Page 17 - 2024 CPC Corporation,Taiwan

Refining Optimization in Compliance with Regulatory Standards
With the rise of environmental awareness and increased focus on air pollution issues, regulatory standards for automotive gasoline have become progressively stringent. Commencing on July 1, 2020, the permissible benzene content in gasoline was reduced from 1% by volume to 0.9% by volume, and an additional reduction to 0.8% by volume was mandated by the Ministry of Environment, effective January 1, 2024. In response to the energy transition and environmental regulations on benzene content in gasoline, CPC introduced the Gasoline Benzene Reduction and Quality Improvement Investment Plan in 2020. This initiative encompasses the construction of a naphtha cracking gasoline aromatics extraction plant with a daily refining capacity of 32,000 barrels, alongside associated storage tanks and utility systems. The project aims to deploy aromatics extraction technology to remove benzene, toluene, xylene (collectively known as BTX), and C9+ hydrocarbons from gasoline, refining them into high-purity petrochemical feedstocks. This approach not only enhances the refining process but also reduces the benzene content in gasoline to comply with environmental regulations. Additionally, by extracting and purifying high-purity BTX and C9+ petrochemical products, the plan mitigates the risk of future gasoline oversupply and provides higher-value petrochemical feedstocks to downstream industries.
Investing in CCS and planning demonstration sites
Since COP26, achieving net zero emissions by 2050 has become a global commitment, and in 2021 the Taiwanese government published Taiwan’s Pathway to Net-Zero Emissions in 2050 . Following this framework, CPC formulated the three strategies – optimizing refining operations, reducing carbon emissions, and developing clean energy. It has taken the initiative to research carbon capture (CC) and survey potential sites for carbon sequestration (CS) since 2021. The carbon capture demonstration site at the Dalin Refinery was completed by the end of 2023. Through trial projects, it will verify carbon capture technology and catalyst performance, followed by commercial process evaluations to expand carbon capture capacity.
In Alignment with Policy, Stepping into the Hydrogen Supply Sector
Promoting the traditional energy users to transform into Low or Zero Carbon Emission energy users is the main way to achieve the targets in Taiwan’s Pathway to Net-Zero Emissions in 2050 . CPC aims to become a supplier of zero carbon emission energy by assembling a Hydrogen Energy team to engage in hydrogen energy production and supply. The team is researching the measurement of hydrogen gas and testing the feasibility of blending hydrogen gas into natural gas burning systems.
To coordinate the policy lowering the carbon emission from transportation in Taiwan, CPC plans to establish the first mobile hydrogen refueling station in Kaohsiung in 2024 and moved into the primary supply of hydrogen energy by cooperating with the public bus department, which has planned to invest hydrogen vehicles.
In addition, CPC is continuously evaluating the advantages and disadvantages, including economic considerations, energy consumption, and carbon reduction efficiency of major hydrogen production technologies. CPC intends to refurbish a pilot plant for blue hydrogen. Initially supplying both fuel oil and hydrogen, CPC aims to gradually establish itself as a dependable provider of hydrogen energy in Taiwan.
Core Business ●
15