9
The Huainan Experience

PHYSICAL, ECONOMIC, AND SOCIETAL SETTING

Huainan is an industrial city and an important Chinese energy base relying on the coal, electric power generation, and chemical industries. It is located in north-central Anhui Province, roughly 100 km from the provincial capital of Hefei, and 250 km from the city of Nanjing in neighboring Jiangsu Province. It has a mild climate and the topography is mostly plains, located around the central part of the Huai River, which traverses the city from west to east. The northern shore of the Huai River is the Huaibei plain; the southern shore is a hilly area. In 2004, the total area of the city was 2,585 km2, of which the urban area was 1,489 km2, and the population was 2,335,800, of which 1,625,100 were urban.

In 1984, together with Chongqing, Dalian, Qingdao, and other cities, the State Council approved Huainan as a county-level city, granting it local legislative power. In 1985, the State Council approved the city as an open city (i.e., open to foreign investment). As a county-level city, Huainan administers five districts (Figure 9-2), a national-level experimental zone, and a provincial-level economic development zone. Huainan’s ecology has also earned it the distinction of being a provincial Garden City, which is a measure of environmental improvement, and is awarded by the Ministry of Construction. Huainan has also endeavored to become a National Model City for Environmental Protection (see Chapter 4).

Huainan is in a warm temperature zone with a monsoon climate and with four distinctive seasons. The annual average temperature is 15°C, and the annual average rainfall is 970 mm. Huainan’s four distinct seasons are also characterized by different pollution characteristics. In the fall and winter, the air is dry and cold and the pollution level is worse than that in the spring or summer due, in large



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9 The Huainan Experience PHYSICAL, ECONOMIC, AND SOCIETAL SETTING Huainan is an industrial city and an important Chinese energy base relying on the coal, electric power generation, and chemical industries. It is located in north- central Anhui Province, roughly 100 km from the provincial capital of Hefei, and 250 km from the city of Nanjing in neighboring Jiangsu Province. It has a mild climate and the topography is mostly plains, located around the central part of the Huai River, which traverses the city from west to east. The northern shore of the Huai River is the Huaibei plain; the southern shore is a hilly area. In 2004, the total area of the city was 2,585 km2, of which the urban area was 1,489 km2, and the population was 2,335,800, of which 1,625,100 were urban. In 1984, together with Chongqing, Dalian, Qingdao, and other cities, the State Council approved Huainan as a county-level city, granting it local legislative power. In 1985, the State Council approved the city as an open city (i.e., open to foreign investment). As a county-level city, Huainan administers five districts (Figure 9-2), a national-level experimental zone, and a provincial-level economic development zone. Huainan’s ecology has also earned it the distinction of being a provincial Garden City, which is a measure of environmental improvement, and is awarded by the Ministry of Construction. Huainan has also endeavored to become a National Model City for Environmental Protection (see Chapter 4). Huainan is in a warm temperature zone with a monsoon climate and with four distinctive seasons. The annual average temperature is 15°C, and the annual average rainfall is 970 mm. Huainan’s four distinct seasons are also characterized by different pollution characteristics. In the fall and winter, the air is dry and cold and the pollution level is worse than that in the spring or summer due, in large 

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 ENERGY FUTURES AND URBAN AIR POLLUTION FIGURE 9-1 Huainan in China. part, to a higher rate of coal-burning for commercial and residential heating. Rain and wind during the monsoon season help to reduce local air pollution as well. Huainan’s leaders have been espousing the concept of the “Three Bases,” a goal that by 2010 Huainan will (1) produce 100 million tons (3 EJ) of coal per year; (2) be an important supplier of electrical power in Eastern China; and (3) establish itself as the regional base for the chemical industry. The concept of the Three Bases was first put forward by former President Jiang Zemin, and has since become the guiding strategy in the city’s development. Industry dominates Huainan’s economy, particularly primary industries like energy raw materials (coal) and agriculture. The chemical industry is also a prominent part of the local economy, producing large amounts of ammonia, fertil- izer (401,000 tons and 222,000 tons in 2004 respectively), and other chemicals. The city’s GDP reached 21.5 billion RMB in 2004, an increase of 16.2 percent over the previous year, reaching the 10th Five-Year Plan (FYP) target a full year in advance. GDP in 2005 was estimated at 26.0 billion RMB, another increase of over 16 percent. Urban residents had a per capita income of 8,530 RMB (US$1060) which represented a similar increase of 15 percent from the year prior,

