BP and Chinese Academy of Sciences To Establish Clean Energy Commercialization Center

2 December 2008

BP and the Chinese Academy of Sciences (CAS) agreed to establish the Clean Energy Commercialization Center (CECC) joint venture in Shanghai, jointly investing some RMB500 million (US$73 million) to commercialize Chinese clean energy technologies.

The CECC will draw on the expertise and experience of both partners to integrate individual energy-related technologies—such as coal gasification and conversion, carbon capture and storage, coal bed methane and underground gasification—developed by CAS institutes and other organizations both within and outside China, into competitive integrated manufacturing systems and solutions.

The CECC will also serve as an international platform for further collaboration among research institutes, enterprises and other institutions to improve indigenous Chinese innovation capabilities and market applications in areas such as clean coal conversion, zero emission technologies, and carbon capture and storage.

Truly world class technologies are now emerging from China’s research institutions. This Center, in bringing these innovations into commercial reality has the potential to play a significant role in delivering local energy solutions to address issues that have a global impact.

—Dr. Tony Hayward, BP group chief executive

Located in the CAS Shanghai Pudong Science and Technology Innovation Park, the BP and CAS joint venture will have an equity split of 49:51 respectively.

As one of China’s largest foreign investors, BP has 27 joint ventures and wholly owned companies and about 4,000 staff. In November 2001, BP established the “Clean Energy: Facing the Future” program in China with CAS, in which BP agreed to invest US$30 million over a thirty-year period to fund research in clean energy technologies. The program includes several projects at CAS’s Dalian Institute of Chemical Physics and Shenyang Institute of Metals Research.