Evident effectiveness in Energy Conservation and Emission Reduction

Composite energy consumption per RMB10,000 industry output stood at 0.722 ton standard coal in 2009, down by 15.06% from 2005 and overshooting the set target of 0.82 ton standard coal, down by 10%. By this the company managed to save 11.23 million tons of standard coal. Discharge volume of COD, SO2 was lowered by 3.6% and 14% respectively in 2009.

Energy Conservation and Emission Reduction Measures

First, energy conservation and emission reduction scored sound results due to active publicity work. Sinopec subsidiaries conducted a wide range of education and publicity activities on energy saving and emission reductions to carry forward the spirit of “wringing out the dry towel”, motivating all employees to start from themselves in energy saving and emission reduction.

Second, Sinopec further improved the performance evaluation system for energy saving and emission reduction by strictly managing its energy saving target and establishing the fuel-power consumption model. The company stipulated and issued the Pilot Stimulus Ways to Evaluate Energy Saving Performance, according to which, Sinopec set energy saving target for all its subsidiaries at the onset of the year while optimizing public utility in 34 refineries by establishing fuel-power consumption models.

Third, Sinopec made more investment to ensure a smooth promotion of energy saving projects and new technologies. In 2009 the company invested RMB1.479 billion in 318 energy saving and emission reduction projects and managed to save 409,300 tons of standard coal and reduce a cost of RMB321 million. Sinopec focused on promoting such technologies as grid power drilling rig technology, sampled heating furnace technology, process simulation technology, cracker air preheating energy saving technology, cracker twisted finned tube enhanced heat transmission technology.

Fourth, Sinopec actively carried out activities of learning from energy effective models. The company set up energy consumption calculation models throughout its 4 major business sectors and emulation results analysis systems, organizing subsidiaries to establish their own models and learn from the models on different levels.

Fifth, Sinopec evaluated results after the implementation of energy saving projects. Energy saving technology service center of the company assessed results of the three energy saving revamping projects including the low pressure steam associated heating system in Jinglou Oilfield, the low temperature heat system and feedstock feeding energy saving revamping projects for refining units in Jiujiang subsidiary and air preheating technology revamping projects for ethylene crackers in Qilu subsidiary. The center completed energy efficiency research and evaluation work on 57 energy saving projects under way in 5 oilfield subsidiaries including Jiangsu, Jianghan, Zhongyuan, Henan and Huadong through onsite investigation, testing and document reading and analysis.

Sixth, Sinopec tested energy efficiency. After testing oilfield oil recovery efficiency systems, crude transportation damage and loss as well as water injection energy efficiency systems, energy saving technology service center further carried forward the energy saving and emission reduction work by testing the power balance systems in refineries.

Seventh, Sinopec conducted special treatment to high energy consumption and low efficiency power generators and torch gas recovery. Starting from 2009, the company concentrated its treatment to high energy consumption and low efficiency power generators by investing RMB150 million in refineries to improve efficiency by over 2% with an investment return rate of 20%. In addition, the company also focused efforts on problems in torch gas recovery systems to address such problems as recovery compressor power shortage, torch automatic igniting system instability and flow-meter mismatch, etc. In 2009, Sinopec eliminated 12 flares to save large amounts of fuels and reduce GHG emissions.

Eighth, Sinopec further standardized energy saving by compiling the Calculating Method for Composite Energy Consumption in Refineries and Calculating Method for Energy Consumption in Ethylene Cracker Power System. Oilfield subsidiaries finished compiling the Framework Program for Energy Saving System in Oilfield Companies and 4 energy saving standards including Economic Operation Standard for Crude Transportation and Accumulation System, Balance Testing Method for Pumping Machines, Technology and Use Specification of Permanent-Magnetic-Synchronic Power Generators for Pumping Machines and Energy Auditing Method for Oilfield Subsidiaries. The company also completed energy saving standard supervision work such as Furnace Economic Operation in Oilfields and Supervision Method for Use of Permanent-Magnetic Power Generators.

Ninth, Sinopec actively applied for national energy saving preferential policies. In response to the Ministry of Finance’s move to enlist 14 categories of petrochemical equipment including tube heater, flue gas turbine expander for cat-cracker, centrifugal oil pumps, hydraulic turbine, high-pressure power generator and waste heat furnace in the Preferential Catalogue, Sinopec was awarded RMB230 million specialty fund set up for energy saving and emission reduction from central state-owned capital budget for Qilu heat and electrical flue gas desulfurization project, Baling flue gas desulfurization and catalytic gasoline adsorptive desulfurization project and RMB 20 million for coal substituting oil revamping project in Changling subsidiary and optimization and revamping project for Shanghai petrochemical company’s No. 2 oxygenation unit.

Tenth, Sinopec organized training and technology exchange for energy saving. The company organized senior energy saving technology training course and hired academicians, experts, scholars and professors to give lectures, analyze targeted cases. By this, the company brought up a pool of talents who know well energy saving theory, have the perception of optimizing energy utilization and innovation and skillful in using energy saving software.

Eleventh, Sinopec’s environment protection efforts have progressed well. The company invested RMB500 million in water conservation and emission reduction and designated RMB800 million fund for environment treatment to comprehensively address more than 200 pollution projects and many prominent environmental problems. This has helped in improving equipment performance for environment protection and stabilizing a sustainable development for the company.

Twelfths, Sinopec scored substantial results in resource synergetic utilization. The company stipulated the Management Method for Synergetic Resource Utilization, requiring subsidiaries to carefully learn the countries related laws, policies for better resource utilization. During the period of 2005 to 2009, the company realized sound economic and environmental effectiveness with a total synergetic output value of RMB22.4 billion.