China's Cars Come in Green: Dispatch from the Shanghai Auto Show

by Alex Pasternack, New York, NY on 04.21.07

The simple fact that global automakers are throwing everything they have into two auto shows spaced just months apart speaks volumes about the former Bicycle Kingdom's appetite for the car. That the second show, starting in Shanghai on Earth Day, has gone eco-friendly is an acknowledgment of just how unhealthy that appetite could continue to be -- and a reminder of China's great opportunity to leapfrog to sustainable technologies, integrating green into its growth from the get-go. What's not helping the situation are low gas prices, which are controlled by the government (in Beijing, where over 1000 new cars hit the streets a day, a gallon of 93 octane gasoline costs a paltry $2.30). What is helping -- in spite of the upper class and government penchant for SUVs and luxury sedans -- is an ongoing push for small cars. An auto consumption tax introduced last year for instance, slashed taxes on low-emission vehicles and raised taxes on high-emission vehicles. In general, too, China's economical car culture remains stuck on smaller, more efficient models. Car manufacturers are listening. Among the show's highlights:

The newest Chevy Volt, Chinese hybrids and more below the fold...

Diesel: Volkswagon's Polo BlueMotion: as we reported earlier, this diesel gets 62 mpg average fuel consumption with 102g/km CO2 output, making it one of the cleanest internal combustion vehicles in the world. Though available in Europe, the BlueMotion (pictured above) is not yet sold in the U.S. due to current emission regulations. (VW's other greenery includes the Magotan, otherwise known as the Passat, which features an economical and low-emission engine, along with their highly efficient TFSI engine, to be manufactured in China.)

Fuel-cell: GM will show off its latest version of the sweet hybrid/electric Chevrolet Volt, with a fifth-generation E-Flex fuel cell stack; the prototype is more advanced than the one shown in Detroit three months ago, no longer relying upon a small gasoline engine as a backup. Honda will show its FCX Concept Car, its new fuel-cell vehicle, alongside its experimental Home Energy Station, which would provide hydrogen home refueling. Shanghai Automotive Industries Corp. (SAIC) will display a fuel-cell sedan with a fourth-generation stack, peak power output of 60 kW / 80.5 hp and a top speed of 150 km/h / 93 mph.

Hybrid: Like Chivas or the ubiquitous Audi A6, Buick is loved in China, and soon it will repay that love with its first ever hybrid model. The hybrid LaCrosse, which will be available by 2008, will not be sold in the U.S., not yet. Even sexier -- but less of a sure thing -- is Buick's new concept car, the gullwing Riviera, which has been outfitted with the same hybrid system set to be used in the LaCrosse. Meanwhile, Ford Motor Co.'s 52 models at the show will include its hybrid SUV, the Ford Escape; the Prius, already available in China, will show, alongside some hybrid Lexuses, like the LS600h L. China's first domestic hybrid cars come from Cherry and Roewe (or Rong Wei). The latter, a subsidiary of SAIC, has hybridized a Rover 75 (the company recently bought UK's MG Rover). Chery's hybrid is based on its A3 supermini. As a so-called mild hybrid, it is not able to run in electric-only mode, but the extra help given by the electric motor allows for fuel consumption of up to a claimed 94.2 mpg. Changan has a new hybrid gasoline-electric minivan. Meanwhile, SAIC is investing one billion yuan (US$129 million) in cleaner, more energy efficient vehicle technologies. The company hopes to produce 50,000 electric vehicles of various types by 2010, about 95 percent of which will be hybrids.

Natural gas: VW's EcoFuel Touran tall wagon is fueled by compressed natural gas, reducing CO2 emissions by twenty percent and NOx and CO emissions by eighty percent. Through a joint venture with Volkswagen, SAIC is aiming to produce 500 Touran hybrids before the 2008 Beijing Olympics.

Flex fuel: Honda's Fit FFV, runs on either 100% ethanol or a wide range of ethanol-gasoline fuel mixtures; the company has been producing and selling this in Brazil since the end of 2006.

Two big questions remain: considering that China's love for fuel efficient cars has more to do with wallets than pollution, how will domestic and foreign car makers (along with the government) encourage more advanced (and slightly costlier) fuel efficient vehicles? The Prius may be available in Beijing, but the only one I've seen is on a billboard.

Second, and related to the first: will foreign automakers transfer their green technology to their Chinese partners? As the New York Times reports:

Multinationals face repeated demands from Chinese joint venture partners to share the most advanced technology available. Katsumi Nakamura, president and chief executive of Dongfeng Motor, a joint venture in Hubei province between Nissan Motor and the Dongfeng Group of China, said that the Dongfeng side had tried to negotiate an agreement that would require the sharing of the latest technology.

