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4.1 Green Operation
As a responsible energy and petrochemical company, we pay great attention to environmental protection. With a clean management system covering the whole process from production to consumption, we keep striving to achieve green growth and contribute to clear waters, green land and a blue sky.
In 2011, we signed responsibility documents of major pollutants discharge reduction target with the government and delegated the target among our subsidiaries. We also developed the 12th Five-Year Plan for Sinopec environmental protection work, which deploys key environment-related tasks in the future.
In 2011, we continued to improve environmental protection regulations and tighten environmental performance assessment. We carried out serious EIA for all projects, strictly followed the regulation that HSE facilities and the main project are synchronized in terms of design, construction and commissioning, and made major efforts in promoting clean production and comprehensive utilization of resources. Pollution control was intensified and positive outcome was achieved. Compared with last year, industrial effluent discharge dropped by 8.7%, on-spec rate of discharged waste water went up by 0.4 percentage points, and COD discharge fell by 16.9%. SO2, NOx and NHx emissions went down by 9.8%, 3.4% and 34.9% respectively.
◎ Clean Production and Pollution Reduced from the Source
Sinopec lays particular emphasis on clean production in the whole process and strives to control formation of pollutants from the source.
We continued to tighten control of potential environmental hazards. In 2011, Sinopec invested RMB 425 million for 125 potential hazard control projects. Key projects are those that aim at controlling oily sand, waste water in oil and gas production, aquifer pollution, biochemical sludge/bottom sludge/top scum, air pollution, water body risk and at improving environment monitoring system.
We continued to recover gasoline vapor. In 2011, we added gasoline vapor recovery facilities in four oil tank depots and 313 service stations. By far, we have done the same to 41 oil tank depots and 2,961 service stations in Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang and Guangdong.
We intensified key technology R&D. We made a new round of efforts to integrate R&D capacities of the company, carried out fourwaste gas control projects and five flagship R&D projects focusing on waste water treatment. We made conspicuous progress in PO/SM waste gas control project. Odor control projects of refineries and chemical plants, FCC regenerator flue gas de-SOx, de-NOx and dust removal projects and waste water control projects of key plants are going on very well.
In 2011, we started a new round of clean production inspection and assessment of production subsidiaries including six tier-2 subsidiaries like Sinopec Qingdao Oil Refining & Chemical Company. By the end of 2011, 21 refining and chemical subsidiaries, or 52.5% of total in Sinopec, passed the inspection.
◎ Making Clean Products and Reducing Pollution in Consumption
We also pay high attention to making clean products, and discharging fewer pollutants in downstream business and consumption.
Steady improvement has been made in oil product quality upgrading. All gasoline products met GB III standards in 2010. Since July 1st, 2011, Sinopec has started to supply the diesel products on GB III standards.
◎ Three Wastes Treatment Improved and Emission/Discharge Standards Met
We attach great importance to the treatment of waste gas, waste water and industrial residue (three wastes), try our best to meet emission and discharge standards, and mitigate their impact upon the environment to the minimum.
In 2011, we set up process, equipment and environmental protection expert groups, who made EIA and follow-up assessment of many subsidiaries, helped them identify main problems and put forward solutions.
In June 2011, an environmental protection conference was organized and requirements were made in terms of meeting waste water discharge standards and disposal of process waste gas, dust and hazardous solid wastes.
◎ Developing Circular Economy and Turning Waste to Worth
Sinopec is active in developing circular economy, increasing resource efficiency and level of recycling, and promoting comprehensive utilization of byproducts, with the goal of low energy consumption, low emission and high efficiency.
◎ More Efforts to Protect and Restore Ecology
Oil and gas E&P and pipeline construction may impact the ecology and environment. Sinopec pays high attention to eco-environment restoration in areas around abandoned wells and along the pipelines, and tries to keep the impact at the minimum level.
4.2 Fighting against climate change
Climate change is a major global issue for all humankind. As a responsible energy and petrochemical company, Sinopec regards it as its due responsibility to fight against climate change. We make efforts to shift the pattern of growth, optimize energy structure, develop and utilize low-carbon energy resources and promote energy saving and consumption reduction. We are speeding up study on commercial test of co2 recovering, in order to reduce GHG emissions and better prepare to combat climate change.
◎ Industrial Restructuring and More Efficient Use of Energy Resources
We continued our efforts in industrial restructuring and integrating production capacities and operations. Energy and material consumption went down considerably and there were less co2 emissions.
On the one hand, we increased and integrated production capacities by building up new facilities and expanding and upgrading existing ones. In 2011, the Changling Chemical revamping project came on stream. By the end of 2011, we have 10 1-MM tpa ethylene production sites.
On the other hand, we increased average production capacities and cut down consumption by phasing out small and inefficient capacities. From 2006 to 2011, we shut down and phased out small and less environment-friendly refining capacities by 16.2 million tpa. Dozens of small chemical facilities and oil-fired boilers were closed. Optimization and volume adjustment were made to more than 500 oil tank farms.
