As proposed American offshore wind-farm projects creep forward — slowed by state legislative debates, due diligence and environmental impact assessments — China has leapt past the United States, installing its first offshore wind farm.

Several other farms also are already under construction, and even the Chinese government’s ambitious targets seem low compared to industry dreaming.

“What the U.S. doesn’t realize,” said Peggy Liu, founder and chairwoman of the Joint U.S.-China Collaboration on Clean Energy, is that China “is going from manufacturing hub to the clean-tech laboratory of the world.”

The first major offshore wind farm outside of Europe is located in the East China Sea, near Shanghai. The 102-megawatt Donghai Bridge Wind Farm began transmitting power to the national grid in July and signals a new direction for Chinese renewable energy projects and the initiation of a national policy focusing not just on wind power, but increasingly on the offshore variety.

The 102-megawatt wind farm near China’s Donghai Bridge, close to Shanghai, heralds China’s increasing interest in offshore wind projects.

Moreover, “it serves as a showcase of what the Chinese can do offshore … and it’s quite significant,” said Rachel Enslow, a wind consultant and co-author of the report “China, Norway and Offshore Wind Development,” published in March by Azure International for the World Wildlife Fund Norway.

Planned to strategically coincide with the World Expo in Shanghai, which is being fed electricity from the offshore farm, China is ready to show the world what its own homegrown wind technology can do.

All of Donghai Bridge’s 34 turbines, 3 MW capacity each, were built by Sinovel Wind Group, China’s largest wind turbine manufacturer, though designed in cooperation with American Superconductor. The Beijing-based company began building the farm at the mouth of the Yangtze River Delta in September 2008. CCCC Third Harbor Engineering Co. Ltd., also based in Beijing, installed the turbines, completing construction in February 2010. Shanghai’s Zhongtian Technologies Submarine Optic Fiber Cable Co. Ltd. manufactured the 78 km of submarine cable.

Powering 200,000 households while reducing CO2

In China, one key challenge will be developing foundations for the soft seabed commonly found off the coast of the East China Sea, especially since “most offshore wind farms that will be developed in China will be intertidal,” said Gerald Page, managing director of Equinox Energy Partners, a venture capital firm in Beijing.

The $337 million project, located 8 to 13 km (about 5 to 8 miles) from the coast, was erected on soft seabed conditions using a multi-pile foundation structure. About eight to 10 legs are placed on concrete piles, on top of which are stacked a concrete tack and then the turbines. Shanghai Investigation, Design and Research Institute conceived the foundation.

During low tide, the turbine foundations are exposed; during high tide, they become submerged in about 5 meters (16 feet) of water. Unlike in Europe, which is much more focused on developing deepwater (greater than 50 meters, or 164 feet, deep) turbine technology, China is exploring unique foundation technology and demonstrating innovative pursuits.

The farm is expected to eventually generate an annual 267 million kilowatt-hours of electricity — enough to power 200,000 Shanghai households. China’s government claims that annually, the wind farm will cut use of 100,000 tons of coal, reducing carbon emissions by 246,058 tons.

Currently, the wind farm’s capacity is equivalent to only 1 percent of the city’s total power production of about 18,200 MW, which is generated mostly from traditional fuel-based sources, according to China Daily, the state-run English-language daily newspaper in Beijing.

Construction of the Donghai project’s second phase, on the west side of the bridge, has been approved by authorities. It, too, is projected to produce about 100 MW. An additional four farms surrounding Shanghai are currently under negotiation, and the city hopes to complete 13 wind farms by 2020, with the majority of the expected 1,000 MW capacity supplied by offshore wind farms.

An industry’s itch to expand

The “Development Plan on Emerging Energies” released July 20 outlines wind production goals through 2020 by the Chinese government.

According to the plan, offshore wind power is expected to reach 30 gigawatts, and coastal provinces were required to start drafting offshore wind-grid implementation plans. This includes Liaoning, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian and Guangdong provinces. In the next three to four years, according to the Azure-WWF report, in total, 514 MW should be installed along this coastline. As of March this year, pipelines accommodating 17 MW were already installed between Donghai and a pilot wind project in Bohai Bay near Tianjin.

Offshore wind potential along China’s coast. Photo courtesy of Azure International.

The expected long-term cumulative pipeline, at 13.7 GW, is nearly halfway to the estimated 2020 goal, but this doesn’t necessarily mean that the Mandarins are fully behind renewable technologies and warmly welcoming a greener future.

“The top-level people are cautiously optimistic,” explained Andrew Grieve, a senior researcher at J Capital Research, an equities research company based in Beijing. “They are far more optimistic on the local and provincial level.”

Behind closed doors, industry insiders hear buzz and speculation that coastal provinces’ plans far exceed the existing Chinese central government’s plans.

Grieve stressed that the real force for wind comes from manufacturers that are itching to expand the market. “Comparatively speaking,” he said, “the central government is the most conservative of the lot.”

All this is without official numbers, as the 12th Five-Year Plan (for the 2011-2015 time period) has still not been formally unveiled. It remains in final draft form, and though the original release date was slated for March, approval keeps moving backward. Analysts expect the implementation date should, at the latest, arrive on Jan. 1, 2011.

The central government’s aim was to hit 10 GW by 2010, a goal that was quickly surpassed.

“Industry is either going to take their number and beat it, or government is going to have to step in and calm down growth,” Grieve said. Rumors support the latter, but given historical trends, the former would seem more likely.

The Azure-WWF report describes the offshore wind energy generation potential in China as huge — calculated as 11,000 terawatt-hours, similar to that of the North Sea in western Europe.

“China has the largest wind resources in the world, and three-quarters of them are offshore,” Barbara Finamore, director of the Natural Resources Defense Council’s Beijing office, told Scientific American.

The existing industry is nowhere near that large. As Grieve explained, “apart from the 1 gigawatt of bids this year, there are no central government national targets for offshore wind, although possible national targets of 5 gigawatts by 2015 and 30 gigawatts by 2020 have been suggested.” The provincial government-proposed provincial offshore development plans amount to 10.2 GW by 2015 and 22.7 GW by 2020.

