Chinese Oil Giant Joins Push into New Energy

China National Petroleum Corp (CNPC), the country’s largest oil and gas producer, plans to achieve “near zero” emissions by 2050, according to a news release on its website. The company says that “green and low carbon” will be one of it five pillars as it announced the publication of its 2021 environmental protection report.

In the report, according to Bloomberg, the company said that it plans to shift 50% of its energy production away from fossil fuels. Hydrogen, geothermal and other green energy sources would compose half of its energy output.

The company has also set targets for a 50% reduction in methane intensity by 2025 from a 2019 baseline. In its latest environmental report, the company said that it will aim for a further 20% reduction by 2035. Methane is a more potent greenhouse gas than carbon dioxide.

China is critical to the global fight against climate change; it is the world’s largest emitter of carbon dioxide (although its emissions per capita are lower than the United States). As the country grows wealthier, its energy needs increase. To date, those needs have been predominantly met through the burning of coal, which gives urgency to find low emission, viable alternatives.

China intends to achieve ‘carbon neutrality’ by 2060. President Xi Jinping announced the goal to the UN general assembly back in 2020.

China trialled hydrogen powered vehicles during the Beijing Olympics, earlier this year. More than 1000 vehicles were put into use during the games to ferry officials, spectators and athletes around. Both PetroChina, which is owned by CNPC, and Sinopec, another Chinese oil company, built hydrogen refueling stations as part of that project.

Hydrogen is considered a zero-emission fuel (although some emissions may be generated depending on method of production).

CNPC has announced that it also will double its investment on new energy. Last year, the company spent 2.2 billion yuan ($330 million) on new energy projects, according to Bloomberg.