Fly Ash Utilization in China Market Landscape and Policy Analysis

Fly Ash Utilization in ChinaMarket Landscape and Policy Analysis Asian Coal Ash

Association

Introduction 12 years in Asia (Japan, China)

Energy, green technology and water industries. 5 years specifically focused on coal combustion

products Founded Coal Ash Solutions -

www.coalashsolutions.com Assist early stage and established companies to:

» Safely scale and commercialize technology in new markets

» Raise capital» Develop strategy and partnerships

Asian Coal Ash Association – www.asiancoalash.org Co-founded in 2010, currently serve as chairman Events, research Coal Ash Asia 2014 (September 23-27th)

http://www.coalashsolutions.com/

http://www.asiancoalash.org/

1. China fly ash utilization overview

2. Drivers of fly ash utilization and relevant policy development trends

3. Key stakeholders and engagement strategy suggestions

4. Summary analysis

China fly ash utilization overview:government statistics

Year Fly ash output

(million tons)

Fly ash utilization

(million tons)

Utilization

ratio

2005 302 199 66

2006 352 232 66

2007 388 260 67

2008 395 265 67

2009 405 271 67

2010 417 280 67

2011 428 287 67

2012 440 294 67

• In 2009, China’s installed thermal power capacity and the electricity generated by thermal power stations both increased about 7-8%. Although coal consumption has been reduced by introducing high-efficient generators, fly ash output has still maintained its rising momentum.

• As fly ash volume steadily increases, the government’s 60% fly ash utilization regulation has always been considered an impossible goal by some industry analysts; most recently in September 2010, Greenpeace released a report which publicly criticized government statistics: “The biggest misconception is the belief that 60% or more of China’s coal ash is reused—in reality it’s less than 30 percent” (a conclusion of Greenpeace based on its independent eight-month survey of 14 thermal power stations across China).

2005 2006 2007 2008 2009 2010 2011 20120

100

200

300

400

500

600

700

800

Production Utilisation

China fly ash utilization overview:a long history of fly ash utilization

1950s China begins utilizing fly ash, mainly in the construction sector as concrete admixture, and particularly in the construction of hydropower stations

1960-70sChina begins utilizing fly ash as walling material, including blocks, wallboard, baked bricks, and ceramsite

“Administrative Measures of Fly Ash Utilization” is released by State Economic and Trade Commission2, Ministry of Electric Power Industry3, Ministry of Construction4, Ministry of Finance, Ministry of Transportation, and State Administration of Taxation

1. SDPC was the predecessor of the National Development and Reform Commission (NDRC)

2. SETC was abolished during government restructuring in 2003, its fly ash related portfolio was transferred to the NDRC and Ministry of Industry and Information Technology (MIIT)

3. Ministry of Electric Power Industry was abolished in 1998, its portfolio is now shared by National Energy Administration (NEA) under NDRC and MIIT.

4. Predecessor of the Ministry of Housing and Urban-Rural Development (MOHURD)

The government starts rolling out a series of incentive policies for fly ash utilization in various sectors such as building materials, construction, backfill, agriculture, etc.

The State Development and Planning Commission1 releases the “China Fly Ash Utilization Technology Policy and Implementation Roadmap”

1991

1980s

1994

China fly ash utilization overview:a long history of fly ash utilization

2002 Government publishes the “Law on Promotion of Cleaner Production”

2003 Government publishes the “Regulation on Levy and Use of Pollutant Charges”

NDRC, MOST (Ministry of Science and Technology), MOHURD, MIIT, MOLAR (Ministry of Land and Resources) and MOFCOM (Ministry of Commerce) released the “Technical Policy Outlines for Comprehensive Utilization of Resources in China”

Government publishes the “Law of Prevention and Control of Environmental Pollution by Solid Waste”

Government publishes the “Law of Circular Economy Promotion.” NDRC starts preparing to revise the 1994 version of “Administrative Measures of Fly Ash Utilization”

2008

2004

2010

NDRC releases the “Clean Production Performance Ranking and Indexes System of Thermal Power Industry”

2007

2006NDRC, Ministry of Finance, and State Administration of Taxation releases the “Administrative Measures of the Recognition and Registration of Resources Comprehensive Utilization Project Encouraged by the Central Government”

China fly ash utilization overview:current status – imbalanced utilization

• The uneven growth of the various regions of China creates an imbalanced fly ash utilization rates.