The growth in China’s wind manufacturing market remains focused on the domestic market — for now. Dheeraj Choudhary, who runs Parker Hannifin Corp.’s Global Renewable Energy business unit, said “60 to 70 percent of wind turbine market growth has come from domestic manufacturers, and not the international guys.”

Joanna Lewis, an assistant professor of science, technology and international affairs at Georgetown University who works as a China program adviser to the Energy Foundation, agreed: “No one has nearly as much capacity [as China] installed in the world.” As a result, there is still “very strong demand for wind turbines in China, and they’re not at stage where supply exceeds demand.”

Eyeing markets abroad

Talk to wind turbine and technology experts and manufacturers, and they see a day not too far off when Chinese-produced (and in some cases, Chinese-invented) turbines will service foreign markets.

Anthony Fullelove, project manager for North Brown Hill Wind Farm, based in Sydney, Australia, expects that his country, as well as Europe and the United States, will see a sharp increase in turbines sourced from China — as the technology rises to meet global standards and prices drop — to make wind farms viable especially in a generation sector without a carbon price.

“Turbine manufacturers in China are starting to look for markets abroad upon seeing Chinese market getting tighter and tighter, with more companies selling in China,” Lewis added.

For the time being, Chinese manufacturers still work hand in hand with foreign engineers and designers. But that is starting to shift.

“Reliance is much lower,” noted Choudhary. Instead, Chinese manufacturers look to foreign companies to provide subsystems and components. All of China’s top five turbine manufacturers have worked with foreign engineers yet retained the intellectual property rights on the technologies.

Meanwhile, as China moves forward with installing water-based wind farms as well as developing its domestic technological know-how, not a single offshore wind turbine is in use in the United States.

Though the 130-turbine Cape Wind project, in Nantucket Sound off the coast of Massachusetts, has received federal approval, several potential regulatory and judicial hurdles lurk. Similarly, the Rhode Island Public Utilities Commission recently approved a power purchase agreement proposed for the Block Island farm off of Rhode Island, which would start with an initial eight turbines as a model, yet Attorney General Patrick Lynch (D) has vowed to appeal the decision to the state Supreme Court.

When discussing the creation of an Atlantic Offshore Wind Energy Consortium in February, U.S. Interior Secretary Ken Salazar said it currently takes seven to nine years for offshore wind project to receive approval. At this point, Cape Wind is moving into its 10th year of negotiations.

In comparison, China’s Renewable Energy Law was implemented in January 2006. By November 2007, the Bohai model turbine was installed. So important was the Donghai farm to the Chinese Communist Party, it footed the bill to ensure the project would be completed in time for Expo 2010 in Shanghai, during which time China has the eyes of the whole world watching.

Originally published on Tuesday, September 7, 2010 by E&E News in ClimateWire.

Today this metropolis of more than twenty million is racing ahead in another arena: eco-consciousness. The mission of the city’s 2010 World Expo is urban sustainability. It’s home to China’s first offshore wind farm, the first outside Europe. And the local green movement goes beyond business borders. Peggy Liu, founder and chair of the Joint US-China Collaboration on Clean Energy, asserts that “China is going from the manufacturing hub to the cleantech laboratory of the world.” The same might be said of developments in the areas of fashion, food and lifestyle.

Fashion

Shokay International

“As the most cosmopolitan and fashionable city in China,” points out Carol Chyau, CEO and founder of Shokay International, a clothing line sourced from silky soft Tibetan yak fur, “it is no surprise that the eco-friendly community is strongest in Shanghai.”

The company, co-founded with Marie So, aims to be socially sustainable as well as environmentally conscientious. In addition to sourcing raw yak fiber directly from nomadic herders to boost incomes in the community, Shokay is helping to preserve local culture, engaging in community development work, and promoting sustainable usage of the environment — the fiber is a renewable resource, shed annually.

FINCH

Eco-conscious fashion label FINCH just released its first line this summer, but the two female founders have over twenty-two years of combined experience at international fashion labels back in New York. After five years in China designer Heather Kaye decided it was time to take the stifling pollution in her adopted hometown into her own hands. “There’s so much manufacturing going on right here, but it’s difficult if you’re an independent, small-scale, eco-conscious designer.”

By using organic fibers grown without pesticides or toxic chemicals, incorporating special low-impact dyes and controlling for other chemicals, Kaye explains, “we’re educating sewers, pattern-makers, factory-workers who we’ve trained in our manufacturing practices.” FINCH is looking to establish a manufacturing collective. “That way, sustainable companies can work on a smaller scale and it’s viable business-wise.”

Nest

Located in a revamped factory in Shanghai’s artsy neighborhood of Taikang Lu, Nest showcases handcrafted housewares, clothing, stationery and furniture from local designers who embrace the earth-friendly ethos. In addition to their selection of Shokay and FINCH products, a popular choice is EcoBibi, whose founder, the eponymous Bibi, focuses on “products that can minimize waste and be reusable and are good for the environment.” Beautiful soaps, candles and bags round out the collection, whose profits are in part used to develop a health program for women and mothers from underprivileged communities throughout China.

Food

Downstairs with David Laris

In Shanghai, “every hip young Western chef is doing local food,” says Crystyl Mo, dining editor of Time Out Shanghai. And there might be no more hip a Western chef than David Laris, the mastermind behind Laris Restaurant on the Bund, the restaurant concepts at The Opposite House in Beijing, the first-ever Barbie Café (seriously) — and now Downstairs.

Based at URBN Hotel — itself known for a commitment to sustainability as well as good design sense — the focus here is “all about sustainable living — from where the food supply is sourced to the uniforms of the service staff,” explains Christina Kao, one of the team members. Whenever possible, the menu features ingredients that are organic, homemade and traceable to the farm.

Sir Elly’s

It’s also not just independent eateries that are serving up local, organic or veggie-friendly cooking: at The Peninsula Hotel Shanghai, Sir Elly’s, the high-end Western eatery with expansive Bund-side views, is demonstrating a commitment to these nascent food trends. Dalian beef cheeks are served with smoked cherry coulis, gnocchi and asparagus. Additionally, the prix-fixe lunch menu’s appetizer sampler (gazpacho, squash panna cotta, romaine salad and slow poached egg) is almost entirely meat-free — and the chicken wings in the salad were happily held for yours truly.

