CPC Corporation, Taiwan

R&D category

Key projects

R&D outcome

Assessment and research of domestic and overseas oil mine potential

Study of domestic mine sites

• The project consolidated existing paleontological data, sequence stratigraphy well surveys, and seismic interpretations to produce a stratigraphic chart for Tainan Basin

• The project attempted to increase production capacity of natural gas wells in domestic sites using the foam lift approach; laboratory trial for the technology has been completed, and an on-site test is scheduled to take place in 2023

Study of foreign mine sites

• The project targets gas fields discovered in the northwest seas of Australia that are undeveloped or under development, and completed 75 natural gas asset scores and asset/mine site ratings to be used as reference for future mine acquisitions

• The project uses new data collected from wells at Benoy, Mbaikoro, and Mouroumar in Chad and applies prestack geological statistics inversion for thin-section identification; it helps establish lithological characters, porosity, and water saturation attributes and enables updates to the 3D geological model and reserves

Development and use of renewable energy

Geothermal analysis

• CPC completed metamorphic facies analysis at the 3 wells located in Xiaoyoukeng, Qingtiangang, and Zhusongling of Mount Datun, and established cross-section profile of minerals between the connected wells
• CPC completed a study on acid-resistant piping materials as well as economic benefits analysis for geothermal applications in Mount Datun, which will aid in CPC’s geothermal development efforts in Mount Datun

Development of photovoltaic technology

• CPC actively promotes construction of photovoltaic systems and the development of automated maintenance, operation, and management technologies; by 2022, CPC had constructed more 248 PV sites with rated capacity totaling 12.518 MW

Evaluation for the establishment of pilot hydrogen fuel station

• The first hydrogen fuel station has been signed and implemented; mobile hydrogen fuel stations are expected to be introduced in the end of 2023 to support operation of pilot hydrogen-powered vehicles

Development of new products and new technologies

Development and application of lithium-titanate (LTO) materials

• Factories and procedures for trial mass production of LTO materials are currently under development, and are expected to be completed by the end of 2023

Development of biocarbon super capacitors

• CPC completed the trial production of 500 pieces of 1200F 40138 super capacitor, developed 48V modules, and invested into the development of anode materials for modified sodium ion battery

Testing of high/Low temperature fuel cell

• CPC created a distributed power generation test site for high/Low temperature fuel cell, and completed the establishment of fuel cell monitoring system and big database

Smart green energy stations

• CPC had 4 green energy-based pilot smart fuel stations in Northern, Central, Southern, and Eastern Taiwan, where research outcomes were applied to support “power generation,” “power storage,” “power usage,” and “AI-assisted” services

Study of carbon capture, utilization, and storage technologies

• CPC takes regular measurements near potential storage sites to establish a database of background values; CPC also made plans to take supplemental measurements along the western coastal survey line, and complete its first sea survey in November 2022
• CPC established a CO₂ capture and utilization trial system and conducted studies on technology validation, catalyst development, and production optimization

Development of production procedures for bioplastic materials

• In support of the nation’s plastics reduction policy, CPC completed the development of production technology for 5-hydroxymethylfurfural (5-HMF), a critical precursor to the bio-based polyester material polyethylene furanoate (PEF), and successfully produced 5-HMF products of high purity

Trial mass production of C5 fraction

A trial mass production facility capable of manufacturing 8MT of dicyclopentadiene (DCPD) a year is being constructed; the factory is expected to be completed in 2023, at which time CPC will begin trial production of high purity DCPD

• Patent acquisition in Taiwan

Development of environment-friendly high performance coating materials and solvents

• Development of bio-polyol formation technology and low-carbon vegetable oil-based coating materials to significantly reduce volatile organic compounds (VOCs) and lessen the carbon footprint
• By applying hydrogenation technology on dearomatized solvents, CPC successfully developed environment-friendly solvent D80 that can be used in paint, coating materials, industrial cleaning agents, and metal processing; the reduction of aromatic hydrocarbons and toxic substances lessens harm to the human body and the environment

• Won Best Product Award during the 2022 National Brand Yushan Award

Development of cosmetics material - MïBlancSol

• MïBlancSol has potential pharmaceutical uses due to its whitening and anti-bacterial properties; it is an auxiliary material to skincare products and supports CPC’s business diversification efforts

