Beijing wins the right to host the Winter Olympics; energy-saving and environmental protection companies see an opportunity for profit

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On July 31, when International Olympic Committee President Bach announced that Beijing had been chosen to host the 2022 Winter Olympics, the usually reticent executives of various energy-saving and environmental protection companies cheered in their WeChat circles. For them, the next seven years will be a rare opportunity to make money. The environmental protection industry will benefit greatly. Several securities firm researchers told reporters that, with increasingly strict regulations on the environmental sector in China and greater efforts being made to improve air, water, and soil quality, environmental protection will receive significant attention during the Winter Olympics, and a range of opportunities will arise as a result. A researcher from Qilu Securities revealed that in the first half of 2015, the \"Ten Measures on Water Management\" were introduced, and efforts are also being made to implement the \"Ten Measures on Soil Management.\" Listed companies such as Qiyuan, Guodian Qingxin, Xuedilong, Xianhe Environmental Protection, and Bishuiyuan could become \"concept stocks\" related to the Winter Olympics. Taking Bishuiyuan as an example, it possesses competitiveness in membrane products and comprehensive wastewater treatment solutions, enabling it to meet the needs of domestic industrial and municipal clients. Bishuiyuan also has a buried MBR process that can save space in urban sewage treatment plants, making it suitable for cities at the first and second tiers. Although the construction cost of such technologies amounts to 4,000 yuan per ton of water, which is more than one-third higher than the cost of building conventional water plants, there is still room for profitability given the high land prices in cities today. Furthermore, in Bishuiyuan’s tiered structure, the first tier is primarily composed of Yunnan, Jiangsu, and Qingdao, while the second tier includes Beijing, Inner Mongolia, and Xinjiang. In the areas belonging to the second tier, water pollution is severe, and there is a shortage of water and land; moreover, the standards for water quality are high. Therefore, there may be opportunities in the future for selling membrane products, recycled water, and engaging in water management services. The 2008 Beijing Olympics emphasized the concept of a \"Green Olympics,\" and Beijing invested heavily in environmental protection at that time: from 2001 to 2008, the city implemented 160-plus measures over 8 phases to strictly control air pollution, offered incentives for reducing regional pollution levels, and provided rewards to companies that reduced their levels of pollution, energy consumption, and water usage. Additionally, a range of measures were introduced, such as ordering key polluting enterprises to suspend or limit production, stopping heavy-polluting construction activities, and imposing restrictions on the use of motor vehicles. In 2008 alone, Beijing invested over 20 billion yuan in environmental protection, accounting for 2.53% of that year’s regional GDP. “The joint bid by Beijing and Zhangjiakou for the Olympics was based on the concept of sustainable development, with environmental protection given top priority. ”Guotai Junan believes that from the \"APEC Blue\" to \"Winter Olympics Blue\" and ultimately to \"Beijing Blue\", the environmental protection industry is likely to benefit in the long term thanks to the hosting of the Winter Olympics. Renewable energy is of \"top priority,\" said an executive from a photovoltaic manufacturer to a reporter from Yicai Daily. There could also be significant business opportunities in the photovoltaic industry, as various venues and industrial/commercial entities in Beijing and Zhangjiakou are likely to use photovoltaic products in order to reduce pollution. **The latest data from the Energy Administration show that in the first half of the year, 8 provinces (regions and municipalities) across the country had a cumulative photovoltaic power generation capacity of over 1 million kilowatts. These were Gansu with 5.78 million kilowatts, Xinjiang (including the Production Corps) with 5.70 million kilowatts, Qinghai with 4.70 million kilowatts, Inner Mongolia with 4.03 million kilowatts, Jiangsu with 3.02 million kilowatts, Ningxia with 2.39 million kilowatts, Hebei with 1.60 million kilowatts, and Zhejiang with 1.43 million kilowatts; Hebei is also among them. It is expected that the volume of photovoltaic installations in Beijing and Hebei provinces will also increase in the coming period. There are numerous photovoltaic manufacturers in Hebei and Beijing, including Hebei Jinglong, JA Solar, Yingli Green Energy, and Jingyuntong. Beijing Auto also recently announced cooperation projects with Huaneng New Energy and Sichuan Xiongfei, among others. The two parties plan to utilize Beijing Auto’s nationwide network of automobile factories, office buildings, parking lots and other facilities to establish the largest rooftop photovoltaic project for automobile factories in the country, with commissioning scheduled around 2015. Just before the announcement that our country would host the Winter Olympics, the State Council also approved the establishment of a renewable energy demonstration zone in Zhangjiakou, Hebei Province. In the future, an internationally leading \"Low-Carbon Olympic Zone\" will be established in Zhangjiakou. The goal is for 55% of the electricity consumed in the Zhangjiakou demonstration area to come from renewable sources by 2020; all urban public transportation, 40% of the energy used for household purposes by urban residents, and 50% of the energy used in commercial and public buildings to also come from renewable sources. Additionally, 40% of industrial enterprises are expected to achieve zero carbon emissions. Regarding the supply of electricity and heat in the Olympic venues, 100% of the electricity used in the Olympic Center and other competition sites comes from renewable sources, ensuring that all buildings in the Olympic venues are heated using renewable energy. In terms of municipal services and transportation, renewable energy can also be utilized in some areas. In addition to photovoltaic and other renewable energy sources being used in the Olympic venues, other industries related to renewable energy will also be affected. For example, on April 17, Zhangjiakou City signed a strategic agreement with Inner Mongolia Xiangdao Photovoltaic Agriculture Company; the latter will invest 13.5 billion yuan in building a 1,000-megawatt photovoltaic agriculture project in Zhangjiakou, of which 8.5 billion yuan will be invested in the photovoltaic components and 5 billion yuan in the agricultural aspects of the project. Alibaba’s cloud data center project in Zhangbei, part of its infrastructure development in the north, will also have solar cells installed on its exterior, with natural air cooling and natural water cooling systems being utilized as well. The total investment in the Zhangbei Cloud Data Center is 18 billion yuan; it covers an area of nearly 1,000 mu, with a capacity to house 600,000 servers.