• In the developed coastal regions, especially the Yangtze and Pearl River Delta, as well as the Bohai Rim, the utilization ratio of fly ash could be as high as above 100%: the downstream players most likely compete to secure a fly ash supply, import fly ash from other regions, or use prior fly ash storage.

• Meanwhile, in the underdeveloped middle and western part of China, the fly ash utilization ratio could be as low as 30% or below, although, there might be fly ash shortage as well in certain months because of the nature of the building material and cement business.

Yangtze River Delta

Pearl River Delta

Bohai Rim

Beijing

Tianjin

ShanghaiChengdu

ChongqingWuhan

Guangzhou

Xian

China fly ash utilization overview:current status – main uses

• Building materials: such as baked brick and ceramsite, gas ash concrete and cement admixture (or blended material), etc.

• Road engineering: such as roadbed layer materials, side slope and bituminous concrete admixture.

• Construction projects: concrete and mortar admixture.

• Agribusiness: used as fertilizer or used to improve soil quality

• Backfill: engineering or mine backfill.

• Others: such as extraction of Aluminum, etc.

Building materials

35%

Construc-tion

projects10%

Road Engineering20%

Agribusiness15%

Backfill15%

Others5%

Volume Segamentation

Fly ash is currently used in China for:

China fly ash utilization overview:current status -- market players

Highly fragmented market participants landscapePlayers scattered in different sectors ranging from equipment

supply, construction, engineering and operation / technical services sectors

Limited foreign investment as well as equipment and service providers

JCOAL, LASCO, Schloss-Pfeiffer, Masa-Dorstener,

CSIRO ….

Many domestic firms, research institutes, equipment manufacturers, trading companies affiliated with IPPs, etc.

China Ashtech Development Center, Xinyuandao, Changsha Derby, Shanghai Huayu, Beijing Power Coal Ash Industrial Co., Nanjing Xinyuantian, CBMA/CNBM ….

China fly ash utilization overview:current status – main challenges

① Imbalanced Utilization

• Uneven development of fly ash utilization in the coastal and inland areas.

• Uneven utilization ratio of various grade of fly ash (short supply of high quality fly ash and low utilization of low grade ones).

② Dynamic of fly ash quality

• Mixed discharge equipment in power stations (wet vs. dry).

• Increasing desulfurization and denitration and its impact on fly ash characteristics and quality.

• Biomass combustion

• CFB boilers

③ Limited application fields and value added

• Fly ash utilization is still largely concentrated in the building materials and construction sector.

• The products are mainly low value-added.

④ Limited government incentives and weak law enforcement

• “Administrative Measures of Fly Ash Utilization” need to be updated and revised

• Taxation and financing incentives need to be improved.

• Law enforcement needs to be enhanced to control fly ash discharge




4. Summary analysis

Drivers of fly ash utilization:economic growth will still rely on coal

22.43%

74.49%

1.03%

2.01%

Installed capacity in 2010

Hydro ThermalNuclear Wind and

other re-newable

While the increases in China's population, economy, and energy usage has prompted the Chinese government to encourage the development of other energy resources, coal is still expected to play the most significant role in the nation's energy future.

Nearly 75% of China’s installed capacity in 2010 is from thermal power generators, and an even further 81.81% of the electricity generated in 2010 was from thermal power plants.

Although the government plans to reduce thermal power generators to 69.1% in China’s installed capacity mix within the next 5 years, the actual total thermal power capacity could further increase about 56%, from 599GW to 933GW, according to the national development plan.

