Renewable Energy

There are many types of renewable energy, including solar, wind, biomass and geothermal. CNPC has signed framework agreements since 2006 with China's State Forestry Administration and local governments in Sichuan, Yunnan and Shandong to jointly develop forestry biomass energy and produce bio-diesel and ethanol fuel using non-grain crops.

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.

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. So far, we have constructed 88 ethanol gasoline blending centers and upgraded 5,778 filling stations in nine provinces and cities, including Jilin and Shandong. We produced 419,000 metric tons of ethanol fuel and our sales of ethanol gasoline accounted for 55% of China's total in 2007.

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 2007, we constructed and inaugurated a demonstration project to produce 3Kt/a ethanol from sweet sorghum straw in Dongtai, Jiangsu Province.

Cooperation with localities

CNPC is working with the local government of Yunnan Province to produce fuel ethanol from non-grain crops and bio-diesel from woody oil plants such as Jatropha curcas. For this purpose, CNPC will provide financial support and carry out fundamental research while investing in raw material production bases; establishing a raw material sourcing system of production, procurement and processing, and improving the relevant quality inspection and after-service systems.

CNPC is also working with the local government of Shandong Province to produce ethanol fuel and bio-diesel from non-grain crops. For this purpose, CNPC will provide financial support and carry out fundamental research. A 200Kt/a ethanol fuel production unit and a 100Kt/a bio-diesel production unit will be constructed in Shandong Province. The two parties will also jointly construct a raw material production base and a rough processing & supply base for the production units.

CNPC has inaugurated the first batch of forestry biomass energy bases in Yunnan and Sichuan. Covering more than 600,000 mu, these bases will supply about 60,000 metric tons of bio-diesel materials. A 100-mu Jatropha curcas seed-cultivation base and a 180,000-mu plantation base will be set up in Liangshan and Panzhihua in Sichuan Province.

Geothermal energy

Being an important source of renewable energy, geothermal energy can be used for electricity generation, heating, farming and medical treatment. Today, some sophisticated techniques for low- and moderate-temperature geothermal power generation are available.

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℃. There are four sets of geothermal reservoirs in this region. The thick carbonate rocks in the Palaeozoic and Proterozoic systems covering 7,292 square kilometers (25.7% of the Huabei oil province) are the most prospective target zones for geothermal development, with a geotemperature of 95-110℃ and a daily water output per single well of 1,200-3,000 cubic meters. Huabei oil province is endowed with
628.76×1018 joules of geothermal energy, equivalent to 21.4 billion tons of standard coal. In particular, there are two geothermal fields larger than 1,000 square kilometers, 13 fields larger than 100 square kilometers and five fields larger than 10 square kilometers.

In 2007, CNPC conducted a pilot test of geothermal power generation in Huabei. Optimized mature technology and equipment were used to modify abandoned wells and prepare them for large-discharge extraction tests. Two testing wells produced about 600 cubic meters of fluid every day with a temperature of 110℃, satisfying the requirement for low- and moderate-temperature geothermal power generation. The pilot test provided the basis for establishing geothermal power plants with an appropriate installed capacity and for large-scale development and utilization of geothermal resources.