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 THE HUAINAN ExPERIENCE FIGURE 9-2 Huainan municipality administrative map. while rural farmers had a lower income of 2,700 RMB, increasing only 5 percent from the previous year (Huainan Municipal Government, 2005). Anhui University of Science and Technology is the major regional university, playing a key role in mining research, with a strong emphasis on environmental engineering. Industry also plays an important role in Huainan’s research capacity. The Huainan Chemical Group maintains the Research Institute of Chemical Designing with a research staff of 140, who focus much of their work on coal technologies, in particular, coal gasification technologies utilizing locally mined coal. Within the Huainan Mining Group is the Development Center of Science and Technology, containing 6 laboratories and 98 research personnel. The Develop- ment Center has been instrumental in researching, developing, and disseminating technologies for capturing and utilizing coalbed methane (CBM) (HBST, 2005). In 2005, China’s National Development and Reform Commission approved a

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 ENERGY FUTURES AND URBAN AIR POLLUTION National Engineering Center for Coal Gas Control, to be partially based in Huainan. This center will focus on coalmine disaster control and prevention, geology, and safety technology (Xinhua Net, 2005). SOURCES AND LEVELS OF AIR POLLUTION Air pollution, as well as contamination of other media in Huainan, is believed to be dominated by industrial activity, most notably by the energy raw materials sector. In 2005, the total amount of waste water, gas, and solids emitted by energy materials production was estimated to be 81-95 percent of all industrial emis- sions. Energy consumption per unit GDP was 49 percent higher than for other industrial sectors. The emission of waste water and gaseous pollutants were 27-49 percent higher, and the air emissions from electrical power generation and the coal chemical industry were 50 percent higher than other industries. SO 2, smoke dust, coal waste, and fly ash from these industries amounted to 99.9 percent, 99.47 percent, 60.5 percent, and 34.5 percent, respectively, of Huainan’s total air emis- sions (HEPB, 2005). Industrial waste gas emissions outpaced residential-sector emissions by a ratio of approximately 40 to 1, and of those industrial emissions, roughly 92 percent were from fuel combustion, as opposed to other manufactur- ing processes. In 2005, total SO2 and dust emissions were 119,000 and 33,000 tons, respec- tively, 28 percent and 12 percent higher than those of 2000 (HEPB, 2005). The resulting ambient annual average concentrations for SO2 and NO2 in the urban area in 2005, based on four monitoring sites, were each 0.030 mg/m 3, satisfying Class II standards for those pollutants according to China’s Ambient Air Quality Standards (see Chapter 4). The PM10 average value was 0.104 mg/m3, which satis- fied Class III standards. The monthly average dust deposition through 2005 was 7.0 ton/km2, which did not exceed the standard. The annual average pH value for precipitation was 6.98 and there was no evidence of acid rain detected in samples. Detailed data on specific pollutants follow. Criteria Pollutants Sulfur Dioxide (SO) From 2001 to 2005, the annual average SO2 concentrations in the urban dis- trict steadily increased. Figures 9-3 and 9-4 show annual average SO 2 concentra- tions from four monitoring sites in the urban district and in three administrative districts, respectively.

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 THE HUAINAN ExPERIENCE Huainan Farm E&TDZ Xiejiaji Govt Huainan Normal College City average 0.060 Class II minimum 0.050 0.040 Class I minimum mg/m 3 0.030 0.020 0.010 0.000 2001 2002 2003 2004 2005 FIGURE 9-3 Annual average SO2 concentrations at monitoring sites in the urban district of Huainan, 2001-2005. Datong Tianjia'an Xiejiaji 9-3 0.035 Class I 0.030 0.025 3 mg/m 0.020 0.015 0.010 0.005 0.000 2001 2002 2003 2004 2005 FIGURE 9-4 Annual average SO2 concentrations at monitors in three administrative districts of Huainan, 2001-2005. 9-4 Nitrogen Dioxide (NO) From 2001 to 2005, the annual average NO2 concentrations increased in the urban district, notably in the E&TDZ and Xiejiaji areas, though the overall aver- age for 2005 still satisfied Class I standards (Figure 9-5).

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 ENERGY FUTURES AND URBAN AIR POLLUTION Huainan Farm E&TDZ Xiejiaji Govt Huainan Normal College City average 0.050 Class I minimum 0.045 0.040 0.035 mg/m 3 0.030 0.025 0.020 0.015 0.010 0.005 0.000 2001 2002 2003 2004 2005 FIGURE 9-5 Annual average NO2 concentrations at monitoring sites in the urban district of Huainan, 2001-2005. Datong Tianjia'an Xiejiaji 0.050 9-5 Class I 0.040 0.030 3 mg/m 0.020 0.010 0.000 2001 2002 2003 2004 2005 FIGURE 9-6 Annual average NO2 concentrations in three administrative districts of Huainan, 2001-2005. 9-6 Particulate Matter (PM0) Between 2002 and 2005, PM10 concentrations in the urban district declined slightly, though they still exceed the Class II standard. The PM10 annual aver- ages for 2002-2005 are shown in Figure 9-7, as measured in the urban district. Figure 9-8 shows PM10 annual averages from three administrative districts and