But at Nissan's insistence, the final pact only calls for the sharing of "appropriate" technology. There may not be enough demand in China for advanced technologies like hybrid engines to justify the cost of setting up production in China that duplicate those in Japan, Nakamura warned.

Auto executives are reluctant to mention the illegal copying of technology in China, a problem that discouraged Chrysler from even trying to build minivans in China in the 1990s.

But, as Larry Burns, GM vice president of R&D, put it, “It’s in the best interest of the United States for China to diversify its energy resources.”

For cars, black is still the color of choice in China these days -- it's the best way to conceal all that stuff that comes out of the cars. But as long as the car obsession continues to grow -- and as long as China wants its economic growth to be sustainable -- green will need to be the new black.

The bioeconomy at work: renewable products from palm empty fruit bunches

Palm oil may have a bad reputation for the role it plays in tropical deforestation, but is definitely here to stay, as the industry is highly profitable and offers a ready replacement for petroleum products, prices of which will keep rising. However, in order to limit the expansion of plantations, it is crucial to get the most out of each hectare of the plantations that already exist. One way to do so is by recuperating the vast waste-streams that result from the processing of palm fruits. If these waste streams can be turned into value-added products, the pace of the expansion of new plantations may be somewhat slowed down.

For each tonne of crude palm oil (CPO) produced from fresh fruit bunches, the following 'waste' products become available: around 6 tonnes of waste palm fronds, 1 ton of palm trunks (after a life-cycle of 25 years per tree, and at 150 trees per hectare), 5 tons of empty fruit bunches (EFB, photo), 1 ton of press fiber (from the mesocarp of the fruit), half a ton of palm kernel endocarp, 250kg of palm kernel press cake, and 100 tonnes of palm oil mill effluent (POME). In short, a palm oil plantation yields a vast stream of biomass that is currently not used in a productive way (earlier post). Often, it is burned in the open air, or left to settle in ponds where the degrading biomass emits methane.

Over the past few years, many research efforts have been undertaken to make use of these waste products. Some of those look at utilizing the biomass as an energy source for green electricity and power (to power palm oil mills) or as a feedstock for the production of second-generation biofuels. Others have shown that a whole range of bio-based products can be made from the residues - products such as renewable and biodegradable plastics, packaging, paper and specialty products such as geo-textiles.


Here are some of the actual products.

ECOMAT®

	ECOMAT® is a type of mulch mat made from natural fibre for soil protection and erosion control. The major raw material used in producing ECOMAT® is palm fibres derived from empty fruit bunches (palm biomass) and it is eco-friendly material. From the invention of Ecofibrex, a fibre shredder machine, EFB are then shredded into fibres. These palm fibres are raw materials for products such as mulching, pulp and paper, packaging material, fibreboard, flowerpot, etc. With this breakthrough technology, air and soil pollution be eliminated, chopping of trees be reduced thus preserving and creating a green and clean environment.
	Mulching Mulching is a method for soil conditioning. It helps with moisture retention in the soil, thereby enhancing its quality for healthier plant growth particularly in hot countries with long periods of dry weather. In addition, it retards growth of undesirable weeds, detrimental to plants. Traditionally, various materials have been utilized for mulching. These include empty fruit bunches (EFB) from oil palm, wood chippings, plastic mats etc.
	ECOMAT® Mulching ECOMAT® is made from oil palm fibres. The nature of it allows for free flow of water through to the ground whilst also acting as a protective layer. Uses ECOMAT® is suitable for various plants including oil palm, rubber, durian and other fruit trees. Why should we consider using ECOMAT®? Essentially, ECOMAT® enhances soil quality:
	What are the advantages of Ecomat® mulching? 1. Reduce labor cost, i.e. weeding and up keeping of plants; handling of EFB. 2. Reduction on fertilizers, i.e. more efficient utilization of fertilizer. Fertilizer concentration on mats and gradual release into soil improves optimal absorption for plants. Losses of fertilizer in the surrounding areas away from plants are minimized. 3. Reduction of transportation effort and cost as the mats are easy to handle, i.e. compact and lighter. 4. Reduction in chemical usage, e.g. weed - killers and insecticides for beetles, etc. 5. Health and safety of staff are not unnecessarily compromised as there is less need to handle weed - killers that can endanger their health and well - being. 6. Easier recovery of loose fruits on the mats.

