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Formosa Plastics Group Establishes Formosa Smart Energy Tech Corp. for the Promotion of New Energy Diversification

2022 / 07 / 05

Formosa Plastics Group, the leading conglomerate in the petrochemical ener-gy industry based in Taiwan, has accelerated its promotion of new energy to respond to the global energy-saving and carbon reduction trends, along with the rapid development of renewable energies and electric vehicles, and thus has officially established the Formosa Smart Energy Tech Corp. to cross-interdisciplinary into the “energy-saving”, “energy storage”, “new ener-gies” and “recycling and reuse” fields. Formosa Plastics Group has also planned to set up a factory for 2.1GWh (2.1 billion watt-hours) lithium iron phosphate battery cells in the Changhua Coastal Industrial Park. The goal is to utilize the abundant integrated experience of the energy industry’s upstream, midstream, and downstream to build a green renewable energy in-dustry chain that will revolutionize the new energy industry of Taiwan.

According to Sandy Wang, Chairman of Formosa Smart Energy Tech Corp., the industrial development is just as important as environmental sustainabil-ity. The key is to discover the perfect balance point and carry out good imple-ment and management. Formosa Plastics Group integrates its resources to ful-ly promote key new energy technologies and its industry configuration to re-spond to the global energy industry development trends, and carry out its duty as an earth citizen to co-exist and thrive with the environment.

Formosa Smart Energy Tech Corp. plans to cross-interdisciplinary into the energy-saving, energy storage, new energies, and recycling and reuse fields to not only develop energy diversification, but also estimate to reduce at least 200,000 tons of carbon for Taiwan per year:

(1) Energy-saving: Formosa Smart Energy Tech Corp. will continue the cor-porate philosophy of Formosa Plastics Group to improve energy-saving and carbon-reducing technologies, develop energy-saving and smart ener-gy recycling systems for different energy-use sectors, and invest in R&D of energy-saving management technologies for the balance of peak and off-peak hours of electricity, so Formosa Plastics Group may achieve car-bon neutrality by 2050.

(2) Energy Storage: Building upon the core technologies of battery monitor-ing, electrical control systems, and security modules that Formosa Bio-medical Technology Corp. has built in the energy storage industry, and the actual application performance of these technologies in the industry, For-mosa Smart Energy Tech Corp. will expand and promote home, business, and industrial energy storage systems, and collaborate with domestic and foreign vehicle manufacturers on the development of automotive battery modules.

(3) New Energies: In addition to accelerating the development of wind power and solar energy, Formosa Smart Energy Tech Corp. has also started de-veloping smart grid control systems to improve the efficiency of green en-ergy, diversifying energy creation sectors and increasing the proportion of green energy usage.

(4) Recycling and Reuse: The company is using degraded repurposed batter-ies, developing lithium battery recycling technology, and investing in the development of Carbon Capture, Utilization and Storage (CCUS) as well as in the development of precious metal recycling technology.

Formosa Plastics Group has been developing in new energy field for almost 26 years, until this day, and grasped multiple key material technologies and developed mass production capabilities. Take battery cells for example, the self-production rates of materials, such as the positive pole material for lithium iron batteries, electrolyte solutions, copper foil for lithium batter-ies, and the PP used for battery separators, has reached 70% or higher. In-vesting in Formosa AdvEnergy Technology Corporation, Formosa Smart En-ergy Tech Corp. plans to build a 6.1-hectare green energy production base in the Changhua Coastal Industrial Park. In the first phase, a 2.1GWh lithium iron phosphate battery cell factory and a pack factory will be build. These fac-tories are expected to mechanical completion and mass production in the first half of 2024. The second phase expansion will proceed based on the develop-ment status at that time. The goal is to increase the productivities of battery cells and pack to 5GWh each.

On the other hand, responding to the massive needs of the new energy mar-ket before the battery cell factory can be mass production, Formosa Smart En-ergy Tech Corp. will set up a lithium iron battery module production line with an annual productivity of 200MWh in the Changhua Plant of Formosa Chemi-cals & Fibre Corporation. Currently, the production line is in the test trial phase. The production line will not only meet the UPS Emergency Backup Power Supply demands of Taiwan, Japan, the United States, and Southeast Asia, but also through the collaboration with Skwentex Energy and Fortune Electric, among other partners, it will accelerate the market configuration of grid-level energy storage system containers for Taipower AFC services, large electricity users, and wind power. It is estimated that the capacity of the pro-duction line will exceed 50MW by the end of 2022. Furthermore, Formosa Smart Energy Tech Corp. has also planned to build two 100MW grid energy storage stations.

Formosa Smart Energy Tech Corp will also collaborate with Sojitz Corpora-tion, Autosmart International, DARFON, and Secom and Sunseap for its deployment into the domestic energy storage market of Taiwan, Japan, and the United States, and plans to roll out a 12.2kWh home energy storage system that is capable of providing electricity for a famliy of three to four members for a whole day. It is estimated that at least 10,000 sets of this system can be sold each year. Via the development plans of lithium iron battery and energy storage systems mentioned above, Formosa Smart Energy Tech Corp. hopes to help increase the resilience and stability of grids.

Chairman Sandy Wang stated that everything has pros and cons whether it is fossil fuel or renewable energy. Therefore, developing diversified energy is the best solution for meeting the growing need of the industry for stable ener-gy, while following the global energy-saving and carbon reduction trends. Co-funded by Formosa Plastics Corporation, Nan Ya Plastics Corporation, Formo-sa Petrochemical Corporation, Formosa Chemicals & Fibre Corporation, and Formosa Biomedical Technology Corp., Formosa Smart Energy Tech Corp. has a capital amount of NT$7 billion. Going forward, Formosa Smart Energy Tech Corp. will integrate the development experience and the innovation and research power of Formosa Plastics Group in the energy industry, and fully commit to the development of diversified new energies, hoping to contribute to the carbon neutrality of Taiwan and allow Taiwan to possess a key position in the global new energy industry chain!