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 THE HUAINAN ExPERIENCE Huainan Farm E&TDZ Xiejiaji Govt Huainan Normal College City average 0.160 Class II minimum 0.140 0.120 mg/m 3 0.100 0.080 0.060 0.040 0.020 0.000 2002 2003 2004 2005 FIGURE 9-7 Annual average PM10 concentrations at monitoring sites in the urban district of Huainan, 2002-2005. NOTE: Prior to 2002, TSP was measured rather than PM10. 9-7 Datong Tianjia'an Xiejiaji Class III 0.160 0.140 Class II 0.120 0.100 mg/m 3 0.080 0.060 0.040 0.020 0.000 2002 2003 2004 2005 FIGURE 9-8 Annual Average PM10 concentrations in three administrative districts of Huainan, 2002-2005. 9-8

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0 ENERGY FUTURES AND URBAN AIR POLLUTION indicates that the Xiejiaji area in particular experienced the most dramatic decline in PM10 concentrations over 4 years—though it is still not quite in attainment of the Class II standard. Dust Fall From 2001 to 2005, the average dust fall in the urban district ranged from 6.2 to 7.6 ton/km2 per month, averaging 7.0 ton/km2 per month over those 5 years. The maximum value of 7.6 ton/km2 per month occurred in 2001 and the minimum value of 6.2 ton/km2 per month occurred in 2003. A closer look at dust fall rates at various locations reveals that the range was much greater within Huainan. The Huainan Steel Factory and Xinzhuangzi Mine in particular experienced high rates (in excess of 11.0 ton/km2 per month) during this time period (Figure 9-9). Figure 9-10 shows that the Bagong Hills area experienced the highest rates of dust fall while Xiejiaji experienced a significant decline between 2002 and 2003. Air Quality Trends From 1996 to 2000, the comprehensive index in Huainan gradually decreased, signaling that air quality was improving. The comprehensive index for 1996 was above five (poorest air quality, according to China’s Air Pollution Index), while the 5 index steadily decreased from 1997 to 2000. The average comprehensive index of the 10th FYP (2001-2005) was 2.4, 38 percent lower than that of the 9th FYP (1996-2000). The quantitative amount of this trend may be impacted by the change in analysis parameters, such as the transformation from TSP to PM 10, and from NOx to NO2, and the change in monitoring method from manual monitoring to automatic monitoring, which improved the quality of the data. Qualitatively, it can be noted that the comprehensive index of the air pollution was kept at a relatively low level in the 10th FYP, even as the city’s GDP increased annually; but it also should be noted that certain pollutants, namely SO2, gradually increased after a period of decline from 1996 to 2000. From 2001 to 2005, SO2 and NO2 levels increased, while PM10 and dust fall decreased. Table 9-1 summarizes these trends. Specifically, the daily aver- age values of SO2 and NO2 in 2005 increased by 66.7 percent and 20.0 percent, respectively. The average values of PM10 and dust fall decreased by 23.0 percent and 17.1 percent over the same period. The pH value in the precipitating rain in 2005 decreased 0.8 percent, though it was still not considered acidic. Indeed, the pH tends to suggest an abundance of alkaline material. Comprehensie Index Trends, �00 Figures 9-11, 9-12, and 9-13 show the monitored results of SOx, NOx, and PM in Huainan from 1992 to 2006. In most cases, pollution levels have decreased

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2001 2002 2003 2004 2005 16.0 14.0 12.0 10.0 8.0 6.0 ton/Km2/month 4.0 2.0 0.0 . y e e n e e B p. p. el m ov in P io in or ot us ag t os os riu at o H iG iE o H er iM ac iM St rH n nj nj eh at e y av r e gz lF s n pl Li ha e Pa Fi in Pa o an ity e Bu Sa u gs C Pe St rM hu nq on qu an d a 1s nz D an rb 3r an Ti Xi in U Ti ua H FIGURE 9-9 Dust fall distribution with time variation at various monitoring places.  9-9

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 Datong Tianjia'an Xiejiaji Bagongshan Panji 14.0 12.0 10.0 ton/km2*month 8.0 6.0 4.0 2.0 0.0 2001 2002 2003 2004 2005 FIGURE 9-10 Dust fall distribution with time variation at various administrative areas, 2001-2005. TABLE 9-1 Average Annual Values for Various Air Pollutants in 2001-2005 9-10 SO2 NO2 PM10 Dust Rain (mg/m3) (mg/m3) (mg/m3) (t/km2·mo.) Year pH value 2001 0.018 0.025 — 7.6 7.38 2002 0.016 0.013 0.135 7.2 6.65 2003 0.019 0.023 0.125 6.2 7.08 2004 0.024 0.026 0.111 7.4 6.47 2005 0.030 0.030 0.104 6.3 7.32 2005/2001± percent 66.7 20.0 –23.0 –17.1 –0.8 steadily since 1992, in part due to government regulation and closing of highly polluting industries. For example, the local government closed 8 boilers (totaling 111 MW of capacity), rebuilt a 300 MW power unit during the reconstruction of the Tianjia’an power plant, and closed some cement factories with annual outputs under 1.5 million tons. All of these measures played an important role in local air quality improvement. Prior to 1992, there were no boilers with desulfurization equipment, but facilities have begun installing scrubbers, particularly for power plant boilers.