Gongdelin

Chinese chefs are going local as well. In Shanghai this harks back to the days when the original recipes were developed — centuries before Alice Waters. The Song Dynasty and its literati, mostly based in Suzhou and Hangzhou, focused on locally sourced and conscientiously prepared dishes, a philosophy which has returned in restaurants like Gongdelin, a high-end, Buddhist-friendly all-vegetarian chain. Many of China’s famous meat dishes are recreated here using soy- or gluten-based stand-ins. Chicken’s feet, Peking duck, even mock seafood — all are prepared with the meat-free eater in mind.

Ji Xiang Cao

Less pricey than “Godly” (as Gongdelin is also known), Ji Xiang Cao, whose name means “lucky grass” in Mandarin, also seeks to please the Buddhist palate. Don’t be put off by the imitation antiques — this cozy spot is authentically Chinese and vegetarian, and seeks to please in earnest. Delicious tofu, cold sesame noodles and a wonderful rendition of the famed Sichuanese “mouth-water chicken” (koushui ji) make it worth your while.

Lifestyle

Eco Design Fair

Now in its third year, this twice-annual fair brings together the country’s most influential and important eco-conscious organizations, lifestyle product brands and their designs. The goal is to furnish the locals with the tools and products they need to nudge their lifestyles in a more sustainable direction. The fair also builds community through such activities as a ten-kilometer bike ride through the city, the “Shanghai Street Bikes” photo exhibition, and Shanghai Roots & Shoots, a Chinese-based non-profit which plants trees around the country.

Jiashan Market

Providing a green, sustainable living environment for all Shangainese jumping on the eco-conscious bandwagon is the challenge that Jiashan Market aims to overcome. An integrated work/life/business community designed by BAU Architecture, the market’s six old factory buildings were refurbished based on sustainable practices, including re-using materials, double-glazing windows and thorough insulation to diminish energy loss. Rooftops are planted with gardens, and businesses located on-site ensure that tenants needn’t travel far to answer their commercial needs.

All this movement in the green direction could still improve. “Compared to major international cities, [Shanghai] still has a long way to go,” says Shokay founder Carol Chyau. “Most people who are designing and buying these products are still primarily expatriates and Chinese returnees. I would love to see the day Chinese consumers start purchasing such products.” Keena Fletcher, the head of design at Shokay, agrees: “the Chinese are not yet on the sustainable fashion bandwagon.”

Photos and text by Manuela Zoninsein.

This blog was originally posted on August 17, 2010 in Tablet Talk.

By Manuela Zoninsein

Shanghai, China-

China has installed the first major offshore wind farm outside of Europe.

In China, most offshore wind farms likely will be built in intertidal areas.

Located in the East China Sea, near Shanghai, the 102-MW Donghai Bridge Wind Farm began transmitting power to the national grid in July. The farm, which is slated to expand in the coming years, eventually will generate annually 267 million kilowatt-hours of electricity—enough to power 200,000 Shanghai households. It currently is supplying power to the Shanghai Expo and serving as a showcase project at the five-month-long international event.

The $337-million Donghai Bridge farm signals a new direction for Chinese renewable-energy projects and the initiation of a national policy focusing on offshore wind power. China’s first full-size farm is “quite significant,” says Rachel Enslow, wind consultant and co-author of the report “China, Norway and Offshore Wind Development,” published in March by Azure International for the World Wildlife Federation Norway. “Especially now, with the Shanghai Expo, it serves as a showcase of what the Chinese can do offshore.”

All of Donghai Bridge’s 34 turbines, 3 MW capacity each, were built by Sinovel Wind Group, China’s largest wind turbine manufacturer, and designed in cooperation with American Superconductor. The farm, located eight to 13 kilometers from the coast, was erected on soft seabed conditions using a multipile foundation structure, with eight to 10 legs placed on concrete piles, on top of which are stacked a concrete tack and then the turbines. Shanghai Investigation and Design Institute developed the foundation.

Construction Challenges

Indeed, one of the major challenges in China’s wind-power-generation expansion is the creation of foundations for the soft intertidal seabed. Unlike Europe, where turbines often sit 50 to 100 kilometers from the coast, “most offshore wind farms that will be developed in China will be intertidal,” explains Gerald Page, managing director of Equinox Energy Partners, a venture capital firm in Beijing. Intertidal turbine foundations are exposed during low tide and become submerged in about 5 meters of water during high tide.

Neither monopile nor jacket foundations—which often are used in medium- and deep-offshore sites in Europe—can be used in China because the seabed beyond China’s intertidal zone is “made of soapy, soft material,” explains Enslow. Installation of the turbines also will prove difficult, as large boats and equipment can’t operate in shallow water—and the intertidal area in China is usually less than 15 m deep.

Despite these obstacles, China was determined to move forward. “China wanted to show, ‘Hey, we can do this, too,’ ” says Enslow. Beijing-based Sinovel began building the farm in September 2008; CCCC Third Harbor Engineering Co. Ltd., also based in Beijing, installed the turbines, completing construction in February 2010. Shanghai’s Zhongtian Technologies Submarine Optic Fiber Cable Co. Ltd. manufactured the 78 km of submarine cable.

China’s government claims that, annually, the farm will cut use of 100,000 tons of coal, reducing carbon emissions by 246,058 tons. Presently, the farm’s capacity is equivalent to only 1% of the city’s total power production of around 18,200 MW, which is generated mostly from traditional fuel-based sources, says China Daily, the state-run English-language daily newspaper in Beijing. Construction of the Donghai project’s second phase, located on the west side of the bridge, has been approved by authorities. It, too, is projected to produce about 100 MW.

Charging Ahead

What the U.S. doesn’t realize, says Peggy Liu, founder and chairwoman of the Joint U.S.-China Collaboration on Clean Energy, is that China “is going from manufacturing hub to the clean-tech laboratory of the world.” Several offshore wind-farm projects are proposed in the U.S., including one off the coast of Cape Cod, Mass., and one off Block Island, R.I., but they are moving slowly due to state congressional debates and environmental concerns.

Meanwhile, the Chinese offshore wind industry is poised and ready to move forward with a cumulative pipeline of 13.723 GW in place, according to the “Development Plan on Emerging Energies,” a government plan announced on July 20 that outlines wind production goals through 2020.

