Top industry event reveals secrets to green development in refining and chemical processing

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From June 14 to 16, the 2017 Asia Refining and Petrochemical Technology Conference, hosted by the China Petroleum and Chemical Industry Federation, was held in Beijing. More than 500 representatives from large state-owned enterprises, well-known private enterprises in the industry, multinational companies, as well as industry experts and *** members from the United States, Europe, the Middle East, and Asia attended this event focused on technological innovation and industry exchanges. The Asian Refining and Petrochemical Technology Conference has been held five times to date, with the first edition taking place in 2011. Themed \"Accelerating the Upgrade of Oil Product Quality: Using Technological Innovation to Drive Green, Low-Carbon, and Global Development of the Industry,\" this conference addressed the urgent challenges faced by the refining and petrochemical sectors, as well as potential solutions. It also explored the future trends in automotive fuels and how the traditional refining industry can identify and seize development opportunities amid industrial changes. Technological innovation remains a constant theme; the Asian Refining and Petrochemical Technology Conference has always focused on innovation, striving to fully leverage its role in driving and supporting progress. It brings together the industry’s key technological forces in order to stay abreast of the new trends in technological innovation. Li Shousheng, president of the China Petroleum and Chemical Industry Federation, said in his speech at the conference that our country has become a major player in the global petrochemical industry. In 2016, China’s refining capacity reached 804 million tons, with oil product production at 348 million tons and ethylene production at 17.811 million tons. The output of these key products ranked among the highest in the world, and the quality of oils in some regions had reached the standards of developed countries. In particular, the country’s petrochemical industry has made significant progress in technological innovation; it has reached or come close to world-leading levels in areas such as converting residue oil into light oils, increasing the yield of light oils, and producing clean fuels. Important advances have also been made in the development of downstream products ； By mastering technologies such as catalytic cracking and deep desulfurization, the quality of petroleum products has improved rapidly, enhancing the industry’s capacity for sustainable development. However, compared with developed countries, there is still a significant gap in technological innovation within China’s petrochemical industry. The gap is particularly large in areas such as alkylation, isomerization, gasoline blending, clean fuel technologies, automation and intelligence, as well as high-value specialty chemicals, which poses new and higher demands for further strengthening the industry’s innovation capabilities. China is facing a market environment characterized by volatile energy prices and a difficult recovery in the international economy. The global oil and gas industry is undergoing periodic disruptions and changes. Energy technology has become the key to driving a new round of technological and industrial revolutions, while green and sustainable development has become the main theme for the development of this industry. Li Dadong, an academician of the Chinese Academy of Engineering, emphasized that the demand structure for refined oil products in China has changed significantly: the rigid demand for gasoline and kerosene continues to grow rapidly, while diesel consumption has declined; in 2016, the ratio of diesel to gasoline dropped further to 1.39. Moreover, environmental protection requirements in China are becoming increasingly stringent. The National VI standard for vehicle fuels is set to be implemented in 2019, and the pace of upgrading fuel grades is accelerating; new standards will apply to marine residual fuel oil in 2020. In the face of changing market demands, the main task for China’s refining industry going forward is to control the rapid growth of refining capacity while striving to adjust the structure of refining facilities and product offerings. This is aimed at making more efficient use of oil resources, achieving cleaner production processes, improving the quality of petroleum products, developing product structures that meet market needs, and reducing the ratio of diesel to gasoline. To improve efficiency and competitiveness, domestic oil refining R&D departments have taken proactive measures by intensifying technological innovation. They have developed a range of new technologies, including the RICP technique that combines residue hydrogenation with catalytic cracking for more efficient use of petroleum resources, the IHCC technology for producing more light oils, and oil-to-chemical conversion technologies. These technologies will play a crucial role in supporting the development of the oil refining industry in the future and in adapting to changes in market demand. There is a severe surplus of bulk basic chemicals in China’s petrochemical industry; simple scale expansion is gradually being replaced by high-quality development driven by technological innovation. Accelerating structural adjustment and transformation and upgrading, as well as using technological progress to drive industry development, has become the main trend for China’s petrochemical sector in the future, and it is also an inevitable choice for transitioning from a major petrochemical country to a strong one. These points were the consensus among the participants. Technological innovation drives high-quality development. The Asian Refining and Petrochemical Technology Conference focused on technological innovation as a key element, and participants shared the latest advancements in areas such as alkylation, isomerization, hydrocracking, catalytic cracking, the conversion of heavy oil and residue, desulfurization and denitrification, as well as VOC treatment for industrial exhaust gases. Special attention was given to suspension-bed hydrogenation and fluidized-bed hydrogenation technologies in the field of converting heavy oils. In addition, market data and development trends in the refining and petrochemical industries were analyzed in the context of the Asian market, as well as the current status of gasoline standard upgrades and the practices employed to increase octane ratings in various Asian countries. \"Sharing of UOP’s Leading Technologies and Cases in Aromatics, Olefins, and C4 Compounds\" is a presentation of new technologies by Honeywell UOP Global Oil Processing Technologies. UOP is a leader in proprietary technologies, specialized equipment, and molecular sieve adsorbents for industries such as refining, chemicals, and natural gas; its industry-leading technologies provide efficient and reliable solutions for various fields including aromatics, olefins, and C4 compounds around the world. Since the introduction of the UOP Dabbs cracking technology at Laojunmiao in the Yumen Oilfield, China’s first oil refinery, back in the 1930s, more than 300 process units in operation or under construction in China currently utilize UOP process technologies. \"Development of MCT Super Suspension Bed Technology and Industrial Applications\", shared