VZCZCXRO5443
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #8065/01 2330427
ZNR UUUUU ZZH
R 210427Z AUG 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 1307
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAEPA/HQ EPA WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 028065 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR OES/PCI AND EAP/CM 
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE 
EPA FOR INTERNATIONAL - CHENG 
 
E.O. 12958: N/A 
TAGS: SENV ENRG CH
SUBJECT: A/S McMurray Visits Sites Implementing P2E2 
Measures 
 
 
¶1. (U) SUMMARY:  OES A/S McMurray visited two sites in the 
Pearl River Delta where measures such as those being 
promoted by the Hong Kong-based pollution prevention and 
energy efficiency (P2E2) initiative have been implemented -- 
the Huangpu power plant operated by Guangdong Yuehua Power 
Company and the Zhujiang Brewery in Guangzhou.  At each 
site, company officials outlined their respective P2E2 
efforts and the measurable positive impact these efforts 
have had on the immediate environment.  These companies' 
efforts serve as a model for the industrial sector, where 
much more needs to be done by the government and the private 
sector to adopt pollution prevention and energy efficiency 
measures.  End Summary. 
 
HUANGPU POWER PLANT 
------------------- 
 
¶2. (U) The Huangpu power plant, a state-owned enterprise 
operated by Guangdong Yuehua Power Co. Ltd, was established 
in 1975.  The plant has four, 125MW oil-fired units and two, 
300MW coal-fired units, making it one of the main power 
generating stations in Guangdong Province with a total 
generation capacity of 1100MW. 
 
¶3. (U) The plant's General Manager, Mr. Hu Min, outlined the 
company's efforts to reduce air, water, and solid waste 
pollution generated by the power plant.  According to the 
"Guangdong Blue Sky Plan," by 2005, the plant was required 
to install desulfurization equipment on the two coal-fired 
units to reduce SO2 emissions by 16,770 tons annually. 
To accomplish this goal, the plant first attempts to control 
the sulfur content by purchasing low-sulfur content coal and 
by using desulfurization additives in the oil (Note: the 
"low-sulfur" sources he mentioned are from Shanxi Province, 
not low by U.S. standards. End Note.)  The plant also began 
implementing a Wet Limestone/Gypsum Flue Gas Desulfurization 
project this year.  The solid waste (ash) is sold for use in 
constructing drywall.  With these methods, the company hopes 
to reduce SO2 emissions by a total of 34,000 tons, or over 
95% of its total SO2 emissions.  The power plant also 
recycles the waste water used to flush coal dust out of the 
system.  Company representatives stated that they have 
invested RMB 367 million (USD 45.9 million) in these 
pollution reduction projects. 
 
¶4. (U) Hu said that the company plans to dismantle the oil- 
fired generators by the end of the year and build two new 
coal-fired generators to replace them.  These new coal 
generators would integrate P2E2 measures and have a larger 
power generation capacity than the four oil-fired units they 
will replace. 
 
¶5. (U) When asked by the U.S. delegation where the plant 
purchased its desulfurization equipment, Hu replied that the 
company initially purchased equipment from the United 
States, but implied that it now purchases the equipment from 
German, Japanese, and Chinese companies. 
 
ZHUJIANG (PEARL RIVER) BREWERY 
------------------------------ 
 
¶6. (U) Zhujiang Brewery was set up in 1985, and since then, 
production capacity has increased from 50,000 tons to 1.5 
million tons.  Zhujiang representatives claim that it is now 
the largest brewery in the world in terms of production, and 
that Zhujiang Beer is the second best selling beer in China. 
Zhujiang Beer is known as a "Green Food" (the President of 
Zhujiang Beer explained that the National Green Food 
Certification Center sets standards on pesticides, 
fertilizers, and GMO-free inputs in determining whether a 
product is designated a "Green Food").  The brewery employs 
5,300 workers and operates its own power plant on site. It 
uses Oracle software throughout the manufacturing and 
bottling process.  The brewery has partnered with the 
Belgian company Inbev, which provides Zhujiang with 
technology, capital, equipment, and allows Zhujiang 
increased access to the international market.  In 2005, the 
brewery realized RMB 300 million (USD 37.5 million) in 
profits. 
 
¶7. (U) The Zhujiang Brewery draws its water not from the 
highly polluted Pearl River on whose banks it is situated, 
but via a pipe from the East River (Dongjiang), the same 
source tapped for Hong Kong's drinking water.  The plant 
invested RMB 12 million (USD 1.5 million) to develop cross- 
flow membrane filtration technology that has reduced water 
 
GUANGZHOU 00028065  002 OF 002 
 
 
consumption by 25%.  The spent steam recovery project that 
was put in place in July has saved RMB 3 million (USD 
375,000) in production costs.  The company also recovers 
CO2, spent grain, wasted yeast, and glass, saving RMB 15 
million (USD 1.9 million) per year.  The brewery has 
installed desulfurization equipment at its power plant, 
reducing sulfur emissions by 70%. 
 
¶8. (U) The brewery President explained that the 
environmental protection measures are not only required by 
the government, but are also driven by its corporate social 
responsibility, its strategy to reduce costs and increase 
its competitiveness.  In addition, for a growing enterprise 
like the Zhujiang Brewery, it is critical to make sure that 
local residents do not have environmental complaints. 
 
¶9. (U) COMMENT: These companies' efforts serve as a model 
for the industrial sector, where much more needs to be done 
by the government and the private sector to adopt pollution 
prevention and energy efficiency measures. 
 
MARTIN