Special Reports
Invisible Export A Hidden Cost of China's Growth: Mercury Migration

Matt Pottinger, Steve Stecklow and John J. Fialka
The Wall Street Journal
December 20, 2004

Turning to Coal, Nation Sends Toxic Metal Around Globe; Buildup in
the Great Lakes Conveyor Belt of Bad Air

On a recent hazy morning in eastern China, the Wuhu Shaoda power
company revved up its production of electricity, burning a ton and a
half of coal per minute to satisfy more than half the demand of
Wuhu, an industrial city of two million people. AES Corp., an
American energy company, owns 25% of the 250-megawatt facility,
which local officials call an "economically advanced enterprise."

The Chinese plant is outfitted with devices that prevent soot from
billowing into the sky. But other pollutants, such as nitrogen
oxides, sulfur dioxide and a gaseous form of mercury, swirl freely
from the smokestacks. Rather than install more sophisticated and
costly antipollution equipment, the plant, which is majority owned
by state-controlled entities, has chosen to pay an annual fee, which
it estimates will be about $500,000 this year. That option meets
Chinese standards but wouldn't be allowed in the U.S.
The airborne output of Chinese power plants like Wuhu Shaoda was
once considered the price of China's economic growth, and a mostly
local problem. But just as China's industrial might is integrating
the country into the global economy, its pollution is also becoming
a global concern. Among the biggest worries: the impact of China's
vast and growing power industry, mostly fueled by coal, on the
buildup of mercury in the world's water and food supply.

Scientists long assumed mercury settled into the ground or water
soon after it spewed forth as a gas from smokestacks. But using
satellites, airplanes and supercomputers, scientists are now
tracking air pollution with unprecedented precision, discovering
plumes of soot, ozone, sulfates and mercury that drift eastward
across oceans and continents.

Mercury and other pollutants from China's more than 2,000 coal-fired
power plants soar high into the atmosphere and around the globe on
what has become a transcontinental conveyor belt of bad air. North
America and Europe add their own dirty loads to the belt. But Asia,
pulsating with the economic rebirth of China and India, is the
largest contributor.

"We're all breathing each other's air," says Daniel J. Jacob, a
Harvard professor of atmospheric chemistry and one of the chief
researchers in a recent multinational study of transcontinental air
pollution. He traced a plume of dirty air from Asia to a point over
New England, where samples revealed that chemicals in it had come
from China.

One reason China's power industry spews out so much pollution is
that under the nation's rules, many plants have the option of paying
the government annual fees rather than installing antipollution
equipment. Moreover, Beijing officials concede they lack the
authority to shut down heavily polluting plants. And local
inspectors, who don't report to Beijing, are reluctant to crack down
on power companies that generate jobs.

In the U.S., the consequences are being detected not just in the air
people breathe but in the food they eat. The U.S. Environmental
Protection Agency recently reported that a third of the country's
lakes and nearly a quarter of its rivers are now so polluted with
mercury that children and pregnant women are advised to limit or
avoid eating fish caught there. Warnings about mercury, a highly
toxic metal used in things ranging from dental fillings to watch
batteries, have been issued by 45 states and cover four of the five
Great Lakes. Some scientists now say 30% or more of the mercury
settling into U.S. ground soil and waterways comes from other
countries in particular, China.

The increasingly global nature of the problem is rendering local
solutions inadequate. Officials in some countries are using the
presence of pollution from abroad "as an argument to do nothing [at]
home," says Klaus Toepfer, executive director of the United Nations
Environment Program in Nairobi, Kenya.

Yet global remedies primarily treaties are even harder to
achieve. The last such initiative, the Kyoto Protocol, aimed at
limiting emissions related to global warming, was rejected by the
U.S., the largest contributor of such emissions and doesn't apply
to China, the second-largest emitter. The best shot at a treaty for
transcontinental pollution, Mr. Toepfer believes, would be to
regulate a single pollutant that everyone agrees is hazardous. He
recommends starting with mercury.

China is already believed to be the world's largest source of
nonnatural emissions of mercury. Jozef Pacyna, director of the
Center for Ecological Economics at the Norwegian Institute for Air
Research, calculates that China, largely because of its coal
combustion, spews 600 tons of mercury into the air each year,
accounting for nearly a quarter of the world's nonnatural emissions.

And the volume is rising at a time when North American and European
mercury pollution is dropping. The U.S. emitted about 120 tons of
mercury into the air in 1999 from manmade sources. Chinese power
plants currently under construction the majority fueled by coal
will alone have more than twice the entire electricity-generating
capacity of the U.K.

