Solar Power and PetroChina's Commitment to Net-Zero Emissions Goal
Solar Power Investment
PetroChina said its purchase of an electricity producer can help it move faster towards clean energy and become an integrated energy company, adding electricity, thermal energy, and hydrogen to its core offering of oil and gas.
The state-owned company announced on Monday that it would pay 5.979 billion yuan (US$839 million) to its parent, China National Petroleum Corporation (CNPC), to acquire 100% of CNPC Electric Energy, which engages in power generation, supply, sales, thermal supply, and the design and construction of power projects.
Accelerating Energy Transition
“This acquisition is aimed at pressing ahead with PetroChina’s endeavors in energy transition and green development, and to enhance the competitiveness of our new energy business,” said PetroChina’s president, Huang Yongzhang, in Hong Kong on Wednesday. i“PetroChina's wind power and solar power business segments are developing rapidly.”i
- The company plans to establish a platform for buying and selling power by coordinating with its existing businesses in renewable energy production and consumption.
Oil Consumption Trends
China’s largest oil and gas producer sold less output from refineries, with gasoline, kerosene, and diesel sales dropping by 2% to 79.05 million tonnes in the first half of the year. However, the company’s interim net profit rose 3.9% to 88.61 billion yuan, attributed to a 5% increase in revenue to 1.55 trillion yuan.
Although oil product demand is set to rise as China’s economy recovers from post-pandemic challenges, PetroChina is restructuring its refining business to align with China’s net-zero emissions goal by 2060.
- Oil consumption in China's transport sector is projected to peak next year, impacted by the rapid adoption of electric vehicles (EVs).
- Nationwide oil demand is slated to peak between 780 and 800 million tonnes before 2030, according to CNPC’s research.
Renewable Energy Focus
Faced with a deceleration in oil consumption and a global push for clean energy, PetroChina has been actively investing in solar and wind energy projects in Xinjiang and Qinghai. The company’s energy output from wind and solar power plants more than doubled to 2,170 Gigawatt-hours (Gwh) in the first half of 2024 compared to the previous year. External power supply surged 3.5 times to 950 Gwh within the same period.
The acquisition of CNPC’s Electric Energy will further help leverage the synergy between its renewable energy and power segments, according to Huang on Wednesday.
The company targets to increase the share of renewable energy in its overall production from about 7% this year to 30% by 2035 and 50% by 2050, according to PetroChina.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.