State-owned oil giants dig into new energy
- Source: Global Times
- [09:07 November 17 2009]
- Comments
By Chen Yang
State-owned oil companies stepped up their pace to enter the new energy field, as part of a national strategy, but analysts recommend the government also lend support to small-and medium-sized enterprises (SMEs).
China National Petroleum Corporation (CNPC) signed an agreement November 4 with UOP, a subsidiary of US's Honeywell, to produce green transportation fuels using foodstuffs available in China.
It also agreed with State-owned power giant Huaneng Power International in early September to collaborate onnatural gas power generation projects.
Also in September, China Petroleum and Chemical Corporation (Sinopec) expressed its intention to cooperate with Beijing Automotive Industry Holdings Corporation (BAIC), which launched a new energy company to produce pure electric and hybrid cars Saturday.
The companies are eager to cooperate on new energy, according to BAIC's Chairman Xu Heyi.
In July, China's third oil giant, China National Offshore Oil Corp (CNOOC), invested 5 billion yuan ($732 million) in Tianjin Lishen Battery Joint Stock, a State-owned company that makes lithium batteries for electric vehicles, to build 20 battery assembly lines at a new facility in Tianjin.
CNOOC is also looking into the possibility of building a nationwide network of battery-changing stations for electric vehicles, the Wall Street Journal quoted Shan Lianwen, director of corporate strategy at CNOOC, as saying in November.
New energy vehicle projects have lower access barriers and a growing consumer group compared with other new energy projects, so large oil companies want to participate in this field to broaden their business, said Wang Qing, an analyst at Anbound Group, a Beijing-based consulting company.
