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PETROLEUM EXPLORATION AND DEVELOPMENT

Volume 48, Issue 2, April 2021


Online English edition of the Chinese language journal

Cite this article as: PETROL. EXPLOR. DEVELOP., 2021, 48(2): 480–491. RESEARCH PAPER

The role of new energy in carbon neutral

ZOU Caineng, XIONG Bo*, XUE Huaqing, ZHENG Dewen, GE Zhixin, WANG Ying, JIANG Luyang,
PAN Songqi, WU Songtao
PetroChina Research Institute of Petroleum Exploration & Development, Beijing 100083, China

Abstract: Carbon dioxide is an important medium of the global carbon cycle, and has the dual properties of realizing the
conversion of organic matter in the ecosystem and causing the greenhouse effect. The fixed or available carbon dioxide in the
atmosphere is defined as “gray carbon”, while the carbon dioxide that cannot be fixed or used and remains in the atmosphere is
called “black carbon”. Carbon neutral is the consensus of human development, but its implementation still faces many chal-
lenges in politics, resources, technology, market, and energy structure, etc. It is proposed that carbon replacement, carbon
emission reduction, carbon sequestration, and carbon cycle are the four main approaches to achieve carbon neutral, among
which carbon replacement is the backbone. New energy has become the leading role of the third energy conversion and will
dominate carbon neutral in the future. Nowadays, solar energy, wind energy, hydropower, nuclear energy and hydrogen energy
are the main forces of new energy, helping the power sector to achieve low carbon emissions. “Green hydrogen” is the reserve
force of new energy, helping further reduce carbon emissions in industrial and transportation fields. Artificial carbon conver-
sion technology is a bridge connecting new energy and fossil energy, effectively reducing the carbon emissions of fossil energy.
It is predicted that the peak value of China’s carbon dioxide emissions will reach 110108 t in 2030. The study predicts that
China's carbon emissions will drop to 22108 t, 33108 t and 44108 t, respectively, in 2060 according to three scenarios of high,
medium, and low levels. To realize carbon neutral in China, seven implementation suggestions have been put forward to build a
new “three small and one large” energy structure in China and promote the realization of China's energy independence strategy.

Key words: new energy; peak carbon dioxide emissions; carbon neutral; gray carbon; black carbon; carbon replacement;
carbon emissions reduction; carbon sequestration; carbon cycle

Introduction carbon (wood + coal) and medium-low carbon (petroleum


+ natural gas) to carbon-free (new energy). The future
Energy is a resource in nature that supports human
development will go along with the three major trends –
survival and social progress. Ever since humans utilized
resource type carbon reduction, production technology
fire for the first time, energy, water, and food have be-
come the three elements that humans cannot live without. intensification, and utilization method diversification. At
Two driving forces, technological progress and social present, the global energy is undergoing a low-carbon
civilization promote energy development. The global en- revolution in fossil energy, a large-scale revolution in new
ergy structure has gone through two transformations: the energy, and an intelligent revolution in energy manage-
first transformation realizes the energy revolution from ment. The three energy revolutions are proceeding si-
wood to coal and the second transformation completes multaneously to accelerate the formation of "new coal",
the shift from coal to petroleum and natural gas. Nowa- "new oil and gas", and "new power grid."
days, mankind is experiencing the third significant Human beings live on the same earth and under the
transformation that converts from conventional fossil same sky but breathe “air” with different carbon dioxide
fuels to new energy. Based on the energy development contents. As mankind stepped into industrialization,
law, the energy resource, in terms of its form, has shifted carbon dioxide emissions have continued to increase,
from the solid phase (wood + coal) and liquid phase (pe- resulting in environmental hazards including global
troleum) to the gas phase (natural gas). In terms of the warming, glaciers melting, and sea level rising. The en-
carbon number, energy resource has shifted from high- vironment on which mankind depends for survival is

Received date: 28 Jan. 2021; Revised date: 10 Mar. 2021.


* Corresponding author. E-mail: xiongb69@petrochina.com.cn
https://doi.org/10.1016/S1876-3804(21)60039-3
Copyright © 2021, Research Institute of Petroleum Exploration & Development, PetroChina. Publishing Services provided by Elsevier B.V. on behalf of KeAi
Communications Co., Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
ZOU Caineng et al. / Petroleum Exploration and Development, 2021, 48(2): 480–491