EcoPak®

EcoPak® are made from natural oil palm fibres. Using the latest technology, machinery and human expertise, EcoPak® products were developed with the following distinctions: -

Natural Product Processed by organic means, EcoPak® products contain no harmful chemical additives and colorings and are toxic-free. Natural Fibre Color EcoPak® products possess contemporarily attractive natural fibre-color unseen in any other type of packaging materials, making it a pure and natural product that is easily accepted by the general public. Eco-friendly & Environmental Friendly EcoPak® products are biodegradable within a short period of time after disposal, turning it into natural soil-like fertilizer, unlike other substances like petroleum byproducts, it takes more than a decade to biodegrade and it is poisonous. Provides the Finest Qualities for Food Packaging EcoPak® products has been tested and proven to preserve freshness of foods, even after long hours of storage, making it the most ideal packaging material for all types of food. Suitable For All Types of Packaging EcoPak® technology enables the creation of light, strong and durable packaging materials suitable for all types of products ranging from fruits, electronic item and etc.

China’s Olympic Dream Faces Pollution Woes

China’s Olympic Dream Faces Pollution Woes
by Jorge Chapa

The Chinese government has announced plans to ban 1 million vehicles from the streets of Beijing beginning July 20th. The intention is to reduce the city’s air pollution in time for the 2008 Olympic Games, which start August 8th. China has also announced that fuel prices will be raised by 18 per cent. While the two news stories are distinct from one another, both have the potential to take cars off the road and, perhaps, allow athletes to breathe a little easier at this year’s summer games.

China’s incredible growth and increasing energy demands are commonly known. The pollution in the city of Beijing just relays the environmental issues around the country’s fast-paced development. With the Olympics right around the corner, the Chinese government is well aware that the one thing that can destroy all their best laid plans is the heavy smog common in Beijing.

Already a large number of athletes are severely concerned about how competing in the Olympics will harm their health and chances at winning. The Australian track and field team, and the Canadian athletics team are skipping the opening ceremony due to concerns about pollution.

The million car ban will include 70% of all government and state-run vehicles. China’s government probably hopes that the recent increase in domestic fuel prices will dissuade drivers during the summer and slow down China’s hunger for new vehicles, though that seems unlikely. If there’s one lesson that China should take from this, it is that unfettered demand for oil consuming vehicles brings serious consequences that cannot easily be solved.

+ Beijing to Impose Odd-Even Car Ban During Olympics
+ China shocks with 18 percent fuel price rise
+ Oil price rise sparks mixed reaction

M'sia's PM clings to power but subsidy cuts a new blow

KUALA LUMPUR - MALAYSIA'S premier is clinging to power after disastrous polls, but disarray in the ruling party, a strong opposition and deep subsidy cuts make his future highly uncertain, analysts say.

Prime Minister Abdullah Ahmad Badawi has been beset by calls to resign since general elections in March when he was punished by voters, largely over rising prices of food and fuel.

In the transformed political landscape, opposition figurehead Anwar Ibrahim says he could seize power as soon as September with the help of defectors from government ranks in Sabah and Sarawak states on Borneo island.

And now Mr Abdullah has made the extremely unpopular decision to dismantle fuel subsidies, sending pump prices up 40 per cent from Thursday in a move applauded by economists but condemned by the public.

'God willing I hope Malaysians will not demonstrate over this,' Mr Abdullah said Wednesday after announcing the price hike, and warning it could suppress economic growth and drive inflation as high as 5.0 per cent this year.

'It is not an attempt to be popular, we have to think in the best interests of the people,' he said, sending countless motorists rushing to fill their tanks on the last of the heavily subsidised fuel.

The three-party opposition alliance seized control of five states and a third of parliamentary seats in the March 8 elections, in the worst ever result for the multi-racial coalition that has dominated Malaysia for half a century.

Mr Anwar, a former deputy prime minister who spent six years in jail on sex and corruption charges, needs to swing just 30 government lawmakers in order to seize power.

In a move to shore up his shaky support base, Mr Abdullah recently promised RM1 billion ringgit (S$423 million) for rural development in Sabah, plus RM1 million in constituency funds for each federal lawmaker.

'Abdullah is still reeling from attacks on his leadership and whether his government will collapse internally from defections,' said Mr Ibrahim Suffian from the Merdeka Centre opinion research firm.

'He needs to stabilise his position first by buying the loyalty of lawmakers,' he said.

Former premier Mahathir Mohamad, who handed over to Mr Abdullah in 2003 but quickly fell out with his successor, has added fuel to the fire by campaigning for his resignation.

Mr Mahathir has deployed strategies including resigning from the ruling United Malays National Organisation (Umno) and urging disgruntled government lawmakers to declare themselves independents.

