It is known that China’s has a serious problem with dirty air in cities. The air is so bad that the local government declared ‘war’ on it several times. Over the years the Chinese government has been passing new regulations and restrictions to fight pollution and climate change in general, a dire situation which is the result of coal-fired power stations and steel plants. China of course still has a long way to go, but to the surprise of many, the country is doing very well in cleaning the air of its cities, and is surpassing expectations.
2015 has been a very important year for China. Beijing has seen a 16% annual reduction in the concentration of the dirtiest and most deadly type of air pollutant. 2015 has also been ranked as the cleanest year since the United States Embassy began publishing data on pollution in 2008.
Significant beneficiaries to the reduction of pollution is falling demand for coal, heavy investments in renewable energy sources, and a progressive policy designed to punish polluters who violate regulations.
A big battle has been taking place in China to reduce coal consumption. A report analyzing data released by Greenpeace suggests that coal consumption in China fell by almost 8% and CO2 emissions fell by almost 5%.
Besides investments in green energy, it was crucial to build an infrastructure to help the system shift from coal to natural gas, which has becoming a bigger portion of China’s total energy demand. To build such an infrastructure new technologies are required.
There are several companies participating in the process, like CNPC and Sinopec (NYSE: SNP), Sinopec Shanghai Petrochemical (NYSE:SHI), 3 large state owned oil and gas extractors corporations, and non-state companies like Recon Technologies (NASDAQ:RCON) help develop the tech required.
Recon specializes in providing software and on-site services to companies in the petroleum mining and extraction industry in China. Shale gas, a clean-burning fuel, provides China with a vital and long-sought alternative to the massive toxic pollutants resulting from burning coal for energy production, and Recon is making rapid progress in helping the extracting process from these shale gas reserves.
Recon’s portfolio includes various technologies designed to increase petroleum extraction levels and reduce production costs. Recon’s services include - efficient gathering and transportation equipment, reservoir stimulation products, and advanced real-time automated technologies that dramatically increase the efficiency of extracting and refining petroleum products.
Recon stock is currently trading 55% below its 52 week high.