Circular economy

Adding value to heavy oil materials - development and application of soft carbon derivative for energy storage

• Ongoing promotion and construction of pilot soft carbon production factory
• With the development of long-lasting soft carbon-based anode materials and spherical active carbon, CPC hopes to create high value-adding super capacitors and carbon materials for battery

• Won invention challenge of 2022 Taiwan Innotech Expo - Gold
• Won the 19th National Innovation Awards - “Enterprise Innovation Award” - “Value-adding Carbon Fixation Technology - High Capacity Artificial Graphene-based Anode Material Technology for Electric Vehicles”

Use of cold energy - development of algaculture and functional materials

• CPC developed green extraction technologies to help extract sarcodia essence, a functional substance found in algae, for the development of high value-adding products

• Patent acquisition in Taiwan
• Won 2022 National Invention and Creation Award  - “Marine Algae Cultivation Method and Equipment”

Development of DeNOx catalyst

• CPC completed the development of catalyst renewal technology for DeNOx catalysts in 2022; more than 80% of old catalysts can now be renewed
• CPC completed catalyst renewal facilities at oil refineries, and successfully renewed catalyst at China Steel Corporation’s power plant

Turning recycled PET into polymeric dispersant

• CPC developed catalytic depolymerization technology for turning PET into high value-adding applications, thereby increasing the economic benefits of recycling efforts
• Through alcoholysis and functionalization, CPC successfully turned recycled PET into water-based polymers characterized by high polymer count and crystallization resistance, which can be made into titanium dioxide dispersant

• Patent acquisition in Taiwan

Highlight: Advance Catalyst Center

In light of the global movement to reduce energy and carbon and the multitude of innovative technologies being developed to achieve net zero emission in Taiwan, CPC assumed its role as the leader of industrial transformation and founded an “Advance Catalyst Center” in 2021 with the goal to support “carbon reduction, energy conservation, environmental protection, and green products” with upgraded refining processes, value-adding chemicals, and carbon capture/utilization solutions. By 2022, the Advance Catalyst Center had successfully developed: CO2 hydrogenation for the production of methanol catalyst, catalysts for efficient removal of NOx, and high value green oil products. The Advance Catalyst Center also combines CPC’s chemical products with other petrochemical materials into the development of electronic grade materials for the semiconductors industry.

CPC aims to establish its Advance Catalyst Center as the “pilot site for next-generation smart production” and therefore incorporates digital and AI technologies to create a smart production environment that supports the petrochemical industry’s transition into “Industry 4.0.” In 2022, Advance Catalyst Center incorporated 5G and AIoT technologies and developed a “Bionic Automated Inspection Device” in the form of a dog. This bionic dog performs automated inspections throughout plant premises and sends inspection data to the control center to facilitate cloud computing for smart energy management, workplace safety, personnel safety etc., and is a good example of how AI can be applied in safety monitoring.

The Advance Catalyst Center has been cooperating actively with industry participants, government agencies, and the academia locally and abroad toward accomplishing localized production of catalysts. In 2022, the Advance Catalyst Center completed validation of DeNOx catalyst with China Steel Corporation, developed carbon capture technology with Taiwan Power Company, and invited Nippon Shokubai Co., Ltd. to an exchange of technologies and know-how. With respect to industry-academia collaboration, the Advance Catalyst Center has outsourced studies of DeNOx catalyst, smart factory, and catalyst development to National Taiwan University and Academia Sinica as ways to secure growth for domestic catalyst manufacturers and to support circular economy.

In 2023, the Advance Catalyst Center held a meeting hosted personally by the CPC Chairman to set key performance indicators. The KPIs revolved around the center’s three main development focuses, and paved way toward the center’s goals to develop CCU equipment by 2023 and create test site for honeycomb DeNOx catalysts. In the future, the center will continue supporting upgrades of domestic industries and promoting net zero transformations with innovative technologies.

