Development and utilization of new energies is an important approach to cope with energy and environment challenges and to facilitate sustainable development. CNPC regards new energies development as a strategic path for solving future energy problems.

Making the green and low-carbon energy transition a high priority, the Company has included new energies in its core operations to facilitate the shift to an integrated energy company across oil, gas, thermal energy, electricity and hydrogen, promoting the integrated development of fossil energy and new energies, based on a three step approach of “clean alternative, strategic replacement and green development”.

Hydrogen Energy

Tapping into the hydrogen energy business, the Company’s high- purity hydrogen capacity increased by 1,500 t/a in 2022, with the total high-purity hydrogen capacity reaching 3,000 t/a. In 2022, 23 hydrogen refueling stations and integrated energy service stations were completed. Preliminary studies on 4 hydrogen purification projects were rolled out, including the Sichuan Petrochemical Project, which became operational in 2022. The first hydrogenfueled torch was used to light the Winter Olympics as the Company maintained steady and constant supply of hydrogen energy to serve the Beijing Winter Olympics and Paralympics.

Geothermal Energy

Being an important source of renewable energy, geothermal energy can be used for electricity generation, heating, farming and medical treatment. There are abundant geothermal resources available in Hebei Province of China, where CNPC’s Huabei oil province is located. The geothermal heat in Huabei is of low-medium temperature conductive geothermal sources, generally around 90℃. Huabei oil province is endowed with 628.76×1018 joules of geothermal energy, equivalent to 21.4 billion tons of standard coal.

CNPC has been actively promoting the development and utilization of geothermal energy and supporting relative research efforts. We fund demonstration projects in the Huabei, Daqing, Liaohe and Jidong oilfields. Since 2021, the Company has put into operation six geothermal heating projects in Xiong’an New Area, Tangshan and other places, increasing the coverage of geothermal heating by 9.6 million square meters.

In 2022, the first medium-deep geothermal heating project started construction in Beijing. The coverage of geothermal heating increased by 10.06 million square meters, with the total area of geothermal heating reaching 25 million square meters, replacing 570,000 tons of standard coal annually.

Wind and Solar Power Generation

In 2021, a 200 MW photovoltaic power plant in Yumen Oilfield was connected to the grid, marking the Company’s first grid-connected PV project. When operating at full capacity, the project will generate approx. 400 million kWh per year, equivalent to 110,000 TCE and reducing 280,000 tons of carbon dioxide emissions. A 6.9 MW distributed photovoltaic power station was completed and put into operation in Yingdong, Qinghai Province.

In 2022, the Company received a 10.2 million-kilowatt approval for clean power generation as the total installed capacity exceeded 1.4 million kW. A 300,000-kW grid-connected photovoltaic power plant in Yumen Oilfield was near completion and the Xinghuo Floating Photovoltaic Demonstration Project in Daqing Oilfield was connected to the grid. The Company worked with State Power Investment Corporation in signing a 900,000-kW offshore wind power project in Guangxi.

Biomass Energy

Biomass energy is the chemical energy transformed from solar energy and stored in an organism (animal, plant or micro-organism) through photosynthesis, with biomass (living organism) as the energy carrier. Biomass energy is an important type of renewable energy and can be converted into fuel ethanol and bio-diesel by means of sophisticated techniques.

Ethanol Fuel

Ethanol fuel, when blended with gasoline, can help to reduce auto emissions and boost the combustion efficiency of engines to a great extent, saving energy and helping to protect the environment. CNPC has carried out R&D activities with diversified non-grain sources for ethanol fuel without occupying farmland, consuming grain, or damaging the environment. Producing fuel ethanol with sweet sorghum straw is a major breakthrough in this field. In 2001, Jilin Ethanol Fuel Co., Ltd., a joint venture between CNPC (55%) and Jilin Grain Group (25%) and COFCO (20%), was established. Jilin Fuel Ethanol Co., Ltd. is capable of producing 500,000 metric tons of ethanol fuel and 50,000 metric tons of ethyl acetate every year.