Menturion

Insights into China and India’s Water and Renewable Energy Market

Depletion of Natural Resources and Energy Demands Show Increasing Need for Renewables and Water Filtration

By Fei Wang www.China-AsiaStocks.com and www.IndiaStockMarket.com January 2006

China and India’s aggressive economic growth over the past two decades have provided significant increases in the standard of living for hundreds of millions of residents. This increase has also produced environmental disasters: deforestation, flooding, water pollution and land degradation continue to worsen. There has been a dramatic increase in the demand for natural resources of all kinds, especially water and energy in both these countries, which creates opportunities for foreign investors involved in the water and renewable energy sectors. However, due to the differences in the composition of natural resources, population structure, and political environment, opportunities and challenges vary between countries. How do these differences affect doing business in those two countries? Which country has bigger potential for growth in these two industries?

Water Treatment

- Background

High density population in both countries, along with a move toward urbanization and industrialization, has placed significant pressure on their infrastructure and its natural resources. According to the report from World Water Forum, in China 60 million people are having difficulty getting access to water, almost three times that number drink contaminated water daily. 400 out of a total of 668 Chinese cities are having water shortage problems, only 30% of which have had some wastewater treatment. India’s water quality is the second worst in the world. According to India Asia News Portal, only 40% to 50% of the Indian population has enough supply of water. The publics have to get their own water from wells (see picture 1).

- Water Industry Opportunities

Many experts believe, after the oil and natural gas market exploded that water will be the next oil for the following 20 to 30 years representing a considerable opportunity for growth in this arena. China is planning to build 200 to 400 more power plants, but there is not enough water to fuel these plants. Opportunities clearly exist. According to a recent economic survey, nations in the Middle East will need to invest an estimated $73 billion in water desalination plants during the next three decades in order to meet rising demand for domestic, industrial and agricultural water.

This trend has already appeared in the US stock market. Many water sector stocks are showing a very strong growth trend. The American Stock Exchange(R) (Amex(R)) announced on Aug 11th that it has begun publishing the Palisades Water Index (Ticker Symbol: ZWI); a new index comprised of publicly traded companies engaged in the global water industry. The index was created by a venture between Hydrogen Ventures, LLC and WaterTech Capital.

When it comes to the China and India water market, Steve Hoffmann, President of WaterTech Capital said: “Between India and China, China has, at least at this point in time, better natural water resources than India because water systems in China are fairly extensive. India on the other hand, does have a variety of surface water to draw upon, but a lot of their surface water availability comes in the form of monsoons, and many of them are lost during flooding. Therefore, relatively speaking, between China and India, at this point, India is more water stressed than China. Current situation with China is they are spending an enormous amount of money on water infrastructure, creating visibility from Olympics and other publicity. I think also their economic situation puts them in a better position right now than India. Fairly, the water industry around the world thinks China is an enormous market. “

Renewable Energy in High Demand

- Background

Continued inflow of foreign investment and the improved standard of living of both Chinese and Indian people have inadvertently pushed up demand for energy. During the first half this year, China produced 1.128 trillion KW electricity, while consumption equaled 1.148 trillion KW, a shortage of 0.02 trillion KW. According to a recent report by Jean Ku and Debra Lew from the National Renewable Energy Laboratory (NREL), Shi Pengfei of the China Hydropower Planning General Institute and William Wallace of United Nations Development Programme (UNDP), more than two-thirds of its provinces suffered blackouts last year due to a shortage of generators, problematic coal and transport links, and water shortages.

- Opportunities in Renewable Energy

Renewable energies, especially wind and solar, represent viable solutions to the power shortage problems. “Strengthening the development and use of renewable energies is a must for us to address the increasingly serious energy and environmental issues,” China president Hu Jingtao said in a statement, “China attaches great importance to…renewable energy and takes it as one of the most important instruments for promoting social and economic development,” (quoted from The Wall Street Journal http://online.wsj.com/article/SB113140558502290495.html).