Year Installed capacity

(GW)

Fly ash output(million

ton)

2006 622 352

2010 900 405

2015(projection)

1,350 562.5

Drivers of fly ash utilization

Promotion of circular economy and comprehensive utilization of resources

Due to the continuous expansion of infrastructure in China, there is an increasing market demand for fly ash for construction projects and building materials

Rising prices of fly ash in the market

Financial incentives such as government subsidies and tax break policies

Pull Factor

Increasing fly ash output

Cleaner production policies and regulations

Prevention and control of environmental pollution due to solid waste

Punishment for solid waste discharge

Push Factor

The development of fly ash utilization policies: policy frameworks

PRC Constitutio

n

Laws

State Council

Regulations

Ministerial Regulations and

Measures

Local Regulations and

Measures

National People’s CongressState Council

Ministries

Local Authorities

• Law on Promotion of Cleaner Production• Circular Economy Promotion Law• Law of Prevention and Control of Environmental Pollution from Solid

Waste

• Administrative Measures of Fly Ash Utilization • Technical Policy Outlines for Comprehensive Utilization of Resources in

China • Administrative Measures of the Recognition and Registration of Resources

Comprehensive Utilization Project Encouraged by the Central Government

• Decision of the State Council to establish a leading group for energy saving and emission reductions

• 11th Five Year Plan (2006-2010) Guidance on Resources Comprehensive Utilization

• Regulation on Levy and Use of Pollutant Charges

Examples of regulations relevant to fly ash utilization

• Shanghai municipal government's Management Regulation on Fly Ash Comprehensive Utilization

China’s regulatory framework creates numerous laws and regulations to restrict solid waste discharge and promote a “circular economy”

Law on Promotion of Clean Production

(2002)

• Defines means of clean production

• Sets forth incentives for clean production in the forms of tax cuts and subsidies

Law of Prevention and Control of

Environmental Pollution by Solid

Waste (2004)• Comprehensive

revision of the original version(1996) by introducing the “Producer Responsibility System”

• Expands producer responsibility, and calls for the establishment of a mandatory recycling system

Circular Economy Promotion Law

(2008)

• Provides a legal framework for developing the economy, raising energy efficiency, protecting the environment and realizing sustainable development based on the 3R (reduction, reuse and recycle) principles

The development of fly ash utilization policies: related laws

The development of fly ash utilization policies: policies and regulations

Released in 1994, and currently under revision by NDRC and MIIT. New power station projects need fly ash utilization solutions in advance for approval; existing

power stations need to upgrade their systems for fly ash utilization. Ban any new solid clay bricks and tiles projects near power stations, ask existing plants as

well as new construction projects to use fly ash as mixture. Impose penalties on construction projects which could not meet the set target of fly ash

utilization. Ask power stations to provide subsidies to large scale direct users of their raw ash; power

stations could only sell fly ash after processing it in line with national standards, and prices should be in the buyers favor and based on actual processing cost and quality.

Ask power stations and end users to submit their statistics of fly ash discharge, utilization and storage status to government agencies on a regular basis.

Call for incentive financial and taxation arrangement for fly ash utilization. After the central government released the administrative measures of fly ash utilization, the

surrogates at the provincial and municipal level started to release their local regulations. For example in Shanghai, the municipal government decided to levy a special R&D fee (0.4

RMB per ton of fly ash output) on power stations in order to support the research of fly ash utilization in Shanghai.

Administrative Measures of Fly Ash Utilization


Released by NDRC in 2007 Set up a matrix to manage the clean production practice of power plants and define the

target and weight of fly ash utilization in the system Fly Ash Utilization Rate Target: 100% (coastal region), 60% (central and western

region) The weight of fly ash utilization rate in the matrix: 10% (other factors includes coal

consumption, emission, etc.)

