United States, China Enter Energy Research Accord

The United States and China, the world's two largest energy consumers, have entered into a memorandum of understanding (MOU) to promote the use of bio-fuels according to a joint press release from the Departments of Agriculture and Energy. This comes as part of a series of economic discussions that began December 12 in Grand Epoch City.

"As the two largest energy consumers and automobile markets in the world, we are eager to strengthen cooperation with China to increase the use of renewable and alternative fuels to power our nation's vehicles," Deputy Secretary of Energy Clay Sell said.

The memorandum is a non-binding resolution between the two nations, but will be used as a basis for further discussions. The MOU spells out areas where the two nations plan to cooperate in research in development of biologically-based sources of energy, specifically biomass and feedstock production and sustainability; conversion technology and engineering; bio-based product development and utilization standards; and rural and agricultural development strategies.

China is the world's third largest producer of ethanol-based fuels, behind the United States and Brazil. China is the only Asian nation to enter into an agreement with the United States to promote the use and development of second generation biofuels.

The use of ethanol as automotive fuel is of particular interest to the United States and China, the number 1 and 2 consumers of automobiles in the world, ranked numbers 1 and 3 in production.

Earlier this year, the U.S. Department of Energy and China's National Development and Reform Commission signed two MOUs regarding energy matters. The first MOU was set up to promote the development and use of electric, hybrid-electric, fuel cell, and alternative fuel technologies.

"As the two largest car markets worldwide, the U.S. and China have a unique responsibility to discuss next generation vehicle technologies and how government and industry might collaborate in the future," Principal Deputy Assistant Secretary Mizroch said in September. "This agreement furthers our strategic cooperation in harnessing clean energy technologies to address climate change, improve energy security and sustain our economic growth."

The second MOU aimed at increased cooperation and energy efficiency in China's industrial sector, which accounts for 70 percent of that country's total energy demand. That MOU is titled Industrial Energy Efficiency Cooperation calls for a cooperative audit of China's industries for their levels of greenhouse gas emissions, and to create means for decreasing the output.

"This agreement signifies the importance of our strategic energy and economic cooperation with China," Assistant Secretary Harbert said.