- Solar Energy

China’s production and application of solar energy heaters is leading the world. A total of 52 mln square meters have been applied in 2003, representing 40 percent of the total amount of the world. Debra Lew, Senior Project Leader at NREL explains, “China is the largest solar water heating market in the world. The technology is already used extensively, but there is great potential for them to expand use in the residential, commercial and industrial sectors. Solar photovoltaics (PV) used to produce electricity is also already widely used in China, especially in rural areas to provide electricity. The government recently installed nearly 20 MW to electrify all townships that were previously unelectrified. Megawatt-scale projects in urban areas are also being installed..” Lew also stated “Solar is also doing well in India. India also has a large rural population that is remote and difficult to electrify with conventional grid extension. Solar has been used in India as well to provide electricity to those remote areas.”

China is Shell’s (NYSE: RDS-A) largest solar market in the Asia Pacific region today. In the last 10 years they have installed more than 7 MWp of solar power in more than 50 projects. According to Shell Solar Media Relations Officer Alexandra Wright, “Shell Solar looks at a variety of matters when deciding to pursue renewable projects (in China and India market), including of course traditional business drivers such as critical mass and regulatory regimes. Solar opportunities are encouraging in both countries as we are looking to bring energy to individual households, and investigating the potential for a system that would power entire villages. Shell is now in the second phase of the Xinjiang project which will power around 75 villages in China.”

XsunX, Inc., (OTCBB: XSNX), a company focused on Building Integrated Photovoltaics, anticipates a significant need for alternative energy generation technology in developing countries such as China and India. Tom Djokovich, CEO of XsunX, Inc stated, “For XsunX, China with about 20% of the worlds population and India with about 17% represent one of the more compelling opportunities for sustained growth in the utilization of solar energy production. Additionally these two developing countries are experiencing a significant increase in the demand for electrical power. At the same time the developed and developing parts of the world are competing for a finite amount of fossil fuels to power growing demands. This has not gone unnoticed by the governments of China and India. India’s government is preparing to embark on the development of major national programs to promote the development of solar energy systems in centralized and decentralized applications. While China has enacted a renewable energy law designed to promote, among other things, the wide scale use of PV technologies in the design of buildings.”

“In these developing nations the practicality and cost benefits of deploying solar technologies in lieu of building mass centralized fossil fuel powered generation plants, transmission, and distribution systems can and should be viewed as an investment in long term national energy security. At XsunX we are working to complete the development of semi-transparent PV thin films for use in glass building facades. The use of our Power Glass® films as a building integrated PV technology could find opportunities in China and India as these developing nations work to leverage a myriad of technologies in building energy security and independence,” concluded Mr. Djokovich.

Suntech power Co. Ltd, a Chinese based solar power company has also Identified opportunities for renewable energy in Asia. The Company went public on December 14th this year through an IPO becoming a shining light of solar energy stocks. Suntech Power rose 34 percent to $21.10 in their U.S. market debut on Wednesday, a day after pricing at the top of a recently raised forecast (forecast range raised from $11-$13 to $13 - $15 on Tuesday).

- Wind Energy

“Wind power has huge potential to address some of those (power shortage) problems”, said Lew, “India currently is out- competing China in terms of wind power because of their aggressive policies. With an estimated potential wind power capacity of 250 gigawatts onshore and 750 gigawatts offshore, China has world-class wind resource. But their installed capacity of wind power was only 764 MW (see table 1) at the end of 2004, far less than India, which actually has a much more moderate wind resource. India leads the Asia market with an installed wind capacity of 4200 MW. “

The critical factor that has led to this difference, according to Lew, is the government policy. “Driving the development has been the policy not the renewable energy resource. India’s wind resources are not as strong, but the government has been developing its wind market much more aggressively, with aggressive policies and financial incentives. However, China is catching up; especially with the new renewable energy law that comes effective January 2006. They (Chinese) have set very aggressive targets for renewable energy to meet as a certain percentage of power supply (10% of its power, with 20 GW of wind, and 1 GW of solar by 2020. And in the recent Beijing International Renewable Energy Conference the government announced a new target of 15% RE by 2020 with no announcement of specific breakdown). In the new law, China is going to institute a 0.25RMB/kWh subsidy for wind energy which should help drive development,” described.

