With no technical bottlenecks left, how should coal-based ethylene glycol develop?

Thread Content

With no technical bottlenecks left, how should the development of coal-based ethylene glycol proceed? Author/Source: Huahua Network – Coal Chemical Industry. Date: 2018-09-27. Clicks: 5. From September 16th to 18th, the 5th National Conference on Synthesis Gas-Based Ethylene Glycol Production Technology in 2018 was held in Hefei, Anhui, organized by the National Committee for the Development of New Coal Gasification Technologies and the magazine “Nitrogen Fertilizers and Synthesis Gas”. Gu Zongqin, vice president of the China Petroleum and Chemical Industry Federation and director of the Petroleum and Chemical Planning Institute, pointed out in his keynote speech that the coal-based ethylene glycol production process has a relatively short duration, requires less investment, and offers better profitability. The relevant technologies in China have become increasingly mature, allowing the product quality to partially or fully replace petroleum-based ethylene glycol, which can then be used in downstream industries such as short fibers, bottle preforms, and filament polyester. However, he also emphasized that the development of the coal-based ethylene glycol industry is constrained by various factors, among which there are several related to coal. First, the implementation of policies to reduce coal production has led to an increase in domestic coal prices, raising the cost of coal-to-oil production by about 600 yuan per ton, and the cost of coal-to-gas production by 450 yuan per thousand cubic meters. **It reduces the economic viability of coal chemical industry. Secondly, the policy of reducing coal production capacity has also tightened control over new coal production capacities; the approval of overall plans for coal mining areas and the authorization of production capacities have been further delayed on a large scale, making it difficult to secure the necessary coal resources for various demonstration projects related to coal deep processing. Third, there is increasing pressure on environmental emission targets; **the approval process for environmental impact assessments has become more difficult, and many projects have been halted due to these challenges in obtaining environmental approvals. In some areas of the country, environmental assessment indicators even have to be purchased or auctioned off. Such as SO2 in ten thousand yuan per ton, NOx in ten thousand yuan per ton. As a result, a 200,000-ton coal-based ethylene glycol project requires an additional investment of 100 million to 200 million yuan. Fourth, various regions across the country have also introduced relevant policies for reducing coal production capacity, requiring enterprises and industrial parks to cut down on their coal usage; moreover, the confusion between the categories of \"raw material coal\" and \"fuel coal\" has had a significant impact on the industry. Fifth, the acceleration of construction of large-scale refining projects in China’s seven major petroleum and chemical bases is putting pressure on the ethylene glycol market. An Fu, deputy chief engineer and professor-level senior engineer at the Sinopec Group Corporation’s Economic and Technical Research Institute, said in the \"Report on the Economics and Competitiveness of Ethylene Glycol Produced from Coal\" that by the end of 2017, the world’s effective ethylene glycol production capacity was 31.68 million tons per year, representing a 3% increase on a year-on-year basis; production volume was 26.82 million tons per year, while consumption was 27.05 million tons per year, showing continued rapid growth. By 2020, the production capacity is expected to reach 40.51 million tons, while demand is estimated to be around 30.27 million tons. By 2025, global production capacity is expected to reach 48.43 million tons, with demand reaching approximately 35.43 million tons ； The operating rate of global ethylene glycol plants is on a downward trend. An Fu said that in 2017, China’s ethylene glycol production capacity was 8.81 million tons per year, with a production volume of 6.13 million tons and import volumes of 8.75 million tons. Coal-based ethylene glycol production capacity accounts for 37% of the domestic total, but only 20% of the total output. Due to the significant fluctuations in the price of ethylene glycol, the average price over the past five years has been around 6,600 yuan per ton. It reached 8,900 yuan per ton at its peak, and 4,200 yuan per ton at its lowest point. The current price of ethylene glycol in China is approximately 8,200 yuan per ton. It is estimated that by 2020, the additional production capacity of ethylene glycol in China will be around 8 million tons per year, with more than half of this coming from coal-based ethylene glycol production. By 2020, the production capacity is expected to reach around 11 million tons per year, with an apparent consumption volume of 15.2 million tons. On September 18, the delegates also visited the commissioning site of the 300,000-ton coal-based ethylene glycol production facility at Zhongyan Anhui Hong Sifang Co., Ltd., and held technical discussions with senior executives including the company’s general manager, Fang Ligui. Zheng Weizhong, Executive Deputy Director of the National Fertilizer Industry Information Center, Secretary-General of the National Committee for the Development of New Coal Gasification Technologies, and Editor-in-Chief of the magazine \"Nitrogen Fertilizers and Syngas\", presided over the forum. It is estimated that by 2025, China’s ethylene glycol production capacity will reach 14 million tons per year, with an apparent consumption volume of 17.5 million tons. Driven by rising international crude oil prices, a new wave of construction for coal-based ethylene glycol in China has emerged. It is understood that since the second half of this year, China’s coal-based ethylene glycol production facilities have entered their operational phase: on September 17, the 300,000-ton facility operated by Sino Salt Hongsi Fang started trial operations, while Hualu Hengsheng’s 500,000-ton facility is also in operation, and the 300,000-ton facility in Guizhou is about to begin operations as well. In addition, a number of projects such as Xinjiang Tianye, Xinhang Energy, Hubei Sanning Chemical, **Energy (Shenhua Group), and Shaanxi Coal Group are also in the process of accelerated construction or preparation for commissioning. An Fu explained that, taking investment returns and taxes into account, the cost of raw materials for producing ethylene glycol via the ethylene route accounts for about 70% ； In the coal-to-ethylene glycol process, after