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Shandong Cuts Synthetic Ammonia Production by Millions of Tons Author/Source: Sinochem News Network Date: 2021-01-27 Clicks: 7 Detailed actions taken to implement the reduction in production capacity On January 25, the Shandong Provincial Chemical Industry Special Action Office issued a notice stating that, in accordance with the requirements of the \"Implementation Plan for Accelerating the High-Quality Development of Seven High-Energy-Consuming Industries\" (referred to as the \"Plan\"), by the end of 2020, 9 enterprises in the province had reduced their synthetic ammonia production capacity by a total of 1.03 million tons. Currently, the province ranks second in the country in terms of synthetic ammonia production and fourth in terms of urea production. The public announcement shows that the synthetic ammonia production capacities withdrawn by these 9 companies are as follows: Yangmei Group Zibo Qilu First Fertilizer Co., Ltd. withdrew 140,000 tons, Shandong HeliTai Chemical Co., Ltd. withdrew 100,000 tons, Shandong Haihua Hualong ** Co., Ltd. withdrew 80,000 tons, Shandong Lianmeng Chemical Group Co., Ltd. withdrew 50,000 tons, Shandong Aobao Chemical Group Co., Ltd. withdrew 180,000 tons, Feicheng Asde Chemical Co., Ltd. withdrew 200,000 tons, Shandong Fengyuan Chemical Co., Ltd. withdrew 120,000 tons, Shandong Hongri Chemical Co., Ltd. withdrew 100,000 tons, and Yuncheng Lufa Chemical Co., Ltd. withdrew 60,000 tons. It is understood that the aforementioned capacity reductions involve the closure or shift of some enterprises, while others involve the phasing out of fixed-bed gas production processes and subsequent synthesis systems that are outdated and consume high amounts of energy. Among them, Feicheng Asde Chemical Co., Ltd. carried out relocation and renovation efforts, eliminating its synthetic ammonia production facility with an annual output of 200,000 tons, and replacing the coal-based gas generation method with the exhaust gases from local steel mills. Compared to the traditional manufacturing process, the company can reduce its coal consumption by 1.02 million tons per year, its wastewater discharge by 470,000 tons, and its carbon dioxide emissions by 320,000 tons. “In recent years, we have accelerated our pace of transformation and upgrading; we have phased out outdated production capacities such as sodium nitrate, sodium nitrite, urea, synthetic ammonia, and methanol, and launched a new 150,000-ton/year nitro compound fertilizer production project. By doing so, we have continued to optimize our product portfolio and enhance our profitability. ”Li Dejun, vice president of Shandong Heli Tai Chemical Co., Ltd., explained. Li Sha, the full-time deputy director of the Special Action Office for the chemical industry in Shandong Province, said that during the 13th Five-Year Plan period, Shandong detailed and implemented the tasks related to phasing out ammonia synthesis capacity in various cities. A total of 263 fixed-bed gasifiers and other key production units were shut down or eliminated, which alone resulted in a reduction of ammonia synthesis capacity by 980,000 tons. It is understood that the goals set out in the plan for the transformation and upgrading of the fertilizer industry are as follows: by 2022, the production capacity of synthetic ammonia is to be reduced by 2 million tons, so that the total production capacity of synthetic ammonia across the province remains at around 6.5 million tons, while the production capacity of urea is to be kept at around 8 million tons. The proportion of clean gasification in the total synthetic ammonia production capacity is to increase from 37% to around 90%, and the elimination rate of fixed-bed gasifiers is to exceed 90%; all fixed-bed gasifiers used in urea production facilities are to be phased out. Data from the Shandong Province Fertilizer and Coal Chemical Industry Association show that since the 13th Five-Year Plan period, the transformation of gasification processes in nitrogen fertilizer manufacturers in this province has proceeded smoothly, with clean gasification processes now accounting for 54% of the total capacity for ammonia production in the province. In 2020, 15 nitrogen fertilizer manufacturers in Shandong Province produced a total of 5.9864 million tons of synthetic ammonia, representing a year-on-year increase of 1.56% ; 6.8049 million tons of urea were produced (in physical terms), a decrease of 3.61% compared to the previous year ; The nitrogen fertilizer industry across the province generated revenue of 96.3 billion yuan, a decrease of 4.48% on a year-on-year basis ; The total profit amounted to 4.88 billion yuan, a decrease of 28.3% on a year-on-year basis, yet the efficiency level remained among the highest in the country.