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 THE HUAINAN ExPERIENCE 0.040 SO2 0.035 0.030 0.025 0.020 0.015 0.010 0.005 0.000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 FIGURE 9-11 Monitored SOx results (mg/m3), 1992-2006. 0.060 9-11 NOx /NO2 0.050 0.040 0.030 0.020 0.010 0.000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 FIGURE 9-12 Monitored NOx/NO2 results (mg/m3), 1992-2006. 9-12 Table 9-2 shows the 2000-2005 air emissions trends in more detail and Table 9-3 shows the environmental bearing capacity of Huainan city. Cities cal- culate their environmental bearing capacity, alternatively referred to as carry- ing capacity, in order to determine the amount of certain emissions the local environment might bear without further compromising environmental quality (according to the State Environmental Protection Agency’s classification system). The bearing capacity is used as a benchmark by which cities might achieve their daily air quality targets 90 percent of the year. For atmospheric bearing capacity,

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 ENERGY FUTURES AND URBAN AIR POLLUTION 0.450 PM10 0.400 0.350 0.300 0.250 0.200 0.150 0.100 0.050 0.000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 FIGURE 9-13 Monitored PM results (mg/m3), 1992-2006. 9-13 TABLE 9-2 SO2 and Dust Emissions (in tons), 2000-2005 Percent 2000 2001 2002 2003 2004 2005 Increase SO2 emissions 92598 94603 94791 91326 114910 118730 28.2 From industry 91473 91698 90734 90466 112857 117930 28.9 Dust emissions 29339 31353 31412 27264 35669 32818 11.9 From industry 27249 27823 26482 25674 27970 31618 16.0 TABLE 9-3 Emissions and Theoretical Environmental Bearing Capacity for Huainan in 2003 (unit: ton) SO2 TSP Estimated emissions 91326 27264 Bearing capacity 117900 172000

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 THE HUAINAN ExPERIENCE cities evaluate stationary and mobile sources of emissions (SO2, PM10, and NOx), atmospheric conditions, prevailing air quality, and recent trends in both energy structure/consumption and air quality. ENERGY RESOURCES AND USE Huainan is a city of rich coal resources. It was recognized in 1949 as the Huainan Coalmine Special District, and was listed in the 1950s as one of China’s five famous coalfields. The estimated total coal reserves are estimated at 44.4 bil- lion tons (1345 EJ), and the identified coal reserve is 15.3 billion tons (464 EJ), amounting to 32 percent of the reserves in eastern China and 19 percent of the country’s total coal reserves (Huainan Municipal Government, 2005). In addi- tion, CBM reserves are estimated at 593 billion m3 (23.6 EJ). Production of CBM in 2005 amounted to 5 million m3. The coalfield is the largest (7,250 km2) and most recently developed coalfield among those south of the Yellow River and in the southeast coastal area; additionally, the local coal is generally low in sulfur (<0.5 percent) and low in phosphorous and its geological conditions are very favorable to mining (Huainan Mining Group, 2005). At present, there are 12 pairs of coal production tunnels in the city with an annual production capacity of 37.6 million tons (1.14 EJ) as of 2005 (Table 9-4); and future production in the new mine (Panxie) area is expected to increase dramatically. In 2005, coal consumption totaled 11 million tons, providing about 80 percent of the total energy consumption of the whole city, though this number was down from nearly 90 percent in 2004 (HEPB, 2005). As coal production has increased, so too has electrical power production. Beginning with the Tianjia’an Power Plant in the mid-1950s and its four 6 MW generators (an historic development for China at the time), Huainan’s capacity has increased to 3,400 MW, including a 600 MW generator installed at the Pingwei Power Plant in 1984, which was at that time the largest in China (Huainan Municipal Government, 2005). Electricity generation reached 23.2 million kWh in 2004, almost exclusively derived from coal. The resi- dential gasification rate reached 58 percent in 2004, meaning that fewer residents are depending upon indoor coal combustion for cooking and for other residential uses (HEPB, 2005). The increasing coal and electrical capacity have also underpinned TABLE 9-4 Coal Output in Huainan (actual and projected) Output (million ton) Year Total From Old Mine Area From New Mine Area 2003 35.83 10 25.83 2007 70 12 58 2010 100 7 93 2020 150 5 145

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 ENERGY FUTURES AND URBAN AIR POLLUTION the development of other regional industries, including chemicals, pharmaceuticals, building materials, textiles, machinery, electronics, and high-tech industries. Huainan is working to diversify its economy, while capitalizing on its most abundant resource by moving from being a coal supplier to an electricity producer/ supplier. The local government hopes to capitalize on the value of energy pro- duction, which is significantly more profitable than the production of coal itself. Both local and regional groups have been investing on a large scale in “coal by wire” projects which involve on-site electricity generation and transmission from the coal mines. This is one potential way to eliminate conflict between coal suppliers and power companies, guarantee sufficient supply, and improve effi- ciency. Huainan and similar coal-supplying cities have been involved in conten- tious price battles with power plants, leading to power shortages throughout the country (CERW, 2003). With regional shortfalls of electricity generation predicted for the near future, investors are eager to build on the energy producing potential of Huainan (CCII, 2003). Huainan has also begun to realize the economic, safety, and ecological benefits of capturing and utilizing methane in the coal mines. Many coal mine accidents in China are gas-related, therefore most mines pump methane out and discharge it. But the Pansan Coal Mine in Huainan has adopted technology which allows the mine to fuel 20,000 homes in the area and to generate local electricity (Xinhua Economic News Service, 2005). Although a small plant (2,400 kW), it is novel in its reliance on methane derived from the local mines. The cleaner burning methane had previously been released into the air, further polluting the region. In 2003, 130 million m3 of methane were extracted from Huainan’s coal mines, of which approximately 10 percent was utilized by local residents, in addition to some use for industrial boilers and power generation. As Huainan and other coal mining areas adopt technologies to harness methane from coal mines, China has mandated that industries exploit and utilize this vast reserve, which by some estimations rivals natural gas reserves. In addition to air pollution, increasing coal production and consumption has brought about two further challenges, specifically subsidence and waste storage. The total area affected by subsidence related to excavation was 113 km 2 in 2005. Of this total area, over half (58 km2) was in the old mine area, with most of the remaining (54.3 km2) occurring in the new the Panxie mine area. The old mine area is south of the Huai River, the east area extends from the Jiulong mountain to the Datongjuren village, and the west area extends from Lier mine to west Kongji mine, forming two large coal excavation sink areas with a total length of 25 km and a total area of 6,342 hectares. Economic losses due to subsidence were esti- mated at 333 million RMB, including a crop economic loss of 191 million RMB (HEPB, 2005). Compared with data for 2000, the total subsidence area in 2005 was 46 percent larger, increasing at a rate of 7.9 percent per year. Projections for 2010 estimate a subsidence area of 165 km2 and economic losses of 497 million RMB, including a crop economic loss of 294 million RMB.

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 THE HUAINAN ExPERIENCE Huainan generated 7 million tons of coal solid waste and coal fly ash in 2005. The city was able to recycle 6 million tons of this for use in road construction and cement, for a utilization rate of almost 85 percent and an improvement of 1.5 percent compared to 2000 (HEPB, 2005). Still, the city’s total volume of solid waste and fly ash was nearly 49 percent higher than in 2000. The total volume of solid waste from coal has reached 27 million tons and occupies an area of 620 hectares. Huainan, like many other cities in China, has favored supercritical tech- nologies for future coal-fired power production. However, the city has also been exploring integrated gasification combined cycle technology since the early 1990s. Though still considered too expensive to be used solely for electrical power production, Huainan has acquired General Electric’s gasification technol- ogy (originally developed by Texaco) and intends to use it to produce methane as well as power, likely in a 50/50 split. This also provides an opportunity for future CO2 emission controls (see Chapter 6). Huainan has been involved in a provincial experiment to utilize alternative vehicle fuels, dimethyl ether (DME), and methanol. Anhui, Jilin, and Henan provinces were the first provinces in China to use DME/methanol, which can be produced through coal gasification and used as cleaner-burning vehicle fuels (relative to conventional gasoline or diesel) (HEPB, 2005). However, there is still concern over pollution and toxicity, particularly in the case of methanol. POLLUTION AND ENERGY POLICIES AND THE APPROACH TO AIR QUALITY MANAGEMENT In the 10th FYP, from 2001 to 2005, air quality monitoring in the Huainan urban district changed in four aspects. First, automatic monitoring supplanted manual monitoring. Second, more monitoring sites were established. Third, monitoring NOx was changed to monitoring NO2, and TSP monitoring was changed to monitoring PM10. Finally, the monitoring frequency and duration were changed. Automatic data monitoring was widely adopted after 2003. The city now operates five monitoring stations, as well as flue gas monitors on the stacks at three local power plants. In order to better inform policy, Huainan has made a concerted effort to upgrade its monitoring capacity. Environmental monitoring is the responsibility of the Local Environmental Monitoring Center, which is part of Huainan’s Envi- ronmental Protection Bureau. The provincial and municipal governments have invested 9.6 million RMB to monitor air quality, construct an automatic water quality monitoring system for the Huai River, and create an online monitoring system for major pollution sources. The primary and secondary pollution sources of enterprises and institutions are being monitored. Pollution data is released by the Local Environmental Monitoring Center and can be found in media publica- tions and on the Internet (http://www.hnhb.gov.cn). Daily, monthly, and yearly reports are provided. Table 9-5 provides an example of the daily report; Table 9-6 shows a portion of the annual report from 2002.

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 ENERGY FUTURES AND URBAN AIR POLLUTION TABLE 9-5 Example for the Daily Report of Ambient Air Quality in China [Air quality] [Air quality] API (air pollution index): 59 API (air pollution index): 81 Air quality grade: II Air quality grade: II Dominating pollutant: PM Dominating pollutant: PM Huainan Environmental Monitoring Center Huainan Environmental Monitoring Center 22, Oct., 2005 23, Oct., 2005 TABLE 9-6 Part of Huainan Annual Environmental Report, 2002 Air Pollution: The air quality in the urban district was Grade II. The detailed pollutants were: . PM10: 0.227 mg/m3 (changed less than 1 percent) SO2: 0.016 mg/m3 (compared with the last year, decreased 36 percent ) NO2: 0.013 mg/m3 (compared with the last year, decreased 28 percent) Dust: 7.24 ton/km2.month (compared with the last year, decreased 5 percent) No acid rain Emission of industrial waste SO2: 90700 ton (compared with the last year, decreased 1 percent) Smoke dust: 26500 ton (compared with the last year, decreased 5 percent) Other dust: 6300 ton (compared with the last year, decreased 6 percent) Measures to protect the environment • Two projects to control the waste gas have been finished • Rebuilt the fly ash removing system in the thermal power plant of Anhui Huainan Chemical Group • Rebuilt the dust separation system in the cement production process, Anhui Huainan Mine Group • Implemented “Management regulation of the environmental pollution for small scale boiler/stove in Huainan” • Comprehensive reuse of solid waste reached 5,782,100 tons, an increase of 7.7 percent compared with previous year, including 2,029,500 tons of coal fly ash and 3,305,000 tons of other coal waste A system of environmental quality responsibility has been put into practice. Required performance criteria for the construction of an ecological city 1 and the establishment of a National Model City for Environmental Protection have been established for all levels of government and corporations. In order to carry out the nation’s environmental regulations and to adhere to local environmental legisla- 1Huainan was selected as the site for two circular economy demonstrations focusing on coal mine ecology (Huainan Mining Group, 2005).

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 THE HUAINAN ExPERIENCE tion, the local government is strictly implementing industrial techno-economic policy, including environmental impact assessments. The city government has set up some environmental protection laws and regulations, such as the “Protection Regulation for Huai River Area by Environmental Protection Office” (1992), and the “Environmental Protection Regulation for Developmental Projects in Huainan” (1999). However, construction of basic environmental equipment, such as the pipe networks for urban natural gas and centralized heat supply, has been slow. In addition, there is no basic environmental equipment construction in the connect- ing regions between urban and rural areas. These conditions do not currently meet the standards of a National Model City for Environmental Protection, which Huainan is pursuing. With coal washing, coal mixing, briquette, and coal water slurry technologies, raw coal quality has been improved, and coal variety has been increased. Thus, the total pollution of coal production is estimated to have been reduced by 20 percent. Clean production had been brought into effect in the Fengtai Jiuhe fertilizer plant and in the Jiangsu Debang Chemical Ltd., where the gross pollution from chemical plants has been cut down by 50 percent. In recent years, as a result of strengthened regulatory control of particulate emissions, most of Huainan’s power plants have installed electrostatic precipitators (ESP). This has led to a marked decrease in total dust emissions, although they are still the major pollutant in urban areas. SO2 and NOx are currently considered to be less problematic than particulate matter (PM) control. Boilers above 600 MW capacity must adopt desulfurization equipment with removal efficiency exceeding 90 per- cent (Huainan Mining Group, 2005). As capacity increases, desulfurization is thought to be efficient enough to remain in attainment of Class II standards. There is no control strategy for NOx in place, although many facilities are implement- ing low-NOx burners. NOx emission concentrations are not supposed to exceed 500 mg/m3. For PM, scrubbers are 95 percent efficient at removal, but ESP at new plants is 99.7 percent efficient, though this is still likely not enough to address the rapid increase in coal consumption. FUTURE DIRECTIONS In the period of the 11th FYP (2006-2010), the industrial structure will maintain its current status, which will be the main challenge to environmental improvement in Huainan. Huainan’s specific goals as part of the Three Bases strategy are producing 100 million tons (3.0 EJ) of coal annually by 2007, and increasing this to 120 million tons (3.6 EJ) by 2010. Additionally, Huainan plans to add 10,000 MW electrical generation installed capacity, much of this added capacity being devoted to regional electricity exports which could total 6,000 MW (Huainan Mining Group). Table 9-7 shows the electric power production situation and energy consump- tion into the future.

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0 ENERGY FUTURES AND URBAN AIR POLLUTION TABLE 9-7 Electric Power Output and Energy Consumption Year Unit 2003 2007 2010 2020 Electric power output Billion kWh 21 61 82 130 Coal consumption Million ton 6.8 20 27 45 Shanghai could be a major beneficiary of this increased electrical output— Shanghai Electric and Huainan Mining Corporation have agreed to jointly con- struct new power plants, and the State Grid Corporation of China is planning to construct a high-voltage grid from Huainan to Shanghai. One proposed power station planned by Huaneng Power International, China Power Investment Group, and Huainan Mining Group is to have a generating capacity of 10,000 MW by 2010, and to produce 30 million tons of coal (0.9 EJ) per year. Nicknamed the “Thermal Power Three Gorges,” this project could rival the original Three Gorges project along the Yangtze River. By 2020 developers hope that this coal and power base will have a total generating capacity of 20,000 MW and be produc- ing 60 million tons (1.8 EJ) of coal annually. The Huainan project is intended to ease regional power shortages, stabilize coal and energy prices, decrease pollution associated with long-distance coal transport, as well as bring jobs and income to the province. Estimates of investment for the project are around 100 billion yuan (CCII, 2003). In the short term, Huainan is planning to focus its investments on supercritical power generation. In 2020, it is estimated that 20,000 MW of supercritical thermal power units will annually save 5.2 million tons of coal (0.16 EJ), reduce SO 2 by 8,410 tons, dust by 5,260 tons, and decrease PM10 concentrations, as compared with a conventional subcritical unit (Huainan EPB). Water is an increasingly scarce resource in Huainan, and increasing coal-fired power plant activity will put an even larger strain on this resource. Coal-fired power plants are large consumers of water, for both rinsing and cooling. Therefore, the water used in fly ash rinsing in coal-fired power plants should be fully recovered, and the government has set a target of > 97 percent industrial wastewater reuse in these plants (Huainan Mining Group, 2005). An analysis of another coal-rich city, Zaozhuang, suggests that adopting low-emission coal gasification technologies in only 24 percent of its mar- ket by 2020, would yield considerably better emissions reductions (15-60 percent depending on pollutant) than adopting the best end-of-pipe control technologies (Wang et al., 2005). This is significant in that Zaozhuang’s health damages from air pollution exposure were calculated to be 10 percent of local GDP in 2000, and would rise to 16 percent by 2020 (Wang and Mauzerall, 2006). Huainan is a prime candidate for further CBM projects. Increased coal extrac- tion also increases the opportunities for commercially developing CBM. By 2007, the city plans to be extracting 220 million m3 and locally utilizing 45 percent.

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 THE HUAINAN ExPERIENCE Huainan has plans to construct holding tanks connected to piped networks in order to improve utilization. By 2020, it is projected that Huainan will be extracting 600 million m3 of CBM, with a utilization rate above 90 percent (HBST, 2005). It has also begun the process of fuel switching for some industrial boilers, with plans to reform 18 boilers to operate on gas by 2010 (Huainan Mining Group). Additionally, it is constructing combined cooling, heat, and power plants which will total 100 MW of capacity by 2010, increasing to 150 MW by 2020, and operating on coal gas. According to the construction goal of the Three Bases, annual coal consump- tion could reach 29 million tons (0.88 EJ) by 2010, or 1.7 times higher than that of 2000, increasing another 4.1 times in 2020. Air pollution caused by coal flue gas will still be dominant, which will result in air pollution concentrations increas- ing in the Huainan urban area, Fengtai County, and the Jianzhi town area. Future energy development and construction will focus on the Panxie mine areas. The continuing pileup of coal waste and coal fly ash will occupy a large amount of farmland, exacerbating air, water, and soil contamination. The increased genera- tion amount of coal waste and coal fly ash is estimated to be 11.6 and 22.7 million tons in 2010 and 2020, respectively—64.5 percent and 2.2 times higher than that of 2005. The increased generation amount of the desulfurization by-product will be 0.4 and 0.96 million tons in 2010 and 2020, respectively. With the develop- ment of the new superscale mines in the Panxie mine area and the increasing of the exploitation intensity in the old mine area, the total coal subsidence area will increase 47 percent by 2010. Ecological recovery in the coal excavation sites will be a long-term process, as well as a huge systems engineering problem, because the coal excavation sites are large and increasing rapidly. Analysis The story of Huainan is the story of a city in transition. It is a story of dynamic tension between efforts to adopt more stringent air pollution standards, to install basic pollution control equipment, to install more modern combustion technology, and simultaneously to rapidly expand production of coal and coal fired generation of electricity. This chapter cites averages over the 2001-2005 period which for the most part meet the Class II standard, but the trends over that period show continu- ing increases for some important pollutants, especially SO2. These trends suggest that the tension between remediation and consumption is unbalanced in favor of consumption, and air pollution will worsen in the short to medium term. Huainan is a sort of demonstration city, as it attempts to move from a coal production base to an energy production base, realizing the economic benefits of the value-added process. At the same time, it will face the consequences of increased emissions as a result of the steep increase in coal combustion. Huainan has made great strides in closing down inefficient boilers, consolidating mining productions to improve efficiency, reducing pollution, increasing gasification

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 ENERGY FUTURES AND URBAN AIR POLLUTION rates in the urban areas, and utilizing alternative resources such as CBM. In that respect, it can be viewed as a model city to a number of industrial cities in China. Although PM10 and dust are currently the primary pollutants, increased use of automobiles, along with the increase in coal combustion, will certainly lead to increases in SO2 and NOx. Scrubbers on the new power plants will aid in mitigat- ing additional SO2 emissions, but there is not currently any strategy to address increasing NOx emissions. Current plans recommend installing low-NOx burners but are concerned with concentrations and not total emissions. This may present challenges for future NOx control, especially considering the long life expectan- cies of coal-fired power plants and the certain increase in automobile use. Coal provides an abundant local resource, but in addition to its impacts on air quality, the mining and extraction processes can also be environmentally degrad- ing. Coal washing and sieving should be incorporated into the large coal-by-wire projects to reduce SO2 and Hg, prior to combustion. Future power generation stations, which will almost certainly be coal-based, ought to be sited to minimize human exposure, and consideration should be given to alternatives to supercritical generation. Source inspection and enforcement will also be useful, in order to ensure that industries are in compliance with emissions requirements. Establishing the environmental monitoring center was a step in the right direction for Huainan’s environmental management. The next challenge will be to expand the number of monitoring sites and to make these data accessible to researchers. The regional universities and research centers are an important asset; as in Pittsburgh’s experience, these groups ought to be part of the research side of the local air quality management regime. In particular, Huainan will benefit from studies of PM2.5, given its disproportionate impact on health. Agricultural burning in the rural districts still appears to impact urban air quality and thus deserves more attention. Improved regional cooperation will also be necessary—beginning with research to understand the regional sources and contributions to local air pollution. This will aid each city in the region, including Huainan, in developing appropriate responses, and will create a framework to address emerging regional air quality challenges. REFERENCES CCII (China Coal Information Institute). 2003. Huainan: ‘Thermal Power Three-Gorge Project’ brings chances to CBM. China Coal Information Institute Newsletter, July 20. CERW (China Energy Report Weekly). 2003. Survey: Coordinating the Coal and Power Industries. November 14. HBST (Huainan Bureau of Science and Technology). 2005. Scientific Research on Energy Resources and Introduction of Scientific Input in Environmental Protection in Huainan City. Presentation to committee, October 2005. HBUP (Huainan Bureau of Urban Planning). 2005. Report of Bureau of Urban Planning of Huainan Municipality. Presentation to committee, October 2005. HEPB (Huainan Environmental Protection Bureau). 2005. Brief Report of Environmental Protection. Presentation to committee, October 2005.

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 THE HUAINAN ExPERIENCE HEPB Report of air quality in Huainan 2001-2005. HEPB Report of air quality in Huainan 1996-2000. HEPB Report of air quality in Huainan 1991-1995. Huainan Mining Group. 2005. Brief Introduction to Huainan Coal Mining Group. Presentation to committee, October 2005. Huainan Municipal Government. 2005. On the Present Situation and Future Plans of the Social Eco- nomic Development of Huainan Municipality. Presentation to committee, October, 2005. Huainan Municipal Government. 2006. Official Government website. http://www.huainan.gov.cn. Wang, X. and D.L. Mauzerall. 2006. Evaluating impacts of air pollution in China on public health: Implications for future air pollution and energy policies. Atmospheric Environment 40:1706-1721. Wang, X., D.L. Mauzerall, Y.T. Hu, A.G. Russell, E.D. Larson, J.H. Woo, D.G. Streets, and A. Guenter. 2005. A high-resolution emission inventory for eastern China in 2000 and three scenarios for 2020. Atmospheric Environment 39:5917-5933. Xinhua Economic News Service. 2005. China endeavors to turn coal mine gas into clean energy source. August 1. Xinhua Net. 2005. Country to establish National Engineering Center for Coal Gas Control. Novem- ber 14, available at http://www.sina.com.cn (in Chinese).

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