facing unprecedented threats and challenges. According saline soil in arid regions, the formation of carbonic rock,
to statistics, since the year of 1850, the concentration of and the artificial technology that converts carbon dioxide
carbon dioxide in the atmosphere has risen from 280 to chemicals or fuels, etc. Carbon release mainly comes
106 to 450106, the global temperature has increased from the respiratory actions of plants and animals, con-
about 0.9 C to 1.2 C and the sea level has risen by 20 sumption of fossil fuels, and the decomposition of car-
cm[13]. Especially in the past 30 years, the global warming bonic rock in the lithosphere. This article defines the
and sea level rising have accelerated, the rate of tem- carbon dioxide that can be fixed and available as the
perature rise has increased 0.2 C every 10 years and that “gray carbon”; carbon dioxide that cannot be fixed, used,
of sea level rise has reached 0.32 cm/a[46]. By the end of and remains in the atmosphere as “black carbon”. Since
this century, if the global temperature rise reaches 2 C, humans stepped into industrialization, the consumption
the sea level would rise 36 to 87 cm. By that moment, 99% of fossil fuels has drastically increased, releasing carbon
of coral reefs will vanish, about 13% of the ecological within fossil fuels in the lithosphere into the atmosphere.
system on land will be destroyed, and many plants and As a result, the carbon dioxide concentration in the at-
animals will be on the edge of extinction[7]. Cutting down mosphere continuously increases and the carbon circula-
the emissions of greenhouse gases such as carbon dioxide tion cycle balance is destroyed, causing “black carbon”
and mitigating global warming have become the goal content in the atmosphere to constantly increase. The
shared by all mankind. In October 2018, the Intergov- purpose of carbon neutral is to reduce the concentration
ernmental Panel on Climate Change of the United Na- of “black carbon” in the atmosphere, gradually restore
tions (IPCC) proposed the goal of “carbon-neutral” that carbon cycle balance on the earth, protect the ecosystem
will limit the global temperature rise to 1.5 °C by the end that humans depend on, and build a habitable earth.
of the century.
1.2. The connotation and significance of carbon
The carbon dioxide emissions caused by human activi-
neutral
ties mainly come from fossil fuel consumption. Develop-
ing new energy and realizing energy transformation by The Special Report on Global Warming of 1.5°C pub-
reducing fossil fuel consumption and constructing a lished by IPCC pointed out that carbon-neutral means
green, low-carbon energy system is one of the important that carbon dioxide emissions of an organization within
measures to lower carbon dioxide emissions and imple- one year are balanced through carbon dioxide elimina-
ment global carbon neutral. This article summarizes the tion technology, which is also known as net zero CO2
main experience and approaches of major countries to- emissions[7]. The carbon neutral target is to reduce the
wards carbon neutral, analyzes the global distribution of global carbon dioxide emissions by about 45% in 2030,
carbon dioxide emissions, and proposes the challenges compared to 2010, and to reach net zero CO2 emissions
and countermeasures facing global carbon neutrality. and realize net zero carbon dioxide emissions in 2050.
New energy has become the dominant role in the third The primary task of carbon neutral is to control global
energy transformation and will take the lead in the im- warming within 1.5 C by the end of this century. Carbon
plementation of carbon neutral. In response to the chal- neutral can not only mitigate climate changes but also is
lenges and opportunities facing China's carbon neutral, a radical measure for humans to protect the ecological
this paper proposes a roadmap and implementation path environment. It also helps to protect the biological diver-
for China to achieve carbon neutral, and provides a ref-
sity and ecosystem, and prevent more species from ex-
erence for the smooth realization of the carbon neutral
tinction. Carbon neutral has accelerated the low-carbon
goal by 2060.
and green transformation in the energy resource system
1. Overview of global carbon-neutral and provided an emerging economic growth point for the
whole world. According to the Energy Transformation
1.1. Types of “carbon”
2050 published by International Renewable Energy
Carbon is one of the major elements in living matter Agency, carbon neutral can bring an extra 2.4% GDP
and a significant component of organic matter. It exists in growth for global economics and additional 7 million
the atmosphere, terrestrial ecosystem, marine ecosystem, employment positions in the energy industry, etc.[9].
and lithosphere on the earth in the forms of carbon di-
1.3. Progress and practices of carbon neutral
oxide, organic and inorganic matter. Carbon circulates
within the atmosphere, terrestrial ecosystem, marine As of January 2021, according to the statistics of the
ecosystem, and lithosphere on the earth through carbon United Kingdom’s Energy & Climate Intelligence Unit[10],
fixation and carbon release[8]. Carbon fixation refers to there have been 28 countries in the world realizing or
the carbon dioxide absorption via photosynthesis by making a commitment to carbon neutral targets (Table 1).
plants, the carbon dioxide dissolution into the ocean Among them, Suriname and Bhutan have achieved car-
from the atmosphere, the carbon dioxide absorption by bon neutral; six countries including Sweden, the United

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Table 1. Timeline of each country and region’s commitment to be carbon neutral (modified from the reference [10]).
Carbon neutral time Proposed legislation In law In policy document
2035 Finland
2040 Austria, Iceland
2045 Sweden
The European Union, Canada, The UK, France, Japan, Germany, Switzerland, Norway,
2050 South Korea, Spain, Denmark, New Zealand, Ireland, South Africa, Portugal,
Chile, Fiji Hungary Costa Rica, Slovenia, Marshall Islands
2060 China

