China, U.S. sign eight green technology deals

China and the U.S. have signed eight green energy deals to enhance cooperation in the sector, which experts believe will open doors for imports of high-end technology so far blocked by Washington.

The eight deals include aviation bio fuel, distributed energy systems using natural gas as fuel, smart meters and cellulosic ethanol.

Neither side disclosed the financial details of the deals.

The agreements followed conclusion of high-level strategic and economic dialogue between the two countries attended by among others U.S. Commerce Secretary Gary Locke.

As the world’s two largest energy consumers, China and the US will also join hands for renewable energy development, said Zhang Guobao, head of National Energy Administration (NEA), adding that China will keep an open mind to develop the renewable energy sector.

The two countries have big potential for collaboration in the area, said Zhang.

“The US has advanced technology, and China has a huge market.”

The US and China will “take every angle” to ensure their cooperation in energy and environment, said US Ambassador to China Jon Huntsman.

The deals could set examples for global collaboration in increasing energy efficiency and protecting environment, state run China Daily quoted analysts as saying.

Development of renewable energy is a must for China one world’s emitter of green house gases to increase the use of non-fossil energy to 15 per cent of primary energy consumption by 2020, and to reduce carbon intensity by 40 to 45 per cent in 2020 from the 2005 levels.

In the renewable energy sector, China will continue to focus on the development of hydro, wind, solar, and biomass energy, Zhang said.

A series of Chinese and U.S. companies are involved in the eight deals.

“With China’s growing energy needs, our relationship with the CECEP represents a great opportunity to promote sustainable energy development through the optimal use of renewable energy generation with solar power,” said Mark Pinto, executive vice-president and corporate technology officer at Applied Materials.

The deals could also open up doors for high technology to emerging economies like India as U.S. was keen to step up exports in the sector to increase its earnings from exports which in turn could also help create more jobs for Americans.

Analysts said Sino-US cooperation on green energy would set a good example for other countries.