China’s state energy companies have outlined initial plans to develop renewable energy such as hydrogen and wind power after a collapse in oil prices dragged down their earnings in the first half of 2020. The plans, however, were tentative and could take years to materialise. The move taken by PetroChina, Sinopec, and CNOOC came as their global peers such as BP prepared billions of dollars to expand their renewable and low-carbon portfolio.
Sinopec is planning to establish hydrogen refuelling facilities alongside its pump stations in China’s east coast. However, chairman Zhang Yuzhuo suggested that the company would move forward with the plans cautiously because it would unlikely to bring an immediate return for shareholders.
Last week, PetroChina announced a plan to cut carbon emissions to near zero by 2050, making it the first Asian state-owned company to do so. Meanwhile, CNOOC said it would begin construction of its first offshore wind farm by the year-end. Analysts said these companies had stepped in the right direction although their green targets still lagged behind their European rivals.
