SAN FRANCISCO, CA – U.S. Department of Energy (DOE) Assistant Secretary for Policy and International Affairs Karen Harbert and Vice Chairman of the National Development and Reform Committee (NDRC) Chen Deming, this week signed a Memorandum of Understanding (MOU) to increase cooperation and energy efficiency in China’s industrial sector, which accounts for 70 percent of the country’s total energy demand.  This MOU, titled Industrial Energy Efficiency Cooperation, follows discussions this week at the third U.S.-China Energy Policy Dialogue where the U.S. and China agreed to conduct audits to increase China’s national, regional, and local energy efficiency.

“This agreement signifies the importance of our strategic energy and economic cooperation with China,” Assistant Secretary Harbert said.  “As global energy use continues to rapidly increase, the U.S. is working to identify ways to increase industrial energy efficiency both domestically and across the globe.  Our U.S. industry has significant expertise and products that can improve energy efficiency in China.”

The Industrial Energy Efficiency Cooperation MOU signifies the U.S. and China’s intention to promote energy efficiency at energy-intensive factories that will reduce greenhouse gas emissions.  A DOE team of industrial energy efficiency experts, which includes a NDRC counterpart team, will conduct on-site plant audits of the production process and plant energy systems at up to twelve facilities from “The Top 1000” energy enterprises in China.  DOE will provide tools to conduct the plant audits and train factory personnel on plant audit techniques.  These facilities must have the resources and feasibility to implement energy efficient improvements identified by the DOE and NDRC teams.  DOE will subsequently conduct a comparison study of these Chinese enterprises and U.S. manufacturing plants to identify differences in best practices.  The MOU could also serve as a conduit for American companies to export environmentally superior U.S.-made equipment and services to China.

DOE intends to host training sessions in the United States for Chinese officials to familiarize energy-saving management personnel, including government personnel, energy-saving supervisory and monitoring personnel, energy policy research personnel and the management of big energy consumption enterprises, with U.S. energy saving laws, policies, advanced energy saving procedures and technologies and best practices.  DOE will also provide demonstrations for highly-efficient boilers, fired heaters and combined heat and power units.

Through Save Energy Now Assessments, DOE works proactively with the U.S. industrial sector to assess energy use and devise strategies for savings.  Since 2006, DOE has conducted 344 industrial energy assessments, identifying potential energy cost savings of more than $585 million and 60 trillion btu per year.  When fully implemented, the greenhouse gas emissions savings would be equivalent to removing nearly 850,000 vehicles from the road each year.

The signing of this MOU follows cooperation through a number of bilateral and multilateral partnerships aimed at increasing energy efficiency, reducing greenhouse gas emissions and removing barriers to private investment in clean energy technologies including the U.S.-China Strategic Economic Dialogue, the U.S.-China Oil and Gas Industry Forum, Carbon Sequestration Leadership Forum and the International Thermonuclear Experimental Reactor.

United States-China MOU

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