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Sinopec, a key player in China's petrochemical sector, has been stepping up efforts in the battle for energy security and sustainable development. The company is ranked 23rd on the Fortune Global 500 list this year.

According to Wang Jiming, honorary chairman of the 29th China Daily CEO Roundtable, Sinopec Corp adviser and director of the Sinopec Science & Technology Committee, Sinopec has been following the "scientific approach" to sustainable development by focusing on the structural adjustment of power plants, technological upgrades, productive capacity expansion and reduction of energy consumption.

Structural adjustment

Structural adjustment measures have included enlarging refineries and chemical plants in order to increase productivity and efficiency. The number of 10 million-metric-ton (mm) capacity refineries increased from five to nine between 2000 and 2005, and large 1 mm-ton capacity ethylene plants are slated for construction near Bohai Bay, the Pearl River Delta and Northwest China. As much as 16.2 mm tons worth of capacity of inefficient refining facilities were closed down. Internal restructuring of the refineries, including the optimization of product mix and geographic location, has increased efficiency.

Sinopec also stepped up its R&D investments, which has led to the patenting of new energy conservation technologies such as heavy oil FCC and improved hydro-treatment. Consequently, energy consumption was cut by 19 per cent for refining and by 14 per cent per ton of ethylene.

The amount of freshwater used to process a ton of crude oil dropped by 62 per cent, and 1.855 billion tons of freshwater equivalent to 1.5 times the industry's total freshwater consumption in 2005 was saved over the last five years, bringing China one step closer to international energy efficiency and environmental conservation standards.

Technological solutions

Technologically speaking, crude oil is being used more effectively in cleaner production processes. During the 10th Five-Year Plan period, standard coal consumption per 10,000 yuan was reduced from 4.06 tons to 3.46 tons, saving 20 mm tons of standard coal annually. Recycling technologies became more advanced, especially in the treatment and recycling of wastewater.

Since leaded petrol production came to a halt in 1999, 95 per cent of smoke flares have been put out and China's CO2 emissions dropped by 4 mm tons a year. Oil was replaced by coke, coal and natural gas, and an investment of 40 billion yuan was channelled towards the development of alternative renewable energies over the last five years.

Getting results

Sinopec's efforts produced promising results: Between 1998 and 2005, overall industry output increased by 135 per cent while the amount of COD in wastewater dropped 34.8 per cent, waste reuse output increased by 96.6 per cent and fixed investment in environmental protection infrastructure increased by 100.3 per cent.

However, the great progress made in China's energy industry development is offset by an even greater energy demand. Review of the 10th Five-Year Plan has shown the current growth and energy pattern to be unsustainable, raising the need to adopt a stringent policy of sustainable development in the 11th Five-Year Plan.

If immediate and persistent efforts are not made to balance environmental protection and economic growth, the toll could be a drastic slowdown of China's economic growth and an impending threat to global energy security.

(For more biz stories, please visit Industry Updates)