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Bredesen discusses clean energy in trip to China

Published October 27th, 2009 | 0 Comments

China is the next big economic development hotbed for clean and renewable energy, Tennessee Gov. Phil Bredesen indicated Tuesday.

Bredesen and a delegation of about 30 state business leaders are looking to make deals during a 10-day trade mission that includes visits to the Chinese cities of Beijing, Xi’an, Hangzhou and Hong Kong.

Bredesen, during a conference call from China with Tennessee reporters, said the trip is focused on renewable and clean energy, health care, and distribution and logistics opportunities.

“We’re starting to build the pipeline up with opportunities for my successor,” Bredesen, whose term ends after 2010, said of the trip. “I think in a way what we’re doing in China is kind of parallel to what (former governor and now U.S. Senator) Lamar Alexander did 30 years ago, to travel there, tell the Japanese where Tennessee is on the map, and today we have 150 Japanese companies and 40,000 good paying jobs. ... We’re laying that groundwork in a society and country that is literally 10 times the size of Japan.”

China is Tennessee’s third largest trading partner, following Canada and Mexico. In 2008, Chinese customers purchased more than $1.3 billion dollars in Tennessee goods and services, with chemicals and agricultural products leading exports, according to the Tennessee Department of Economic and Community Development (ECD).

Bredesen said China is transitioning from being an export-based to a consumer economy.

Both Bredesen and ECD Commissioner Matt Kisber cited Hemlock Semiconductor’s $1.2 billion Middle Tennessee investment in solar production facilities as an example of clean energy’s potential.

“This is a fertile hunting ground, and if economic developers don’t recognize the opportunity and take advantage of the leading tools we’ve put in the toolbox ... they are missing an opportunity to bring long-term sustainable jobs to their area,” Kisber told reporters.

Still, Bredesen noted a coal-fired power generating station is going online in China at the rate of one per week.

But, he added, Tennessee has a huge clean energy opportunity with China.

“I’m sure there are everything from true believers to people who think it is a flash in the pan out there,” Bredesen said of clean energy. “China is going to be a major player in this (clean energy) business. ... We visited one factory in Xi’an that has 400,000 square feet of research space having to do with solar and solar cell manufacturing.”

Bredesen’s administration began efforts to develop trade ties with China in 2007 when state officials established an office location in Beijing and conducted an introductory trade mission focused mainly on major cities.

“The importance of (Chinese) government officials being involved is much heightened here compared to what it is in other places,” Bredesen said. “(This time) I met with the governors of two provinces larger than California.”

Bredesen said discussions “in a number of meetings” centered on selling the developing West Tennessee megasite acquired by the state for economic development.

But he indicated Chinese officials were told where Northeast Tennessee is located.

“The solar industry over here is well aware of the (AGC) glass plant in Northeast Tennessee,” Bredesen said. “A well known company over here is Eastman (Chemical Co. in Kingsport). Eastman is a huge exporter of chemicals to China, and they know the name well here.”

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