As of March 2010, pipelines accommodating 17 MW were already installed between Donghai and a pilot wind project in Bohai Bay, near Tianjin; in total, 514 MW should be installed along China’s coastline—including the Liaoning, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian and Guangdong provinces—in the next three to four years, according to the Azure-WWF report. The cumulative pipeline is already half way to the estimated 2020 goal of 30 GW, and, in April, provinces were required to start drafting offshore wind-grid implementation plans.

Zhang Yue, founder and chairman of Broad Air Conditioning, achieved the new Chinese dream of making millions, but then dropped the jet-setting life for a green philosophy that determines company policy. He began doing this well before the mandarins in Beijing began encouraging clean tech. His example demonstrates that when it comes to the environment in China, individual efforts count for as much as — if not more than — what the government orders.

While many successful Chinese businessmen are giddy consumers, flaunting their newfound wealth, Chairman Zhang — as he prefers to be called — has moved beyond that. “After reaching a certain level of material wealth … people should focus on their quality of life,” asserts Zhang, a small and spry, tight-wired man who looks far younger than his 50 years, despite constantly puffing a cigarette held between his fingertips.

Zhang Yue, the founder and chairman of Broad Air Conditioning. Photo courtesy of Broad Air Conditioning.

“Quality of life,” he explains, “includes many elements, most of which are irrelevant to money.”

Today, he leads a low-impact life, and demands colleagues do the same. Other than business flying — which he only does when absolutely necessary — he adheres to the “Life Attitude of an Earth Citizen,” a 22-point guide for how to minimize each individual’s impact on the environment.

He wrote and published it in June 2009 and distributes it to any who step onto Broad Town, his company’s 1-square-kilometer campus. In it, he urges people to plant trees and not to rely on consumption and travel to fill “empty spaces in life.” Moreover, they should “use natural ventilation or a fan instead of air conditioning,” he advises.

This comes from the tycoon who built an air conditioning business that generated enough wealth to give him his nation’s first private Cessna jet. He liked it so much, he ultimately acquired five. He also bought a private helicopter, a Ferrari, a Hummer and a Rolls-Royce.

‘Green drives the philosophy’

There are many miles of new roads in China, and the smooth, slate-gray highway from Changsha Airport to Broad Town, the campus of Broad Air Conditioning, was built with the help of the company. Further down the road is Changsha proper, the capital of Hunan province.

Hunan is known for its fiery food, which many say has nurtured a long history of fierce personalities, most famously Chairman Mao Zedong. Today, it is Chairman Zhang who hopes to change the world and “save people from destroying themselves,” as his secretary of environmental protection, Michael Collins, put it. “There’s no greenwashing here: Green drives the philosophy, even at the expense of profits.”

Most Chinese don’t discuss their country’s pollution or say much about the state of their country. But the culture at Broad encourages open dialogue, at least as far as the environment is concerned. Of Broad’s 2,000 employees, about 1,200 live on-campus, receiving free housing and organic food (which is grown at the on-site organic farm).

Regular meetings are held focusing on the environment and the role of the individual. Training for employees spans several weeks, during which the company’s philosophies are passed on; so is the company song, which is sung each morning at sunrise, following China’s national anthem.

The odyssey of a librarian

Born in 1960 in Changsha, Zhang graduated from college in 1980 with a degree in fine arts, then went on to work as a teacher and librarian (Mao’s profession at one point, as well). He established the Broad Thermal Engineering Institute in 1988 with his brother, with just $3,000. In 1992, Zhang led a team that created China’s first pressure-free hot water boiler and direct-fired absorption chiller.

Broad began transitioning away from machinery that used natural gas and toward using waste heat, moving into non-electric chillers, in 1993. Starting in 1998, Broad sold its first unit outside China, to Austin Energy in Texas. Today, the company sells industrial-size non-electric cooling and heating systems to over 60 countries and leads in global market share.

From heating and cooling systems, Broad moved sideways into other businesses. It has begun producing air filters that range in size from individual to industrial. The company uses three layers — electrostatic cleaners, a C02 sensor and an active carton to trap toxins — to protect against indoor air pollution.

From there, the company used its heating and cooling experience to develop low-carbon buildings. They are called Broad Sustainable Buildings, or BSBs, and are viewed as one solution for China’s ongoing rural-to-urban upheaval, considered the largest in the history of humanity.

Zhang’s hope is that these prefabricated homes will house the next wave of Chinese consumers, workers who are starting to think about owning their own homes. These are on display at the Shanghai World Expo, for which Broad is the exclusive supplier of central air conditioning, ventilation and air purification products and is the only Chinese private enterprise among the global partners.

The new Chinese dream

Despite Broad’s affiliation with the Expo, Zhang remains vociferous and critical, pointing out the innate hypocrisy of focusing on sustainable urban development while also “inducing people to tour, to attract more people for tourism. … All of the above is quite dangerous,” Zhang warns, before pulling another drag on his cigarette.

Zhang is not a lone wolf. There are a handful of Chinese businessmen who achieved an early level of comfort and wealth, then redirected their businesses to pursue environmentally conscientious goals. There’s Yu Liang, CEO of China Vanke Co. Ltd., China’s largest real estate developer, and Qu Jianguo, founder of Shanghai Canature Environmental Products Co. Ltd.

Then there is Wang Chuanfu, the founder of BYD Auto Co., the electric vehicles company in which Warren Buffett has invested. Wang was recently named China’s wealthiest man.

Still, when talking to those who work with various stakeholders in creating a greener China, Zhang is pointed to as one of the first. “He’s one of those people in China who has put his foot down very firmly in trying to lead China toward a greener future,” asserts Peggy Liu, founder and chairwoman of the Joint U.S.-China Collaboration on Clean Energy.

Yet it’s an uphill battle, to say the least. Around Broad Town, the air contains a new whiff of smog. Several new companies have joined the neighborhood. An airplane manufacturer sits about a half-mile down the road to the left; down another mile, there is a new concrete mixing company. All are charging ahead to the beat of the development drum, also hoping to one day attain the new China dream.

Originally published in the Monday, July 12, 2010 issue of ClimateWire, E&E News.

