Non-conventional oil and gas resources are an important potential area for Sinopec. We will focus on development of coal-seam gas and shale gas in North and South China and actively prepare for development and exploitation of oil shale.

With respect to clean development and utilization of coal, Sinopec has built a 3,000t/a Fischer-Tropsch synthesis pilot plant at Zhenhai Refinery Complex.

Partly replacing fossil energy with biomass liquid fuel can both generate energy products such as transport fuel and realize zero carbon dioxide emissions. Sinopec has set foot in development of such biomass liquid fuels as fuel ethanol bio-diesel oil and started research and development of microalgae biodiesel and cellulose ethanol technologies. Since 2006, we have sold 29.20 million tons ethanol gasoline in total and utilized 2.98 million tons modified fuel methanol. We successfully developed SRCA bio-diesel oil production process and completed its commercial test. We have been working with Chinese Academy of Sciences in the field of new energy to develop microalgae biodiesel production technology.

Furthermore, Sinopec made substantial progress in development of geothermal resources. As at the end of 2009, we built heat capacity of 2 million square meters and provided geothermal heat to 1.6 million square meters floorage.