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Creating a New Era for the High-Quality Development of Nitrogen Fertilizers Author/Source: China Chemical Industry News Date: 2018-08-16 Clicks: 44 The year 2018 marked the 40th anniversary of China’s reform and opening up, as well as the 60th anniversary of the development of the nitrogen fertilizer industry. Over the past 60 years, China’s nitrogen fertilizer industry has achieved remarkable success; it currently has more than 200 manufacturing enterprises and 20 enterprise groups with production capacities of over one million tons, ranking first in the world in terms of output. The achievements of the nitrogen fertilizer industry in our country are reflected in six main aspects. First, the overall volume has achieved leapfrog development. In the early days of the People’s Republic of China, there were only 5 nitrogen fertilizer production plants across the country, with an annual production volume of around 6,000 tons (in terms of pure content; the same applies hereafter). After the reform and opening up, the total amount of nitrogen fertilizers has gradually undergone a historic transformation, shifting from reliance on imports to a state of supply-demand balance with a surplus for domestic use. In 1991, China became the world’s largest producer of nitrogen fertilizers; in 2003 it became a net exporter, and in 2007 it became the world’s largest exporter. In 2015, China’s nitrogen fertilizer production reached a record high of 47.91 million tons, accounting for 38% of the world’s total. In 2017, the annual production capacities of synthetic ammonia, nitrogen fertilizers, and urea in China were 71.35 million tons, 60 million tons, and 74.17 million tons respectively. The industry’s main business revenue amounted to 227.78 billion yuan, while the total profit increased from a net loss of 9.8 billion yuan in 2016 to a profit of 3.8 billion yuan. Second, there have been innovative advances in technology. New coal gasification technologies are developing rapidly, with significant progress being made in scaling up facilities; the level of clean production has improved markedly, and a number of technology and R&D centers have been established. Dry powder coal gasification technology, represented by space furnaces, slurry coal gasification technology, represented by multi-nozzle opposed-type and Jinhua furnaces, as well as a range of gas purification technologies, ammonia synthesis technologies, urea production technologies and equipment, have been successively developed and put into use. In particular, in 2004, China’s first domestically produced synthetic ammonia plant with an annual production capacity of 300,000 tons was put into operation at Hualu Hengsheng. In 2005, the country’s first domestically produced synthetic ammonia plant using natural gas as a raw material, with an annual capacity of 200,000 tons, was commissioned at Sichuan Meifeng. In 2017, China’s first domestically produced synthetic ammonia plant with an annual capacity of 600,000 tons began operations at Yangmei Zhengyuan. In 2018, the first synthetic ammonia plant using natural gas as a raw material, with an annual capacity of 450,000 tons, and a urea plant with an annual capacity of 800,000 tons, built by CNPC Ningxia Petrochemical Company, were successfully put into operation, along with Hualu Hengsheng’s first urea plant with a capacity of one million tons per year. Third, the trend toward larger-scale installations is accelerating. According to statistics from the China Nitrogen Fertilizer Industry Association, in 2017, there were 102 enterprises in China with an annual synthetic ammonia production capacity of over 300,000 tons, accounting for 71.7% of the total capacity; 66 enterprises had an annual urea production capacity of over 500,000 tons, accounting for 77.2% of the total capacity. Fourth, significant progress has been made in adjusting the raw material structure. In the 1970s, the industry saw a boom in smokeless coal briquette gas production. At the end of the 1980s, some of the imported large-scale fertilizer plants underwent modifications to switch from using oil as a raw material to coal or gas. Since the beginning of this century, non-smoke coal gasification technology has received significant attention and developed rapidly. By the end of 2017, the annual production capacity of synthetic ammonia using materials other than anthracite was 22.85 million tons, accounting for 32% of the total; the share of synthetic ammonia produced from anthracite and natural gas dropped to 44.1% and 20.1% respectively. More than 40 large-scale nitrogen fertilizer manufacturers achieved industrialization in the production of value-added fertilizers, with a total annual production capacity of 12 million tons. Fifth is the diversified development of products. The range of products has evolved from sulfuric acid ammonia at the beginning of the People’s Republic of China to over 10 different types today, including urea, ammonium bicarbonate, *AO acid ammonia, sulfuric acid ammonia, ammonium chloride, and enhanced-efficiency urea. By 2017, the proportion of nitrogen fertilizers in compound forms had risen to 38%. At the same time, the industry is also actively expanding its industrial chains in areas such as coal chemical engineering, fine chemical engineering, and new chemical materials. Sixth, the level of innovation in enterprise management is continuously improving. Most enterprises, especially small nitrogen fertilizer firms, have carried out reforms to their property rights systems; many of them have been transformed into joint-stock companies, private enterprises, or listed companies, resulting in a diversified new structure of property rights. Through mergers and reorganizations, internal expansion, and strategic alliances, enterprises have formed a number of large corporate groups with an annual fertilizer production capacity of over one million tons; meanwhile, several industrial parks that focus on fertilizer production while also engaging in related activities have been established. In the future, promoting the transformation and upgrading of the industrial structure and deepening supply-side structural reforms will be the key aspects of the development of the nitrogen fertilizer industry; it is necessary to carry out the following five tasks. First, adjust and optimize existing production capacity. In strict accordance with the requirements of the \"Access Conditions for the Ammonia Synthesis Industry\" and the \"Guiding Opinions on Promoting the Transformative Development of the Fertilizer Industry\", equivalent or reduced replacement shall be implemented. Capacity that fails to meet the standards should be shut down and phased out in an orderly manner in accordance with laws and regulations; a number of zombie enterprises and those with no hope of turning losses into profits should be dealt with; taking advantage of the opportunities provided by the relocation and renovation of hazardous chemicals, these enterprises should proactively close down, relocate, or undergo transformation. Second, actively adjust the industrial layout. Newly established and planned projects take into account factors such as environmental capacity, water resource availability, and potential for energy conservation and emission reduction. While leveraging the advantages of coal resources, these projects are developed in line with the requirements for larger-scale facilities, industrial parks, and diversified products. Efforts are made to promote the development of industrial parks, and the industrial layout along the Yangtze River is optimized, with attention paid to safety and environmental protection improvements. Third, accelerate the adjustment of the product structure. Develop new types of fertilizers that are efficient and high-quality while being compatible with environmental protection, focusing on the development of value-added fertilizers, water-soluble fertilizers, high-efficiency liquid fertilizers, nitro-based fertilizers, as well as accompanying application technologies and agrochemical services. Develop new methods for the efficient utilization and conversion of syngas, as well as modern coal-based new materials and fine chemical industry chains. Fourth, steadily advance technological innovation. Focus efforts on breaking through a number of major key technologies and equipment, and foster a group of innovative leading enterprises with outstanding core technical capabilities and strong integrated innovation abilities. Leverage innovative technology platforms to accelerate the transformation of research outcomes from samples to products and then to commercial goods, as well as the development of advanced environmental protection technologies. Fifth, further advance international capacity cooperation. Carry out comprehensive international cooperation in areas such as trade, resources, and engineering technology services, organize enterprises to go global together, and build multinational enterprise groups with international competitiveness.