Highlight: Satellite Composite Components Fuel Transformation of The Next Level

CPC has the technological advantage to develop carbon fiber composite materials, and cooperated with Taiwan Space Agency to plan the research and production of space-grade composite materials. In July 2022, the two parties held a Satellite Organic Composite Materials Component Delivery Ceremony at CPC Building, during which CPC handed the “Composite material cylinder for optics payload” and “High pressure fuel tank/valve component and pipeline coating” technology over to Taiwan Space Agency. The two parties also signed a “Memorandum of Understanding (MOU) for Collaboration on Aerospace Grade Composites” with Metal Industries Research & Development Centre to support local development of space-grade composite components, designs, materials, and production technologies and the growth of Taiwan’s low-orbit satellite industry.

All carbon fiber composite components previously used in domestic satellite projects were either produced by local composite material manufacturers using imported materials or directly imported from abroad, which hindered Taiwan’s satellite development efforts. Today, CPC is investing extensively into developing carbon fiber materials from its own products, which can then be used to produce composite components, thereby enabling total localization from materials supply, component design to manufacturing for the growth of Taiwan’s satellite industry.

Climate change and global warming have made net zero transformation the world’s common research focus. CPC will aim to turn this crisis into opportunity by turning oil and petrochemical products into advanced materials that can be used for electronics, semiconductors, space science, and biotech, and set good example of COTC transformation. With the development of new materials, CPC hopes to inspire innovation and support sustainability across all industries in Taiwan.

Highlight: Internal Carbon Pricing

As a response to carbon reduction trends around the world, CPC has set its long-term goal to introduce internal carbon pricing and allocate emission costs to internal operating activities. The IPCC has stated in AR6 that global carbon tax must reach US$300 per MT by 2030 in order to keep temperature rise below 1.5 degrees. After taking into consideration the internal carbon tax rates of reputable businesses in Taiwan and the possible carbon tax rates to be imposed by the nation, CPC has set its own internal carbon tax rate at NT$1,500 per MT.

For phase 1 implementation, CPC has incorporated annual greenhouse gas reduction goals into the performance evaluation system and introduced methods to calculate carbon tax per unit of refined product for each business segment. This performance management approach will provide internal departments with the incentive to reduce carbon and progressively reduce carbon tax per unit of production. The system was still being developed in 2022 and is expected to begin performance evaluation in 2023. Outcomes of the performance evaluation will be forwarded to various business segments for decision-making and integrated management of carbon cost, and play a key role in CPC’s progression toward net zero by 2050.

Highlight: Pioneer In Green Energy and Carbon Neutrality

CPC supports the global net zero movement and makes extensive commitments to achieve carbon neutrality. In addition to engaging international supply chain partners for carbon reduction, CPC also makes use of the carbon offset system to fully offset the amount of carbon produced. In 2020, CPC made its first import of carbon neutral LNG and was able to obtain certification for PAS 2060 - Carbon Neutrality Standard and Certification the next year. By 2022, CPC had made plans to import carbon neutral ethylene and carbon neutral crude oil, and constructed the world’s first carbon neutral fuel station; all of which are indicative of CPC’s resolve to ensure business continuity, create a friendly environment, support a low-carbon lifestyle, and realize a sustainable supply chain.

Persistent import of carbon neutral LNG

In 2022, CPC worked with Shell and Chevron to import 2 carbon neutral LNG vessels. Using the carbon neutrality system, greenhouse gases emitted from the mining to the use of LNG are offset against carbon credits that meet the “Verified Carbon Standard (VCS) - Gold Standard.” These carbon credits are sourced from peatland restoration and international foreign preservation projects of REDD+, and the amount of greenhouse gases to be offset have been validated by independent institution - Verra. These actions are indicative of CPC’s ambition for energy transformation.

Carbon neutral certification for sustainable traffic

CPC is committed to using green energy as a means to carbon neutrality. Its smart green energy fuel station located at Qianfeng Road, Tainan, passed PAS 2060:2014 carbon neutral certification in March 2022, which made it the first carbon neutral fuel station in Taiwan and set a key milestone in terms of green energy development. This fuel station has been planned with the intent to lower greenhouse gas emission in the first place, and was designed and constructed after taking into consideration detailed data including: emission source, power usage, oil usage, water usage, air conditioning equipment, employee count, work hours, renewable energy generation, and carbon reduction measures to achieve effective reduction in greenhouse gas emission.

