【Ten Years of Rapid Development in Chemical Equipment】The bottleneck in the domestic production of large-scale methanol equipment models 2251-1025 needs to be overcome
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Let’s give praise and support to the achievements made in China’s chemical engineering technology and equipment. Your participation in discussions is the greatest encouragement. **********************【Ten Years of Progress in Chemical Engineering Equipment】Continuous updates and summaries available; feel free to join the discussions: https://bbs.hcbbs.com/thread-3576046-1-1.html ***************** 【Think Tank Research Report】Overcoming the “last mile” to achieve domestic production of large-scale methanol equipment. By the Industrial Development Research Center of China Chemical Industry News Co., Ltd. Since the beginning of the new century, in line with the trends toward larger, more integrated, and automated industrial facilities, as well as the push for self-sufficiency in major equipment, China has seen significant progress in the domestic production of such equipment. Major chemical engineering devices such as those for producing millions of tons of ammonia, ethylene, PTA, large and extra-large gasification units, as well as those for coal-to-oil conversion and large and extra-large hydrogenation reactors, have all been developed domestically, providing essential tools for ensuring the industry’s independence and security. In this process, China has also developed a set of operational mechanisms and successful practices for the localization of major equipment, such as leading through demonstration projects, integrating industry, academia, research, and application, and involving venture capital mechanisms – all of which have proven to be practical and effective methods through actual implementation. However, although methanol production also falls under the basic chemical industry and involves plants with a capacity of millions of tons, the core methanol synthesis reactors for this purpose have not yet been able to be manufactured domestically. Almost all such reactors are imported from abroad, with high-end methanol production equipment being monopolized by a few major foreign companies. Breaking through the \"last mile\" in the localization of large-scale methanol production equipment and working together to achieve the localization of million-ton-class methanol production equipment has become an issue that cannot be ignored and is urgent. Most large-scale methanol production facilities are of foreign origin. In the petrochemical industry, ethylene is of key importance, while in the coal chemical industry, methanol plays a vital role. As an important basic chemical raw material, methanol can be used as a green fuel, or it can serve as a precursor for the production of various chemical products such as ethanol, acetic acid, DMC, MTBE, DMF, olefins, and aromatics. It is thus a crucial platform-type chemical raw material for developing the coal chemical industry. China is the world’s largest producer and consumer of methanol. As of the end of 2023, China’s total methanol production capacity was 106 million tons, of which the capacity of facilities using advanced gasification technologies to produce methanol alone was 75.83 million tons per year, accounting for 71.4% of the total capacity. In 2024, China’s total methanol production was 91.84 million tons, accounting for about 60% of the world’s total production. With the rapid development of new energy sources, the production of green alcohols and green ammonia – solutions that can effectively utilize wind and solar power while also helping to reduce carbon emissions – is advancing at a swift pace. There is great interest from various parties, as well as substantial investment in this area, leading to the establishment of large-scale methanol production facilities across the country. However, according to methanol equipment suppliers such as East China University of Science and Technology, Hangzhou Linda Chemical Engineering Company, and Hunan Anchun Company, the key equipment required for new million-ton-scale methanol projects in China – namely methanol synthesis reactors – are mostly products of foreign giants such as David in the UK, Lurgi in Germany, and Cassali in Switzerland. Domestic equipment has been excluded from the list of main suppliers due to a lack of experience in serving large-scale methanol projects.
