By 2035, Asia’s five billion people could consume up to 56% of the world’s energy. But, according to the Asia Development Bank, they’ll be able to produce less than half of the energy they need.
Added to those stark statistics, Asia is home to seven out of the 10 cities most vulnerable to climate change, and countries continue to struggle to control dangerous air pollution levels.
“They’ve got a big problem,” Eva Busza, vice-president of knowledge and research at the Asia Pacific Foundation, told Business in Vancouver.
“Those three elements – the need for growth, the lax [energy] security and the environment – are what’s pushing Asian policy makers to look at renewables.”
That drive to encourage clean-energy development in countries like India, China and South Korea is creating opportunities for Canadian clean-tech companies. But, Busza warned, companies must know how to navigate the complex policies in each nation to gain a foothold in this developing market. Burnaby-based Ballard Power Systems (TSX:BLD) has had success developing a market for telecom backup systems in China and India. Ballard’s product is an alternative to the diesel generators and large battery packs that currently provide power to cellphone towers during the scheduled outages and blackouts common in those countries. The company has installed the system in 2,500 sites around the world, half of them in Asia. It has taken around eight years to develop the market for this product to its current stage.
“There’s mounting regulatory pressure to use our solution versus continuing to use diesel generators and lead batteries,” said Tony Cochran, director of product management for telecom backup at Ballard. The company is also working on developing a market for fuel cell-powered buses in China, although that project is still in the initial stages.
“In China … it’s a heavily regulated market,” Cochran said. “When you try to penetrate a heavily regulated market, they tend to be very conservative about adopting new technology. The benefit, though, is once you do get in, the inertia to change is high as well, so you get in, you penetrate the market and you become the de facto standard.”
Partnering with Chinese company Azure Hydrogen on the fuel bus project has also helped Ballard get access to the market. Azure provides local market and supply chain knowledge.
It’s common for countries like China, South Korea and India to have requirements for “local content” in new energy projects, said Busza, whether it’s job creation, utilizing local skills or limiting foreign investment in certain areas like electric power generation.
Cochran added that China and India want more local manufacturing. Although Ballard doesn’t currently plan to move production there, it would if business in those countries grows enough to justify it, he said. •
For more Asia Pacific news: pages 25-28