In an attempt to obtain carbon neutral certification, all petrol stations conducted greenhouse gas survey using ISO 14064-1 standards in 2021, during which they took detailed records of greenhouse gas emissions. Through the use of renewable energy equipment such as rooftop solar power stations and natural gas fuel cells, petrol stations have successfully reduced greenhouse gas emission by 25 MT. The residual 99 MT of carbon emission was offset against the carbon credits purchased from Changbin Wind Power Plant, and the organization was finally able to obtain carbon neutral certification while at the same time set good examples of carbon offset using locally produced carbon credit.

The first to introduce carbon neutral crude oil

Reducing greenhouse gas has become a global consensus, one that CPC strives to accomplish by supplying carbon neutral crude oil to the domestic market. This is why CPC has partnered with SOCAR Trading, a member of the State Oil Company of Azerbaijan, and signed its first low-carbon crude oil and oil product framework agreement that outlines how the two parties will engage in the trading of carbon neutral crude oil or oil product. This agreement also involves survey and certification of carbon footprint over the life cycle of oil product, and adopts a carbon offset system that is certified by a globally reputable third party.

In June 2022, the two parties completed import for 1.05 million barrels of carbon neutral crude oil, and enabled Taiwan to receive its first shipment of carbon neutral crude oil. Through the carbon offset system, CPC was able to obtain “GHG reduction credits” certified by international third parties and achieve 88 times the one-year carbon absorption volume of Da’an Park. Furthermore, this this batch of carbon neutral crude oil was certified by Climate Neutral Commodity (CNC) of Switzerland and by UK company Intertek for carbon neutrality from cradle to gate. While exploring domestic business opportunities of carbon neutrality, CPC will continue monitoring carbon reduction trends around the world and lead domestic businesses toward accomplishing net zero by 2050.

Highlight: Reuse of Cold Drainage; A Mutually Beneficial Solution Between LNG Plant and Aquaculture

Reuse of cold drainage (diamond water)

CPC imports liquefied natural gas (LNG) from overseas, and in order to bring LNG back into gas form, the Company has to use large volumes of sea water to warm up the LNG, which is stored in extremely low temperatures during transportation. The sea water is discharged when temperature drops to about 15 oC, and this “cold drainage” undergoes three cleaning and filtering processes to remove any concern for contamination or eutrophication. The purified water has such excellent and stable qualities and carries ideal temperature of 22-24 °C during summer that make it very suitable for fish farming.

Social benefits

• Prevents fish farmers from drawing groundwater, which lessens risk of land subsidence

• Brings distinctive advantages to remote townships

• Assists government and academic institutions in the application of research outcomes

• Declutters pipelines along the coastline and improves coastal scenery for tourism benefits

Highlight: Pilot Hydrogen Fuel Station

Hydrogen power is one of the 12 critical strategies that Taiwan has taken to achieve net zero by 2050. As a key player in the government’s future energy plan and net zero policy, CPC not only invests persistently into research and development but also assembled a Hydrogen Energy Team in March 2021 to oversee hydrogen power-related research projects, including the quantification of hydrogen power and hydrogen-assisted natural gas combustion. CPC has completed assessments for the construction of pilot hydrogen fuel station, and expects to introduce the nation’s first mobile hydrogen fuel station in Kaohsiung by the end of 2023. The fuel station occupies very little space yet supplies 60 to 80 kg of hydrogen fuel a day to power two large buses or ten passenger vehicles. It plays a critical role in the government’s move toward hydrogen-powered vehicles in the future. Being the pioneer of hydrogen power solutions in Taiwan, CPC will continue monitoring hydrogen power developments around the world and invest into research to help connect with the rest of the world. With this technology, CPC looks forward to becoming the supplier of zero carbon clean energy in the future.

For more accomplishments, please refer to [Feature stories] - “Carbon capture, utilization, and storage technologies,” “Green energy beneath the surface: CPC explores geothermal power,” and “Pioneer in industrial carbon reduction; the first in Taiwan to complete carbon footprint survey for petrochemical materials”