Kingdom, and France have committed to being carbon energy. Photovoltaic power generation will become the
neutral in law; six countries and regions including the main electric power source of the European Union and
European Union, Canada, and South Korea are formu- Japan and offshore wind power will usher in explosive
lating relevant laws; fourteen countries including China, growth. It is estimated that by 2050, the offshore wind
Australia, Japan, and Germany commit to being carbon power in the European Union and Japan will have more
neutral. The year of 2050 is the major time node for the than a 25-fold increase. As for hydrogen energy, the Eu-
world to achieve carbon neutral. Except the 2 countries ropean Union focuses on the production and preparation
that have already been carbon neutral, Finland has com- of green hydrogen; Japan fully develops the industry
mitted to being carbon neutral at the earliest time in the chain for hydrogen energy; South Korea has legislated
year of 2035. Other 99 countries are discussing carbon on hydrogen energy, extending its application to trans-
neutral targets, among which Uruguay plans to set the portation, metallurgy, power generation, and other fields.
target in 2030 while other countries plan to set it in 2050. (3) Develop carbon sequestration and carbon conver-
The two countries that have achieved carbon neutral- sion technologies. Germany will reinitiate the carbon
ity have the characteristics of small land area and ex- dioxide capture and sequestration project and mean-
tremely high forest coverage. Among them, the forest while utilize its ample natural gas pipeline network
coverage rate of Suriname is 90% and that of Bhutan is facilities to rapidly develop electricity-to-gas technology,
72%. In the carbon neutral process, the European Union and convert carbon dioxide into methane for pipeline
has been the most active participant who is willing to network transportation. Japan is developing carbon
build the first carbon neutral continent. The European dioxide capture and resource recovery technologies. By
Green Deal published by the European Commission in 2030, the price of carbon dioxide recovery fuel will be
December 2019 mentions that the greenhouse gas emis- equivalent to that of conventional jet fuels, and by 2050,
sions will be reduced by 50% to 55% in 2030 compared the price of carbon-dioxide-made plastic products will
to 1990 and achieve the goal of carbon neutral by 2050. be equivalent to that of existing plastic products.
The Green Growth Strategies proposed by the Japanese (4) Introduce a pricing mechanism for carbon and
government in December 2020 is regarded as the pro- increase the cost of carbon emissions. The European
gress chart for Japan to be carbon neutral in 2050. Re- Union started to implement Emissions Trading Scheme
garding the countries that have already committed to
(EU ETS), which is the first carbon emissions trading
being carbon neutral, except the European Union and
system participated by several countries in the world.
Japan that have already made the specific route map to
This trading system uses the Cap-and-Trade Rules,
be carbon neutral, the carbon neutral paths of other
trading carbon emissions via administrative license
countries are still in the making. This article analyzes
transactions, based on limiting total greenhouse gas
and concludes the approaches done by major countries
emissions. By prescribing limits and setting up trading
and region as follows.
plans, this trading system also sets limits to each mem-
(1) Gradually withdraw from coal power generation
ber country to distribute the emissions reduction tar-
plans. Except Germany, the European Union countries
gets to enterprises, and define the emissions reduction
that have pledged to be carbon neutral have a relatively
upper limits to enforce the implementation.
small amount of coal resources and small territorial
area. These countries have all terminated the coal power 2. Major challenges and strategies for carbon
generation. Germany announces that it will withdraw neutral
from coal power generation by 2040. The countries that
2.1. Current situation of global carbon emissions
have relatively abundant coal resources and have a rel-
atively high ratio of electricity consumption taken up by According to the statistics by the International Energy
coal (such as Australia) have not yet confirmed the plan Agency, the global energy-related carbon dioxide emis-
to quit coal power generation. sions in 2019 are the same as in 2018 (330108 t). The top
(2) Accelerate the application and generalization of 5 carbon emitter countries are China, the United States,
the new energy industry such as solar, wind, hydrogen India, Russia, and Japan, whose carbon emissions are
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Fig. 1. Carbon dioxide emissions statistics based on major global energy-related continents (a) and countries (b) from
2000 to 2019 (modified from the references [1112]).

98108, 48108, 23108, 15108, and 11108 t respec- mentation still faces challenges from all aspects including
tively[1112]. Carbon emissions in Asia mainly come from politics, energy resources, technology, market, and energy
China, India, and Japan. Carbon emissions in America structure.
come from the United States, Canada, and Brazil; those in
2.2.1. Politics
Europe come from Russia, Germany, and the United
Kingdom. Carbon emissions in Africa come from South Achieving carbon neutral is a global target that needs
Africa, Egypt, and Algeria. Carbon emissions in Oceania the cooperation of all countries in the world. The per-
come from Australia. manent member of the UN Security Council should take
Fossil fuel consumption is the major factor responsible the lead on the carbon neutral target and however, the
for increased carbon dioxide emissions. Coal consump- United States and Russia have not yet pledged to be car-
tion has always been the largest source of carbon dioxide bon neutral. Among the top 5 carbon emission countries
emissions since 2003 (Table 2). In 2019, the consumption in the world, India has not yet committed the time to be
of coal, petroleum, natural gas, and other consumption carbon neutral. Angola, Iran, Iraq, South Sudan, Turkey,
took up 44%, 34%, 21%, and 1% of the total count of car- Yemen, and other countries initially signed the Paris
bon dioxide emissions, respectively. The electric power Climate Agreement but have not yet assigned formal leg-
industry is the largest carbon emission industry that ac- islative approval. Another 99 countries discussing carbon
counts for 38% of the total emissions, followed by trans- neutral targets, which have yet to be adopted[9].
portation, industry, construction, and other fields, account-
2.2.2. Energy resources
ing for 24%, 23%, and 9% of the total carbon emissions[12].
Developing new energy to replace fossil fuels is a pri-
2.2. Major issues facing carbon neutral
mary measure to achieve carbon neutral. The global dis-
It has been the global consensus that carbon neutral tribution of new energy including solar and wind energy
can be a solution for global climate changes, but its imple- varies greatly with respect to time and space, which
brings challenges to the large-scale development of new
energy. The global solar energy resources are mainly
concentrated near the equator and between the Tropic of
Cancer and Capricorn, where the Saharan region of
northern Africa is the most abundant. The east and south
sides of the Africa continent, the northwest region in
China, and Australia are also the regions with rich solar
energy. Wind energy resources are mainly distributed in
East Asia, Southeast Asia, Central Asia, and the regions
from 30S to 30N in America, together with the north
and the east region in China, Mongolia, northeast region
in Australia, south of the Sahara Desert in Africa, and
Fig. 2. Global energy-related carbon dioxide emissions other regions. The global terrestrial solar energy and
statistics from 2000 to 2019 (modified from references wind energy vary significantly across different regions
[1112]). and seasons[13].