List of methanol plants with an annual production capacity of over 1 million tons (as of the end of 2024) 1. Plants that are already in operation
According to the statistical results, the three global giants – British David, German Lurgi, and Swiss Cassali – hold absolute dominance over large-scale methanol projects in China, with China’s large methanol plants relying heavily on imported technology. Globally, these several giants are also the leading technology providers in the field of synthetic reactors. German company Lurgi holds a global market share of over 60%; its reactors are suitable for large-scale synthetic production facilities with a single production line. For example, the 4 million tons per year coal-to-oil project operated by Shenhua Ningmei in China uses Lurgi’s synthetic reactors. In addition, the synthetic reaction technology equipment from British companies such as David, Swiss company Casali, and Danish company Topso is also widely used in China’s methanol and coal chemical industries. Many domestic enterprises have developed a preference for using this equipment, and it continues to be imported for use in existing and planned projects. In response, domestic equipment manufacturing companies are all concerned; the localization of major equipment is by no means merely an economic issue, but rather primarily a matter of industrial security. Foreign giants generally possess over a century of technical expertise. Considering factors such as technological advancement, reliability, and practicality, methanol producers choose the technical equipment provided by these foreign giants for their large-scale methanol production projects that represent the highest standards in the industry; from an economic perspective, this is entirely understandable. However, from the perspective of industrial security, it is unacceptable for a key foundational industry to rely entirely on imported technology and equipment and depend on foreign devices. Moreover, the prices of foreign technical equipment are significantly higher than those in domestic markets, and after-sales technical support is difficult to ensure in special situations; this was evident during the COVID-19 pandemic, when technical failures in various domestic methanol projects could not be resolved in a timely manner. Currently, as the construction of large-scale methanol plants with capacities of millions of tons is gaining momentum in China, if the situation persists whereby foreign companies own all the advanced equipment, not only will China’s equipment manufacturing industry fail to evolve from a large-scale sector to a high-quality one, but the safety of the methanol industry will also be at risk. Domestic equipment manufacturers in this sector generally hope that, even from the perspective of safety backups, China’s methanol industry should pursue two approaches simultaneously – focusing on local production while also advancing the adoption and dissemination of such technologies – without neglecting either aspect. Only through the joint efforts of policy makers and the industry to achieve domestic production and self-sufficiency in methanol production facilities on a million-ton scale can a reliable guarantee be provided for the security of China’s methanol industry, thereby facilitating its high-quality development and transformation from a large-scale industry into a strong one.
The bottleneck in the domestic production of large-scale methanol needs to be overcome. Does the preference for foreign equipment in such projects mean that domestic equipment is worthless? Not necessarily. Just as the domestic methanol industry has experienced continuous development over more than half a century, so too has there been significant progress in the development of domestic methanol equipment. Success has been achieved in manufacturing synthesis reactors with capacities of up to 600,000 tons per year, and these devices have been used in numerous small and medium-sized methanol projects, demonstrating better cost-performance compared to imported technology and equipment. East China University of Science and Technology has been dedicated to research and development in the methanol synthesis process, reaction kinetics, and large-scale reactor engineering, having undertaken a series of key projects under the **\"Eighth Five-Year Plan\", \"Ninth Five-Year Plan\", and \"Eleventh Five-Year Plan\" initiatives**, as well as projects under science and technology support programs. The methanol synthesis reactor technology developed by East China University of Science and Technology is widely used in the methanol industry; it has been applied in over 60 enterprises across the country, including Guanghui in Xinjiang and Tianye in Xinjiang, with a designed total methanol production capacity of 20 million tons per year. Its methanol synthesis reactor allows for large-scale operation in a single series, with a capacity of 600,000 tons per year per tower; when two towers are used in parallel, the capacity can reach over 1 million tons per year. East China University of Science and Technology also possesses technical expertise in the development of large-scale methanol production facilities in the million-ton range, but their stability still needs to be verified. Hangzhou Linda Chemical Engineering Company has accumulated nearly 40 years of continuous innovation in the field of methanol reaction engineering. It won the **Third Prize for Scientific and Technological Progress in 1997 and the **Second Prize for Technical Invention in 2004 – these being the highest-level **awards ever granted in the field of synthetic reactors in China to date. The methanol reactors developed by them have undergone multiple iterations; the fifth-generation large-scale, high-efficiency temperature-controlled coil-type reactor, which was successfully developed in 2013, has been put into industrial use in various fields such as the isothermal conversion of methanol, dimethyl ether, and synthetic ammonia CO, the isothermal catalytic oxidation of ethanol and H2S to produce sulfur, methanation processes involving medium and low temperature heat exchange, and MTBE production. Its methanol synthesis reactors also have a wide range of successful applications, with the capacity per tower ranging from 100,000 to 600,000 tons. For example, its fifth-generation high-efficiency temperature-controlled coil-type reactor has been operating steadily in Zhejiang Petrochemical’s 450,000-ton/year methanol plant for over 4 years. As evaluated by experts organized by the China Petroleum and Chemical Industry Federation, its technical level is internationally advanced, and it is recommended that its use on a larger scale be promoted as soon as possible. Currently, Linda Chemical is developing sixth-generation methanol reactor technology, and it is closely integrating this with the domestic production of large-scale methanol synthesis reactors of millions of tons in capacity, thereby helping China’s methanol industry to advance toward higher efficiency, lower carbon emissions, and greater intelligence.