One proposed line would pass through India, Pakistan and the Middle East, while the alternative would connect through Russia into Germany. These options necessitate collaboration with up to 17 nations, a process that could last up to a decade. A third regional high-speed option, in addition to the trans-European proposal, would extend southward from China, connecting through Vietnam, Thailand, Burma and Malaysia. The Southeast Asia line has already begun construction.

The China Railway Construction Corporation, in particular, has been winning deals worldwide, with business covering over 60 foreign countries and regions in the world. It claims 137 overseas projects currently under construction, and whereas overseas activities served as a piddling revenue share in the early 2000s, as recently as 2007 they had risen to nearly 40%.

From Africa to Europe, Southeast Asia to South America, very few land masses in the world have not been touched by Chinese-made rail technologies. These include rail assignments as varied as the trans-national Tanzania-Zambia Railway Project, to involvement in a light rail concession with the city of Tel Aviv. Industrial lines in Libya span both west-to-east and south-to-west, while a passenger high-speed rail project in Saudi Arabia will connect Mecca to Medina in just half an hour at speeds of 360 kilometres per hour.

Financing often comes from China. In February 2009, CRCC enjoyed the world’s second largest-ever IPO (following Visa’s), raising US$5.7 billion, 90% of which was earmarked for purchasing equipment to be used in overseas projects. This March, China Railway Group won a deal to build and operate an Indonesian coal railway, with state-owned financial institutions availing advantageous financing terms. In Burma, part of the deal hinged upon China offering to cover the costs in exchange for access to the country’s lithium reserves, a metal used in batteries.

Surprisingly, even overseeing China’s groundbreaking Qinghai-Tibet rail line, Peng Jianghong, Deputy Chief Engineer for CRCC, remains modest. When nudged as to whether China’s rail abilities are the world’s best, he shrugged, instead pointing out European and American capabilities.

Originally published in the June “Transportation Special” of Monocle magazine.

A consortium of Chinese banks, including China’s Export and Credit Insurance Corp. and China’s Export-Import Bank, is expected to provide funding. The loans would be repaid from the refinery production stream, with the Chinese managing the refineries until loans are repaid. Despite being the world’s 12th-largest oil producer and the eighth-largest oil exporter, Nigeria imports nearly 85% of its fuel needs due to the crumbling state of its four state-owned refineries.

A time frame has yet to be outlined, and though a feasibility study now is expected, observers are skeptical about the project’s likelihood of success. Deborah Brautigam, author of “The Dragon’s Gift,” a book about Chinese aid and economic engagement in Africa, foresees chances of the project being derailed as “quite high.” She explains, “It’s an enormous sum. Nigeria is politically unstable. An election is looming.”

The three refineries will be built in the states of Bayelsa, Kogi and Lagos, while a location for the petrochemical complex has yet to be confirmed. “Keep in mind that only 2% to 4% of MOUs [memos of understanding] lead to projects in Africa,” urges Remi Bello, founder and CEO of B&M Consulting, a political-risk consultancy focused on Africa.

Originally published in the June 16, 2010 issue of the Engineering News-Record.

The dam is part of the Chinese government’s plan to more than double the country’s hydropower generation to 250,000 MW by 2020.

A total of 28 potential dams along the Yarlung Tsangpo, as the Tibetans call the river, were identified by Tashi Tsering, a Tibetan academic based at the University of British Columbia, Canada, who studies environmental policy. He broke the Motuo news by posting on his Tibetan Plateau blog a map of all the projects reported so far by Chinese newspapers and hydro-engineering websites. Ma Jiali, who works for the state-run Institute of Contemporary International Relations, says China has no plans to build such a dam.

Construction is expected to involve various technologies—tunnels, pipes, reservoirs and turbines—to take advantage the 2,000-meter drop in the river bend. China plans to build another five dams farther upstream, including a 500-MW hydroplant at Zangmu, which is already under construction by the power utility Huaneng.

It is estimated 200 million tons of carbon would be avoided annually once transmission lines within the remote highlands were connected to the rest of China’s power supply by Hydro China, a state-run power company.

The mega-project could affect downstream nations India and Bangladesh. The high-altitude, mountainous terrain poses another challenge. Peter Bosshard of International Rivers told The Guardian, “A large dam on the Tibetan plateau would amount to a major, irreversible experiment with geo-engineering.”

Originally published in the June 16, 2010 issue of the Engineering News-Record.

China more than doubled installed capacity in 2009 to 25.8 GW, says the Global Wind Energy Council (GWEC). “The biggest difference in terms of expansion comes from local Chinese manufacturers,” says Dheeraj Choudhary, the global renewable-energy business-unit chief at Cleveland manufacturer Parker Hannifin, which has provided hydraulics and other parts for Chinese-made wind turbines for a decade. GWEC reports about 80 domestic wind-turbine makers.

Joanna Lewis, assistant professor at Georgetown University, Washington, D.C., says that while all Chinese manufacturers are linked with foreign vendors, “they are not at the mercy of companies or countries.” The Chinese Renewable Energy Industry Association says supply is starting to meet global needs, especially for components. Only 17 Chinese-made wind turbines were exported in 2009—to the U.S., India and Thailand—but two domestic firms are now among the world’s top five manufacturers.

Some are pointing to a growing bubble. Already, China’s three largest domestic manufacturers have a combined production capacity of 8.2 GW out of the 13.8-GW annual domestic market. In response, the Chinese government has stopped providing new licenses to turbine makers, focusing investment on turbines of 2.5 MW or larger. China’s goal is 20% renewable energy use by 2020, largely from hydro and wind power.

Offshore wind development is still in its infancy in China, but the first projects, begun in 2009, are already coming online. Choudhary expects onshore growth to continue more slowly through 2020 but sees up to a 150% jump in offshore projects over the next few years. “Customers we work with are pushing us to build for the offshore marketplace,” he says.

Originally published in the May 12, 2010 edition of the Engineering News-Record.

Published in the spring Transportation special of Monocle magazine.

When the case was first announced nearly a year ago, foreign companies began to watch nervously in fear that the Chinese environment for foreign companies was becoming more closed to them, preferring instead domestic businesses. Chris Bowen, Australia’s minister for financial services, said on local television last July, “It should also be a concern for the Chinese government that if foreign businesses feel that their degree of uncertainty is high, it will change the way that foreign businesses around the world approach business in China.” In this case, rulings could suggest that China’s leaders are beginning to apply the country’s corruption code – although it is inconsistently enforced.

