The first converter gas-based formic acid production project will come online in February 2018

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The first project for producing formic acid from converter gas is set to go into operation in February 2018. Author/Source: Date: 2017-11-29 Clicks: 104. In January 2017, Beijing Peking Pioneer Technology Co., Ltd. (referred to as “Peking Pioneer”) and Shandong Asde Technology Co., Ltd. (referred to as “Asde Technology”) signed a contract for the construction of a device for separating and purifying converter gas. Since then, the construction of this device has been carried out in an orderly and systematic manner. Recently, all the non-standard and power equipment has been installed, and the main corridors have been completed. Pipeline installation work is currently in progress at the site; the connection between the programmable valves and the pipelines has been finished. It is expected that the facility will be ready for adsorbent loading by December 2017, with operation planned to begin in February 2018. The Asde Technology Project (hereinafter referred to as “the Project”) is carried out by Peking University Pioneer, which utilizes its proprietary technology for the recycling of steel plant exhaust gases. This technology is used to purify and separate the 45,000 Nm3/h of converter gas produced by Shiheng Special Steel Group Co., Ltd., resulting in 18,200 Nm3/h of high-purity CO (with a concentration of 98.5%), which is then used to produce chemical products such as formic acid and oxalic acid. The project covers a total area of 820 mu and includes two 100,000-ton per year formic acid production lines, production lines for downstream formic acid products, a 50,000-ton per year oxalic acid production line, as well as self-supplied production lines for the raw gases used in formic acid and oxalic acid production. It also features supporting power and auxiliary systems. The total investment in this project is 3 billion yuan. Once it is operational, it will generate annual sales revenue of 2 billion yuan and profits and taxes of 500 million yuan. It will handle over 2 million tons of logistics shipments per year, thereby playing a significant role in promoting the economic development of the local area and surrounding regions. Additionally, it will result in a reduction of 320,000 tons of carbon emissions per year. This project is a key initiative in Feicheng City, Shandong Province, aimed at implementing the strategy of shifting industries out of urban areas and into industrial parks, as well as promoting the transformation and upgrading of the chemical industry. It represents a milestone in the development of the local circular economy industrial parks; it helps to foster interactions between upstream and downstream products within these parks, thereby creating complete industrial chains and enabling more efficient use of resources. It will play a significant role in accelerating the advancement of industrial products toward higher quality levels, the development of industrial parks, and the concentration of various resources, thereby promoting the economic and social development of the entire city. This project embodies the efforts and dedication of people from all walks of life, and in the future it will serve as a model for strategic cooperation among local key enterprises, enabling them to complement each other’s strengths and achieve mutual success. The construction of this project features three characteristics: first, it has high standards; the project was planned with a high starting point, high standards, and strict requirements. For aspects such as project design, process selection, equipment manufacturing, and construction, many internationally renowned companies and industry leaders from both home and abroad were chosen as partners, which ensures effective guarantees in terms of project timeline, quality, and the advancement of manufacturing processes ； Secondly, the prospects are good. Following a circular economy development model that relies on steel plant gas as a link, connects upstream and downstream products into a chain, and emphasizes comprehensive energy utilization, conservation, and clean production, this system has created a green circular economic industry chain. With steel plant gas as the starting point, formic acid serves as the main product, while methanol and formic acid are used as raw materials to produce a range of downstream chemical products. Various high-tech chemical products are developed simultaneously, thereby achieving an organic integration of economic, social, and environmental benefits ； Thirdly, it has a strong driving effect; the launch of such projects can bring together companies such as Jushi Biology, Yueyang Medicine, and Konteweiye, enabling the circular use of raw materials and products among these enterprises, which plays a positive role in optimizing the industrial layout of the industrial park. Once put into operation, this project offers five advantages: First, Shiheng Special Steel can improve its product portfolio and increase its revenue; in a situation of restricted steel production, this represents a new approach and opportunity for the company’s development ； II. Asde Technology is able to obtain cheaper raw materials for producing chemical products with high added value; the cost of these products is more than 20% lower than that of those produced using coal gas, giving it a significant competitive advantage in the market ； III. Shandong Asde Chemical Co., Ltd. can leverage its technological advantages through restructuring to remain at the forefront of domestic formic acid production ； IV. Shift the mindset by using the converter gas, which was previously used for combustion, to produce high-value chemical products; this not only reduces carbon emissions but also generates profits for the enterprise ； V. The new industrial model of integrated steel and chemical production helps to improve the regional economic structure and brings diversified development to the region’s economy. Founded in 1999, Peking University Pioneer is a high-tech enterprise directly under Peking University. It specializes in the research and development of gas adsorption and separation technologies as well as the design and manufacture of related equipment. The company is committed to the innovative use of industrial waste gases and to technological advancements in the field of environmental protection, having created new models for the high-value utilization of such waste gases. Asde Technology was established in July 2016; Shiheng Special Steel Group Co., Ltd. holds a 51% stake in the company, while Shandong Asde Chemical Co., Ltd. (a leading manufacturer of formic acid in China) holds a 49% stake. The company’s main activities and services involve research and development, technology transfer, and consulting services related to formic acid and its downstream products.