PetroChina Lifts Green Ambitions as Big Oil Softens Pledges
(Bloomberg) -- Fresh from posting record profits from drilling crude and pumping gas, China’s biggest oil company has promised that all of its output will be fueled by renewables come 2033.
By that date, “all drilling and refining activities will be powered by clean energy,” PetroChina Co. Chairman Dai Houliang told an earnings briefing in Hong Kong on Wednesday.
![](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iN9u2lFU6tqE/v1/-1x-1.jpg)
It’s a 17-year advance on the company’s earlier pledge to hit that target by 2050, and stands in stark contrast to some Western oil majors, which are walking back their clean energy ambitions as fossil fuels continue to drive profits.
Of course, using solar and wind to produce fossil fuels won’t make much of a dent in China’s climate goals when set against the impact of burning all that oil and gas to power cars and factories. But PetroChina’s intentions for renewables extend beyond just a headline-grabbing target.
Capacity Targets
The company expects to add 30 gigawatts of renewables capacity in 2024, about six times more than it has now, according to another executive at the briefing. China’s entire solar industry — by far the world’s largest — added 217 gigawatts last year, so that quantity coming from a fossil fuel giant isn’t to be sniffed at. Money will also be spent on expanding hydrogen, geothermal and carbon capture projects.
As a state champion, PetroChina is sometimes forced to juggle competing priorities. Beijing is keeping up the pressure to maintain oil output and boost gas production to keep the country from becoming too dependent on imported energy, and at the same time demanding progress on its net zero goals.
This year’s push on renewables will allow PetroChina to meet its broader objectives: new energy’s share of production needs to double from current levels to 7% by 2025, then climb to a third by 2035 and half by 2050.
The government’s influence extends to decisions taken throughout the company. While gas trading drove PetroChina’s profits in 2023, the company said that contracts this year will have to take account of what’s affordable for Chinese industry.
On the Wire
Australia will invest A$1 billion ($652 million) to ensure more solar panels are made domestically, as the nation looks to reduce its dependence on imports from China.
US Treasury Secretary Janet Yellen slammed China’s use of subsidies to give its manufacturers in key new industries a competitive advantage, at the cost of distorting the global economy, and said she plans to press China on the issue in an upcoming visit.
China’s wind turbine manufacturers dominated global supply last year, riding the nation’s renewables installation boom as a contraction in the US and meager growth in Europe dented overseas competitors.
China’s coal traders — men and women who keep the cogs of the fossil fuel-powered economy turning — have long been a gauge of its health.
The Week’s Diary
(All times Beijing unless noted.)
Thursday, March 28:
- China copper smelters quarterly meeting in Shanghai
- Boao Forum for Asia in Hainan, day 3
- China clean energy expo in Beijing, day 3
- EARNINGS: Maanshan Steel, Angang Steel, Metallurgical Corp., Ganfeng Lithium, Citic Ltd., Cosco Shipping, Yankuang, Goldwind, China Resources Gas
Friday, March 29:
- Boao Forum for Asia in Hainan, day 4
- China weekly iron ore port stockpiles
- Shanghai exchange weekly commodities inventory, ~15:30
- Shenhua online earnings briefing, 16:00
- EARNINGS: Jiangxi Copper, Shandong Steel
Saturday, March 30
- Nothing major scheduled
Sunday, March 31
- China’s official PMIs for March, 09:30
(Updates with context from sixth paragraph)
©2024 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More renewables news
![BloomburgMedia_SH4TS0T0G1KW00_25-07-2024_20-00-09_638574624000000000.jpg](/media/xphbvafj/bloomburgmedia_sh4ts0t0g1kw00_25-07-2024_20-00-09_638574624000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133664112097930000&format=webp)
UK Crown Estate Partners With GB Energy to Expand Wind Power
![BloomburgMedia_SH40SLT0G1KW00_25-07-2024_09-26-50_638574624000000000.jpg](/media/orol425i/bloomburgmedia_sh40slt0g1kw00_25-07-2024_09-26-50_638574624000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133663732110870000&format=webp)
