Special Feature
May 27, 2010
Michael Chapnick | (703) 875-4357

USTDA Awards $1.3 Million in Grants to Support China's Clean Energy Efforts

USTDA Awards $1.3 Million in Grants to Support China's Clean Energy Efforts
USTDA Awards $1.3 Million in Grants to Support China's Clean Energy Efforts

BEIJING, CHINA – During the first plenary session of the U.S.-China Strategic and Economic Dialogue on Monday, Director Leocadia I. Zak announced that the U.S. Trade and Development Agency (USTDA) would award grants to assist China in its efforts to meet its growing energy demand.

Demonstrating progress since the Hu-Obama Summit in November 2009, the grants were awarded in support of China’s National Energy Administration’s (NEA) goals under USTDA's U.S. – China Energy Cooperation Program, which leverages private sector resources for clean energy project development in China in order to increase awareness of technology, product standards, regulatory processes, and services that can assist China develop its clean energy sector. The ceremony was held at the opening of the US-China Renewable Energy and Advanced Biofuels Forums at Diaoyutai State Guesthouse in Beijing on Wednesday.

Director Zak said that the combined heat and power, aviation bio-fuels and smart grid standards projects take into consideration the potential for clean energy to contribute to a sustainable economic recovery. Valued at over $1.3 million, these USTDA grants will help China respond to rapid economic growth.

"USTDA is committed to working with China's National Energy Administration to set up a demonstration project that will lead to significant follow-on commercial opportunities for U.S. companies as China's heating, humidity control, air conditioning and a range of thermal energy market develops," said USTDA Director Zak when she described the $465,482 grant that will fund the combined heat and power feasibility study. "U.S. companies are world leaders in the supply of components used in distributed energy and combined heat and power plants, including reciprocating engines, gas turbines, steam turbines, fuel cells, generators, chillers, and energy consulting services."

The use of sustainable aviation biofuel in China will reduce the emission of criteria air pollutants and greenhouse gases even as the country's aviation sector expands. A Memorandum of Understanding between USTDA and NEA announced USTDA funding for technical assistance to encourage the commercialization of aviation biofuels in China.

"In preparation for the continued expansion of the airline industry in China, USTDA is enthusiastic about supporting the planning and development of an aviation biofuel supply chain economic model and feasibility study," Zak added. "An aviation biofuel test flight will be conducted to demonstrate its technical viability and to facilitate certification of aviation biofuel in China. Several U.S. companies, including The Boeing Company, United Technologies Corporation and Honeywell International Inc. will contribute to the test flight."

Developing a smart grid is a major priority of both the U.S. and Chinese governments. A grant for $150,661 was awarded to the China Electrical Equipment Industry Association (CEEIA) to help develop Chinese standards for smart meters that is in harmony with U.S. standards. The National Electrical Manufacturers Association will serve as the sole source contractor.

The opportunity to provide the USTDA-funded assistance under the combined heat and power grant awarded today will be competed on the Federal Business Opportunities (FBO) website. A link to the FBO announcements will be posted on USTDA's website at www.ustda.gov. Interested U.S. firms should submit proposals according to the instructions in the FBO announcement. China's National Energy Administration will select (a) U.S. firm(s) to provide the assistance associated with their grant.

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The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds technical assistance, feasibility studies, training, reverse trade missions and business workshops to support development of modern infrastructure and a fair and open trading environment. USTDA's efforts create an enabling environment for trade, investment and sustainable economic development.

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