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2.2.3. Technology carbon neutral can be distinguished into four major ap-
proaches, carbon replacement, carbon reduction, carbon
The maturity of new energy technologies decides the
sequestration, and carbon cycle.
progress of the carbon neutral process. The overall price
Carbon replacement refers to replacement by electricity,
of power generated by solar, wind, and other new energy
heat, and hydrogen. Replacement by electricity is the
is still higher than that of power generated by coal. Also,
utilization of hydroelectricity, photoelectricity, wind elec-
the stability of peak-valley is far from satisfactory and the
tricity, and other “green electricity” to replace thermal
peak regulation technology still needs further innovation.
power. Replacement by heat is the utilization of photo-
Fields such as heavy industry and long-distance trans-
thermal resources, geothermal resources to replace fossil
portation can hardly achieve electrification. Even though
fuel heating. Replacement by hydrogen is using “green
hydrogen fuel cell is the optimum choice, some key
hydrogen” to replace “gray hydrogen”.
technologies are still in the demonstration and prototype
Carbon reduction mainly includes energy saving and
stage and have not yet reached generalization and
efficiency improvement. In the construction industry, the
large-scale industrial application. Compared to hydrogen
approaches mainly include improvement of electrical
production from traditional fossil energy (also known as
“gray hydrogen”), Hydrogen production from renewable appliance and facility efficiency, installation of solar
energy sources (also known as “green hydrogen”) has a photovoltaics outside buildings, reduction of the embod-
higher cost and corresponding carbon dioxide capture ied carbon emissions of cement and steel, and so on. In
and sequestration technology are still in the demonstra- the transportation industry, the approaches mainly in-
tion stage. Although low-carbon technology transfer can volve the utilization of more efficient power systems and
significantly help reduce carbon emission and control the lighter materials. The emissions of the “black carbon” can
warming effect, the commitment, made by developed thus be reduced fundamentally.
countries, about funding and low-carbon technology as- Carbon sequestration refers to the collection of carbon
sistance to developing countries has not yet been ful- dioxide generated by large-scale thermal power genera-
filled. tion, steelmaking plants, chemical plants, etc., and then
transport to a suitable place, using technical means to
2.2.4. Market isolate and seal the carbon dioxide from the atmosphere
In the carbon neutral process, the generalization and for a long time. Geological sequestration is the main form
application of new energy depend on cost advantages and of carbon sequestration, the sequestration places are
application convenience. At present, the cost of new en- usually oil and gas reservoirs, deep underground saltwa-
ergy has dropped by each year but is still less competitive ter layers, and abandoned coal mines. In the future, after
with fossil energy. Particularly, in 2020 when the global oilfield and gas fields being depleted, the existing surface
crude oil price collapsed, the cost advantages of fossil and the underground facility can be applied to seques-
fuels caused an adverse effect on new energy transforma- trate carbon dioxide, which may become one of the main
tion[14]. The incomplete corollary equipment for new en- approaches. The “black carbon” content in the atmos-
ergy also poses an inconvenience. The problems such as phere can be reduced by technical measures.
the charging piles not being popularized and the insuffi- The carbon cycle includes artificial carbon conversion
cient amount of hydrogen refueling stations have pushed and forest carbon sink. Artificial carbon conversion
up the cost of using new energy vehicles. means using chemical or biological measures to convert
carbon dioxide into useful chemical products or fuels
2.2.5. Energy structure including methanol synthesis from carbon dioxide, the
Fossil fuels still account for a major part of global en- electrocatalytic reduction from carbon dioxide to prepare
ergy consumption with new energy having a relatively CO or light hydrocarbon products (C1—C3), etc. Forest
small proportion. The global energy consumption in 2019 carbon sink refers to the absorption of atmospheric car-
is 144108 t of oil equivalent, where coal accounts for 27%, bon dioxide by plants through photosynthesis and the
petroleum 33%, natural gas 24%, and new energy 16%[15]. fixation of carbon dioxide in vegetation and soil to reduce
In the carbon neutral process, the consumption propor- the concentration of atmospheric carbon dioxide. The
tion of coal, petroleum, and other high carbon content recycling function of “gray carbon” comes into play.
fossil fuels needs to be cut down significantly while that Aiming at the four main carbon neutral strategies of
of new energy needs to be increased. So far, the con- carbon substitution, carbon emission reduction, carbon
sumption proportion of fossil fuels remains high, bring- sequestration, and carbon cycle, based on the maturity of
ing challenges for energy transformation. technology or the price competitiveness of conventional
fossil energy, the trend of carbon dioxide emission reduc-
2.3. Strategies to achieve carbon neutral
tion under the global carbon neutral target from 2020 to
The strategies to reduce carbon emissions and achieve 2050 is predicted (Fig. 3). From 2020 to 2030, the carbon