by Beijing Sanju Environmental Protection New Materials Co., Ltd., enables an increase in the conversion rate of medium oil by 20%~30% compared to traditional processes. Developed through independent innovation by China National Petroleum Corporation are the complete set of technologies for selective hydrodesulfurization of catalytic cracking gasoline, the combined set of technologies for hydroprocessing of catalytic cracking gasoline followed by selective hydrodesulfurization, and the complete set of technologies for etherification of catalytic light gasoline. Through the integrated use of these technologies, it has been possible to overcome the major technical challenges associated with simultaneously achieving deep desulfurization of catalytic cracking gasoline, reduction of olefins, and maintenance of octane number – challenges that have hindered the purification of gasoline – thereby enabling large-scale industrial application of these technologies. Sinopec also shared research findings such as \"Economic Comparison of Different Feedstock Routes for Olefin Production,\" \"A New Era of Alkylation: Producing Alkylated Oils from Butane and Propane\" presented by DuPont, \"Eni’s Suspended Bed Technology: Maximizing the Value of Off-Products\" by Eni, and \"An Innovative and Cost-Effective Refining Solution\" by KBR. This conference is not only a technical event in the fields of refining and petrochemicals, but also a platform for gaining access to the latest innovations, as well as the newest technologies and products in these sectors worldwide. In addition, this conference also invited representatives from various segments of the ethane industry chain, including suppliers, transporters, and technical and engineering service providers, to objectively discuss the feasibility of developing an ethane-to-ethylene industry chain in China. During the dialogue session on the automotive and petroleum industries at the plenary meeting, the Japanese representative from Toyota Motor, an expert who was involved in drafting U.S. standards for emissions from vehicle fuels, a research specialist from Shell focused on vehicle fuels, as well as a senior representative from Sinopec representing China’s refining industry, discussed the future changes in transportation methods, the trends in the composition of vehicle fuels, and how oil companies can seize potential opportunities. The attendees included representatives from large state-owned enterprises such as Sinopec, CNPC, and CNOOC, as well as well-known private companies like Rongsheng Group, Sanju Environmental Protection, and Yuantai Petroleum. There were also representatives from leading multinational corporations such as KBR, Eni of Italy, DuPont, Lanxess, UOP, and Yabao. The representatives from various parties shared their latest achievements, ideas and perspectives clashed, as everyone discussed together the future development of the refining and petrochemical industries. Planning the direction of technological innovation across the industry, Li Shousheng said that this year is the second year of implementing the 13th Five-Year Plan, and it is also a crucial year for deepening supply-side structural reforms. This year, industry-wide scientific and technological innovation should focus on the following key tasks: First, actively promote the development of industry innovation platforms. Following the principles of \"market demand, research foundation, and potential for breakthroughs,\" and driven by major needs, efforts should be concentrated on establishing a number of collaborative innovation platforms that bring together industry, academia, research institutions, and end-users, in order to develop efficient collaborative innovation mechanisms and enhance the industry’s capacity for scientific and technological innovation. Various innovation entities such as enterprises, research institutions, and universities should, based on their own circumstances, choose platforms that allow them to make the best use of their expertise and strengths. By concentrating their limited human and financial resources on achieving significant results and making breakthroughs, they can continuously create new technologies, products, and demands, thereby helping to push the industry forward toward higher levels of the value chain. Second, make breakthroughs in a number of key technologies and equipment. Implement earnestly the **Strategic Outline for Innovation-Driven Development** and the **13th Five-Year Plan Guidelines for Scientific and Technological Development in the Petroleum and Chemical Industry**, further strengthen research in basic, cutting-edge, and strategic high-tech areas, vigorously pursue advancements in coordinated technologies such as hydrocracking, catalytic reforming, alkylation, and aromatization, and overcome a series of core key technologies that hinder the development of the industry. It is necessary to actively promote the upgrading and renovation of integrated refining and chemical processing facilities, enhance the capacity to process low-quality crude oil, build smart factories and intelligent industrial parks, and improve profitability and market competitiveness. Strive to achieve a number of revolutionary and groundbreaking scientific and technological achievements during the 13th Five-Year Plan period, and rise from following or keeping pace with others to taking the lead in several fields. Third, make great efforts to improve the level of green development. By adopting a problem-oriented approach, turn pressures into driving forces and passive situations into active ones. Addressing the safety and environmental constraints that hinder the industry’s development, accelerate the research, development, and adoption of advanced technologies for energy conservation, emission reduction, and green manufacturing, such as catalytic hydrogenation, low-nitrogen combustion, catalytic flue gas desulfurization and denitrification, direct oxidation of hydrogen oxide to produce propylene oxide, direct oxidation of chloropropene to produce propylene oxide, and aromatics reforming. Actively promote clean production and carry out extensive green and clean transformation efforts to tackle some of the most difficult challenges related to waste management, thereby raising the industry’s level of green development and establishing a positive social image. IV. Further strengthen international scientific and technological exchanges and cooperation. Adhering to the principles of expanding openness and embracing diverse ideas, we will actively draw on international innovation experiences, engage in deeper and broader cooperation with multinational companies, and make great efforts to attract foreign top-tier talents, advanced technologies, and scientific achievements. At the same time, we will encourage the export of technologies, projects, and high-tech products, thereby fostering a two-way interactive pattern of exchanges and cooperation. It is necessary to emphasize the importance of scientific and technological exchanges and cooperation in the development of the Belt and Road Initiative, encourage exchanges in science, technology, and culture, the establishment of joint laboratories, cooperation in science and technology parks, and technology transfer, so as to turn the Belt and Road Initiative into a \"path of innovation\" and a \"path of green development,\" achieving mutual benefit, win-win outcomes, and sustainable development.