Wednesday 18 August 2010

Top energy firms form electric vehicle industrial union with automaker

Top energy firms in China, including CNPC, Sinopec, CNOOC, State Grid, China South Power Grid and other 11 big names in industries of auto-making, equipment manufacturing and information technology, are uniting themselves to form an industrial association for the development of electric vehicles (EVs) businesses.
Other big names include China FAW Group Corporation, Dongfeng Motor Corporation, China Changan Automobile Group Corporation Limited, Dongfang Electric Corporation Limited, China South Locomotive & Rolling Stock Corporation Limited, Beijing General Research Institute for Nonferrous Metals, Aviation Industry Corporation of China, China Aerospace Science and Technology Corporation, China Aerospace Science and Industry Corporation, China Potevio Corporation Limited and China Poly Group Corporation.
The EV related businesses cover electric vehicle manufacture, battery for EVs, and electric power recharging service stations.
China National Petroleum Corporation (CNPC), China's largest oil and gas producer, for the first time becomes involved in the EV business.
CNPC has adopted a programmatic strategy when it faces temptation over the brilliant prospect of new energy sector.
The company has adhered to operations such as coal-bed methane (CBM), fuel ethanol, shale gas and oil sands, which are regarded as more relevant to its major operation as an integrated oil and gas company.
Prior to the release of such list, it has never shown much interest in electric vehicle operation.
However, as the second largest oil service station holder, CNPC runs some 18,233 oil service stations across China, while Sinopec, the largest oil refiner, owns 28,812 such stations, compared with the country's total 95,740 stations.
For oil companies like CNPC and Sinopec, they have very extensive service networks based on the existing oil service stations. It could be easier for them to spend less on equipping the current oil service stations with electric power recharging devices.

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