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process.
3.1. New energy is the protagonist of the third energy
transformation

Throughout the world's energy development process,


the history of human utilizing energy has undergone two
transformations from wood to coal and from coal to oil
and gas, respectively. Now human beings are experienc-
ing the third transformation that swifts from fossil fuels
to new energy. The clean and low-carbon features of new
energy meet the needs of carbon-neutral development,
turning new energy into the leading role in the third en-
Fig. 3. The contribution to the global carbon neutral of 4 ergy transformation.
approaches from 2020 to 2050.
Since 1925, global energy has become cleaner. Except
dioxide emission reduction rate is relatively low. The for biomass energy, the development of new energy has
main reasons for this are: the price advantage of new been accelerating. From 1925 to 2019, global energy needs
energy remains unapparent, the new energy has not yet increased from 14108 t of oil equivalent to 144108 t
gone into large-scale application, and the carbon seques- equivalent, which is a ten-fold increase. The new energy
tration technology has not yet been refined. From 2030 to proportion in global energy resources has grown from
2050, as the related technologies develop, the cost of new 0.6% to 15.1%, having a 24-fold increase[17] (Fig. 4).
energy becomes competitive with that of fossil fuels, to- In the recent decade, the global energy technology
gether with landings and promotions of new energy pro- revolution significantly accelerates. The cost of photo-
jects. Thus, carbon dioxide emissions can be largely re- voltaic power generation and wind power generation
duced. Once the carbon sequestration technology reaches largely reduces, promoting the green transformation of
the requirements of popularization and application, it the energy system. According to the IRENA report, since
will largely contribute to carbon neutral. Overall, carbon 2019 the levelized cost of electricity from photovoltaic
replacement will become the backbone force during the power (PV), concentrating solar power (CSP), and on-
carbon neutral process. It is predicted that by 2050, its shore and offshore wind power have dropped about 82%,
contribution will take up 47% of the global carbon neu- 47%, 39%, and 29%, respectively[18]. In 2019, 56% of the
tral efforts, while carbon reduction, carbon sequestration, large-scale installed capacity of the new energy power
and carbon cycle take up 21%, 15%, and 17%, respectively. generation that is newly put into operation and con-
nected to the grid, can generate power at a price lower
3. The significant position of new energy in than conventional fossil fuels. From 2010 to 2019, the
the process of carbon neutral energy from photovoltaic power increased from 32 TWh
New energy refers to the non-fossil carbon-free re- to 699 TWh with an annual increase of 240%; the energy
newable clean energy that is further developed and util- from wind power increased from 342 TWh to 1404 TWh
ized based on new technologies, replacing conventional with an annual increase of 45% (Fig. 5).
energy. The main types include solar energy, wind energy,
biomass energy, hydrogen energy, thermal energy, ocean
energy, nuclear energy, new material stored energy, and
so on[16]. Compared with conventional carbon-containing
fossil energy, new energy differs from theoretical tech-
nology, utilization cost, environmental influence, man-
agement method, and other aspects. As the new energy
technology rapidly develops, together with the improve-
ment of the internet plus, artificial intelligence, new ma-
terials, and other technology, the new energy industry is
in its rising phase and will gradually step into its golden
period of development. Developing new energy and
driving the energy structure transformation is the key to
achieve carbon neutral. The acceleration of new energy
development and utilization has become the driving force
of global energy growth. New energy will gradually re-
Fig. 4. Chart of the global energy structure variation trend
place fossil fuels and play a key role in the carbon neutral from 1925 to 2019 (modified from the reference [17]).

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changes, forming a "one big and three small" structure with