accounting for the revenue from by-products, the cost of raw materials accounts for only about 7%, while fixed costs make up around 80%; therefore, investment has a significant impact on coal-to-ethylene glycol production. However, when analyzed separately from static and dynamic perspectives, when crude oil prices are above $60 per barrel, coal prices need to be below around 150 yuan per ton for coal-based ethylene glycol to be more competitive ； When crude oil prices are above $70 per barrel, coal prices need to be below about 250 yuan per ton for coal-based ethylene glycol to be more competitive. Yao Yuangen, a researcher at the Fujian Institute of Research on the Structure of Matter under the Chinese Academy of Sciences, told reporters that there are currently many suppliers of technologies for producing ethylene glycol from coal, and the technical approaches are generally similar, all involving the hydrogenation of oxalate esters ； Areas such as the manufacturing of equipment for coal-based ethylene glycol also suffer from a fairly widespread problem of homogenization. Some also have intellectual property disputes. Yao Yuangen said that in order for the industry to cope with the impacts of various external factors such as coal and oil prices, the development of the coal-based ethylene glycol industry in the future should focus on further improving technology, manufacturing processes, and system integration, as well as accelerating the pace of technological upgrades. Secondly, it is necessary to further improve product quality, enhance the application of these products in the polyester industry, and increase product stability. Third, it is necessary to further increase the scale of individual series, reduce investment intensity, as well as lower energy consumption and pollutant emissions. Wang Xianhou, a researcher at Huashuo Technology Co., Ltd. (formerly Hubei Institute of Chemistry), told reporters that there is no foreign control over the two key catalysts used in the coal-based ethylene glycol production technology at present. However, there is still room to further improve the overall performance of the catalyst. There are examples of DMO synthesis catalysts that have been in industrial operation for over 3 years. The focus of future work should be on further reducing the load of precious metals in order to lower the initial investment; by adding special additives, the catalyst’s activity and selectivity at low temperatures can be improved, thereby keeping the operating temperature of the catalyst away from the temperature at which MN decomposes and ensuring the safe operation of the facility. Improves the catalyst’s resistance to poisons and heat. Wang Xianhou said that the current service life of DMO hydrogenation catalysts is 0.5 to 1.5 years; it is necessary to further improve the structure of these catalysts and optimize the operating conditions in order to prevent catalyst pulverization and coking, while also accumulating more experience in long-term operation. In the long term, to address the issues of catalyst pulverization and coking, it is necessary to identify the true causes of these phenomena. To achieve operation over a period of more than 2 years, catalysts with new structures need to be developed. At the same time, it is essential to further improve the activity and selectivity of hydrogenation catalysts, reduce their consumption, and enhance their competitiveness. An Fu suggested that, in terms of industrial layout, emphasis should be placed on an appropriate distribution in the main coal-producing areas. A moderate level of investment can be made in the regions where coal is produced at low prices. It is advisable to consider locating such facilities in areas with abundant water resources and relatively high environmental capacity, near downstream target markets, or in places that have the conditions necessary to develop a polyester industry chain and offer convenient transportation. It is necessary to prevent disorderly development and a rush to act. Product and quality standards need to be established as soon as possible. Currently, petroleum-based product standards are in use; it is recommended to establish coal-based **product standards. To further advance the demonstration of large-scale industrial production projects for coal-to-aromatics, a polyester industry chain will be established once this technology is mature, in order to overcome transportation constraints. Luan Zhongsheng, deputy general manager of Zhongke Ningbo Yuandong Technology Co., Ltd., suggested that high attention should be paid to risk management in the ethylene glycol industry. Modern coal chemical industries require substantial capital investment and high energy consumption. There is already an obvious overcapacity in the production of ethylene glycol from coal, and uncontrolled expansion of such projects will pose significant risks to both finance and enterprises. Effective measures must be taken to curb and prevent certain forms of speculative investment, encouraging enterprises to focus on producing high-quality, technology-intensive products, tapping into the potential within their own supply chains, and pursuing a path of circular economy and green chemistry. It is noted that in 2017, China’s ethylene glycol production capacity was 8.81 million tons per year, of which 37% came from coal-based production; moreover, the country relies heavily on imports of ethylene glycol, and this risk also deserves proper attention. More than 140 experts and scholars from domestic and international key players in coal-to-ethylene glycol technology, including the China Petroleum and Chemical Industry Federation, Dalian Institute of Chemical Physics of the Chinese Academy of Sciences, Fujian Institute of Research on the Structure of Matter of the Chinese Academy of Sciences, Yanchang Petroleum, Sinopec, Donghua Engineering, Huashuo Technology, and Dow Chemical, as well as engineering companies, research institutions, manufacturing enterprises, and supporting suppliers, attended the conference. The focus is on the process optimization of industrial plants for producing polymeric (ester) grade ethylene glycol from syngas (coal), as well as on long-term continuous full-load operation ； Research and development, application, scale-up progress, and industrial operation of ethylene glycol (carbonylation DMO, hydrogenation EG) reactors ； Development, application, and operation of next-generation efficient catalysts for carbonylation DMO and hydrogenation EG; coal-based ethylene glycol-related processes ； Specialized technical exchanges are held on aspects such as process and equipment improvements, catalyst advancements, and engineering design experience.