"China is building a new coal-fired power plant every week. And it is certainly an environmental concern and an opportunity for China to improve its energy efficiency, its environmental record by employing clean coal technology," Harbert said in an agency briefing. "And we are very supportive of the efforts they have done to date in their research, but we certainly are much more supportive of commercializing some of this technology and putting it into use in China and have offered to bring China more officially into our effort called the FutureGen Project, which is an initiative to build the first emissions-free coal-fired power plant in this country."

The Jackson Hole Center for Global Affairs (JHCGA) launched a three-year project in 2002 to send policymakers and technical experts from the coal-rich states of Wyoming and Montana to China to work on energy issues. The Sino-U.S. Clean Energy Initiative works to "develop and implement an agenda of U.S.-China clean energy cooperation, based on the capabilities and interests of participating public and private sector organizations," according to the center's website. Cleaner coal production was at the top of the agenda.

In 2004, a JHCGA delegation visited coal-fired plants in Shanxi Province in north China and in turn hosted a Chinese delegation in Wyoming to visit coal-mining facilities. Based on the visits, delegates identified a number of needs for both countries in developing cleaner coal production. These needs included coalmine methane capture and utilization, utilization of waste coal and coal waste byproducts, combined heat and power and sulfur dioxide emissions trading.

"Coal obviously is a workhorse here in the United States and workhorse in China because of its ability to produce power. And of course coal emits carbon dioxide and when burned is a chief culprit in global warming," said John Turner, U.S. Assistant Secretary of State for International Environmental Affairs, during a meeting with the Chinese delegation. "Climate change poses a global problem that will require a global response. The United States and China share a common responsibility in this regard."

New look at nuclear

Nuclear power, highly controversial for the toxic waste it produces, is getting a second look by U.S. lawmakers as an alternative to oil. Former New York Mayor and Republican presidential candidate Rudolph Giuliani said the United States should consider China's example in building more nuclear power plants.

"China is building 40 nuclear power plants, India just made a deal so they can build nuclear power plants," Giuliani said during a CNBC interview in March.

Sino-U.S. cooperation on building nuclear power plants has long been stymied by political considerations. However, last December U.S. Department of Energy (DOE) announced it had approved a request by U.S.-based Westinghouse Electric Co. to help build four nuclear plants in China.

"This is an exciting day for the U.S. nuclear industry. This agreement is good for the people of China and good for the people of the United States. It is an example that if we work together, we can advance not only our trade relations, but also our common goal of energy security," said U.S. Energy Secretary Samuel Bodman in a statement. "This DOE-supported, Generation 3+ reactor is safer and more efficient than current reactors and could help spur development of a nuclear renaissance in the United States."

Committing to alternative energy

Solar, wind, hydro and other renewable energy sources are also gaining more attention from both China and the United States. One cooperative project underway to develop "green" energy sources is centered on the upcoming 2008 Olympic Games in Beijing. In 2002, energy regulators from both sides signed an agreement of intent to cooperate on clean energy technology for the games and the first joint working group for planning met that year.

The group identified 10 areas for cooperation: natural gas technology; combined cooling, heating and power; clean coal; hydrogen and fuel cell vehicle demonstration; environmentally friendly buildings; urban transportation; air quality; water quality; solar photovoltaics; and a Beijing-Chicago Friendship Cities Initiative to promote local environmental activities, according to a U.S. Government release.

A hydrogen park in the Olympic Village is planned to demonstrate hydropower technology with five buses operating on a blend of hydrogen and natural gas.

China has set a goal of generating 12 percent of its power capacity from renewable energy sources by 2020. In 2003, the country reported 3 percent of its power came from renewable sources. China invested $6 billion in renewable energy development in 2005, more than any other country. Just 6 percent of U.S. energy generation came from renewable sources in 2004.