Clean Production Performance Ranking and Indexes System for the Thermal Power Industry

Released by NDRC in 2006 Set up a national target of fly ash utilization rate at 75% by 2010 Ask for financial incentives, tax breaks as well as technical policies for resources

comprehensive utilization NDRC is currently drafting the 12th Five Year Plan (FYP 2011-2015) which might revise the

target and add more incentives Meanwhile, MIIT is also drafting a specific 12th FYP for comprehensive utilization of industrial

solid waste

11th Five Year Plan (2006-2010) Guidance of Resources Comprehensive Utilization


Released in 2003 by NDRC and Environment Protection Authority Defines a 30 RMB per ton of fly ash pollutant charge to levy on power

stations who could not meet the environment protection standards on fly ash handling and storage

Regulation on Levy and Use of Pollutant Charges

Originally released in 2002, revised in 2007 by NDRC. Defines a 10 RMB /m2 (might be different in various regions with 10 RMB as a cap) special fund

for promotion of new walling materials to levy on any new construction projects without application of new walling materials.

Defines a catalog of new walling materials including all walling materials (bricks, tiles, and etc.) made by fly ash (more than 30% raw materials are fly ash)

Defines the procedures to apply for financial support from the fund to develop and produce new walling materials

Regulation on Levy and Use of Special Fund for Promotion of New Walling Materials Application


Released in 2006 by NDRC and Ministry of Finance and State Administration of Taxation Defines a recognition and registration procedure for resource comprehensive utilization

projects A certificate secured after the recognition and registration procedure is a must for a tax

break and government financial support

Administrative Measures on the Recognition and Registration of Resources Comprehensive Utilization

Newly released in 2010 by NDRC, MOST, MIIT, MOHURD, MOLAR and MOFCOM Defines all of the technology supported by government in the resources

comprehensive utilization sector including various kind of fly ash utilization technology

Summarizes the preferential taxation policy for the comprehensive utilization of resources

Technical Policy Outlines for Resources Comprehensive Utilization


Released in 2008 by Ministry of Finance and State Administration of Taxation Specific building materials such as bricks, tiles, etc., made by fly ash (more than

30% of raw material is fly ash) could enjoy VAT exemption, but the manufacturer needs to secure a certificate from the local DRC to be qualified for the exemption

NO VAT exemption for direct sales of commercial fly ash or cenospheres, etc.

VAT exemption

The revenue generated from sales of building materials made by fly ash (more than 70% raw materials must be fly ash) could be reduced by 10% when calculating taxable income

The revenue generated from direct sales of commercial fly ash or balloon/bead could also be reduced by 10% when calculating taxable income

If the manufacturer could be qualified as a “New and High-tech Enterprise,” it could enjoy a CIT reduction from 25% to 15%

Corporate Income Tax Reduction based on the CIT Law released in 2007

Early stages(1950s-2000)

• The Chinese government started to promote fly ash utilization technologies in 1950 for hydropower projects

• Extended utilization to the building materials sector in 1960s and 70s

• Started to introduce resource comprehensive utilization polices in 1980s

• Started to introduce incentive policies for fly ash utilization in 1990s

Rapid development (2000-2010)

• Sustainable development, energy saving, and emission control became fundamental national policies

• Sped up the legislative process by introducing a set of laws related to fly ash utilization

• Started to draw up national plan, guidance, recognition and registration administrative measures as well as technical policy outlines.

• Introduced specific tax incentive policies

Review, improve and intensify

enforcement (2010 and beyond)

• Increasingly focused on environment-friendly development as well as technology upgrades

• Reviews existing regulations and policies, draws up specific national plan on industrial solid waste utilization and revises the out-dated administrative measures on fly ash utilization

• Further enhances law enforcement and introduces more incentive policies

The development of fly ash utilization policies: overview

• There are no major trade barriers, and foreign firms are encouraged by China’s government to be involved in the fly ash comprehensive utilization sector -- from equipment and technology supply to direct investment of fly ash utilization projects

• However, there are some invisible trade barriers such as:• Chinese government’s policies to promote indigenous innovation• Rising nationalism • Government procurement process that favor local companies• “Trading market for technology” policies• Opaque market and policy environment

The development of fly ash utilization policies: trade barriers

• China’s laws and regulations compliant with WTO’s TRIPS

• However, there are enforcement problems• Some practical steps:

• Register your IPR with the relevant bureaus• Include IPR clauses in your business contracts• Communicate all relevant corporate IPR policies to

your staff• Confidentiality agreements for staff with access to key

technologies • Understand China’s (often quickly changing) laws and

regulations, and different possible ways of redress.

