To meet the country's emission reduction standards, some companies with a high production output and high energy consumption are investing in emissions reduction. But, these investments are not providing a simple situation.

This is where Chongqing Iron and Steel Group is located. The group produces 3.5 million tons of steel annually. When the company profits, it also pollutes the environment and the surrounding area by emitting large amounts of carbon dioxide, sulfur dioxide, and sewage.

Resident of Chongqing said, "It influences people's daily life in the district. People want to see clear water and blue sky."

A hundred-year-old steel company cannot meet the country's emission reduction standards because of its out-of-date equipment. Producing 3.5 million tons of steel annually, burns 2.25 billion kilograms of coal. It also emits 7 million tons of carbon dioxide and 18-thousand tons of sulfur dioxide.

Dong Ronghua, Deputy GM of chongqing Iron and Steel Group, said, "Although we invested a lot for many years, the old factory still can not meet the emission reduction standards. The pollutant can not be cured effectively."

For a steel maker, emission reduction needs a huge amount of capital. Take Chongqing Iron and Steel Group as an example, the income is 20 billion yuan a year, the average profits is less than 500 million yuan. Each year's emission reduction costs about 100 million yuan.

China's steel sector is a pillar industry, but it is also a big pollutant and high-energy consumer. The carbon dioxide emitted by the steel sector accounts for 12 percent of total carbon dioxide emissions in the country. Emission reduction is hard work. But Chongqing Iron and Steel group has spent 30 billion yuan on an energy saving and emission reduction project.

Lan Wenlong, General Engineer of CECIC Renewable Energy Investment Corporation, said, "After completion, the project will be able to provide 1 billion kilowatts of power to Chongqing Iron and Steel company, worth 500 million yuan. The power supply makes up 40 percent of Chongqing Iron and Steel power consumption. This torch generates power by burning coal, wasting energy and polluting the environment. This torch will be destroyed as soon as the project is completed."

Once the project is completed, the power capacity is expected to reach 1.7 billion kilowatts. The power supply will make up 65 percent of the total power demand of the Chongqing Iron and Steel Group. The annual steel output of a new plant will increase to 6.5 million tons, but sulfur dioxide will be reduced to 6-thousand tons.

(CCTV December 18, 2009)