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Diversified Energy Supply Advancing Sustainability International energy prices in 2024 trended upward in the first half of the year before declining in the second. This upward trend was driven by escalating geopolitical tensions in the Middle East, the ongoing Russia-Ukraine war, and continued production cuts by OPEC+. The subsequent decline was attributed to weaker-than-expected economic performance in China, a series of tariff and deregulation policies on oil and gas development announced by U.S. President-elect Donald Trump, and continued production growth from non-OPEC+. In the face of this challenging environment, CPC Corporation, Taiwan (CPC) remained committed to fulfilling its mission of maintaining a stable supply of oil and gas for the domestic market. In support of the government’s price stabilization policy, CPC absorbed approximately NT$73.7 billion in oil and gas product costs over the course of 2024, leading to a pre-tax loss of around NT$35.5 billion. Despite a constantly evolving business landscape, CPC has continued to strengthen its core operations while actively supporting the government’s energy transition and net-zero goals. The company is advancing major transformation initiatives by introducing emerging smart technologies and harnessing its R&D capabilities to expand its operational footprint. To strengthen the stability and resilience of natural gas supply, CPC signed a Letter of Intent (LOI) on March 20, 2025, to purchase liquefied natural gas (LNG) from the Alaska LNG project and explore opportunities for upstream investment, with the goal of securing a long-term and stable gas supply for the nation. In addition, CPC continues to advance the expansion of its LNG receiving and storage infrastructure. Notably, on December 11, 2024, the environmental impact assessment for the Intercontinental LNG Receiving Terminal was approved. The main facilities of the Third LNG Receiving Terminal had also met the conditions required to commence trial operations by the end of March 2025. As part of its efforts to support the government’s “Second Wave of Energy Transition” policy, CPC has been actively exploring and developing geothermal energy resources, with a focus on advancing the construction of the geothermal power plant in Tuchang, Yilan. In 2024, CPC partnered with the Geological Survey and Mining Management Agency under the Ministry of Economic Affairs to complete a geothermal exploration well in the Tatun Volcano Group. The company also collaborated with Academia Sinica to drill Taiwan’s first deep geothermal well in Yuanshan, Yilan. CPC has continued to strengthen workplace safety and environmental performance, while improving overall operational efficiency in support of its refining transformation and carbon reduction goals. The company has enhanced the quality of major plant overhauls and improved process safety and equipment reliability. In 2024, CPC carried out 55 energy-saving and carbon reduction initiatives, resulting in a total reduction of approximately 86,000 metric tons of CO2 equivalent emissions. Furthermore, to meet increasingly stringent environmental regulations, CPC is actively advancing its refining transformation strategy. This strategy focuses on increasing petrochemical output and enhancing product value. As part of these efforts, the Petrochemical Business Division’s Refining and Petrochemical Transformation and Industrial Upgrade Investment Project received approval from the Executive Yuan in May 2024. CPC is in active dialogue with the Kaohsiung City Government to address carbon reduction issues related to the project. With respect to innovative marketing and diversified services, CPC is redefining the value of its retail channels through a hybrid business model that integrates multiple energy solutions. In 2024, the company launched a new line of personal care products certified with the Green Mark, which has proved popular among consumers. Its own coffee brand, Cup&Go, recorded annual sales exceeding NT$100 million. In alignment with the National Development Council’s policy to promote vehicle electrification and decarbonization, CPC completed the deployment of more than 1,000 battery swap and charging stations for electric motorcycles. The same year, 20 high-power fast chargers were installed at five gas stations across Taiwan, marking a key step toward the development of multi-energy service hubs. In advancing carbon-negative technologies and providing low-carbon products, CPC has made steady progress on its inter-agency pilot project for Carbon Capture and Storage (CCS) at Tiehchenshan. Completion equipment is now fully in place, and drilling operations for injection wells, along with the construction of surface facilities, are currently underway. For the coastal CCS project in Taoyuan, CPC has submitted a site characterization report and a development and operation plan to the Ministry of Environment. The review process will move forward once the competent authority finalizes the regulatory framework for CCS management. In 2024, CPC obtained both ISCC CORSIA and ISCC EU certifications, becoming the first company in Taiwan qualified to supply Sustainable Aviation Fuel (SAF) in line with the carbon reduction requirements of the International Civil Aviation Organization (ICAO). As part of the Civil Aviation Administration’s SAF pilot program, CPC began supplying SAF in 2025, marking a key milestone in establishing the year as the starting point for green aviation fuel adoption in Taiwan. To advance the development of high-value petrochemical and key battery storage materials, CPC has begun operational testing at its pilot production facility for Lithium Titanate Oxide (LTO) anode materials. As Taiwan’s first production site dedicated to LTO, the facility is expected to supply stable, high-quality anode materials to support the domestic niche battery market 2