The development of fly ash utilization policies: gradual progress in IPR




4. Summary analysis

Key Stakeholders

Australian Trade

Commission

Department of Foreign Affairs and

Trade

CSIRO

GreenpeaceGreentech Initiative

Sino-Foreign Fly Ash Utilization Initiative

Provincial Government

Municipal Government

National Development and

Reform Commission

Ministry of Industry and Information Technology

Ministry of Science and Technology

Ministry of

Commerce

Ministry of

Finance

Ministry of Housing and Urban-Rural

Development

Ministry of Environme

nt Protection

China Association of Resources Comprehensive

Utilization

China Building Materials Industry Association

China Coal Processing

and Utilization

Association

China Ashtech

Development Center

Other local and international companies as potential partners or

investors

Datang

Huadian

Guodian

Huaneng

CPI

Other IPPs

Solid Waste Utilization Technology Research Center

Fly Ash Research Center, Dezhou

Colleague

China Association of Resource Comprehensive Utilization (CARCU) 中国资源综合利用协会DescriptionCARCU is a national industrial association administrated by the SASAC. The mission of CARCU is to boost resource utilization efficiency, conserve energy, and protect the environment. It is dedicated to delivering comprehensive services to relevant government agencies and members through extensive policy research, consultancy services, technical promotion, market development, professional training, conference and exhibition as well as international exchange and cooperation.

The Board of Directors of CARCU consist of numerous entrepreneurs with expertise in comprehensive resource utilization. CARCU currently has over 600 group members and 140 individual members consisting of regulatory authorities, scientific research institutes, and enterprises.

Priority Ranking CARCU is a key shareholder for foreign companies for three reasons. First, it has a professional committee regarding fly ash utilization with a certain amount of fly ash utilization experts. Second, CARCU’s individual members include many former and current officials in relevant government departments. Third, since it provide various services in regard to integrated utilization of fly ash, it is familiar with the situation of its group members, including many power generation enterprises, and China’s fly ash market in general. CARCU encourages its members and the whole market to import advanced resource utilization technologies from abroad, and would like to promote international exchanges.

Engagement Suggestion• CARCU has extremely close relationship with NDRC and could be a gateway to engage

with NDRC. • CARCU participate World of Coal Ash and organize Chinese coal ash seminar and events

every year, which could be platforms for foreign companies to engage with them• Direct engagement could also be arranged to introduce foreign companies to CARCU• CARCU is also a leverage to influence the revision of Administrative Measures of Fly Ash

Utilization• Strongly suggest to establish direct and close relationship with CARCU

Priority: HIGHReceptiveness: HIGH

Key Decision Makers

Key Stakeholders

WANG Jiwei (王吉位 ) is the Secretary General of China Association of Resource Comprehensive Utilization.

Wang graduated from China Central South University with a major in mining engineering.

Wang used to work in China Non ferrous Mining Industry Corporation, China Non ferrous Mining Industry Association and

ZHANG Renwei ( 张人为 ) is current president of CBMF/CBMIA and previous head of the National Building Materials Bureau (1985 to 2001). Mr. Zhang is responsible for dealing with CBMF’s daily affairs, checking up on the implementation of CBMF’s internal decisions, nominating Deputy Secretary General and major leaders, etc.

China Building Materials Industry Association (CBMIA)China Building Materials Foundation (CBMF)中国建筑材料工业协会 / 中国建筑材料联合会DescriptionCBMIA/CBMF is a national industry association made up of building materials enterprises, civil organizations, and individuals. It is registered with the Ministry of Civil Affairs and administrated by the State-owned Assets Supervision and Administration Commission.

CBMIA/CBMF safeguards the rights and interests of building materials enterprises, promotes a fair and competitive market, advances scientific and technological progress and innovation, promotes international cooperation and exchanges, and assists the government with industry management.

CBMIA/CBMF provides consulting services on building materials development strategy, industrial policy, investment opportunities in building materials industry, the market analysis and demand forecasting, etc.

