USTDA AWARDS $1.2 MILLION TO PROMOTE ENVIRONMENTAL TECHNOLOGIES AT POWER PLANTS IN CHINA

BEIJING, CHINA (June 25, 2008) – Today, USTDA built on its support for the application of environmental technologies in China with the award of separate grants, totaling more than $1.2 million, to the Environmental Protection Bureaus (EPB) of Liaoning and Shandong Provinces. The grants will be used to evaluate methods of supporting each province’s efforts to reduce emissions from coal-fired power plants, as well as smaller facilities such as factories and district heating operations.

“Each of us recognizes the importance of protecting our natural environment. We also recognize that our energy needs will only increase in the coming years. In meeting our energy needs, we must develop strategies to minimize negative impacts on the environment,” said USTDA Director Larry W. Walther in remarks at the grant signing ceremony. “The United States and China have committed to increase cooperation in this area under the Asia-Pacific Partnership on Clean Development and Climate, and the projects supported by today’s grants are tangible examples of this commitment.”

The grants were awarded in a signing ceremony held at the Ministry of Environmental Protection (MEP) in Beijing. USTDA Director Walther signed both grant agreements on behalf of the U.S. Government. Liaoning EPB Vice Director General Wang Zhijiang and Shandong EPB Vice Director General Zhang Bo signed the grant agreement for their respective agencies.

Liaoning and Shandong Provinces rank among the highest of all provinces in China in terms of coal consumption in power plants. As a result they are also the highest emitters of sulfur dioxide (SO2) and nitrogen oxide (NOx). SO2 is a major contributor to acid rain, while NOx causes increased smog and has been linked to asthma and lung disease.

In Liaoning Province, the EPB has sought to address this issue by reducing emissions from the 40,000 small boilers in the province. The $662,000 grant awarded today will support this effort by partially funding an assessment of the technical, economic and financial feasibility of implementing SO2 and NOx emissions control systems at factories, district heating facilities and other operations that utilize small boilers. The assistance will establish the requirements for retrofitting one particular plant, which will be chosen at the beginning of the study for its ability to serve as a model for other facilities.

Liaoning EPB has selected Fuel Tech, Inc. of Warrenville, Illinois, to provide the USTDA-funded assistance. In connection with the USTDA grant awarded today, Fuel Tech will provide additional resources toward the completion of the study, which will include a pilot demonstration using Fuel Tech equipment.

Similarly in Shandong Province, the $600,000 grant awarded today to the EPB will assess the technical, economic and financial feasibility of implementing NOx emissions control systems at coal-fired power plants throughout the province. The study will focus on the requirements for retrofitting one particular plant, which would be chosen after consultation with Shandong EPB on the capacity of the plant to serve as a model for other facilities.

The opportunity to provide the USTDA-funded assistance to the Shandong Province EPB will be competed on the Federal Business Opportunities website at www.fbo.gov. Interested U.S. companies should submit proposals according to the instructions in the Federal Business Opportunities announcement. The Shandong Province EPB will select the U.S. firm that will provide the assistance.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair, open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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