China's massive market is expected to provide substantial opportunities for major chemical corporations like SABIC amid its green energy transition, the company's top executive said.

The potential of the Chinese economy — the main driver of global demand for industrial chemicals — has encouraged the company to accelerate its presence here and it is willing to expand investments, from utilizing renewable energy to petrochemical plants, in the country, Abdulrahman Al-Fageeh, CEO of SABIC, told China Daily in an exclusive interview.

"SABIC will continue to invest in the Chinese market, especially in innovation and technological development, a crucial strategic market for SABIC and one of the keystones underpinning our global growth, as we have been doing during the past nearly four decades," Al-Fageeh said.

"We strive to foster collaboration throughout the entire value chain to drive the growth of major industries and segments in China, including automotive, healthcare, electrical and electronics, as we believe the country will remain the main driver of global demand for chemicals," he added.

SABIC, he said, will expand its investment in Fujian province with Fujian Energy Petrochemical Group to build and operate a world-class mega petrochemical complex in Gulei Petrochemical Industry Park, as "there will be more demand in the market to stimulate the production of the chemical side once services return to normal".

The company has also collaborated with China Petroleum & Chemical Corp, or Sinopec, and established a joint venture in Tianjin for a world-class mega petrochemical complex. The company plans to add a new polycarbonate plant with an annual designed capacity of 260 kilotons this year.

As renewable energy has been developing at a rapid pace in China in recent years, SABIC said it had directed its research and development and investment toward utilizing renewable energy, with a wide product portfolio of innovative solutions, ranging from polyolefin to engineering thermoplastics for photovoltaic solar applications.

"As for the China market, we are now actively working with our partners here to investigate the utilization of renewable energy. As soon as it is available and tested competitive, we will further promote it in China to support its sustainable development and decarbonization goals," he said.

According to the State Grid Energy Research Institute, new energy generation capacity has grown rapidly in China and has gradually become the main source of newly added generation capacity in the country.

The national cumulative installed capacity of new energy surpassed 700 million kilowatts by the end of 2022, and the electricity generation exceeded 1 trillion kilowatt-hours for the first time last year.

The utilization rate of new energy has remained consistently above 95 percent for five consecutive years since 2018, comparable to levels seen in developed countries like Germany, it said.

According to Al-Fageeh, SABIC has been actively increasing the application of renewable energy in China to further facilitate the nation's transition toward sustainable development through an innovation-driven strategy, which is also a key part of SABIC's global road map to carbon neutrality.

The company has also been exploring technology options for carbon capture, utilization and storage (CCUS) applications in the country and is happy to explore any kind of CCUS opportunity in this field with its partners in China, he said.

Currently, SABIC is working 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 to local partners to identify new CCUS technologies and explore potential opportunities together.

SABIC currently operates the world's largest carbon dioxide capture plant in Jubail, Saudi Arabia. The unit can capture 500,000 metric tons of carbon dioxide per year, before purifying and developing it.

"We are also happy to explore any kind of opportunity in this field with our partners in China," Al-Fageeh 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 decarbonization sector.

The country has attracted more international players in various sectors, from mining to petrochemicals, and they are thinking of expanding their businesses even as they become sustainable enterprises over the long run, Luo said.