Beida Pioneer’s 2021 revenue reached nearly 1.5 billion yuan, giving rise to a hidden champion in pressure swing adsorption technology

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On April 22, 2022, Peking University Pioneer held a meeting to summarize its work for the year 2021. The year 2021, which has just passed, was of great significance for Beida Pioneer. In his annual business report, General Manager Tang Wei announced that the company received new orders worth 1.48 billion yuan in 2021, a 138% increase compared to the previous year. This marked the sixth consecutive year that the company exceeded its previous best performance levels, and for the first time it came close to the 1.5 billion yuan mark. Such performance figures represent an extremely high level in the field of pressure swing adsorption. Beida Pioneer has maintained high growth rates over the years, and 2021 was a crucial year for the company’s leapfrogged development. Over the past year, Peking University Pioneer has won 68 project bids in total, with 110 projects currently in the implementation phase. Of these, 88 are VPSA oxygen production projects; the remaining projects involve pressure swing adsorption for CO separation, PSA hydrogen production, flue gas desulfurization and denitrification, continuous purification and phosphorus removal of yellow phosphorus exhaust gases, and advanced desulfurization of blast furnace gas. In recent years, the volume of orders for Beida Pioneer has remained high, and the number of projects completed in 2021 also reached a historical peak. The positive performance has driven the company to improve its management efficiency, optimize production processes, and enhance project management capabilities as well as construction quality. As a result, the brand influence of Beida Pioneer has become more evident in a wider range of markets, helping the company secure more orders and creating a virtuous cycle for sustainable development. 【Surge in oxygen production orders; new opportunities in overseas markets】 The steel industry maintained a strong momentum in 2021, driving an increasing demand from companies to expand their business operations. The dynamic market environment provided favorable conditions for the development of the company’s oxygen production business. Peking University Pioneer signed contracts for 52 oxygen production projects throughout the year, resulting in a total oxygen production capacity of 500,000 Nm3/h; the average oxygen production capacity per project was close to 10,000 Nm3/h. Among them, the 87,500 Nm3/h oxygen production unit, the largest of its kind in China, which the company built for Hunan Hualing Lianyuan Iron and Steel Company, was successfully put into operation in December 2021. In response to the customer’s production needs, Beida Pioneer set a record for the shortest construction time for a VPSA oxygen production plant in this project. The successful commissioning of this equipment significantly reduced the steel plant’s oxygen demand and lowered its oxygen-related costs, thereby achieving energy savings and improved efficiency. Outstanding performance is a strong driving force for industry progress. In September 2021, the world’s highest-altitude pressure swing adsorption industrial oxygen production project, undertaken by Peking University Pioneer, was put into operation in Golmud on the Qinghai-Tibet Plateau. Oxygen is scarce in high-altitude areas; more air must be introduced into each unit of feed gas compared to low-lying areas in order to produce the same amount of oxygen. The VPSA oxygen production unit in question is designed to produce 4100 Nm3/h of oxygen, with a purity of 93%. After it was put into operation, the actual oxygen output reached 4222 Nm3/h, representing a 3% increase in production; the purity of the produced oxygen was 93.67%. This means that China’s medium and large-scale pressure swing adsorption industrial oxygen production units are able to supply oxygen with a purity of 93% for use in non-ferrous metal smelting, even in the cold and low-oxygen environments of high-altitude areas. The output volume of oxygen, its purity, and energy consumption per unit of oxygen produced all remain stable and exceed the design values, thereby helping customers reduce their oxygen usage costs and improving overall efficiency – and this is the biggest advantage of this project. In addition to tackling a series of breakthrough projects such as achieving ultra-intelligent control, extremely large oxygen production capacities, and delivery within ultra-short time frames, Beida Pioneer is also striving to expand the application areas and use cases of VPSA oxygen production technology. In October 2021, the company entered into a cooperation agreement with CATL, a leading enterprise in the field of new energy batteries, to supply VPSA oxygen generation units to its customers. The oxygen produced is used as a shielding gas in the production process of lithium battery electrodes. This marks the first time in China’s lithium battery industry that pressure swing adsorption oxygen generation is utilized