China's oil giants ramp up efforts in clean energy


China's State-owned oil majors are rapidly accelerating their pivot toward renewable energy, transforming from traditional fossil-fuel drillers into integrated green energy powerhouses to meet the nation's ambitious "dual carbon" goals.

Recent environmental, social and governance (ESG) reports from the country's three energy giants — China National Petroleum Corp, China Petroleum and Chemical Corp (Sinopec) and China National Offshore Oil Corp — reveal a decisive shift in capital allocation toward hydrogen, solar and offshore wind power.

Sinopec is currently spearheading the sector's clean transition with an aggressive push into the hydrogen economy. Aiming to become China's top hydrogen enterprise, the refiner now operates a world-leading network of 150 hydrogen refuelling stations.

It has also leveraged its vast retail network to deploy 141,000 electric vehicle charging terminals, according to the company's latest filings.

CNPC is matching this momentum, investing a robust 41.46 billion yuan ($6.09 billion) into new energy and advanced materials in 2025. The company's wind and solar power generation surged 68 percent last year as it builds a comprehensive "oil, gas, heat, power and hydrogen" portfolio.

In the offshore sector, CNOOC is capitalising on its maritime expertise to advance the Hainan CZ7 offshore wind project and the development of the world's first 16-megawatt floating wind platform. The company is also pioneering carbon capture, utilisation, and storage (CCUS) technologies, exemplified by its Enping 15-1 offshore facility, the first of its kind in China.

"The severe supply disruptions and soaring oil prices triggered by global crises are undeniably accelerating the pace of the global energy transition," said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Lin said this strategic pivot relies heavily on China's world-leading clean technology and manufacturing prowess, which further cements the nation's core position in the future global energy architecture.

These corporate milestones mirror a broader national trajectory. Official figures from the National Energy Administration show that by the end of March, China's combined installed capacity of wind and solar power had reached roughly 1.9 billion kilowatts, a 28.1 percent jump year-on-year.

A recent China Electricity Council report expects China's installed solar power capacity to surpass that of coal power for the first time in 2026, marking a historic tipping point in the country's energy mix.

While prioritising green growth, the majors have maintained a dual-track strategy to ensure domestic stability.

China secured stable domestic oil and gas supplies in the first quarter, effectively cushioning the economy against external shocks from geopolitical tensions in the Middle East.

Output of crude oil and natural gas rose 1.3 percent and 3 percent year-on-year, respectively, during the first quarter, said Xing Yiteng, deputy director-general of the department of development and planning at the NEA.

Dong Xiucheng, a professor at the University of International Business and Economics, said the rapid implementation of major new energy bases has effectively stimulated industrial activity while securing long-term energy safety.

"Efforts to stabilise prices and secure supply have built a solid foundation," Dong said.

"It has helped hedge against international fluctuations and stabilise costs for both corporate production and people's livelihoods." - China Daily/ANN

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