In fact, both the Australian and the American business communities announced surveys indicating constituents are feeling less confident in business opportunities for them, in some cases pointing to government policies protecting domestic technologies over foreign developed ones. Some companies are nervous about basing their executives in China due to uncertain regulations.

Yet within the last six months, Australia has managed to sign two major gas deals with China, most recently agreeing to a $54 billion contract to provide liquefied natural gas to China National Offshore Oil Corporation (CNOOC). This leaves viewers wondering whether this time, the Chinese legitimately sentenced corruption charges – and the foreign business community has reacted, in paranoia, as though this were business as usual. Australian Resources and Energy Minister Martin Ferguson interprets this deal to indicate that business ties with China – for Australia, at least – continue as strong as ever.

Originally published in the Booming Beijing blog for the Engineering News-Record.

Prices for diesel fuel, structural steel, lumber and gypsum-wallboard products started to stir during the first quarter, but most increases were coming off dismal lows in 2009 and were not strong enough to break the stranglehold the recession has on construction costs. Eleven of 15 major industry cost indexes tracked by ENR showed costs falling below a year ago. These drops included year-to-year declines of 5.8% for warehouse construction, 4.7% for office buildings and 1.7% for school construction, according to the U.S. Commerce Dept.’s January cost indexes. The agency also reported in January another 3.6% decline in homebuilding costs during the same time in 2009. This decrease marked the third consecutive year the Commerce Dept. cost index for new homebuilding has declined, following drops of 3.2% in 2009 and 2.6% in 2008.

The deepest cost declines were measured by selling price indexes, which reflect the stiff competition between subcontractors and their dwindling margins. Among commercial price indexes, one issued by Turner Construction Co. fell 0.5% this quarter and 7.7% for the year. The Rider Levett Bucknall selling price index also fell 0.5% for the quarter and is down 7.3% for the year.

Most of the deflation in construction cost indexes can be tied to subcontractors slashing bids, despite some growing pressure from rising commodity prices. As the homebuilding market shows some signs of bottoming out, lumber, plywood and gypsum-wallboard prices are starting to bounce back after years of depressed levels. The average mill price for softwood framing lumber—tracked by the Eugene, Ore.-based pricing specialist Random Lengths—was $312 per thousand board-ft in February. That price was up 56% from last year’s low but is still 26% below the peak of February 2005.

Likewise, the Random Lengths composite index for panel prices in February rebounded 20% from last year’s low point but is 44% below its previous peak.

The rebound in gypsum-wallboard prices lags behind that of lumber, but price increases are starting to pop there as well. The U.S. Bureau of Labor Statistics’ (BLS) February producer price index for gypsum wallboard rose 1.1%, the biggest monthly increase since August 2008, says Armine Thompson, building-materials analyst for forecasting firm IHS Global Insight, Washington, D.C. But he believes it will take most of 2010 for the wallboard market to shake off the effects of the recession. Wallboard prices are likely to end this year with an overall 6.7% decline before turning up 4.6% in 2011, followed by another 4.5% gain in 2012, according to Thompson.

Another rebounder that is not having the impact on overall costs it once did is diesel fuel. The BLS producer price index for diesel fuel jumped 11.5% in January, which lifted it 41.4% above 2009’s level. This increase is coming off low levels. Six months ago, the diesel fuel index was running 60% below 2008’s level.

Nevertheless, Thompson says that asphalt paving prices cannot ignore higher oil prices for long. She predicts prices will end the year 5.1% higher, after dropping 12% in 2009.

Other price increases for commodities such as copper and aluminum may be temporary blips. “Copper and aluminum prices have moved way ahead of market fundamentals,” says John Mothersole, a IHS Global Insight principal. “We don’t think the end markets, especially in the U.S., are strong enough to accept these kind of price increases, and weak demand will start pushing back during the next two quarters,” he says. “Our top-line inflation forecast remains very muted.”

The recession in the non-residential building market in 2009 has made short work of steel-price spikes in 2008. Structural-steel prices now are hovering around their 2004 to 2006 levels, according to John Anton, IHS Global Insight steel analyst. But even those price levels may be too high. “I don’t see how low worldwide demand can support these prices,” he points out.

Steel prices are being driven not by demand but by a surge in scrap prices. “Scrap prices have gone crazy since late 2009. They are now just below 2008’s peak, and they could end up duplicating the 2008 spike,” says Anton. “Right now, inventories are thin, which is allowing higher prices to sneak back in. But once inventories are restocked, I think we will see prices fall back off.”

The China Connection

The inventory buildup was most acute in China, which pushed up global prices for many metal products last year with an enormous inventory buildup. While commodity prices entered 2010 holding strong, they have started coming down. Asia stocks, aluminum, copper and crude oil recorded slight first dips in the middle of March.

In China, the government has reinforced its commitment to cooling the economy. Premier Wen Jiaobao has restated his commitment to holding the value of the yuan steady, despite calls from the U.S. to increase its value to reflect market realities.

“Strong overcapacity in China,” where the supply is skewed to low-end types of steel, is starting to cap recent price increases, says Anne Stevenson-Yang, a principal at Wedge MKI, an equities research company based in Denver. But IHS Global Insight’s Mothersole asks, “How can commodity prices remain strong when those prices can’t go anywhere?”

Originally published in the March 29, 2010 issue of the Engineering News-Record.

words & photography: Manuela S. Zoninsein
additional images: shutterstock

Vibrant ethnic minority cultures, unforgettable local cuisine and carefully preserved architecture — the ancient capital of Dali and its checkerboard-like alleyways hold the allure and prospect of travelling back in time for culture, history and food aficionados. Dali once served as an important hub between the ancient Silk Road connecting Sichuan Province with Southeast and South Asia. Today, it links the buzzing capital of Kunming with mountainous Lijiang and its Tiger Leaping Gorge, continuing on to serene Zhongdian, also known as Shangri-La. Dali’s government separates its new developments from the Old Town, ensuring the latter retains its charms and native flavours. When the clean mountain air turns crisp at night, travellers simply return to cozy hotel retreats to vanish into the city’s picturesque past.

