Partnership for Energy Innovation-- BP's R&D Model in China

Last May, Dr. Atkins was awarded the 2006 China International Cooperation Award by the Ministry of Science & Technology for his dedication to improving cooperation between Britain and China in chemical engineering. This February, he attended the Transnational Corporations Forum 2008 in Beijing and shared, with an audience from China and abroad, BP's successful R&D cooperation "open model".

First, let's take a look at two commonly known R&D cooperation models. In the "independent model", a company would set up a research center and have full ownership over the research results. In the "contract model", a company may hire a local research team to work on a particular project. Though these methods are easy to manage and administrate, they may not provide an open environment for scientists to access the most advanced knowledge and the latest market information from around the world. This would eventually limit the speed at which technological achievements can be commercialised. We believe it's time for change.

In the early 1990s, BP began its pioneering search for an "open model". In this new model, BP and its partners work together, with the research institution carrying out detailed research work and BP providing a platform for them to access the latest information and knowledge from around the world. When the time is right, BP would facilitate intellectual property rights protection. According to Dr. Atkins, BP can save much of its normal investment costs in global R&D using this open model. At the same time, the company is spending less time to achieve the same number of patents.

BP has introduced this open model to European nations and the U.S., as well as to China. In November 2001, BP established the "Clean Energy: Facing the Future" programme in China with the Chinese Academy of Sciences and Tsinghua University to create a partnership within China to address these issues and opportunities. This programme aims to develop and prove new clean fuel options for China and the rest of the world. The programme includes several projects at CAS's Dalian Institute of Chemical Physics (DICP), one of the most creative and innovative research institutes in China. BP's cooperation with DICP is a good example of the R&D "open model".

Taking their joint project on ethanol dehydration as an example, BP and DICP had both achieved separate technology patents in this field before their collaboration. Since the partnership, BP has helped DICP to apply for international patent protection to better protect its achievements and, as well as providing financial support, BP has also brought in leading cutting-edge technologies from around the world which accelerated DICP's research work. In 2007, the two parties were able to set up a pilot project to produce high-purity ethanol with less energy consumption at a lower cost. The pilot project has been operating steadily for a couple of months, demonstrating a promising future in market commercialization. Last October, BP and DICP signed an agreement with Singapore's Hyflux to jointly develop and commercialise the use of zeolite dewatering membranes in the production of biofuels.

In January 2008, BP strengthened its partnership with CAS by signing an agreement to undertake a feasibility study into a proposed Clean Energy Commercialization Centre joint venture. The two sides, under the R&D cooperation "open model" , aim to accelerate the development in China of clean coal conversion technologies and the creation of associated value chain investment opportunities. "Under the open R&D model, intelligence and talent flow across companies, institutions and even countries. Nobody is insular, but all are a part of a dynamic global web of innovation and advances", said Dr. Atkins.