as a shielding gas. To date, Beida Pioneer has promoted the industrial application of this pressure swing adsorption oxygen generation technology in over 20 different industrial sectors. According to industry data analysis, China is **one of the countries** that has achieved the most advanced and mature industrial application of pressure swing adsorption oxygen generation technology. As Peking University Pioneer’s oxygen production technology continues to improve and the scale of oxygen production expands, the company has gained more market opportunities overseas. In May 2021, Peking University Pioneer reached a partnership with South Korea’s largest cement manufacturer for an oxygen production project of type 5000/90. South Korea is the eighth largest industrial country in the world, with its heavy industry being at the world’s leading level. In this project, the South Korean company Ssangyong Group drew on China’s existing oxygen supply solutions for cement kilns in order to assess the feasibility of the process as well as its overall economic benefits. For the first time, it tried to use oxygen-enriched combustion in cement kilns in combination with oxygen generation equipment, which will help customers save 20% on coal consumption. This project represents Peking University Pioneer’s largest export order for oxygen generation equipment to date. Benefiting from the growing brand reputation and influence of Beida Pioneer in international markets, Beida Pioneer’s VPSA oxygen generation equipment made its debut in the South American market in 2021. In October 2021, Peking University Pioneer won the bid for the oxygen production project of OMAG, a leading Brazilian supplier of refractory materials, marking a significant breakthrough in the pressure swing adsorption oxygen production business in South America. To date, the overseas clients working with Beida Pioneer are all world-leading corporations or high-tech enterprises that attract significant attention in the global market. These companies have strict evaluation standards regarding suppliers’ qualifications, technical capabilities, service quality, and after-sales support. The fact that these end customers choose Beida Pioneer indicates the wide recognition and favoritism for the company’s pressure swing adsorption oxygen generation technology in the international market. In recent years, market demands overseas have also been changing quietly – pressure swing adsorption oxygen generation technology, thanks to its significant advantages such as short construction time and low costs, will increasingly supplement or replace traditional cryogenic oxygen production methods. 【Contributing to environmental protection: Impressive achievements in the resource utilization of exhaust gases】 Peking University Pioneer has consistently implemented its long-term strategy aimed at promoting environmental protection. By focusing on the efficient utilization of industrial exhaust gases and leveraging continuously advancing gas purification technologies, the company continues to create value in the field of environmental protection, fulfilling its corporate responsibility to build a green industry. In October 2021, the world’s first project for producing ethylene glycol from waste gas came online, and the world’s largest pressure swing adsorption unit for purifying carbon monoxide, built by Peking University Pioneer for this project, was successfully commissioned. This project uses the pressure swing adsorption process to produce CO with a flow rate of 45,720 Nm3/h and a purity of over 98.5%, which will be entirely used in the production of ethylene glycol. This project pioneered the comprehensive utilization of waste gas, enabling maximum exploitation of these low-value waste gas resources. It transformed complex waste gas into useful syngas, allowing for the effective use of 3 billion cubic meters of such gas per year; this results in savings of 600,000 tons of standard coal and a direct reduction of 600,000 tons of carbon dioxide emissions. In June 2021, Peking University Pioneer’s technology for purifying CO from converter gas passed the evaluation conducted by the Chinese Society for Metals, and was deemed to be at an internationally advanced level. In recent years, this technology has been successfully applied in various large-scale steel plants, and in 2021 it achieved significant results – Peking University Pioneer won the bid for the syngas project at Taiwan China Steel Corporation, the largest steel manufacturer in Taiwan. This is a demonstration plant built using Peking University Pioneer’s technology for purifying CO from converter gas, and construction on this project is currently in full swing. Since the implementation of ultra-low emission policies in the steel industry, Beida Pioneer has paid close attention to the market demand for advanced desulfurization of blast furnace gas in steel mills. It conducted feasibility studies on desulfurization technologies at both the gas usage points and emission points in these mills, and proposed targeted solutions for desulfurizing blast furnace gas at