In the development of megaton-scale methanol production technologies, Linda Chemical has obtained numerous domestic and international invention patents. For example, there is a patent technology that has been granted international protection (patent number EP3199231B); the implementation examples provided for this patent include comparisons with the technical specifications of methanol synthesis towers manufactured by Linde in Germany and Davy in the UK. Linda Chemical is now able to provide engineering design solutions for methanol production at a capacity of 1.8 million tons per year, offering uniform temperature operation, high efficiency, safety and reliability, as well as energy savings and reduced costs. In China, Linda Chemical focuses on vertical joint research and development; it entered into a cooperation agreement with Sinopec Ningbo Engineering Company ten years ago to develop and promote large-scale methanol synthesis reactor technologies with a capacity of 1.8 million tons per year, working together to create process software packages. The methanol project constructed in conjunction with the above-mentioned large-scale refining facility of Zhejiang Petrochemical is based on the technical achievements developed through cooperation between the two parties. In addition, Sinochem Hualu Engineering Company, in collaboration with universities, has developed isothermal methanol reactor technology, which has been put into use in the 600,000 tons per year methanol production project in Ningxia Kunpeng, marking a significant step forward in the localization of large-scale methanol production equipment. Considering the actual performance of domestically produced methanol equipment since the turn of the new century, with a capacity of 600,000 tons per year as a dividing line, such reactors exhibit undisputed competitiveness in projects with capacities below this level. Not only is their investment cost 20% lower than that of foreign-made equipment, but their safety and stability, energy efficiency, environmental performance, and service life are also on par with those of imported equipment; as a result, they have been widely recognized and adopted by clients both at home and abroad. However, in large methanol synthesis reactors with a capacity of over 600,000 tons per year, domestic equipment has struggled to make significant progress. Moreover, as years of reliance on imported equipment for such projects in China have established a certain consumption pattern, it may become even more difficult to break through the existing barriers in the market. \"Prejudices and stubborn attitudes in people’s minds are like huge mountains,\" and this situation should serve as a warning to us all.
