In recent years, global climate change has given rise to wide attention in the international society, and low carbon economy has gradually become the mainstream for the development of world economy in future. Sinopec Corp attaches great importance to climate, and reduces energy and material consumption level through energy saving and emission reduction, and CDM projects, thereby lowering energy and material consumption level. Comprehensive energy consumption of every RMB10,000 production value of the company was 0.72ton coal equivalent in 2009, decreased by 15.29% compared with 2005.

Reduce emission from the origin, and conduct R&D on low energy consumption and low discharge production technology

• Develop and use clean coal technology. Utilize refinery petroleum coke and other low value products to develop CFB and IGCC technologies, supply power, steam and hydrogen to petrochemical production units, reduce CO2 emission, enhance boiler thermal efficiency, and save coal consumption.

• Optimize the material of catalytic cracking unit, and reduce green coke volume. Integrate hydrogen resource, optimize hydrogen usage, reduce hydrogen cost, and reduce CO2 discharge.

Develop energy saving technology

Energy saving and enhancement of energy transferring efficiency is the effective measure to reduce CO2 emission. Provided the consumption for output of every unit is reduced, CO2 discharged will be decreased accordingly. Sinopec Corp investigates and develops a series of energy saving technology and energy efficiency enhancement technology to reduce CO2 emission. The measures consist of:

• Adopt advanced technology to restructure Ethylene Cracking Furnace, improve energy efficiency, and reduce emission.

• Promote combined production of heat and power, operation system optimization, power generation based on differential steam pressure, hydraulic turbine, and other technology and equipment; and develop application technology of gas turbine

• Develop and apply energy saving technology of oil product storage and transportation, and technologies of recovering vented air and reducing loss in processing and storage, so as to reduce CO2 emission.

Implement CO2 catching and utilization technologies

Sinopec Corp has engaged in R&D of CO2 catching and utilization technology for more than 10 years, and possessed domestic leading CO2 catching technologies, including new technologies of recovering carbon dioxide with low partial pressure, new process for pressure swing regeneration with low heat supply, improved MDEA decarburization technology, and NHD purification technology, etc. The technology could be widely used in the catching of CO2 in natural gas, syngas, refinery gas and flue gas, etc. And CO2 caught is mainly used in producing urea, methanol, syngas and food-grade CO2 and EOR, etc. Nowadays, CO2 catching technology developed by Sinopec Corp has occupied 90% market share at home, and shown good performance in over 30 sets of industrial operation examples, greatly contributing to the progress in domestic gas purification technology.

Renewable energy resources and new energy technology

The substitution of fossil energy with biomass fuel could not only gain necessary energy products, including power, but also eliminate CO2 emission in natural circumstance. Sinopec Corp started to engage in R&D of cellulose ethanol technology and microalgae biodiesel technology from 2007.

• In terms of cellulose ethanol technology, the technology is used to produce ethanol from cellulose (Crops straw, forestry processing waste and biogases, etc), so as to get rid of the long term embarrassment of using foodstuff. It is the true bio-fuel technology of the 2nd generation.

• In terms of microalgae biodiesel technology, microalgae is a kind of lower grade plant living in the water. It could absorb CO2 through cell photosynthesis, transfer light energy into fat, starch and other carbohydrate, and release O2. Nowadays, Sinopec Corp is cooperating with Chinese Academy of Sciences in new energy area, to jointly develop complete set of microalgae biodiesel technology.