In addition to making substantial capital investments each year to develop the conventional oil and natural gas supplies needed to power the world economy today, ConocoPhillips invests in research and development of the new energy sources that will be increasingly needed in the years ahead. We have formed an internal group to identify investment opportunities in various forms of renewable power projects and companies, including those focused on solar power, wind power and geothermal energy.

Much of our research and development is focused on projects that build on our technical strengths and complement our existing businesses. ConocoPhillips is using our 50 years of carbon technology experience to actively support the development of lithium ion battery technology to improve energy efficiency in the transportation and stationary power markets.

Our current focus is research, development and manufacture of anode and cathode powders that improve battery performance and reduce cost. Under the ConocoPhillips CPreme^® brand, we manufacture several grades of high-performance, best-in-class anode powders for battery applications in hybrid and electric vehicles, solar and wind power back-up systems, and other uses. We supply these materials to several global battery manufacturers and are rapidly scaling up production to meet the growing needs of this alternative energy market.

In addition, we have developed multiple high-efficiency cathode powders and cost-effective manufacturing processes in our research facilities. We also continue seeking new materials that can further enhance lithium ion battery performance.

The use of hydrogen as a fuel has long-term potential to reduce the environmental impact of transportation, if the energy intensity of the manufacturing process – and by association, the resulting greenhouse gas emissions – can be reduced. We continue to evaluate alternative methods to generate hydrogen to help meet current and future refinery needs. We also participate in the Department of Energy’s FreedomCAR and Fuel Partnership, in which the U.S. government, the energy industry and automakers are working together to determine the feasibility of, and possible ways to introduce, a hydrogen-based transportation system in the United States.