the source. In the second half of 2021, Peking University Pioneer won bids for the high-temperature furnace gas desulfurization projects at Tangyin Iron and Steel and Baotou Steel Wanteng. After being treated using a dry desulfurization process, the high-temperature furnace gas meets ultra-low emission standards completely, with no waste liquid generated; this makes it the preferred process for steel plant desulfurization in the domestic market. Parallel to the fine desulfurization process, the integrated sulfur dust and nitrogen oxide removal technology has also made significant progress in industrial applications. In July 2021, Peking University Pioneer’s first environmental protection project for desulfurization and denitrification – the Sichuan fiberglass waste gas treatment project – was successfully completed and approved. This technology enables the simultaneous removal of pollutants such as HCl, HF, SOx, NOx, and particulate matter from flue gases, helping fiberglass production lines to easily and efficiently meet ultra-low emission standards. In terms of the purification and utilization of yellow phosphorus exhaust gases, the pilot plant for exhaust gas phosphorus removal established by Beida Pioneer in a certain phosphorus plant has been in operation for one and a half years, showing stable performance. The total phosphorus content in the purified yellow phosphorus exhaust gases is below 1 mg/m3. Combined with mature desulfurization processes, the purified exhaust gases can be used for power generation or chemical synthesis, representing an economically viable approach for yellow phosphorus manufacturers to make efficient use of their exhaust gases. In August 2021, Peking University’s innovation project “Continuous Catalytic Oxidation Purification System for Yellow Phosphorus Off-gases – DePOx” was included in Beijing’s list of the first batch of major technical equipment. To date, Beida Pioneer has successfully implemented two projects for phosphorus removal from yellow phosphorus exhaust gases. Once the equipment is in operation, it will significantly improve the economic efficiency of the enterprises and help them overcome the challenges related to energy consumption controls; as a result, these two demonstration projects have attracted considerable attention within the yellow phosphorus industry. 【Building Strong R&D Capabilities and Optimizing Production Processes】“Throughout 2021, Peking University Pioneer continued to increase its investment in new technology research and development as well as process optimization. Its activities covered areas such as specialty gases, solid waste treatment, and the research and development of new adsorbents and catalysts.” ”Tang Wei revealed in his work report: \"When applying for enterprise qualifications with high value such as high-tech enterprises, there are strict requirements regarding the annual investment a company must make in research and development, with the aim of reaching a specified percentage of its annual output value.\" As a leading enterprise in the gas industry that relies on technological innovation, Beida Pioneer aims to become an engineering company with strong R&D capabilities, capable of continuously developing advanced core technologies and products, and it strives to explore further and drive progress within the industry. ” The doubling of performance brings with it a test of the company’s production capacity. At the beginning of 2021, as the company’s business showed strong growth momentum, the management of Peking University Pioneer seized the market trends and acted swiftly by launching a plan to optimize the capacity of the molecular sieve factory. Within just a few months, the technical team managed to expand and upgrade the PU-8 adsorbent production line, increasing its capacity by over 120%. This ensured a sufficient supply of adsorbents for the new oxygen production projects, thereby providing strong support for the company’s operations. For over 20 years, Peking University Pioneer has been advocating a pragmatic approach to business operations, focusing on steady development through sound management practices. Adhering to the principle of consistent and stable growth, and staying true to its original intention of engaging in honest business activities, the company has won market share by relying on strong research and development capabilities, advanced technology, excellent engineering skills, sound business practices, efficient management, and an honest corporate culture. As a result, it has become a hidden champion in its specific industry, contributing to the high-quality development of the pressure swing adsorption gas separation sector. Looking ahead to 2022, as the external environment becomes increasingly complex and challenging, Peking University Pioneer will face these challenges head-on, seize opportunities within the new development framework characterized by a domestic economic cycle as the core, with the domestic and international cycles reinforcing each other, strive for progress while maintaining stability, and forge ahead bravely on its journey.