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Research and Development policies

Research and Development policies

CPC has focused on research and development (R&D) since its inception, recognizing that it is a driver of sustainable corporate success. The original CPC research institute in Hsinchu is now the Industrial Technology Research Institute (ITRI). On the basis of  its growing involvement in petroleum exploration and production, CPC runs exploration and refining research institutes in Miaoli and Chiayi respectively. Its latest forays into research are the Green Technology Research Institute and Materials Testing and Certification Center, both established on March 1, 2012.
Each CPC R&D unit has a two-fold strategy: firstly,working with the company's core business units to improve current, industry-standard exploration and refining technologies and resolve process and production problems; secondly, building its own unique technologies and with them embracing high-value, new energy sources.  CPC  has a growing commitment to R&D: the research budget is increasing, more equipment is being acquired and more researchers with a master's or PhD are being  recruited. As proof, CPC expects to spend 50% of its R&D budget on visionary research and development by 2016; it invested NTD131 million in R&D in 2012 and the projection for 2013 is NTD261 million. CPC's current slate of R&D projects and strategies is as follows :
 New Fields Exploration
CPC's exploration research institute has a continuing involved interest in the exploration  of gas fields in Africa, such as in the Mid-West Africa Rift Valley, Gabon, Congo, and Angola open sea. It also conducts intensive research into fields in Chad, in the form of seismic, geological and multilateral wells analysis. Recent breakthroughs in shale gas technology have had a great impact on the traditional market and as a result, CPC R&D is expanding its enquiry into unconventional energy sources like Canada's oil sands and shale gas.
New Product Introduction
Good business relies on keeping low costs while increasing sales and hence profits. CPC's Refining and Manufacturing Research Institute in Chiayi has invested resources carefully and wisely in R&D of products such as lubricants, biotech materials and specialty chemicals that will boost both sales revenue and profitability. 
Geological Carbon Sequestration
CPC has been carrying out research into geological carbon sequestration in depleted oilfields as part of its mission to protect the environment by reducing atmospheric CO2 From a start in 2011, CPC's Exploration & Development Research Institute (EDRI) has engaged extensively in field selection, evaluation and geo-modeling to complete the groundwork. Detailed design, test injections and surrounding CO2 density analysis have been conducted since 2012 to accumulate experience in sequestration by injection. CPC has hosted public hearings to address the importance of, and general pros and cons concerning, carbon sequestration. 
Carbon capture and geo-sequestration constitutes a fairly large expense and is unlikely to show results in the short-term.  CPC's fruitful experience in the exploration and utilization of depleted oil field is therefore definitely a plus. The project is scheduled to start injections in 2013 and to monitor the atmosphere, earth surface and subsurface wells concurrently. CPC expects to be the pioneer in Taiwan of carbon sequestration and to set a good example globally.
Biomass and New Energy Research
CPC established its Green Technology Research Institute in 2012 as an incubator for green energy products and technology research in the context of developing a sustainable environment. It has had applications from developers of bio-fuels, bio-fermentation, solar energy and hydrogen. CPC has had commercial solar systems (including polysilicon and CIGS thin film) installed in its gas stations in Kenting, Linluo and Pingtung (since 2011); and Erhshui, Shetou (Changhua), Maguaing and Douliu, Yunkin (since end of 2012). The total estimated energy capacity in 2012 was 160,000 a.h. with approximately 100 tons CO2 reduction.

CPC is involved in the process of transesterification, entailing solid acid catalysts and supercritical fluid technology plus hydrogenation to produce biodiesel and green diesel which, with hydrocracking, it then turns into biofuel. Crushed jatropha seeds and algae are used to produce biodiesel and byproducts. CPC plans to explore further the potential of algae as a cellulolytic in the production of bio-alcohol and in continuing the supply of  quality domestic biofuel.