For now, Mr Abdullah is being protected by rules introduced under Mr Mahathir which require would-be challengers to have the support of a third of the ruling party's divisions - a formidable barrier.

But political observers say the big test will be at Umno party elections in December when he must win the support of members who have been deeply shaken and disillusioned by the electoral setback.

The premier has repeatedly insisted he has a mandate to rule and that he will only discuss a transition of power to his heir apparent, deputy prime minister Najib Razak, after the party polls.

One factor in Mr Abdullah's favour is the lack of dynamic and popular leadership candidates, in a party which even insiders say is in desperate need of reform to prevent total oblivion in the next elections.

Mr Najib is his heir apparent, but he is seen as an old-guard figure while Trade Minister Muhyiddin Yassin, a respected and rising figure in the party, is another name commonly touted.

In a bid to boost his credentials, Mr Abdullah has appointed critics to his cabinet, announced anti-corruption plans and signed up several disaffected members of Mr Anwar's Keadilan party.

'Abdullah has now gone on the offensive,' said Ms Tricia Yeoh from the Centre for Public Policy Studies.

'Right now no one can predict what the nature of Umno and the country's political make-up will be,' she said. 'But as we get nearer the party elections, we will be able to see how far Abdullah is willing to go to continue ruling this country.' -- AFP

汽油起78仙‧柴油涨1令吉‧电费7月也调高

（布城）首相拿督斯里阿都拉今日（週三，4日）下午5时宣佈调整汽油价格的同时，也宣佈从7月1日起提高大马半岛用户的电费。

Ron97汽油每公升起78仙，即从现有的每公升1令吉92仙调高至2令吉70仙。Ron92汽油每公升同样调高78仙至2令吉66仙；而柴油则每公升起1令吉，从1令吉58仙调高至2令吉58仙。

新的油价將从午夜起生效。

电费採取多用多付制

至於电费，国能继续採用多用多付机制，每月消费200千瓦特或43令吉60仙以下电费的用户不受影响，这类用户佔59%。

阿都拉在新闻发布会上披露，根据新的电费结构，家庭和工业用户的电费將提高26%，而用电量低於200千瓦特的小商、家庭工业和小餐饮业者的涨幅则是18%。

更新路税可获回扣

谈到汽油价格时，他说，在减少汽油津贴后，政府將会根据私家车引擎的容积，在车主更新路税时给予现金回扣；1999cc以下的轿车每年可以取回625令吉，而250cc以下电单车的现金回扣是150令吉。

至於250cc以上的电单车，路税减少50令吉。

“至於拥有2000cc以下的私人多用途货卡车（TrakJip）及2500cc以下的私人用途吉普车，每年也將获得625令吉的现金回扣。”

2000cc以上轿车回扣200令吉他说，现金回扣涉及从今年4月1日至明年3月31日更新路税的车子，车主可从今年7月1日起通过邮政匯票领取现金回扣。2000cc以上的轿车的路税將获得200令吉折扣。

至於减低路税的优惠，则从6月1日起生效。

阿都拉也说，政府將向独立发电站和棕油厂分別徵收30%及15%的暴利税。

他指出，政府虽然允许汽油涨价，但家用煤气和德士使用的液化天然气则保持原状，不受影响。

政府预料大马的消费指数將因此提高不超过1%，但政府可因此节省48亿7000万令吉的津贴。

重组汽油津贴架构

●汽油价格將根据市价浮动，不过，政府给予每公升30仙津贴，每月检討。

●週四（6月5日）调整燃油价格，汽油调至2令吉70仙。

●柴油每公升起1令吉，至2令吉58仙。

●继续通过柴油卡津贴公共交通业者及渔民。

●2000cc以下的私家车，2500cc以下的多用途卡车和吉普车，更新路税享现金回扣625令吉，250cc以下电单车的现金回扣是150令吉。回扣由7月1日通过邮政匯票支付。

●2000cc以上的汽油和柴油车，获得200令吉的路税回扣。250cc以上的电单车的路税回扣50令吉，胥视最低2令吉的路税而定。由6月1日生效。

●国家能源公司从7月1日起调高电费。电费將继续採用多用多付机制，每月消费43令吉60仙或200千瓦特以內的用户不受影响。

●家庭和工业用户的电费將涨26%，而用电量少过200千瓦特的小商和小餐饮业者的涨幅则是18%。

●电费调整只涉及马来半岛，东马两州並不受影响。

●向独立发电站和棕油厂商徵收暴利税。

●家用煤气和德士普通使用的液化天然气价格保持不变。

●北马及南马边境油站不准外国汽车添油的禁令已取消。

星洲日报‧2008.06.04