Vessel Firm’s $700 Million Takeover Targets Wind’s Ship Shortage
![Nordex](/media/d0gf3pte/nordex.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132749588018400000&format=webp)
Nordex Group upgrades guidance after strong H1 2024 performance with 25% sales increase
![Totalenergies (5)](/media/2jrkcvan/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132942325437870000&format=webp)
TotalEnergies launches new 100 MW/200 MWh battery storage development in Germany
![Totalenergies](/media/41ojyade/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132881916816700000&format=webp)
TotalEnergies acquires a stake in the OranjeWind offshore wind farm in the Netherlands
![Battery Storage (1)](/media/bedjsnil/battery-storage.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132953656215970000&format=webp)
EWEC issues request for proposals for the development of 400MW battery energy storage system
![BloomburgMedia_SGH4U3T0AFB400_24-07-2024_20-00-09_638573760000000000.jpg](/media/4zujntna/bloomburgmedia_sgh4u3t0afb400_24-07-2024_20-00-09_638573760000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133663248098100000&format=webp)
Refining Woes Hit Big Oil as Pressure Rises on Investor Returns
![Hydrogen Image (1)](/media/ouhfwhgg/hydrogen-image-1.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133093644996330000&format=webp)
EnBW to invest €1 billion in national hydrogen core network in Germany
![BloomburgMedia_SH2XDFT0AFB400_24-07-2024_09-00-10_638573760000000000.jpg](/media/jmmhvoyf/bloomburgmedia_sh2xdft0afb400_24-07-2024_09-00-10_638573760000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133662852101070000&format=webp)
GE Vernova Now Must Explain Broken Wind Turbine to Investors
![BloomburgMedia_SGTQ8GDWX2PS00_23-07-2024_20-00-09_638572896000000000.jpg](/media/obyb3qfl/bloomburgmedia_sgtq8gdwx2ps00_23-07-2024_20-00-09_638572896000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133662384097370000&format=webp)
SunPower Plunges After Halting Installs and Shipments
![CSIS Thumbnail](/media/o0acqjyg/csis_thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133566075809700000&format=webp)
CSIS: long-term LNG demand to reshape global export capacity growth
![Dr Carole Nakhle Thumbnail](/media/gqrpjths/dr-carole-nakhle_thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133542056370600000&format=webp)
More women in energy vital to the industry’s success
![Vandana Hari Thumbnail](/media/gz3dyktl/vandana-hari-thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133511540022930000&format=webp)
India’s energy sector presents lucrative opportunities for global companies
![OIL INDIA Thumbnail (1)](/media/oddlww2x/oil-india-thumbnail-1.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133506537128730000&format=webp)
Oil India charts the course to ambitious energy growth
![DNV Thumbnail](/media/chkphnjn/dnv-thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133491856590700000&format=webp)
Maritime sector is stepping up to the challenges of decarbonisation
Partner content
![Navigating the trading seas: exploring the significance of benchmarks-1859882229](/media/qlacaiww/navigating-the-trading-seas-exploring-the-significance-of-benchmarks-1859882229.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133613577584600000&format=webp)
Navigating the trading seas: exploring the significance of benchmarks
![New Lng Ship Web 17829](/media/vjrjyypa/new-lng-ship-web-17829.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133179936218300000&format=webp)
Back to the Future(s): the best commodities benchmarks are still physically settled
![Dr Klaus](/media/4eyh2dr0/dr-klaus.jpg?center=0.3953747239980292,0.50683017007953435&mode=crop&width=540&height=300&rnd=133517897092430000&format=webp)
Ebara Elliott Energy offers a range of products for a sustainable energy economy
![ESSAR](/media/5uafghtj/essar.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524466961070000&format=webp)
Essar outlines how its CBM contribution is bolstering for India’s energy landscape
![HNC 7611 V2](/media/0dqbya15/hnc_7611_v2.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133517899616530000&format=webp)