Table 1 Quoted from: Fuelling China’s Development through Wind Power

GE Energy is very optimistic about both China and India’s markets. Beijing Guotou Energy Conservation Company has selected GE Energy as the turbine supplier for two new wind farms in Hebei and Xinjiang provinces of China, announced GE at Power-Gen Asia 2005. “China has a vast wind resource and an increasing need for electricity,” stated Robert Gleitz, General Manager of GE Energy’s wind segment in their news release. GE Energy has also supplied steam turbine generators to all major power utilities in India, which accounts for 10% of India’s installed thermal power generation capacity. “India offers very exciting opportunities for the wind industry. With an untapped wind power potential estimated at 45,000 megawatts, and strong interest in adding renewable energy capacity, the country can be a cornerstone for wind energy development across Asia,” states Gleitz.

Water and Renewable Energy Market’s Future

Hoffmann believes that China’s water industry potentially has a brighter future than India’s. He explains:” I definitely think China has greater opportunities to mitigate their situation for a number of reasons: as developing countries, both India and China are very rural, although China I think they have a greater urbanization rate than India at this point. In China, a lot of income potentials are in the major cities and more people move into cities. This is creating a fair amount of necessity on the part of China at least to really evoke some large centralized treatment and I think given that the Olympics will be there in 2008, they are certainly more visible and they will be quicker dealing with their water situation than India may. Also, you can see a fair amount of capital flow into China. A lot of global water players (such as GE) are actively courting China to partner in large centralized water treatment facilities. So I think they are getting a flow of funds that you can say will help them develop faster. Most importantly, from table 2, you can see, based upon the United Nation’s Population growth statistic, over the period 1990 to 2025, India will surpass China relative to water stress. This is primarily depends on current population growth, because India right now has higher population growth rate than China. The future of both countries will be primarily dependent upon their future population growth. If both countries can moderate their population growth, they will certainly be in a better position from a water stress point of view. “

Table 2: Quoted from WaterTech Capital

When it comes to which market will have brighter future in renewable energy sector, Lew said, ” (In terms of natural resources), China definitely has better wind resources, and very excellent solar resources in the north and west, but there isn’t a lot of demand out there, so it is hard to say how useful it is.” However, in terms of government policy, “India really got a jump on the policy side, and this has attracted international wind companies who manufacture turbines and blades there. India’s wind market is one of the top in the world now. On the other hand, China’s new law and new subsidy in 2006 will be a huge boon to wind to China, “explained Lew.

Fei Wang

Fei Wang holds an Honors Bachelor of Commerce from University of British Columbia Sauder Business School, with double major in Finance and Marketing. She has experience in investment banking and advertising in Canada, China and Korea, with a firm academic background. Full article:http://www.China-AsiaStocks.com/Articles/China_India_Wate r.asp Disclaimer: www.InvestorIdeas.com/About/Disclaimer.asp ©Copyright InvestorIdeas 2006

US are far lesser compared to building the wind turbines overseas and then shipping them. These systems are a leading projects in the green energy system that promises to support whoever will win in the Obama versus McCain presidential elections.

Another area of the green energy system is the solar thermal power plants. Although the entire Obama versus McCain on wind energy use issue can be a strain, it is at the very least still comforting to know that the country can depend on the green energy system to address the pressing concerns of oil and wind power problems that have arose and may be arising. I want to answer your question in simple terms. Here is how wind power works…it all starts with the wind…duh right? The wind then rotates the blades of the windmill. This turning of the blades then turns a turbine inside the windmill apparatus, which then turns a shaft at the bottom of the windmill. This shaft then powers a generator, which produces the free electricity!This process is really simple, it actually probably doesn’t even need an explanation!Now, how can you get your own windmill to make great free electricity? It’s very easy and all that is needed are reliable home windmill instructions to follow. Many people don’t realize that a home windmill can be built for just about $200 or less. Many people do not believe they can save money with wind generators because they do not have enough wind where they live. Wind generators can be effective in most places, because only 6-8 miles per hour of wind are needed to be effective, maybe even a little less - and unless you live in a giant plastic sealed dome, the chances are, you most likely have enough wind in your area. If you do not have that much wind in your area, then you probably have tons of sunlight - so there is always an option for you to gain energy to stimulate your needs to save cash by using alternative sources of energy!How Much Do Alternative Energy’s Cost? Believe it or not, solar panels cost an enormous gripload of cash.

