As the main driver of global demand for industrial chemicals, China's green energy transition is expected to provide massive opportunities for major chemical corporations like SABIC, and the Saudi company vows to further facilitate China's transition toward sustainable development through an innovation-driven strategy, said a senior company executive.

"SABIC will continue investing in innovation and technological development in China, a key strategic market for SABIC, as we have been doing during the past nearly four decades," said Bob Maughon, SABIC chief technology and sustainability officer, during an exclusive interview with China Daily.

SABIC will continue supporting China in the realization of its carbon peak and carbon neutrality goals with lighter, more durable, long-lasting and recyclable materials in 5G communications, electric vehicles, packaging and photovoltaic power generation in the years to come, Maughon said.

He said SABIC has been actively increasing the use of renewable energy in China and globally, which is a key part of SABIC's global roadmap to carbon neutrality. The company is also exploring opportunities in terms of technology options for Carbon Capture, Utilization, and Storage (CCUS) applications in the country.

Developments related to hydrogen are significant for China, which is the world's top hydrogen producer. China's ambition to achieve carbon neutrality by 2060 also calls for lowering the carbon intensity of its hydrogen-production methods from the conventional "grey" to low-carbon blue and green, he said.

Grey hydrogen is the hydrogen produced using fossil fuels whereas green hydrogen is hydrogen gas that is produced using renewable energy. Blue hydrogen occurs when natural gas is split into hydrogen and carbon dioxide, with CO2 captured and then stored.

Currently, SABIC is working together with the China Petroleum and Chemical Industry Federation on CCUS studies to seek more technology options for CCUS applications in China. The company is also talking with local partners to identify new CCUS technologies and exploring potential opportunities together, he said.

Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute, said SABIC's commitment confirms China's massive potential in the CCUS sector, which has also been attracting more international players in recent years.

For petrochemical companies, CCUS — which offers a way to reduce emissions from sectors that are hard to decarbonize — will not only help expand their own business but also allow them to become sustainable over the long run, Luo said.

According to a report by Shell Plc, for China to achieve carbon neutrality by 2060, more than 1.3 gigatons of CO2 per year will need to be captured and permanently stored by then, which means CCUS capacity will need to increase more than 400-fold over the next four decades.

China, with an estimated 2,400 gigatons of CO2 storage capacity, has significant geological potential for storing carbon, second only to the United States.

It currently has more than 40 CCUS pilot projects with a total capacity of 3 million metric tons. Many of these projects are small developments linked to enhanced oil recovery that will need to significantly scale up over the next four decades, said the report.

"China's high-level opening-up, including improving the business environment and expanding market access, has offered massive opportunities to multinational companies like SABIC in China.

"China's intention to welcome more foreign investment is especially appealing for global companies like SABIC and we look forward to more academic cooperation with local partners," Maughon added.