OVERKILL
$100 Site Donor 2021
Except maybe massive hydro, obviously geographically limited, with HUGE CAPEX.
Some might recall the previous Seaver Wang piece I shared here:
Cogeneration in China - Solar production | Bob Is The Oil Guy
Talking about solar module production with onsite coal plants. Well, he's got another thread up:
Quoting the thread here:
Other people: "Wow Chinese manufacturers are killing it with cheap electric cars + solar! How do they manage it? Truly an inspiration to the world!"Me: "I recommend taking a gander at the environmentally blighted area near Baotou, Inner Mongolia sometime. Enlightening stuff."
If you've heard of Baotou, it's probably in the context of rare earth industry pollution.But few folks are aware at just how much large-scale upstream clean tech manufacturing has moved to the Baotou area in the last several years.
Now I don't want to generalize--Baotou is an intense case. Chinese OEMs do run cleaner industry in Sichuan + Yunnan thanks to hydropower. But you this kind of coal-centered clean tech industry also exists in Ordos (Inner Mongolia), or Xinjiang, or Heilongjiang, to name a few.
And as I wrote in our 2022 report on implications of labor + enviro injustice in Xinjiang's solar industry, Chinese clean tech success also comes from economies of scale, innovation, subsidies, and experience operating industry w razor-thin profit margins.
But I think its crucially important to realize that the formidable might of Chinese firms in key clean tech manufacturing steps like graphite battery anodes or solar-grade polysilicon isn't just because of innovation + hard effort, but also because the playing field is uneven.
I spoke on this Columbia panel Sunday morning on US-China relations + climate efforts (not recorded, sorry).When asked how US+China could partner on heavy industry decarbonization, I surprised folks by identifying Chinese industry as the biggest obstacle to industrial decarb.
I then argued the US would lead on heavy industry decarbonization, as innovation and differentiated clean production are key for US industry to compete globally moving forward.The Biden admin announced major clean industry initiatives the next day
But we have to recall the global playing field in sectors like aluminum or synthetic graphite remains vastly unfair. We (often rightly) demand the best sourcing + enviro practices from domestic industries while plants in China enjoy subsidized lower CAPEX on the order of >30%...
as well as industrial electricity tariffs that are half the cost of industrial power in nearby Korea or Japan or less thanks to heavy fossil coal use.With that in mind we *must* resist temptation to import the cheapest possible batteries, EVs, or solar PV in a frenzy to deploy.
And we have to revitalize more difficult, controversial industries like mining or metals in places like the US + Europe.If the true cost of responsible metals is higher than that reflected in the cost of a new EV from BYD sold in Germany, why do we accept the lower price tag?
And if--as I believe is the case--we can successfully find innovative ways to source low-carbon metals ethically and affordably, then we have to wean ourselves off the dirty stuff while using industrial policy to give clean ideas and technologies the chance they need to succeed.
Now, if solar and wind were truly the cheapest sources, as we are so often told, China would be using those sources to manufacture those sources instead of mine-to-mouth coal. If it was less expensive to slap up a field of PV and batteries or a clutch of wind turbines rather than building a coal plant beside the factory, they would. The lowest possible cost is always the priority.
So, why the lie or misrepresentation of the truth? I'll leave that up to you to mull over.
Some might recall the previous Seaver Wang piece I shared here:
Cogeneration in China - Solar production | Bob Is The Oil Guy
Talking about solar module production with onsite coal plants. Well, he's got another thread up:
Quoting the thread here:
Other people: "Wow Chinese manufacturers are killing it with cheap electric cars + solar! How do they manage it? Truly an inspiration to the world!"Me: "I recommend taking a gander at the environmentally blighted area near Baotou, Inner Mongolia sometime. Enlightening stuff."
If you've heard of Baotou, it's probably in the context of rare earth industry pollution.But few folks are aware at just how much large-scale upstream clean tech manufacturing has moved to the Baotou area in the last several years.
Now I don't want to generalize--Baotou is an intense case. Chinese OEMs do run cleaner industry in Sichuan + Yunnan thanks to hydropower. But you this kind of coal-centered clean tech industry also exists in Ordos (Inner Mongolia), or Xinjiang, or Heilongjiang, to name a few.
And as I wrote in our 2022 report on implications of labor + enviro injustice in Xinjiang's solar industry, Chinese clean tech success also comes from economies of scale, innovation, subsidies, and experience operating industry w razor-thin profit margins.
But I think its crucially important to realize that the formidable might of Chinese firms in key clean tech manufacturing steps like graphite battery anodes or solar-grade polysilicon isn't just because of innovation + hard effort, but also because the playing field is uneven.
I spoke on this Columbia panel Sunday morning on US-China relations + climate efforts (not recorded, sorry).When asked how US+China could partner on heavy industry decarbonization, I surprised folks by identifying Chinese industry as the biggest obstacle to industrial decarb.
I then argued the US would lead on heavy industry decarbonization, as innovation and differentiated clean production are key for US industry to compete globally moving forward.The Biden admin announced major clean industry initiatives the next day
But we have to recall the global playing field in sectors like aluminum or synthetic graphite remains vastly unfair. We (often rightly) demand the best sourcing + enviro practices from domestic industries while plants in China enjoy subsidized lower CAPEX on the order of >30%...
as well as industrial electricity tariffs that are half the cost of industrial power in nearby Korea or Japan or less thanks to heavy fossil coal use.With that in mind we *must* resist temptation to import the cheapest possible batteries, EVs, or solar PV in a frenzy to deploy.
And we have to revitalize more difficult, controversial industries like mining or metals in places like the US + Europe.If the true cost of responsible metals is higher than that reflected in the cost of a new EV from BYD sold in Germany, why do we accept the lower price tag?
And if--as I believe is the case--we can successfully find innovative ways to source low-carbon metals ethically and affordably, then we have to wean ourselves off the dirty stuff while using industrial policy to give clean ideas and technologies the chance they need to succeed.
Now, if solar and wind were truly the cheapest sources, as we are so often told, China would be using those sources to manufacture those sources instead of mine-to-mouth coal. If it was less expensive to slap up a field of PV and batteries or a clutch of wind turbines rather than building a coal plant beside the factory, they would. The lowest possible cost is always the priority.
So, why the lie or misrepresentation of the truth? I'll leave that up to you to mull over.
Last edited:
