“I will not sell the future for quick profits.” This was a remark of Werner von Siemens, the inventor-turned founder of Siemens over 100 years ago. The world facing problems like global warming this motto might as well be taken as a leading general principle. As a long-cherished tradition, Siemens is committed to sustainable development and therefore combating climate change.

Here are the reasons why urgent measures are necessary: China currently ranks No.2 in terms of carbon emissions and energy consumption in the world, and – if the current trend continues - will probably overtake US in 2009 as the largest producer of carbon dioxide. Meanwhile, the energy demand worldwide and especially in China is increasing. While energy demand worldwide in the next 25 years will soar about 40 percent, it is predicted that China will consume 20 percent more of energy annually until 2020.

This poses a huge challenge. The world community is questioned to take all aggressive measures possible to reduce carbon emission for the future of the mankind. At the same time, we believe that China still ranked a developing country, cannot be excluded from the right to develop and so bring better life to the population living in this country. The solution to this lies in technology and new innovation.

As an infrastructure company, we see potential mainly in two areas to reduce carbon emission, in energy supply and transmission, and in energy consumption. Accordingly, we are tapping into the possibility of not only zero or low carbon-emitting energy production, but also higher energy efficiency during consumption and even reduction in demand for energy.

And I would like to emphasize, that we have advanced technologies available to be put in place now. For example: advanced power generation technology called ultra supercritical steam can save 23 percent of coal consumption and reduce 24 percent of CO2 emission compared with typical Chinese power plants. In Shanghai Huaneng power plant, the most advanced of its type worldwide, the efficiency rate reached 58% percent, compared with 30% for typical Chinese power plants. Siemens is the inventor of this technology.

In China where 70 percent of energy is generated from coal leading to huge carbon emissions. Advanced technology for coal gasification is especially necessary. Coal gasification can be the key technology for Integrated Gasification Combined Cycle Power Plants. In this process coal is transformed into high-purity Syngas under huge pressure. So far, the total efficiency rate with Syngas is not so high as with normal gas. If this problem is solved, as you can imagine, coal gasification will be one of the key technologies for China.

In terms of energy consumption, it is usually ignored that motors for fans, compressors and pumps and many other places of industrial automation are responsible for 65-70% of industrial energy use. In China, industry consumes 70% of total energy. That’s why energy-saving solutions in this regard play an essential role. For instance, we have developed motors that reduce energy saving by 45%. Osram, a division of Siemens, develops LEDs that save 80% of electricity compared with average light bulbs.

However, this is not enough. Joint forces are needed to combat climate change worldwide, not only among the industries. Only a joint effort in the end will succeed. Everyone can contribute its share.

By Richard Hausmann
(President and CEO,Siemens Ltd. China)