With the above parallel measures, average capacity of our refineries rose by 25.7% and that of ethylene facilities went up by 13.2% from 2006 to 2011.
◎ Saving Energy and Cutting co2 Emission
Saving energy is the most immediate and effective way to reduce co2 emission at present. Giving priority to conservation, we try to develop into a resource-efficient enterprise.
For many years, while the production capacities kept growing, Sinopec achieved good results in energy saving and consumption cut with enhanced management, new technologies and equipment,and special emphasis on energy saving in production process. In 2011, energy intensity of refining and ethylene production went down respectively by 2.0% and 4.3%. We save 540,000 tons of standard coal equivalent, which equals cutting 1.33 million tons of co2 emissions or planting 12 million trees (a thirty-year-old fir absorbs 111 kg of co2 ).
We made important progress in water saving with measures for leak checking and fixing, condensate recovery, utilization of low temperature residual heat and reuse of waste water. In 2011, Sinopec continued to promote water conservation and emission reduction. Major indicators were included in economics accountability assessment. Compared with last year, industrial water withdrawal went down by 1.95%, and water withdrawal per tonne of crude oil processed dropped by 7.69%. In 2011, we saved a total of 19.95 million tons of water, which is 1.4 times of the volume of the West Lake (14.29 million m3).
◎ Developing Low-Carbon Energy and Optimizing Energy Structure
Sinopec is active in developing low-carbon energy and improving energy structure. A complete low-carbon energy business chain covering R&D, industrial production and marketing has taken shape. Our plan is to build up low-carbon energy capacities by 2020 that can supplement main business operations and contribute to long-term and sustainable development of the company.
We strive to increase natural gas production and facilitate LNG import. In 2011, we produced 15.6 billion m3 of natural gas at home and abroad, signed new LNG procurement agreements totaling 4.3 million tpa, started construction of Shangdong LNG project, and kicked off initial work of LNG projects in Guangxi, Tianjin, Lianyungang, Wenzhou and Huangmao Island.
We make great efforts in developing coal-bed methane (CBM) and shale gas. In 2011, we made firm progress in shale gas E&P, and fixed capacity building locations for CBM.
We devote major efforts in producing natural gas from coal. We are speeding up preliminary work for coal to natural gas and pipeline projects in Xinjiang. We have also started the first phase of the coal-electric power-chemicals integrated project in Zhijin, Guizhou.
Bioethanol consumption and sales are expanding. In 2011, we used 910,000 tons of modified fuel ethanol and sold 9.1 million tons of ethanol gasoline .
Since November 2010, we have started pilot sales of B5 biodiesel in Chengmai County and Lingao County, Hainan Province. In 2011, we sold 4,000 tons of B5 biodiesel and used 200 tons of B100 biodiesel.
E-power service station. We plan to establish refilling and recharging service networks in 13 provinces and cities for both regular autos and electric autos. By far, we have built up 2 recharging stations in Beijing and Shenzhen, and 6 refilling and recharging demo stations in Shanghai and Anhui.
◎ More Efforts in R&D to fight against the Climate Change
Our objective is to enhance our ability of low-carbon growth by reinforcing our mid-term and long-term strategic low-carbon technology preparation. We plan to focus on R&D of technologies that help with energy saving and efficiency improvement, development of renewable and alternative energy sources, emission control, treatment and utilization of GHG like co2 and CH4, biological and engineering carbon sequestration, clean and efficient development and utilization of coal, oil and natural gas, co2 capturing and sequestration, co2 flooding, comprehensive utilization of high purity co2 and fuel production via microalgal co2 fixation.
◎ Low-Carbon Lifestyle.
To preserve and ameliorate the environment is regarded by Sinopec as an important social responsibility and a major way to improve production and living conditions for employees. Aiming to build up a garden-like energy company, we motivate our staff to take part in activities for public good like national mandatory tree-planting campaign. In 2011, 520,000 person times in Sinopec took part in the campaign, planted 1.56 million trees, and thus 90% of our tree-planting obligations fulfilled.
We spread information about climate change among employees, consumers, suppliers, contractors and other stakeholders, calling for changes in mode of production, way of life and habit of consumption, and for stronger sense of social responsibility and keener awareness to protect the environment.
We only purchase materials and equipments in conformity with green, energy-saving and low-carbon standards. In this way, we are trying to lead our suppliers and contractors on the right track of green and low-carbon growth.
Conclusion
The concept of green and low-carbon growth is now deeply rooted in all Sinopec employees and reflected in their daily life. To be environment-friendly and low-carbon-oriented is our mission, responsibility and the cornerstone of balanced and sustainable development.
Many years of experience show that it is sound environment management that can win us new competitive edges and customers' trust, and secure a sustainable development in a complex and changing world.
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