The domestic production of large-scale methanol synthesis reactors faces difficulties due to various bottlenecks in technology, the market, and the industrial chain. On the one hand, there are still shortcomings in core technologies. In terms of reactor design capabilities, domestic large-scale reactors (with a diameter of over 4 meters) suffer from insufficient flow field simulation and temperature control accuracy, which makes it easy for \"hot spots\" to occur ； The welding technology for high-pressure (8M-10MPa) materials is not yet mature, and reliance is placed on imported special steels (such as SA-387 Gr11). In terms of system integration experience, there are still few mature cases for supporting technologies such as automated control and energy recovery in domestic methanol equipment. In terms of catalyst performance, the lifespan of domestic catalysts (2–3 years) is lower than the international standard (3–5 years); their active components degrade rapidly, and they have poor high-temperature resistance. In contrast, advanced foreign technologies offer packaged integrated solutions that cover everything from the reactor to the catalyst, which saves time and effort for project owners. On the other hand are market and application barriers. Domestic synthetic reactors are only used in small to medium-sized methanol projects with capacities of less than one million tons; there is no long-term operational data available for larger-scale facilities, and there is a lack of validation for scaling up from medium to large sizes. For this very reason, user organizations have low confidence in domestically produced large-scale methanol equipment; most methanol companies consider the use of such domestic equipment to be risky, and since domestic technology suppliers lack the capacity to withstand risks, they prefer to purchase advanced equipment based on mature international technologies. A well-known domestic manufacturer of methanol equipment recently, in discussions with a large private enterprise in Sichuan regarding cooperation, offered to provide a million-ton capacity methanol reactor for use in the new methanol project, as a demonstration of its sincerity and confidence in its technology; payment was to be made only after the project started operating and met the required standards. Yet even so, this large private enterprise declined the offer, stating that a single piece of equipment costs tens of millions of yuan; they don’t lack that amount of money, and the risk associated with using equipment without a proven track record was not worth taking. This fully reveals the awkward position of current domestic methanol equipment in the high-end market. Another issue is the lack of coordination within the industrial chain. At present, domestic methanol-related design institutes, equipment manufacturers, and research institutions operate in a loose manner, without forming a closed loop of \"technology research and development—engineering implementation—commercialization\"; this is evident from the issue of disconnect between the domestic reactors and catalysts mentioned above. Looking at the development trends in project construction, methanol project owners are increasingly inclined to opt for \"turnkey\" production line units and integrated solutions, which in turn drives domestic technology providers and productive service industries to accelerate their deep integration.
Joint efforts to overcome the \"last mile\": Methanol production on a million-ton scale represents the pinnacle of the current methanol industry, as well as the core of this industrial competitive landscape. Domestic technology and equipment must be able to compete in this field; this is not an economic issue, but rather a matter of fundamental principles and a commitment to the overall situation. The reason why it is currently impossible to overcome the challenge of achieving large-scale domestic production of methanol boils down, in the end, to the classic paradox of \"which came first: the chicken or the egg\". If we aim to achieve domestic production as our goal, if various parties work together, if policies provide sufficient attention and necessary support, if project owners are willing to offer trial opportunities, and if the organizations responsible for developing the technology and equipment strive for excellence, then this existing deadlock can certainly be resolved. In the end, it will be possible to achieve an ideal outcome in which all parties benefit, each achieving its own goals while working together for mutual success. In terms of policy and financial support, to address the high risks associated with the development and application of the first units of major equipment manufactured domestically, it is possible to establish special support funds by drawing on past experience. For example, a \"Fund for the Domestic Production of Large-Scale Chemical Equipment\" could be created to provide targeted support for research and development and demonstration projects related to large-scale reactors, including those capable of handling millions of tons of methanol per year. Furthermore, certain tax incentives must be provided, such as reducing value-added tax for projects that use domestic equipment or offering subsidies for the purchase of such equipment. Regarding the marketing of the first sets of such major equipment, it is recommended to establish several domestic production demonstration projects across the industry, optimize the regional layout, and use these projects as examples to drive development in other areas. For instance, 2-3 full-process domestic production facilities with a capacity of 2 million tons each should be built in the coal chemical industries in the northwest (such as Ningdong and Yulin). Appropriate incentives and subsidies should be provided, following the model used in previous domestic production demonstration projects like those related to ethylene production. At the same time, government-led projects impose requirements for the proportion of domestically produced equipment, stipulating that it must account for no less than 30%, thereby fundamentally improving the environment and conditions necessary for the development of domestic equipment.