With so many rich influences interwoven into the fabric of life in this historic crossroads, exploring the various cultures in Dali Prefecture is a must. Dali boasts the highest number of ethnic groups among all provinces and autonomous regions in China — 25 of the total 56, in fact. Day trips to any variety of minority ethnic communities can easily be arranged through your hotel or any tour operator located along Yangren Jie (Westerner’s Street), the bustling thoroughfare catering to cosmopolitan travellers drawn to Dali’s charms. Alternatively, hire a taxi for the day or plan for a few exhilarating bike excursions throughout the region — just remember to bring a map along to guide you.

Bikes are available for rental at many guesthouses and rental huts around town and prices start from CNY10 (US$1.50) per day. Bikes vary greatly in quality so shop around for the best deal: the Chinese Merida brand and Taiwan’s Giant are among the better options. Taxis in Old Town generally cost CNY5 (about US$0.70) for under 3km; bargaining is commonplace and though most drivers will ask for CNY10 (about US$1.50), all prices are negotiable, especially for locations outside the Old Town. A taxi to Dali New City will cost around CNY40 (US$5.90).

For a bird’s eye view of the rich history of Dali Prefecture, take time to explore the Dali Bai Autonomous Prefecture Museum in the New City. Its extensive collection of exhibits has signage in both Chinese and English, and is set around a lovely traditional garden (CNY10/ US$1.50, for entrance). Shaping Market (about 30km north of Dali) in Shaping Town offers a lively weekly market with plenty of local colour. Get there early to see local Bai and Yi ethnic traders out en force, exchanging their wares in the expansive outdoor bazaar that is renowned for its variety of products. The breadth of vegetable, meat, basket, flower, fabric and even horse-trading vendors will awe first-time visitors.

Xizhou (about 20km north of Dali) can be visited on the way back from Shaping Market. Xizhou has almost 200 national heritage-listed private houses dating from the Qing Dynasty, whose detailed designs serve as some of the best examples of traditional Qing architecture in China. The story goes that craftsmen from Xizhou often travelled throughout Southeast Asia to learn techniques and source materials for building and decorating. When they made their fortunes, they returned to Xizhou to build their own dream homes.

As most of these houses are currently occupied, first knock and ask politely for permission to enter. The family estate of the Yan clan is preserved as a museum and open to the public, although the best way to see the finest examples is with a local guide. Many of the artifacts found in such attics date back to the Song Dynasty. The Linden Centre is another worthy stop; its helpful owners will also direct you to the most historic haunts.

If it is living culture you are seeking, then the best option is to spend a day exploring the area around Erhai Lake. Boats can be easily arranged through any of the hotels or tourist touts along the main strip — check out the photobooks they carry to get a sense of what the day will entail. Above all, keep in mind the saying: you get what you pay for. Ask about visiting Bai villages and perhaps about a house-visit or lunch with a local family. Gather a group of like-minded travellers and you’ll enjoy a great day out.

Many travellers combine a trip to Erhai Lake with a visit to the Wase Market on the lake’s eastern shore. Wase is a traditional and conservative Bai town with a weekly market aimed at both townspeople and local farmers. The market offers an interesting look at life in a quiet country town and will let you buy some quirky souvenirs, and excellent Pu’er tea from the province.

Yunnan is one of China’s most naturally plentiful provinces: verdant green mountains and tea plantations provide cover for the largest diversity of plant life in China. In fact, Yunnan is home to over half of China’s 30,000 plants species, the majority of the nation’s almost 6,000 rare animals and more than 30 types of birds. The Cangshan Mountains have peaks reaching up to 4,200 km, with a variety of hiking trails that makes this an excellent excursion for both amateur and experienced hikers.

Take the chairlift located at the South Gate of the Old Town (CNY30/ US$4.40) past traditional gravestones and fern forests to an outfitted arrival station, where park rangers can provide guidance on the best trails. If you want to spend a few days exploring, consider hunkering down at the Higherland Inn, a backpackers hostel with sparse but simple cabins that serves Yunnan-style dinner with the lovely family. Be sure to request an electric blanket for the chilly nights!

Not just nature lovers, but food lovers, will be sated by the dishes China’s ethnic minority people serve up, flavours which often contradict and surprise those already familiar with Chinese cuisine. Be sure to try out the famous local goat’s milk white cheese called rubing, which comes either grilled with a chewy texture like mozzarella, or deep-fried and then wrapped around a stick, sometimes filled with red bean paste and coated with sugar.

Wander the Old City, whose major landmarks are the South and North Gates with Fuxing Road running between them, and Yangren Jie lined with cafés and tourist shops. Jingjing Restaurant on Fuxing, and Baili Xiang Restaurant on Erhai Lu, are known for their own distinctive versions of Bai-style cooking, incorporating lemongrass, cilantro and spice to create the sweet-and-sour combinations often found in Thai cooking. For something homey and familiar, taste the brownies at Sweet Tooth on the corner of Renmin Lu and Bo’ai Lu, a bakery run by a German woman who employs the hearing-impaired from the local community.

Yunnan is a piece of heaven on earth: gorgeous rolling green tea farms give way to ancient towns, where the largest collection of China’s ethnic minority people serve up stimulating food and generous interactions. Dali and its winding stone streets also mean visitors can either wander a quaint town, or escape to natural wonders nearby. Staying warm on chilly mountain nights shouldn’t be hard after eating delicious cooking and curling up with a loved one — it’s certainly an experience neither of you will forget.

ADDRESS BOOK

The Linden Centre (Xilinyuan Zhongxin)

Located about 30km from Dali’s Old Town, this expansive, luxurious and carefully renovated courtyard home in Xizhou adheres to traditional Bai elegance while serving Western modern standards. It is run by a Chinese-American family who aim for an immersive experience, so travellers seeking authenticity will be happily satisfied.

No. 5 Chengbei, Xizhou Town, Dali City. Tel: 86-872/245-2988; www.linden-centre.com

Three Pagoda Park Hotel (San Ta Yuan Dafandian)

Located in San Ta Park or Three Pagodas Park of Chongsheng Temple, one of the must-see sights of Dali, this is a Chinese-run hotel that manages to balance comfort and nature tastefully. Pavilions, long corridors and bridges connecting pools give it a Tang Dynasty feel.