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Algebra is an important field of study but students can be disheartened initially if they do not work hard enough in early stages. This makes initial math skills important to help students successfully pass algebra and move on into broader math with self-assurance.

How to Successfully Deal With Algebra

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How to Make Use of Algebra Software

Some algebraic software shows results only, while some other (most suitable for elementary use of algebra) show all the steps as well as explanations of math theories that are in use. Students mostly concern over the ease of use of software. Thus, the software better be loaded with value added features like high quality and timely user support, coordinated help options, and simply explained math tutorials.

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The Difficult Areas

Algebra includes many areas of study, graphing curves being one of them. This could include charting a circle, graphing systems of fractional inequalities, graphing inequalities or graphing quadratic equations . Another topic that is part of algebra has to do with exponents. This can range from subtracting exponents, dividing exponents or just employing the laws of exponents. Rationalizing, factorizing, matrices, hyperbolas and quadratics all have to do with algebra.

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How to Find Assistance for Algebra

There are a large number of software systems that can help pupils. These programs provide bit-by-bit guides to help pupils through their difficulties. These software programs can aid you with your homework, test readiness and even exam readiness! As algebra has a vast number of sub-sections you can pick out computer software packages that link to your specific difficulty or problem. This could be basic algebra, algebra 1, algebra 2 or just graphs. Some computer software packages also include games and videos that could further develop your algebraic skills.

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Doctors who specialize in cancer treatment decide what type of treatment to pursue with each patient. There are numerous options. There are no regular treatment option for malignant mesothelioma sufferers. This is because of the relative rareness of the disease, the high mortality rate and low treatment success rate, and the few scientific studies to provide meaningful statistics.

The prospects for mesothelioma patients have been grim, but doctors have recently made progress. Traditional treatments for cancer are surgery (removing the tumor and surrounding tissue), chemotherapy (poisoning cancerous cells) and radiation (killing cancer cells with radiation) There are problems with all three. Traditional radiation therapy has not worked well with mesothelioma patients. Researchers are looking for ways of aiming radiation directly at the tumor in hopes that this will result in less damage to healthy tissue.

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Wind is one of the cleanest, if not cleanest, renewable energy sources available to us. What most people don’t know is it is also the fastest growing energy sector.

Wind is an indirect version of solar power. Different surfaces on the Earth react differently to being hit by sunlight, particular in regards to heat. As sunlight heats up surfaces, they warm up at different rates. The surround air also warms up at different rates, fertilizing the wind process. Temperatures over a body of water like a lake will always be cooler than temperatures over rocky ground. Hot air rises and cool air rushes into fill such voids. As this process occurs, the rushing air manifests as wind and an incredibly cheap and clean energy source.

The fact that wind is a naturally occurring event makes it a great energy source. Consider the following:

1. Wind is a renewable energy source because it will exist as long as sunlight beats down on us. 2. Wind has been used by man as an energy source ever since we’ve sailed boats.

3. The first windmills were used to turn wheels to grind grain in Iran.

4. American colonist used windmills to move water, grind grain and cut wood.

5. Wind energy harnessed by windmills was a dominant source of energy in rural America in the 1920s.

6. In modern times, California is the biggest user of wind power and produces twice as much electricity as any other state.

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12. More than 30 states have wind farms generating and supplying electricity to utility companies.

13. California, Texas, Minnesota, Iowa, and Wyoming are the dominant forces in producing energy from wind.

14. The biggest energy producer from wind is Germany, which is also dominant in solar power production.

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