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 addition, CPC Corporation participated in the 21st National Yushan Award in 2024 in the Most Popular Brand category with the project "CPC Scooter Battery Charging and Swapping 1000-Station Nationwide Coverage Service" and won the first prize recognition.
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.
ESG benefits of green energy pilot station
With the assembly of “Smart Green Energy Station Project Team” in April 2018, CPC plans to transform conventional petrol stations into integrated smart, green energy platforms that “generate, store, and utilize green energy.” Two petrol stations, namely Xinyi Road Station in Chiayi and Qianfeng Station in Tainan, have been chosen as pilots for CPC’s smart green petrol station project; together, they validate our research findings and help us explore ways to create smart cities and co-exist with nature.
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: 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 introduced 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.
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. According to the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6), the global carbon price must reach US$300 per ton by 2030 to limit global warming to no more than 1.5 degrees Celsius. CPC, referencing internal carbon pricing rates disclosed by well-known large domestic enterprises and the possible pricing under Taiwan’s future total emission cap policy, has set an internal carbon pricing rate of NT$1,500 per metric ton.
CPC’s first phase of implementation is carried out through a performance appraisal system, incorporating the Company’s annual greenhouse gas reduction targets to assess the unit carbon cost per production volume of each business division. Through annual performance management, each unit is encouraged to actively reduce carbon emissions and gradually lower the carbon cost per unit of production, jointly working toward the goal of achieving net-zero emissions by 2050.
Highlight: Pioneer in carbon neutrality
In response to the global transition to net-zero, CPC spares no effort in achieving carbon neutrality and actively partners with international supply chain collaborators for carbon reduction. Through carbon offset mechanisms, the Company acquires full carbon emission reductions.
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. Currently, CPC maintains stable cooperation with multiple domestic industrial users, supplying carbon-neutral certificates for natural gas according to user needs, jointly striving to build a low-carbon and environmentally friendly supply chain.
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 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.
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. The second phase plans for the entire Company to have completed carbon footprint inventory for a total of 554 products in 2024, among which 92 products completed third-party verification, and 10 products obtained the carbon label certificate issued by the Ministry of Environment. CPC will continue to update data in the future to monitor changes in product carbon emissions.
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.
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 seawater 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°C, 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.
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.
CPC, in coordination with the government’s hydrogen vehicle development plan, is constructing hydrogen refueling stations. Taiwan’s first hydrogen demonstration station is located in the Kaohsiung area and was completed in 2024. It is expected to obtain an operating permit in 2025. Going forward, CPC will work with central or local government plans for hydrogen fuel cell bus routes to assess the feasibility of establishing a second hydrogen refueling station. 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.
Highlight: Geothermal Development
In Taiwan’s “2050 Net-Zero Emissions Pathway” and “Twelve Key Strategies,” geothermal and ocean energy are prioritized under the forward-looking energy category, alongside the development of biomass energy technologies. The plan envisions an installed capacity of 8 to 14 GW of forward-looking energy by 2050. To fulfill its long-term vision and goals for net-zero transition, CPC has been committed for many years to expanding geothermal energy development. Since 2018, CPC has successively completed the drilling of shallow geothermal exploration wells in Renzhe and Tuchang, Yilan County. By the end of 2024, CPC had drilled a total of nine geothermal wells in Renzhe and Tuchang.
In recent years, from restarting geothermal exploration, conducting feasibility studies for power plant construction, obtaining approvals from relevant authorities, to implementing geothermal power plant projects, CPC’s senior, mid-career, and young employees have worked together to overcome numerous challenges in completing this unprecedented mission. In addition to Renzhe, where Taipower constructed a plant that was connected to the grid in 2023, CPC aims to complete the construction of a 5.4 MW power plant in Tuchang by 2025. It is expected to generate a net annual electricity output of 25.7 million kWh and reduce carbon emissions by approximately 13,000 metric tons per year, marking a significant milestone in CPC’s geothermal power generation efforts. The Tuchang Geothermal Power Plant not only demonstrates CPC’s full commitment to implementing the government’s net-zero emission policy but also, amid a wave of renewed private-sector geothermal exploration, offers professional exploration and extraction services—joining hands with industry partners in entering a new era of net-zero emissions.