2023 China Chemical Industry Events
1. The chemical industry pursues high-quality and green development.
1.1 Methanol to gasoline (MTG) technology has been successfully applied. Sinopec Guangzhou Engineering and Sinopec Refining and Chemical Engineering Luoyang Technology Research and Development Center jointly participated in the construction of Chile Haili Innovative Fuels (HIF)’s Haru Oni demonstration project, producing qualified green synthetic gasoline.
Interpretation: This demonstration project uses water and wind energy to produce green hydrogen, and recyles carbon dioxide from the air to synthesize methanol and then produce green gasoline, realizing the green and low-carbon production in the whole process, which will greatly reduce carbon emissions and better help the realization of the “Dual Carbon” goal.
1.2 China’s first methanol to hydrogen (MTH) and fueling integrated station was put into operation. On February 15, China’s first distributed MTH and fueling integrated station built by Sinopec Northern Energy (Dalian) wasput into use in Dalian Free Trade Zone.
Interpretation: Hydrogen storage and transportation is a key link restricting the development of hydrogen energy industry. Sinopec’s methanol on-site hydrogen production project reduces the hydrogen transportation link through the hydrogen production and fueling within the station, can effectively cut the cost of hydrogen production, storage and transportation. In addition, the project plays a demonstration role in the distributed methanol hydrogen production.
1.3 The world’s largest green hydrogen coupling coal chemical project was started. On February 16, Sinopec began the construction of the first green hydrogen demonstration project in Inner Mongolia, namely, the Wind-Solar Green Hydrogen Demonstration Project in Ordos City, Inner Mongolia.
Interpretation: The project can effectively promote the integrated development of the traditional synthetic material chemical industry and the green hydrogen energy industry, help the clean and efficient use of coal, expand the source of chemical raw materials, and form a new industrial model and development path for the utilization of hydrogen energy and renewable energy.
1.4 Shandong plans to build the world’s first 100,000-ton high-end green methanol project. MFE (Shanghai) Environmental Engineering Technology and SPIC Shandong Energy Development signed a strategic cooperation agreement to promote the world’s first 100,000-ton high-end green methanol (e-methanol) project.
Interpretation: With the low-carbon transformation of the energy system, green hydrogen to methanol is favored by many enterprises. Green methanol is one of the important downstream applications of green hydrogen. Currently, the cost of hydrogen storage and transportation is high. Using methanol as the carrier of green hydrogen can alleviate the safety and cost problems of hydrogen storage and transportation.
1.5 Honeywell and Jiutai New Material Technology jointly promote Upcycle advanced plastic recycling process technology.
Interpretation: UpCycle process technology is expected to increase the proportion of plastic waste that can be recycled globally to 90%, thereby converting most plastic waste into polymer feedstock. In addition, the technology significantly broadens the types of recyclable plastics compared to traditional technologies, which can help to reduce fossil fuel consumption and reduce the carbon footprint in the process of manufacturing virgin plastics to a greater extent.
1.6 The world’s largest green hydrogen coupling olefin production project is planned. Baofeng Energy plans to invest in the construction of “2,600kt/a coal to olefin (CTO) and supporting 400kt/a implanted green hydrogen coupling olefin production project (Phase I)”. The project is the largest CTO project of a single plant in the world so far, and it is also the largest project in the world to substitute green hydrogen for fossil energy to produce olefin.
Interpretation: The project is conducive to further extending the economic chain of the coal chemical recycling industry and innovating to achieve clean and efficient use of coal. The project plans to build the world’s largest green hydrogen coupling olefin production, which truly realizes the fine utilization of coal and energy saving and emission reduction, and explores a feasible path for the coal chemical industry to achieve the goal of “Dual Carbon” as soon as possible.
2. China’s chemical industry continues to make breakthroughs in new materials and new technologies.
2.1 Shandong high-end PA66, EVA, PO projects have started in succession. In the first quarter, Shandong Province held major project commencement activities, including two key olefin-related projects such as “Lihua Yi Weiyuan Chemical Green Low-Carbon High-Performance New Material Industrial Park Project”. In addition, there are “Jincheng Petrochemical 700kt/a high-End Polyolefin Project” and “Levima Green EVA and PO Projects” and “China Resources High-End PA66 Project”.
Interpretation: Fine chemicals and high-end new materials industry is the key to support the development of China’s chemical industry, but also a key link to drive China’s industrial upgrading. Petrochemical enterprises in Shandong Province accurately grasp the trend of “oil to chemicals” and “oil to special products” and strengthen the construction and promotion of key projects, which has a positive role in promoting the upgrading of petrochemical industry in the province.
2.2 Dongming Petrochemical’s crude oil catalytic cracking to olefin (UPC) technology evaluated by the expert group. The UPC technology, jointly developed by Dongming Petrochemical and China University of Petroleum, is successfully passed the evaluation of the expert group composed of three academicians.
Interpretation: Compared with traditional production processes, the crude oil catalytic cracking to olefin technology has the advantages of low energy consumption, high yield and short process. Under the background of dual-carbon development, it is also highly consistent with the goals of orderly promoting the refining and chemical project to “reduce oil products and increase chemicals” and “accelerating the development and application of energy saving and carbon reduction technologies such as direct crude oil cracking to ethylene and syngas one-step olefin process”.