The overwhelming majority of China's power plants are built, owned
and operated by Chinese companies. Speaking about the Wuhu Shaoda
power plant, Robin Pence, a spokeswoman for AES, says the Arlington,
Va., company "is a minority partner in Wuhu. As such, we neither
operate nor control the plant." She adds that AES didn't build the
plant and that its world-wide policy for plants that it does design
and build is to meet emission standards set either by the local
country or the World Bank, whichever are more stringent. The Wuhu
plant's manager declined to comment.

Natural Sources

EPA scientists estimate that a third of the mercury in the
atmosphere gets there naturally. Traces of the silvery liquid in the
earth's crust make their way into the sky through volcanic eruptions
and evaporation from the earth's surface. It took the industrial age
to turn mercury into a public-health concern. Mining, waste
incineration and coal combustion emit the metal in the form of an
invisible gas. After it rains down and seeps into wetlands, rivers
and lakes, microbes convert it into methylmercury, a compound that
works its way up the food chain into fish and eventually people.
The dangers of significant methylmercury exposure to the nervous
system are well documented, particularly in fetuses and children.
Permanent harm to children can range from subtle deficits in memory
and attention span to mental retardation. In January, EPA scientists
released research indicating that 630,000 U.S. babies born during a
12-month period in 1999-2000 had potentially unsafe levels of
mercury in their blood about twice as many babies as previously estimated.

Adults aren't immune, either. Joel Bouchard, a National Hockey
League defenseman who spent the past two seasons with the New York
Rangers, says that last December he began suffering dizziness,
headaches, insomnia and blurred vision forcing him to miss around
25 games. "It was, honestly, like I was in the Twilight Zone," he
says. A team doctor discovered Mr. Bouchard had abnormally high
levels of mercury in his bloodstream. The suspected cause: the tuna
and other fish he'd been eating almost daily as part of what he
thought was a healthy diet. He says his blood levels have since
returned to normal and the symptoms have disappeared.
Few places more starkly illustrate the threat from mercury, and the
obstacles to containing it, than China.

In Qingzhen, a town in the poor mountainous province of Guizhou
about 800 miles southwest of Wuhu, a 53-year-old female rice grower
who goes by the single name of Zhang and thousands of other farmers
are surrounded by mercury pollution. Dark smoke surges from the
local power plant, staining crops a drab gray. The plant flushes
eight million cubic meters, or about 10 million cubic yards, of ash
and water each year into an area adjacent to a major drinking-water
reservoir. Some fish near the plant have levels of mercury 18 times
what the EPA and the Chinese government consider safe, according to
the Guizhou Provincial Environmental Science and Research Institute,
which recently did a seven-year study of the province's mercury pollution.

The plots of land that Ms. Zhang and her neighbors tend are
especially poorly situated. Nearby is the Guizhou Crystal Organic
Chemical factory, which over the years released up to 100 tons of
mercury into a stream that runs through her village, according to
the study. An official in the factory's environment and safety
department calls the report's estimate "too high," and says the
factory stopped dumping mercury by 1998. But the stream still runs
black and reeks so strongly of chemicals that people unaccustomed to
the smell struggle not to gag when standing downwind.

Ms. Zhang and her neighbors are used to the smell. With no other
choice, they pump water from the poisoned stream onto dozens of
acres of rice paddies each planting season. Rice from the fields
tastes sour, she says. "When you wash it, the water in the pot turns
the same color as the river." Grain from these fields contains
nearly 40 times as much mercury as rice from Shanghai, according to
the study. Laboratory mice fed the rice became hyperactive and their
nervous systems began deteriorating within a month, the study says.
Farmers in the village complain of periodic fits of shaking. Ms.
Zhang suspects the pollution is the reason she and some neighbors
have stomach cancer.

Once airborne, by drifting as an invisible gas or clinging to
particles of dust, mercury begins to wander. Last April, an
instrument-laden U.S. surveillance aircraft near the
California-Oregon border hit a plume of dirty air inbound from
China. Among the pollutants: black carbon, sulfur dioxide and
mercury. "Storms didn't wash it away," marvels Veerabhadran
Ramanathan of the Scripps Institution of Oceanography in La Jolla, Calif.

Dr. Ramanathan, who helped pioneer the field of tracking
international air pollution, says such plumes shed some of the
noxious load over the ocean. But their bulk continues to drift
across the U.S. at the leisurely speed of a blimp, polluting lakes
and rivers as it goes.

