently been setting goals and plans to reduce its energy consumption while continuing to grow its economy. According to Zhang Ping, director of the National Development and Reform Commission, the plan is to cut energy intensity by 16 per cent by 2015 from the 2010 level and further plans are being finalized.
"We need to achieve a better balance between economic growth, economic transformation, energy conservation, and emissions reduction," said Zhang.
New plans with specific guidance related to reducing both energy consumption and greenhouse gas emissions are expected soon. "The controls on total energy consumption will be tougher indicators than the energy-intensity targets, because there are loopholes through which local governments can achieve their energy-intensity targets by expanding the GDP base accordingly, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, explained to China Daily.
A recent letter of intent between STWA and Beijing Heng He Xing Ye Technology Development Co., Ltd ("TDC") will directly support the Chinese energy initiatives. TDC is a supplier of technology and oil pumping equipment to the Chinese oil industry. They will license STWA's Applied Oil Technology(TM) (AOT(TM)) into the Chinese market.
STWA is a developer of energy efficiency technologies in the multi-billion dollar oil pipeline and diesel engine markets. AOT is a patented method and apparatus that is designed to help crude oil pipelines operate more efficiently and increase their daily throughput capacity. AOT uses a process that reduces the viscosity of oil travelling through the pipeline. By allowing the oil to move through the pipeline with less resistance, AOT should reduce the total power requirements of the oil transport system, transport costs and environmental risks. In testing completed by the US Department of Energy under real world conditions, AOT was found to increase pipeline efficiencies by more than 13%.
Cecil Bond Kyte, Chairman and CEO of STWA, commented on the importance of the agreement. He said, "We have a solid relationship building with TDC as guardian of our intellectual property in China. They have deep relationships with major oil concerns in China and Chinese government officials. We were introduced to TDC through their technical lead, who, when a graduate student at Temple University, studied under Dr. Tao, our chief physicist and inventor of AOT™. Following our recent productive meetings with senior TDC management at our Santa Barbara headquarters and in New York, we are scheduled for January meetings in China to advance our commercialization plans."