new energy as the mainstay, and new energy will exceed coal,
petroleum, and natural gas and become the main energy.
3.3. The role of new energy in the carbon neutral process
Solar energy, wind energy, hydro-energy, nuclear en-
ergy, and hydrogen energy are the main forces of new
energy, to achieve low-carbon emissions. Since 2019, the
average cost of new energy power generation has been
lower than that of gas power generation but overall, it is
still 16% higher than that of coal power generation[19]. As
Fig. 5. Global photovoltaic power and wind power output predicted by 2030, building a photovoltaic or wind power
from 2010 to 2019 (modified from the reference [17]). project can have an average level of investment lower
than building a coal power generation plant in most cases.
3.2. New energy is the leader of carbon neutral
Almost all Asia-pacific markets can have costs of photo-
In views of energy production and consumption voltaic and wind power generation lower than that of coal
structure, world energy structure has been divided into power generation[19]. In 2050, new energy power genera-
four parts by coal, oil, gas, and new energy. According to tion can satisfy 80% of the global electricity demand, in
the research prediction, the year of 2030 will be the which half of the total power output can be cumulatively
turning point for new energy as the cost of many types of taken up by photovoltaic and wind power generation[9].
new energy will drop to a competitive level with fossil “Green hydrogen” is the reserve force of new energy,
fuel and the energy de-carbonization trend will go helping industry, transportation, and other fields to fur-
stronger. As predicted in 2030, global primary energy ther reduce carbon emissions. The electricity price takes
resource will reach a peak value of 156108 t oil equiva- up 60% to 70% of the cost of hydrogen production by
lent at an annual average increase rate of 1.2% with 19% water electrolysis. However, as the electricity price drops
of coal, 28% of petroleum, 26% of natural gas, and 27% of dramatically, the cost of “green hydrogen” will drop
new energy (Fig. 6)[15]. In 2025, it is predicted that the quickly. In about 2030, “green hydrogen” is expected to
increase in the need for petroleum will slow down while have a greater cost advantage than fossil fuels[20]. In 2050,
in 2030 the need for petroleum will enter its platform the proportion of global hydrogen energy in terminal
period. Since natural gas is characterized by its low car- energy consumption is expected to reach 18%. By then,
bon content, it is expected to be the only fossil fuel that “green hydrogen” technology is fully developed and can
will grow in long term. be applied to the fields that can hardly achieve zero car-
As predicted, after 2030 the cost of new energy will be bon emission via electrification[2123], which mainly in-
lower than that of fossil fuels. From 2030 to 2050, the cludes steel, oil refining, synthesis ammonia and hydro-
global total primary energy consumption will be main- gen for industrial use, and long-distance transportation
fields including heavy trucks and ships.
tained at a relatively stable level. In 2050, the global total
Artificial carbon conversion technology is the bridge
primary energy consumption will be basically the same as
connecting new energy and fossil energy and can effec-
in 2030, with coal accounting for 4%, petroleum 14%,
tively reduce carbon emissions from fossil fuels. It con-
natural gas 22%, and new energy 60%. The world energy
verts the excess power into chemical products and fuels
consumption structure will embrace fundamental
for storage, thus cutting the peak and filling the valley of
the new energy power grid.
Power to gas is the main form of artificial carbon con-
version. It can rearrange carbon dioxide to produce
methane and is viewed as the key to Europe to achieve
energy transformation. According to the prediction, in
2050, 10% to 65% of the energy consumption in the
European industry comes from the power to gas tech-
nology while the proportion in the heating industry and
transportation industry is 30% to 65%[2324].
4. China’s carbon neutral implementation
path
4.1. China’s carbon neutral target and route map
Fig. 6. Global energy structure variation trend from 2019
to 2050 (modified from references [15], [17] and [18]). Chinese government commits to achieve carbon neu-
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tral and will make policies to promote the carbon neutral challenges on the road to carbon neutrality, such as large
process. In November 2020, Xi Jinping delivered a speech carbon emissions, fossil energy-based energy consump-
in the United Nations General Assembly: “China will tion, and short buffer time from carbon peak to carbon
scale up its nationally determined contributions by neutrality. China is the largest carbon dioxide emitter in
adopting more vigorous policies and measures, and strive the world. In 2019, China’s carbon dioxide emissions ac-
to reach the peak of carbon dioxide emissions by 2030, count for 29.8% of the global total emissions, even higher
and strive to achieve carbon neutrality by 2060”[25]. Then, than the sum of the US (14.4%), India (7.0%), and Russia
in December, the white paper China's Energy Develop- (4.7%). At present, fossil fuels such as coal, petroleum,
ment in the New Era was released, comprehensively ex- and natural gas are still dominant in the energy con-
pounding the main policies and major measures of Chi- sumption in China, especially for coal taking up more
na’s energy security development strategy in the new than half of the total amount. China’s total energy con-
stage and new era. sumption in 2019 was 34108 t of oil equivalent, where
The report Research on China's Long-term Low Carbon coal accounts for 58% and petroleum accounts for 19%[18].
Development Strategy and Transformation Path pointed The period for China from peak carbon emissions to
out that in around 2025, China’s carbon dioxide emis- carbon neutral is only 30 years, meaning carbon emis-
sions will enter peak platform period and China will
sions need to drastically drop to go carbon neutral once
strive to stably reach the peak value by 2030, limiting the
peak emissions are reached. The committed period made
peak value of carbon dioxide consumed by fossil fuels
by European Union from peak carbon emissions to car-
within 110108 t and setting the carbon dioxide emissions
bon neutral is 60 to 70 years, where buffering time is
in 2035 to be significantly lower than peak year[26]. Based
twice as long as China’s. Based on China’s national con-
on the reduced levels of peak carbon dioxide emissions,
ditions, carbon neutral models of other countries cannot
this research predicts China's carbon emissions in 2060
be directly duplicated, and it is necessary to develop a
under three scenarios: low, medium, and high (Fig. 7).
carbon neutral implementation path in line with China's
Under the low-level scenario, carbon dioxide emissions
resource endowment and national conditions. On the way
will be reduced to 40% of the peak value with emissions
to becoming a carbon neutral country, China needs to
of 44108 t; under the medium-level scenario, carbon
work together in power, industry, construction, agricul-
dioxide emissions will be reduced to 30% of the peak
ture, and other fields to reduce "black carbon" emissions
value with emissions of 33108 t; under the high-level
scenario, carbon dioxide emissions will be reduced to and make "gray carbon" available (Table 2).
20% of the peak value with emissions of 22108 t. The 4.2.1. Promoting efficient and clean use of coal
remaining emissions will be consumed via approaches
that mainly include carbon dioxide sequestration and The abundant coal resources in China are the main
utilization, artificial carbon conversion, and forest carbon energy type and crucial industry raw materials. Vigorous
sink. The medium-level and high-level scenarios have promotion in efficient and clean use of coal can not only
greater demands of carbon neutral technologies includ- effectively control carbon dioxide emissions, but also give
ing carbon dioxide sequestration, utilization, artificial play to the main role of coal in ensuring national energy
carbon conversion and forest carbon sink, and therefore security. The efficient and clean use of coal includes the
inputs of these fields should be increased. safe, efficient, and green mining operation, pollution
control and purification of coal combustion, New clean
4.2. China’s carbon neutral implementation path coal combustion, advanced coal-fired power generation,
Compared with other countries, China will face many and clean and efficient coal conversion, etc. Underground
coal gasification is an important approach for clean uti-
lization and can radically change the utilization modes of
mining and use of medium and deep coal, reducing
negative environmental influence caused by coal devel-
opment and utilization. We should strive to realize the
gasification and utilization of China's onshore coal re-
sources with a buried depth of 1000 to 3000 m, and the
coal resources gasification mining productions of gas
such as methane and hydrogen are estimated to be 272 to
3321012 m3[27]. 50% of the total coal consumption in
China is used for power generation, and therefore a clean
and efficient coal power generation is the top priority of
efficient and clean utilization of coal. The modern coal
Fig. 7. Forecast of China’s carbon emissions trend. chemical industry is mainly based on clean energy and
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Table 2. Major approaches and the technology maturity of China’s carbon neutral pathway.
Field Approach Technology maturity Reduction source
New energy power generation Mature, early application
Energy storage technology Mature, early application Reduce “black carbon” emissions
Power
Enhanced energy conversion efficiency Development phase
Carbon capture and sequestration Demonstration phase Reduce “black carbon”
Electro-mobile Early application
Fuel cell power systems Demonstration phase Reduce “black carbon” emissions
Transportation
Enhanced power efficiency Development phase
Biomass energy replacement Early application Take the availability of "gray carbon"
Clean fuel replacement Demonstration phase
Boiler electrification Demonstration phase Reduce “black carbon” emissions
Industry Increased energy efficiency Development phase
Carbon capture and sequestration Demonstration phase Reduce “black carbon”
Artificial carbon conversion Demonstration phase Take the availability of “gray carbon”
Clean heating replacement Mature, early application
Distributed energy resource Demonstration phase
Construction Reduce “black carbon” emissions
Electrification, heat pump Early application
Development of new building materials Development phase
Agricultural machinery electrification Early application
Reduce “black carbon” emissions
Agriculture Crop burning restriction Mature
Livestock manure, straw mulching Mature Take the availability of “gray carbon”
Forestry Afforestation Mature Take the availability of “gray carbon”
Green travel Mature
Electric appliance and products recycling Early application
Living Reduce “black carbon” emissions
Waste disposal and recycling Early application
Energy consumption saving Mature