In the Three Pagoda Park, San Ta Yuan, Dali City. Tel: 86-872/267-6521

Dali Regent Hotel (Dali Fenghua Xueyue Dajiudian)

This might be the most upscale hotel in Dali’s Old Town, with big clean rooms, comfortable beds, modern fixtures and a swimming pool, though its five stars don’t exactly meet international standards. The Bai Minority architectural style, organized around four courtyards, adds flavour and class.

Yu’er Lu, East Section, Dali City. Tel: 86-872/266-6666

DALI FACT BOX

Getting There

From Changi International Airport, Singapore Airlines flies direct to Kunming airport twice weekly, and China Eastern Airlines once per week. Malaysia Airlines departs from Kuala Lumpur to Kunming three times weekly. China Eastern Airlines, China Southern Airlines and Lucky Air all fly daily to Dali Airport from Kunming.

Transport

The easiest way to get around Dali’s Old Town is by foot or by bike, which can be rented from CN Y10 (US$1.50) per day. To visit more distant locations, hire a taxi and ask to pay by the meter (“da biao”). Along Erhai Lake, boats visit Guanyin Temple, Wase market and other Bai villages for day rates varying between CN Y50 to 100 (US$7.30 to US$14.60); CN Y30 (US$4.40) entrance fee is charged for lake visits.

Currency

The Chinese Yuan (CN Y) is used in Dali. CN Y10 = S$2.03 / RM4.88 / US$1.46

Population

The Dali prefecture is home to nearly 3.5 million people, with a 50-50 split between minority groups and the Han majority. The Bai represent about one-third of the total. The Old Town of Dali houses less than 40,000.

A Brief History

Dali lies just 350 km northwest of Kunming, the capital of Yunnan Province, but its quiet, clean, soothing and historic atmosphere couldn’t be more distinct. Situated on a fertile plateau between the Cangshan Mountains to the west and Erhai Lake to the east, the Old Town retains the same layout since it was rebuilt in 1382 during the Ming Dynasty, though its flavour is influenced by the Bai and Yi minorities who established the city during the Tang Dynasty.

Attire

Daily temperatures fluctuate more than the seasonal climate, going from chilly mornings and nights to warm days filled with piercing sunshine. Come prepared with sweaters and jackets to layer accordingly.

Language

Most locals speak Mandarin, though the elderly may still speak local minority dialects. Tour operators speak some English.

Time Zone

Dali operates on the same time zone as Singapore and Malaysia.

Food

Like in most Chinese cuisines, pork is found in nearly every main dish, making halal food difficult to find. Vegetarian friendly dishes are common in Yunnan cooking, so learn to say “wo bu chi rou” or “I don’t eat meat” in Mandarin.

Visa

Singaporeans do not need a visa to Dali if travelling for less than 15 days; Malaysians need an L visa for travel purposes. Please enquire at the nearest Chinese embassy or with your local travel agent.

Best Time to Visit

Dali experiences temperate climates year round, with no extremes in summer or in winter. However, to see nature in all its splendor, it is best to visit from March to June when spring’s rebirth is in full swing.

Best Tip

Despite chilly mornings and evenings, the clear mountain air focuses sunlight — so be sure to keep some sunblock handy. To really get a feel of local cultures, and be liberated from travel guides and touts, rent a bike for a few days and take your time wandering Dali’s streets.

Calling Code

The country code for China is +(86), and the area code for Dali is 0872. Dial 00 followed by the country code to make an international call.

First published in the March issue of Escape! magazine. For access to a PDF of the original version, including photos, click here.

■ D-22

University neighborhoods tend to provide a steady supply of rock fans, so it shouldn’t come as a surprise that the area around Tsinghua University is home to some of the city’s best clubs. Known for serving up the choicest sounds in town, this three-year-old, 200-capacity spot fills up quickly (dancing takes a bit of maneuvering). Still, D-22 is your best bet in catching Beijing’s top acts, like Carsick Cars, who toured Europe with Sonic Youth. And it gives back, too: musicians get a big cut of the door fees. “The goal is to be an incubator of talent,” explains manager Nevin Domer. 242 Chengfu Lu, Haidian District; 86-10/6265-3177; d-22.cn; entrance after 9 p.m. RMB40.

■ Mao Livehouse

At any time of the day, you’ll see musicians resplendent with Mohawks duck into Mao, a converted cinema that’s become the Beijing indie music scene’s unofficial hangout. Watch out for local heavyweights, like Queen Sea Big Shark, who opened for the Yeah Yeah Yeah’s in Beijing, and brace yourself for some serious jostling for space. And the name? The chairman, says owner Li Chi, “was the biggest rock ‘n’ roller of all.” 111 Gulou Dongdajie; 86-10/6402-5080;maolive.com; entrance RMB40.

■ Dos Kolegas

Before D-22, there was “2K,” as the owners call it: an important (if a bit far-flung) stop on the city’s rock circuit. Located in a drive-in movie theater, this cheerful dive hosts raucous summer parties and barbecues on the ample outdoor lawn; inside, underground bands and gold standards, like Hedgehog, get down to the business of rocking out. Weekends see the venue packed, especially on Saturdays when infectiously good electronica is played, though Tuesday reggae nights are a good way to groove mid-week. 21 Liangmaqiao Lu, Sanyuanqiao; 86/135-5227-6845; 2kolegas.com; entrance after 9 p.m. RMB40.

First published in the March 2010 issue of Travel+Leisure Southeast Asia.

Here’s a PDF of the original article, with photo by Matthew Niederhauser: 03insider_afterdarkmlv2

Experts see the move as the latest conciliatory gesture by Taiwan, which China refuses to recognise as a separate country. National Taiwan University professor Meiyuan Fann says that mainland Chinese students are likely to have some difficulties adapting to life in Taiwan. But also some fun.

What’s different?

01 Characters: Under Mao, the mainland simplified Its written characters. Taiwan kept the traditional characters.

02 Food: Taiwan’s cuisine is heavily influenced by Japan a former colonia power for over 50 years. In mainland China, Japanese food, including sushi, is not popular.

03 Freedom: Facebook, Youtube and Google are not censored or blocked in Taiwan and there are more TV channels available. Some mainlanders spend the first few weeks in Taiwan glued to the screen.

Published in the March 2010 issue of Monocle.