The density of Chinese pollution has amazed researchers. Hans
Friedli, a chemist at the National Center for Atmospheric Research
in Boulder, Colo., recalls flying through plumes off the Chinese
coast near Shanghai two years ago that contained pollutants in the
"highest concentration that I have ever seen from an aircraft,
except when I've flown into forest fires."

And it is going to get worse. By 2020, China will have nearly 1,000
gigawatts of total electricity-generating capacity, more than twice
the current amount, according to the State Power Economic Research
Center. The majority of new plants will burn coal. Coal-fired plants
today produce three-quarters of the country's electricity, compared
with around 50% in the U.S. China will this year burn about 1.9
billion tons of coal, a 12% increase from last year, and consumption
is expected to keep rising.

China is phasing in several measures to tackle air pollution. But
soot plus sulfur dioxide and nitrogen oxides often referred to as
"SOx and NOx" are understandably taking priority over mercury.
Even with the existence of poisoned villages like Ms. Zhang's, other
pollutants affect even more Chinese people. Airborne particulates
are a suspected leading cause of respiratory disease around the
country. Acid rain from sulfur dioxide now pelts a third of China's
territory, a ratio that is "expanding, not shrinking," says Pan Yue,
the deputy director of China's State Environmental Protection
Administration, or SEPA.

Mr. Pan, an outspoken champion of stricter environmental standards,
says there currently aren't any rules being drafted to address
mercury. Asked if he is aware of recent studies linking Chinese
emissions to mercury in American lakes and rivers, he nods.
"As for China's impact on surrounding countries, I'm first to admit
the problem. But let's talk about this in the context of
international fairness," he says, before firing rhetorical questions
aimed at Washington: "Whose development model are we emulating? Who
has been shifting all of its pollution-heavy factories to China? ...
And who bears an even greater international responsibility than
China but has yet to shoulder it on matters like greenhouse-gas

Environmentalists say U.S. action to control its own mercury
emissions from power plants has been sluggish. James Connaughton,
head of the White House Council on Environmental Quality, counters
that the Bush administration has promised by next March to announce
regulations aimed specifically at restricting mercury emissions from
coal plants, which he calls a "world first." The plan, which follows
years of delays and lawsuits, is expected to include market-based
trading of pollution credits among utilities and won't be
implemented fully until 2018. Other technologies, such as flue gas
desulfurisation, that remove some mercury while scrubbing other
pollutants from coal have helped cut mercury emissions in Europe and
North America.

Weak Incentive

On the face of it, China's new rules on sulfur dioxide should help
combat emissions of mercury, too. Beijing is requiring many power
plants approved after 1995 to install equipment that reduces sulfur
dioxide, and such equipment often has a bonus effect of filtering
out some mercury. China this summer also increased the fees that
power plants must pay for each ton of sulfur dioxide they emit,
hoping the change will give all coal-fired power plants an incentive to buy such equipment.

But the reality is that sheer increases in Chinese coal consumption,
together with difficulty policing polluters, will more than offset
whatever reductions in sulfur dioxide and mercury are achieved by
the rules, experts say. For China, the economics of coal remain irresistible.

It's cheaper, and "with current global reserves, it probably
wouldn't be a stretch to keep using coal another 200 years," says
Fan Weitang, president of the China National Coal Association.
Sitting in his Beijing headquarters at Coal Tower, a sleek new
22-story building, Mr. Fan is caught off guard by questions about
mercury pollution. "It is hard for me to discuss that in depth," he
says. Other pollutants like airborne particulates, and SOx and NOx,
receive more attention, and "won't be much of a problem" in the near
future, he promises.

That view isn't shared by Chinese scientists. " 'No problem'? Big
problem," says Tang Dagang, head of atmospheric research at the
Academy of Environmental Sciences, which is funded in part by SEPA.
By the end of last year, only 5% of the installed capacity of
coal-fired plants in China had technology to reduce sulfur dioxide,
according to official statistics. While new rules will require the
retrofitting of many plants with such technology, Mr. Tang says
older plants that account for half of existing power-making capacity
are exempt.

What's more, there is little economic incentive for power plants
like Wuhu Shaoda, the company partly owned by AES, to further clean
up its act.

Next year, Wuhu Shaoda will pay an estimated fee of $400,000 for the
several thousand tons it is expected to emit of sulfur dioxide
alone, according to an official with knowledge of the plant's
emissions. That's much less than the $14.5 million engineers at the
plant say it would cost to buy sulfur-dioxide-removal equipment.
Cui Rong contributed to this article


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