fine chemicals, including coal gas, coal oil, coal chemicals, areas, boosting conventional gas production. Emphasis
and other products. will be put into making breakthroughs in unconventional
natural gas exploration and development and improving
4.2.2. Speeding up clean energy replacement
the industrial layout and policy systems of gas storage and
Speeding up implementation of clean energy replace- import channels to maintain the safe use of natural gas.
ment, optimizing energy structure, and building a clean,
4.2.4. Vigorously developing the “green hydrogen”
low-carbon, safe and efficient energy system is the crucial
industry and its industrial chain
measure for China to achieve carbon neutral. Based on
technology innovation, the cost of solar energy, and wind China needs to accelerate the construction of the hy-
energy can be further reduced. The wind power-photo- drogen energy industry and promote the implementation
electric-stored energy coupling mode can replace thermal of the “Hydrogen China” strategy, just like coal, oil and
power to take stored energy’s advantages in quick re- gas, and other industries. China has a strong demand for
sponse, round-way regulation, and energy buffering, im- hydrogen energy, but most hydrogen products are still
proving new energy system adjusting ability and stability. made from fossil fuels (“gray hydrogen”). Replacing “gray
Using photothermal-geothermal coupling mode to re- hydrogen” with “green hydrogen” can effectively reduce
place coal-fired heating energy can bring the respective carbon dioxide emissions. As predicted by China Hydro-
advantages of solar photothermal energy and geothermal gen Energy Alliance, in 2030 China will be in the mid-
energy, forming complementary heating energy. stage of the development of hydrogen energy market with
an average annual demand of 3500104 t, accounting for
4.2.3. Enhancing the function of natural gas as a part-
5% of terminal energy consumption; in 2050, China’s
ner and a bridge in the low-carbon transformation
average annual demand for hydrogen hits 6000104 t,
Natural gas is a low-carbon clean energy, a partner and 70% of the hydrogen sources is “green hydrogen”, ac-
bridge for the transition from high-carbon to zero-carbon counting for at least 10% of terminal energy consump-
energy, and is the mainstay of fossil energy and the cor- tion[28], and can reduce carbon dioxide emissions about
nerstone of energy security in achieving carbon neutrality. 7108 t. Besides, the overall development of hydrogen
In a carbon neutral context, China’s demand for natural storage, transportation, hydrogen fuel cells, hydrogen
gas robustly increases. It is estimated that by 2035, the fueling stations, and other industrial chains will be ac-
demanded quantity can rapidly rise to (6500–7000)108 celerated to deeply integrate with the oil and gas industry.
m3. Numerous natural gas production bases with a 10 By utilizing existing infrastructure including natural gas
billion cubic meter production level will be built, in pipeline network and oil and gas fueling stations, the
which the Sichuan, Ordos and Tarim basins are the key natural advantages of oil and gas companies are given

