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As the development of China’s chemical industry continues, the trend of scale up in China’s chemical industry remains, the only difference is that there is a structural shift in scale up projects. From the initial scale up of bulk chemical plants, such as large refining and chemical integration and large polyethylene and polypropylene plants, the investment and construction heat has changed into large new energy projects, large refinement and new material projects. Translated with www.DeepL.com/Translator (free version)

The structural shift of scale projects in the chemical industry, on the one hand, reflects the structural shift of China’s chemical industry and the change of direction for the development of the traditional petrochemical industry; on the other hand, it is the speeding up of the future direction of new energy development and the identification of the trend of new energy development in China.

  1. China has become the world’s largest producer of plastic products, according to the European Plastics Association statistics show that the global production of plastic products in 2022 is about 400 million tons, an increase of 2.5% year-on-year, of which Asia accounted for 51% of production, North America accounted for about 19% of production. China is the world’s largest plastic producer, plastic production accounted for about 31% of the total global plastic production. In addition, according to the China Plastics Industry Association statistics show that China’s plastic products production in 2022 is close to 100 million tons, achieving high growth year-on-year. China’s plastic products production scale, has become the world’s largest plastic products production of the country, China produces plastic products, with the scale advantage, and key core technology threshold, in the global plastics industry to occupy an absolute advantage.

Although China has become the world’s largest producer of plastic products, it is also the world’s largest consumer of plastic products, and most of the plastic products produced in China are digested locally in China. On the one hand, it reflects the trend and status of China’s continued rapid macroeconomic development, and on the other hand, it also reflects the scale of China’s investment in the plastics industry

  • , the world’s largest coal-based ethanol project was completed and put into operation According to a related report, just on March 16, 2023, the world’s largest coal-based ethanol project, Yushen 500,000 tons/year coal-based ethanol project of Yanchang Petroleum in Shaanxi Province, was completed and put into operation, marking the emergence of another landmark event in China’s new coal chemical projects. Located in Yushen Industrial Zone, Yulin, Shaanxi, the 500,000 ton/year coal-based ethanol project of Yanchang Petroleum is an industrial scale-up project of Yanchang Petroleum following the successful implementation of the world’s first 100,000 ton/year coal-based ethanol technology demonstration project in 2017, and is currently the largest coal-based ethanol project in the world. The project uses coal as raw material to synthesize methanol through coal gasification, and then dehydration, carbonylation and hydrogenation to produce anhydrous ethanol and other chemical products, which realizes the clean utilization and efficient transformation of coal resources. According to experts, according to 3 tons of grain to produce 1 ton of ethanol, the project will save 1.5 million tons of bioethanol feedstock grain per year after it is put into operation, which is of strategic importance to ensure national energy security and food security.
  • In August 2022, the world’s largest ore processing project with an annual capacity of 800,000 tons of silica-aluminum raw materials was put into operation in Chongqing, China. The project production equipment using domestic mature technology products, making full use of 4G, 5G intelligent manufacturing, BIM application and control technology, to achieve the most advanced glass fiber with silica-aluminum raw material manufacturing level at home and abroad, is expected to create a total profit of 81.15 million yuan / year, all completed the overall benefit of the project 116.41 million yuan / year. (4), the world’s largest green hydrogen project started just on February 16, 2023, Inner Mongolia Erdos City scenery fusion green hydrogen demonstration project officially started, the project plans to make 30,000 tons of green hydrogen and 240,000 tons of green oxygen per year, is currently the world’s largest green hydrogen coupled coal chemical project. It is also Sinopec’s first green hydrogen demonstration project in Inner Mongolia, with a total investment of about 5.7 billion RMB, and is expected to reduce CO2 emissions by 1.43 million tons/year after it is put into operation. Before that, the world’s largest green hydrogen production project under construction is Sinopec Xinjiang Kuche Green Hydrogen Demonstration Project. The project will produce up to 20,000 tons of green hydrogen per year with a total investment of nearly 3 billion RMB after it is put into operation. The project was launched on November 30, 2021 and is scheduled to be completed and put into operation by the end of June this year. Thus, it can be seen that in a short period of time, Sinopec has continuously set new records for its own investment in the new energy field, which also proves to the market that Sinopec’s investment trend and determination in the new energy field, as well as its confidence in the development trend of China’s new energy market.
  • According to Baofeng Energy’s announcement, the first phase of its “green hydrogen + coal” olefin project in Erdos City, Inner Mongolia has officially started construction in March. The total capacity of the project is 3 million tons/year, of which 400,000 tons are produced by replacing coal with green hydrogen. This is the largest single-plant coal-to-olefin project in the world, and the first project in the world to replace fossil energy with green hydrogen to produce olefin on a large scale. It is understood that the project includes 1,605,100 tons/year of polyethylene, 1,371,200 tons/year of polypropylene and by-products such as sulfur, heavy carbon IV, MTBE, ethylene tar and C5. The total investment of the project is 47.811 billion yuan, and the first phase is expected to be completed and put into operation in 2024. The project adopts the synergistic production process of green hydrogen and modern coal chemical industry, and replenishes green hydrogen and green oxygen through the scenic hydrogen production integration project, i.e. replacing raw coal with “green hydrogen” and replenishing it into the methanol synthesis project unit, which can reduce the carbon dioxide emission of the process system, and at the same time, replacing fuel coal with oxygen produced by-products as gasification oxygen and replenishing it into the gasification At the same time, the by-product oxygen will be used as gasification oxygen to replace fuel coal, which will be added to the gasification unit to reduce the energy consumption of the air separation unit.

This project is of great importance in the Chinese chemical industry. On the one hand, the project is a key transformation direction for carbon reduction and green energy development in China’s coal chemical industry, which is forward-looking in terms of both economic and environmental protection by supplementing syngas feedstock with green hydrogen and thus reducing coal consumption. The second aspect is that this project is the key to the combination of traditional energy and new energy, and is an important representative project for the transformation and development of China’s energy structure.

  • On March 22, 2023, the world’s largest “carbon and lead” energy storage power plant landed in Huzhou, China National Power Investment is building a comprehensive intelligent zero-carbon power plant “peace and common storage” project, is currently the world’s largest lead and carbon energy storage power plant. The capacity of the power plant reaches 100MW/1061MWh, once full can store 1 million degrees of electricity, to urban residents per household electricity consumption of 12.5 degrees / day calculation, can meet 80,000 households a day of ordinary electricity consumption.

Energy storage is a key link in China’s energy development, and the energy storage industry is developing at a high speed, which will lead to the application of related chemicals in the field of energy storage, such as chemicals for energy storage batteries, and chemicals for construction in the field of energy storage. Common chemicals for energy storage include lithium iron phosphate, lithium cobalt oxide, lithium nickel oxide, copper sulfide, etc. With the rapid development of the scale of the energy storage industry, new energy batteries driven by energy storage will also develop at a high speed, and it is expected that new material products closely related to energy storage may explode in the future.

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