2.3 The world’s first RTC process heavy oil catalytic cracking unit has been fully started. The spare main wind unit K102 of the 3,000kt/a heavy oil catalytic cracking unit, that is, Anqing Petrochemical’s transformation project, started successfully, indicating that the catalytic cracking unit entered the full start stage.
Interpretation: The high efficiency catalytic cracking technology of inferior heavy oil uses inferior heavy oil as raw materials to produce propylene, ethylene and high-octane gasoline, solving the problem of using inferior heavy oil to produce propylene and ethylene. The technology not only greatly broadens the adaptability of catalytic cracking to various raw materials, but also greatly improves the selectivity of high-value products in the catalytic cracking process, and the diene yield and selectivity are significantly increased.
2.4 High purity alpha-olefin development makes new breakthrough. Inner Mongolia Yitai Group’s thousand-ton Fischer-Tropsch synthesis α-olefin separation and purification demonstration unit was successfully started in Ordos, opening up the whole process.
Interpretation: The research and development of thousand-ton coal-based Fischer-Tropsch synthetic high-purity alpha-olefin products has successfully broken foreign technology blockades and product monopolies, and will greatly promote the rapid development of domestic high-end plastics, polyethylene elastomers (POE), fully synthetic lubricants, high-carbon alcohols, surfactants and other downstream new materials and fine chemicals industries, and effectively realize the extension and reinforcement of the coal-to-oil industrial chain.
2.5 Sinopec breaks through PDH technology monopoly. Sinopec PDH pilot plant was completed in Beihai Refining and Chemical. The project is the first PDH pilot plant with independent intellectual property rights of Sinopec, which is important for breaking the monopoly of PDH technology in foreign countries.
Interpretation: China’s PDH development momentum is good in recent years, and there are still more than 2500 tons of planned capacity in the next 5 years. If all the capacity can be successfully released, the propylene produced via PDH technology will occupy the largest share in the propylene production structure, so the localization of PDH production technology has an important role in promoting the future PDH development in China.
2.6 China has made a major breakthrough in high-carbon alpha-olefin technology. On September 17, the pilot technology development project of ethylene tetramerization with high selectivity to high-purity 1-octene completed by Satellite Chemical passed the achievement appraisal organized by China Petroleum and Chemical Industry Federation in Beijing.
Interpretation: The project has independent intellectual property rights, marking a major breakthrough in China’s high-carbon alpha-olefin technology, and has the foundation for further development, design and construction of 10,000-ton industrial units, which is conducive to promoting the industrialization of high-performance polyolefin industry.
2.7 China’s PA12 production has achieved a new breakthrough. China Chemical Tianchen Green Energy New Material Technology Research and Development (Zibo)’s PA12 pilot unit finished its mid-term delivery. The project with a design capacity of 5000 tons/year, is designed to develop PA12 monomer “lauractam synthesis process”.
Interpretation: PA12 production technical barriers are high, and its key technology “lauractam synthesis process” has been controlled by overseas enterprises for a long time. With Tianchen Green New Material resolving the technical problem, it will be able to achieve the localization of PA12 and drive the follow-up of a number of high-end special nylon materials pilot conversion, promoting the development of high value-added nylon industry.
2.8 The first epoxybutane unit in China has been successfully put into operation. Sinopec Yanshan Petrochemical’s 4kt/a epoxybutane unit, which produces qualified high-purity epoxybutane using the isopropylbenzene hydroperoxide (CHP) process, was successfully put into operation.
Interpretation: This is the first epoxybutane unit in the world to adopt the CHP technique. Once it is operational, it will save expenses for China’s downstream industry and dramatically increase the rate of epoxybutane substitution at home.
2.9 Sinopec Baling Petrochemical has completed the world’s first esterification-method cyclohexanone industrial unit. The engineering project aimed at deepening strategic cooperation between Sinopec and Hunan Province, as well as the relocation and upgrading of the 600kt/a CPL industrial chain development project of Sinopec Baling Petrochemical, have been completed, achieving a one-time start-up.
Interpretation: The complete technology of cyclohexene esterification and hydrogenation to produce cyclohexanone has overturned the traditional cyclohexane oxidation process technology route, and has significant advantages such as high carbon yield, low emissions of wastewater, exhaust gas, and solid waste, as well as safety, cleanliness, and efficiency. It provides important technical support for the transformation and upgrading of China’s CPL industry chain.
2.10 The first domestic POE industrial unit has been put into operation. On December 15, 2023, BeyondPoly’s 30kt/a special polyolefin and supporting projects were successfully put into operation at once, producing high-performance POE products with independent intellectual property rights, marking the successful production of the first domestic polyolefin elastomer (POE) industrial unit and the start of POE localization.
Interpretation: As a new generation of thermoplastic elastomers, POE is a representative product of high-end polyolefin new materials, with high technological barriers and production difficulties. Previously, it relied entirely on imports. The successful production of this unit has achieved a historic breakthrough in industry development, which is conducive to leading industry development and enhancing the international competitiveness of China’s new materials industry chain.
3. Multiple large-scale petrochemical bases are rising.
3.1 The integrated refining and chemical project of PetroChina Guangdong Petrochemical has been fully put into operation. On the afternoon of February 27, 2023, with the smooth operation of the world’s largest single styrene unit with capacity of 800kt/a, the integrated refining and chemical project of PetroChina Guangdong Petrochemical entered the full production stage.
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