Priority Ranking CBMIA/CBMF is important to foreign companies because it is a bridge between the government and building material enterprises.

Engagement Suggestion• Institute of Technical Information for Building Materials Industry (foreign

companies’s co-sponsor of Asia fly ash conference at the end of October) is direct affiliated to CBMIA/CBMF, which could be a good leverage for foreign companies to engage with CBMIA /CBMF

• CBMIA/CBMF has good relationship and could influence government new walling material offices.

• Suggest direct meetings with CBMIA/CBMF to seek endorsement and supports to raise foreign companies’s profile in the building materials sector


Key Decision Makers

Key Stakeholders

China Coal Processing and Utilization Association (CCPUA) 中国煤炭加工利用协会Description of OrganizationCCPUA was formed in 1982. It is a nationwide association comprised of enterprises, organizations, research institutions, and individuals who undertake coal preparation and processing, environmental protection, energy conservation, coal quality control, and other coal business.

As a bridge between enterprise and government, CCPUA coordinates economic and technical relations between various authorities and industries. CCPUA promotes competition, improves efficiency, and supports sector development.

CCPUA has three departments: Department of General Affairs, Department of Coal Preparation and Processing, and the Department of Energy Conservation. Entrusted by the central-level State Administration of Coal Industry, CCPUA also gives guidance to the Coal Environmental Protection & Safety Center and various Mine Safety Supervision stations.

Priority Ranking CCPUA is important to foreign companies because it is a bridge between the government and coal industry for the comprehensive and clean utilization of coal. Engagement suggestion• CCPUA also has close relationship with NDRC and could be a leverage for foreign

companies to influence NDRC in long term.• Direct meeting and joint seminars could be helpful to engage with CCPUA and

gain their supports to raise foreign companies’s profile in the coal industry


Key Decision Makers

Key Stakeholders

LU Ying ( 吕英 ) has been director general of the CCPUA since June 2007. The director general is responsible for chairing the board of directors, and supervising the implementation of the decisions made by the members’ congress, the board of directors and the standing committee

Lu used to work in the Ministry of Coal Industry and the National Coal Industry Corporation.

Ministry of Industry and Information Technology 工信部节能司DescriptionA successor of the former Ministry of Information Industry (MII), MIIT was created in 2008 through the merger of MII, the State Council Informatization Office (SCIO), the Commission of Science, Technology and Industry for National Defense (COSTIND), and the industrial management and project approval functions of the NDRC. The reorganization expanded MIIT’s previous portfolio to span a much broader range of industries, including food, auto, equipment, textiles, chemical, steel and mining. The ministry’s core mission is to advance the level of energy-saving effects in steel, ferrous metal, construction materials, chemistry and other industries.

MIIT is therefore responsible for developing policies, regulations and standards covering industrial administration as well as reviewing and granting investment project approvals in sectors under MIIT’s supervision.Relevant Department• Department of Energy Saving and Resources Comprehensive Utilization

Priority Ranking MIIT is a key stakeholder for foreign companies given its role to formulate building material industry policies, clean production regulations and etc.

Engagement Suggestion• Suggest to seek meetings with MIIT after foreign companies has its pilot project

running in China, could then invite MIIT officials visit the pilot project or R&D center back in Australia• Keep monitoring MIIT policy and seek the engagement opportunity through

third party relationship

Priority: HIGHReceptiveness: Low

Key Decision Makers

Key Stakeholders

ZHOU Changyi ( 周长益 ), director general of the MIIT Department of Energy Conservation and Resources Utilization.

Zhou used to work in NDRC’s Department of Resource Conservation and Environmental Protection before the government reshuffle in 2003.

Zhou also worked in National Economic and Trade Commission and served in Chinese Embassy in U.S. during 1996-2000

Key Stakeholders

National Development and Reform Commission (NDRC)发改委环资司 Description of OrganizationNDRC is China’s leading ministerial agency tasked with monitoring and planning for macroeconomic issues and development. While not an industry-specific ministry, it has power and influence that typically exceeds all other ministerial-ranked bodies and it frequently encroaches upon other ministries’ remit should it deem the issue of national or macro importance. Despite a recent restructuring transferring several areas to other ministries, NDRC continues to be the most important macro-level policy decision-maker affecting the long-term business and investment environment in China.

