Low-carbon Transformation And Circular Economy
Budget and outcome of prospective R&D
High-value Petrochemical transformation
On April 21, 2023, CPC opened its first self-constructed, self-operated composite EV charging station at the carpark of Hsinchu Guangmin Station. The charging station has four fast charging units each with two charging points, and four slow charging units each with one charging point. They support several types of chargers to meet the needs of different EVs. To achieve optimal operation and management of the charging stations, CPC created a proprietary platform where customers are able to inquire the location of charging station and track the charging status in real-time using CPC PAY.
In the future, CPC plans to incorporate solar power as a form of energy and will develop energy storage systems at the station. By leveraging power generation and energy storage technologies and connection to the smart grid, CPC hopes to power electric vehicles entirely using green energy. The charging rates will also be lowered appropriately to attract more users, thereby promoting CPC’s green, positive image and making the station a true pilot for diverse energy sources in the future.
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 semiconductor 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 a ctive l y w ith ind ustr y par ticipants , govern ment 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.
The Advance Catalyst Center held a KPI meeting in 2023 hosted personally by the Chairman, who led the institution to carry out tasks revolving around the center’s three main development focuses. In 2023, the center completed installation and trial run for Taiwan’s first equipment that captures CO2 from the chimney exhaust into methanol, completed development and validation of the honeycomb DeNOx catalyst renewal technology, and constructed a trial mass production facility for high-quality DCPD. Through innovative technology, the center continues to drive upgrades among domestic industries and contribute to net zero transformation.
Highlight: Composite materials R&D center
There is high degree of competition for carbon fiber composite materials around the world, which makes it one of the critical next-generation technologies that Taiwan will focus its development efforts on in the future. Taiwan has accumulated strong know-how and had successful experience with composite materials over the years. By having the composite materials center integrate resources that are scattered across individual entities, local businesses will be able to ascend from making carbon fiber to designing an entire system with composite materials. Meanwhile, CPC will be directing its heavy oil to carbon fiber production for added value, emission reduction, and carbon storage benefits, thereby contributing to the sustainable growth of the organization. By leveraging the government’s influence, CPC took the initiative to form an industry alliance that not only brings new ideas into old practice, but also creates and shares values during the process. In 2022, the first batch of carbon fiber-reinforced polymers featuring CPC’s proprietary asphalt-based carbon fiber materials was produced; this was also the year when CPC and Taiwan Space Agency jointly created “aerospace grade composite barrel,” a structural component in high precision optical lens for use on remote sensing satellite, from design to manufacturing. In 2023, CPC’s staple fiber products were produced into carbon fiber material and incorporated into the design of small module reactor equipment. With this accomplishment, CPC continues to improve upon its carbon fiber production process, equipment, formula, and products.
Low-Carbon Emission transformation
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 should 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 in the planning stage in 2022 and was first used for performance evaluation in 2023. Outcomes of the performance evaluation are forwarded to various business segments for decision-making and integrated management of carbon cost, which contributes to CPC’s progression toward net zero by 2050.
Highlight: Pioneer in 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
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) and Australian Carbon Credit Unit (ACCU).” These carbon credits are sourced from peatland restoration in Indonesia and forest preservation project in Australia, 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.
Since 2020, CPC has been importing carbon neutral LNG, showcasing real examples of carbon neutral products, and commercializing carbon neutral products to help industry participants achieve carbon neutrality. Today, CPC cooperates with many domestic enterprises and helps them connect with carbon reduction standards around the world to create a low-carbon and sustainable living environment.
Highlight: Product carbon footprint survey
CPC has been surveying and verifying the carbon footprint of its main products in order to meet supply chain requirements, disclose carbon emission data, and analyze emission hotspots as part of its sustainability practice. Using the methods introduced in ISO 14067, CPC takes quantitative measurements of greenhouse gases emitted in different stages of the product life cycle; this data not only facilitates the calculation of the product carbon footprint throughout a supply chain, but also allows analysis of emission hotspots that internal departments can make use of to identify areas where emissions can be reduced, and devise effective reduction plans and risk control measures accordingly.
Completed carbon footprint survey for 527 key products in 2024
Product carbon footprint survey was carried out over several phases; the first phase began in 2022, in which CPC completed carbon footprint survey and third-party validation for 21 products including petrochemical materials, chemical solvents, and lubricants. In the second phase, CPC plans to complete carbon footprint survey for 527 of the Company’s main products in 2024. Data will be updated continuously in the future to keep track of changes in carbon emission.
Lean-Renewable Energy transformation
Ongoing investments are being made to the development of photovoltaic systems, geothermal power, and natural gas and cold energy supply. CPC has also ventured into hydrogen power, and will explore viable business models given the domestic demand, regulations, and supply chain availability to transform into a supplier of clean energy. Success of the clean energy transformation will make each CPC fuel station a supply center for diverse energy sources.
Highlight: Reuse of cold drainage(diamond water)
Highlight: Hydrogen power roadmap
According to the nation’s 2050 net zero goal, Taiwan aims to generate 9% to 12% of power from hydrogen by 2050, which was why CPC assembled a Hydrogen Power Team in March 2021 to oversee the hydrogen power business and to keep track of hydrogen power development in countries around the world, thereby helping local players connect with the international market.
In support of the government-assigned mission to supply hydrogen power, CPC will be constructing a pilot hydrogen fuel station in the short term to signify the nation’s move toward hydrogen power and to develop the necessary technologies. Medium- and long-term plans have been made to develop production capacity for blue hydrogen, whereas hydrogen power transfer and storage facilities will be constructed in accordance with the national spatial plan to supply hydrogen to industrial users as well as vehicles.
CPC has been constructing hydrogen fuel stations in support of the government’s push for hydrogen-powered vehicles. Taiwan’s first pilot hydrogen fuel station is expected to be situated in the southern area and completed for operation by the end of 2024. Additional hydrogen fuel stations may be constructed depending on the routes that the central and local governments have planned for hydrogen fuel buses. With regards to the supply of hydrogen power, CPC will start with blue hydrogen before transitioning into green hydrogen, and produce blue hydrogen through a combination of steam methane reforming (SMR) combined and carbon capture and storage (CCS) until far ocean transportation of hydrogen power is commercialized.