(JW Insights) May 31 -- Many petrochemical giants are rapidly diversifying their business and foraying into new energy fields in China such as charging piles and sustainable fuels, as the world’s transport industry becomes less dependent on fossil fuels,Yicai Global reported on May 30.
China Petrochemical (中国石化), also known as Sinopec,had built more than 2,200 battery charging and swapping stations and 98 hydrogen refueling stations as of the end of 2022, Chairman Ma Yongsheng said last month.
The Beijing-based company aims to upgrade its more than 30,000 filling stations into an integrated network for petrol and hydrogen refueling as well as battery charging and swapping.
Anne-Solange Renouard, president of TotalEnergies China Investment, told Yicai Global, that “Within two years, French oil major TotalEnergies will have 11,000 charging piles in China. In five years, the emerging electric vehicle charging business is expected to account for a quarter of the company’s downstream business value.”
Moving into renewable energies is not only an opportunity for petrochemical companies to invest in the future, but also a way for them to offer more “added value” services, according to Yicai Global.
Stephane Dion, managing director of Total Lubricants China, said, “We can provide other services for them while charging their cars. It is an opportunity we are actively trying to seize.”
New businesses are also emerging with the electrification of the auto industry. Thermal management of EVs has become a hot research topic. Courbevoie-based TotalEnergies opened a lab in northern China’s Tianjin this year to develop battery-cooling technology.
Sustainable aviation fuels, which cut carbon emissions by 85 percent compared with normal jet fuel, are also becoming a focus. Last December, a plane from Air China’s cargo fleet flew from China to Belgium using bio-jet fuel produced by Sinopec’s Zhenhai Refining and Chemical. This was the mainland’s first international freight flight using sustainable aviation fuel, Civil Aviation Administration of China News reported at the time.
Sinopec could produce 100,000 tons of bio-jet fuel a year as of the end of 2022, said the Yicai Global report.