Priority Ranking NDRC is a key stakeholder for foreign companies. First, NDRC or its provincial counterparts, will be the key decision-maker for foreign companies’s project approval. In addition, NDRC plays a leading role in shaping industry specific policies, such as the Administrative Measures of Fly Ash Utilization (together with MIIT) as well as the Industrial Catalogue for Foreign Investment as well as creating the national five-year plans. Relevant Department• Department of Resource Conservation and Environmental Protection

Engagement Suggestion• Suggest to seek meetings with NDRC after foreign companies has its pilot

project running in China, could then invite NDRC officials visit the pilot project or R&D center back in Australia• Keep monitoring NDRC policy and seek the engagement opportunity through

third party relationship

Key Decision MakersZHAO Jiarong ( 赵家荣 ),

deputy secretary general of NDRC and director general of the Department of Resource Conservation and Environmental Protection.

She used to worked in State Statistic Bureau and National Economic and Trade Commission and joined NDRC in 2003 as the director general of the resources conservation and environmental protection department and had been promoted as NDRC deputy secretary general since July 2010.

30


Ministry of Housing and Urban-Rural Development 建设部建筑节能与科技司、建设部科技发展促进中心

DescriptionMOHURD was established during the 2008 central government restructuring by absorbing the responsibilities of the former Ministry of Construction. The ministry is charged with formulating regulations and policies supervising the constructions of urban infrastructures and guiding China’s urbanization. A key task of MOHURD is to ensure effective planning for China’s urbanization, so as to ensure that urban expansion will take into full account the social, economic, commercial and environmental issues.

Priority Ranking MOHURD is an important stakeholder for foreign companies due to its role to promote new walling materials as well as new energy efficiency and resources comprehensive utilization technologies in the construction and building sector.Relevant Departments• Department of Building Energy Efficiency and Technology• Science and Technology Development Center of MOHURD.

Engagement Suggestion• Direct engagement with the Science and Technology Development Center first

and use it as a gateway to engage with MOHURD.• Suggest to consider and develop a joint project with the Center to promote the

foreign companies products from the pilot fly ash project in the building sector as new walling materials• Suggest to seek meetings with MOHURD after foreign companies has its joint

pilot project with the Center, could then invite MOHURD officials visit the pilot project or R&D center back in Australia


Key Decision Makers

Key Stakeholders

CHEN Yiming ( 陈宜明 ) , Director General of Department of Building Energy Efficiency and Technology.

Chen used to worked in Science and Technology Development center of the former Ministry of Construction.

YANG Rong ( 杨榕 ), present Director General of the Science and Technology Development Center.Yang used to worked in the Standardization Dept. of Ministry of Construction.




4. Summary analysis

Summary analysis: market entry platform

• China has a huge fly ash output every year, which will only keep growing with the pace of China’s economic expansion and the reality of China’s energy mix. The market will be huge for foreign companies if foreign companies provides innovative solutions and works with the right partner.

• However, there are already many local Chinese companies and research institutes working in this sector, although the majority utilization of fly ash in China is still at the low value-added end.

• Foreign companies will need a strategy to distinguish itself from those competitors and raise its profile in the market as an innovative leader. Leveraging the support from the Australian government, foreign companies might like consider establishing a Sino-Foreign Fly Ash Utilization Initiative, which could be:

• A platform to engage with government agencies for financial support and preferential policies; and,

• A leverage to raise the company profile to attract good partners and potential investors.

Thank You!

David Harris [email protected] Coal Ash Association www.asiancoalash.org

COAL ASH ASIA 2014Shuozhou City, Shanxi Province, ChinaSeptember 25th – 27th

*500+ industry leaders, technology providers and buyers*Delegations from the USA, Australia, India, Japan

Please join us!

mailto:[email protected]



http://www.asiancoalash.org/

Fly Ash Utilization in China Market Landscape and Policy Analysis

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