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ZOU Caineng et al. / Petroleum Exploration and Development, 2021, 48(2): 480–491

full play in hydrogen production, hydrogen processing, China offshore has great potential for submarine car-
and other industrial chain nodes to realize the joint con- bon dioxide geological sequestration with a total seques-
struction of “oil, gas, hydrogen, and electricity”, and tration capacity of 2.51012 t[29]. According to preliminary
promote the high-quality development of the hydrogen predictions, the effective carbon dioxide sequestration
industrial system. capacities of the saltwater layer and reservoirs in the
deep Ordos Basin are 133108 t and 19.1108 t, respectively.
4.2.5. Increasing the application and promotion of
The effective carbon dioxide sequestration capacity of the
carbon dioxide burial and sequestration
gas oil reservoir, deep saltwater layer, and coal layer in
Carbon dioxide burial and sequestration can largely the Tuha Basin is 44108 t. The carbon dioxide absorption
reduce carbon dioxide emissions and is the matching and sequestration capacity of the coal layer in the Qin-
technology of clean utilization of fossil fuels. China’s shui Basin is estimated to be 1280108 t with an adsorp-
coal-dominant resources endowment decides the neces- tion capacity over 96%[3032]. In addition, carbon dioxide
sity to accelerate the application and promotion of car- oil flooding and gas flooding can not only achieve carbon
bon dioxide burial and sequestration, maximizing its dioxide burial and sequestration but also enhance oil and
functions in the carbon neutral process and promoting gas recovery[33].
the efficient and clean use of coal. In the future, the de- In the future, the completed oil and gas fields in
pleted oilfield, gas field, and the underground “paddy Songliao, Bohai Bay, Ordos, Daqing, and other large oil
field” after development can be utilized to form an “arti- and gas areas can be built into demonstration bases for
ficial carbon dioxide field” that buries ad sequestrates burial and sequestration of "artificial carbon dioxide gas
carbon dioxide (Figs. 8 and 9). So far, PetroChina has fields".
carried out technological breakthroughs including carbon
4.2.6. Developing carbon conversion and forest carbon
dioxide flooding in the Jilin, Xinjiang, and Daqing oil-
sinks
fields, with an annual oil displacement production of
almost one million tons, making a new breakthrough in Developing carbon conversion that converts carbon
carbon dioxide oil flooding technology. dioxide into chemical products and fuels can turn waste
into “wealth”. The “liquid sunshine” technology proposed
by Dalian Institute of Chemistry and Physics, Chinese
Academy of Sciences lets “green hydrogen” react with
carbon dioxide and obtains methanol. Producing 1 ton of
methanol can fix 1.375 tons of carbon dioxide. China's
methanol production capacity is about 8000104 t, which
is mainly produced from natural gas and coal. If all
methanol is produced using the "liquid sunshine" tech-
nology, hundreds of millions of tons of carbon dioxide
can be fixed[34].
Forest carbon sinks should be vigorously developed.
China's major forest zones, such as the southwest and
northeast regions, have a large carbon sink capacity.
Fig. 8. Geological map of carbon dioxide underground From 2010 to 2016, China’s terrestrial vegetation has an
burial and sequestration. annual average carbon fixation capacity of 11108 t, which
is about 45% of China's annual emissions over the pe-
riod[35]. Afforestation can play a beneficial role in the pro-
cess of carbon neutral.

4.2.7. Establishing market mechanisms to control


carbon emissions

A national carbon emissions trading market will be


established and improved to control carbon emissions
through market mechanisms. The establishment of a
carbon market and an increase in the cost of fossil carbon
utilization will help reduce the consumption of fossil
energy fundamentally and reduce carbon dioxide and air
Fig. 9. Carbon dioxide underground burial and seques- pollutants emissions. At present, China's carbon emission
tration model. trading market is still in the early stage of construction. It
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is necessary to further improve and complete the relative technology and the world pattern in different periods in
rules of the carbon emission trading market, implement the future, the understanding of carbon neutral will con-
the construction of relevant infrastructure, clarify the tinue to innovate and develop.
standards and specifications of relevant parties, and im-
prove the national carbon emission trading market sys- References
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