Judging from the adoption of domestic equipment by methanol producers, it is only after using it that performance metrics can be established – this is a very simple principle. For the process of localization to progress, there must be producers willing to be the first to try it out. To address the issue of manufacturing enterprises being unwilling or afraid to use domestic equipment, in addition to the policy-making agencies taking the lead in establishing several large-scale demonstration projects for the domestic production of methanol and providing financial incentives, it is also possible to explore the idea of having insurance companies offer \"quality insurance for domestic equipment\" in order to reduce users’ concerns regarding the risks associated with using such equipment for the first time. In short, in addition to calling on domestic methanol producers to think from a broader and long-term perspective, raise their strategic outlook, and provide opportunities for outstanding domestic firms involved in the research, development, and manufacturing of methanol-related technologies and equipment to compete in the market, it is even more important to make proper plans regarding interests and risks. This will boost producers’ enthusiasm for participating in the localization of large-scale methanol production equipment, while also helping to minimize their concerns about the risks associated with using such domestically produced equipment for the first time. It is estimated that, taking a large methanol plant with an annual production capacity of 1.2 million tons as an example, if domestic equipment is used for the methanol synthesis reactors, the associated risk exposure is actually within 100 million yuan. “We **have considerable experience in local production; the million-ton-scale ‘ethylene production units’ have been successfully manufactured locally, and their performance is quite good.** Relatively speaking, the systematicity and complexity of large-scale methanol production facilities are not as high as those of the ‘ethylene production units’; it’s not a particularly difficult challenge to overcome. The risks associated with local production are controllable, but the matter is of great importance. Someone has to take the risk and try to overcome this hurdle. ” In terms of the development of domestic equipment, there is still much work to be done. On the one hand, efforts in technological breakthroughs need to be intensified, including developing a number of key materials and further optimizing reactor design. Equipment manufacturers need to collaborate with steel companies to develop alloy steels resistant to high temperatures and pressures (such as modified Cr-Mo steels), and work together with design and engineering firms to create copper-based catalysts with high stability (to enhance their resistance to poisoning). On the other hand, AI simulation techniques should be introduced to optimize the flow field distribution in the reactor and reduce the risk of local overheating ； Develop modular reactor manufacturing processes to reduce the difficulty of processing large-scale equipment, etc.
From the perspective of establishing a collaborative mechanism among industry, academia, and research institutions, it is necessary for relevant parties involved in domestic production to work together. For example, efforts should be made to establish joint innovation entities, led by organizations such as the Chinese Academy of Sciences and China National Chemical Engineering Corporation, in collaboration with design institutes (such as Tianchen and Hualu), reactor technology suppliers (such as Hangzhou Linda and East China University of Science and Technology), and manufacturing enterprises (such as Yangmei Chemical Machinery and Lansi Heavy Equipment), thereby creating a strong, integrated innovation network that can provide a broad foundation for domestic production efforts. Another example is the establishment of a shared database to accumulate operational data on domestic reactors, thereby providing support for technological advancement. In summary, China has a long history and solid foundation in the development of methanol equipment. It is currently at a crucial stage of transitioning from small and medium-sized to larger-scale systems. Domestic large-scale methanol synthesis reactors have moved from laboratory trials to pilot projects at an engineering level; what’s needed now is just the final push to achieve full domestic production of such large-scale methanol equipment. To overcome the challenges of this \"last mile,\" a combined approach involving technological innovation, policy guidance, and market development is necessary. By sharing risks and benefits, and by using demonstration projects to drive expansion on a larger scale, it is possible to raise the domestic production rate of methanol production facilities with capacities of millions of tons from less than 10% to over 50% between 2025 and 2030, thereby breaking the monopoly held by international giants. Using a magnifying glass to look for problems – everything found is a problem ； Using a microscope to find answers, everything found is an answer. We must confront the shortcomings and deficiencies of domestically produced methanol equipment at the million-ton scale and above, but this should not delay the efforts to localize large-scale methanol production equipment. It is hoped that all sectors involved in politics, industry, academia, research, and application will pay sufficient attention to this issue, and that they will work together through broad consensus to address it collectively. We believe that the localization of large-scale methanol production equipment will surely succeed; we look forward to this outcome and hope it will become a pivotal moment in China’s journey to becoming a leading force in the global methanol industry.