Don’t pursue the development of hydrocarbon gases blindly

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Should We Rush to Develop Hydrogen from Coking? Author/Source: Sinochem New Network Date: October 23, 2019 Clicks: 29 It is necessary to adapt approaches to the specific conditions of each enterprise: use hydrogen when it is appropriate, use chemical processes when that is suitable, and use electricity when necessary. Hydrogen energy has become very popular in China in recent years; it has been included in official work reports, and various provinces have also released plans for its development. China’s coking enterprises generate large amounts of hydrogen as a by-product during production. How can this hydrogen be utilized effectively in the development of the hydrogen energy industry? How can these enterprises take advantage of the opportunities presented by the growth of hydrogen energy? At the 2019 (7th) China Coal Coking Industry Technology Development Forum held on September 26, industry experts and entrepreneurs agreed that coking enterprises should adopt approaches suited to their own conditions – using hydrogen when it is appropriate, electricity when that is more suitable, or chemical processes when necessary – rather than blindly pursuing what is currently popular. 　　Here, we have compiled a summary of the highlights from the forum, as well as information on domestic support policies for the hydrogen energy industry, its progress, and the key companies involved in the hydrogen and hydrogen fuel cell industry chain, to provide value to our readers. Miao Maoqian1.jpg Miao Maoqian, Deputy Director of the Coal Chemical Engineering Research Institute at Taiyuan University of Technology. The production of hydrogen from coke oven gas offers significant technical and economic advantages. Within 10 years, China will become the world’s largest market for hydrogen and fuel cells. 　　The International Hydrogen Energy Committee predicts that by 2050, hydrogen energy will account for around 20% of total energy consumption. The demand-side calculations show that by 2030, the world will need hydrogen to power between 10 million and 15 million fuel cell passenger vehicles, as well as 500,000 fuel cell trucks. As a key means of transitioning the energy structure, hydrogen energy can generate approximately $2.5 trillion in business value while creating over 30 million jobs. 　　Currently, 95% of the hydrogen in the world is produced through the reforming of petrochemical fuels. Taking into account energy efficiency, emissions of “three wastes”, carbon emissions, and economic viability, hydrogen production from coke oven gas demonstrates significant technical and economic advantages. Based on China’s coke production of 438 million tons in 2018, with 50% of the coke oven gas being reused within the production process, the total amount of hydrogen available for use in China’s coking industry is approximately 50.81 billion cubic meters per year, or about 8.638 million tons per year. This figure is 2.88 times that of hydrogen produced from petroleum, and 8.64 times that of hydrogen produced by water electrolysis. The total amount of hydrogen available for use in Shanxi’s coking industry is approximately 10.74 billion cubic meters per year, or about 1.826 million tons per year. 　　Hydrogen fuel cells are evolving from a nascent trend into a widespread phenomenon, with regulatory bodies at all levels, from the central government to local authorities, playing a key role in driving this development. With the support of central **policies, hydrogen energy has received attention in China. It is in line with the **new energy development strategy** for coking enterprises to develop hydrogen energy. The transformation of Shanxi’s coking industry towards hydrogen energy can help reduce excess production capacity and minimize environmental pollution, thereby serving as a barrier to preventing pollution and haze in the Beijing-Tianjin-Hebei region. 　　The utilization of hydrogen energy is developing rapidly; within 10 years, China will become the world’s largest market for hydrogen energy and fuel cells. For coking enterprises to develop hydrogen energy, they first use the hydrogen produced as a by-product to extract high-purity hydrogen, and establish small hydrogen refueling stations to replace the enterprise’s commuter vehicles, private cars, and official vehicles. Zhu Qiliang.jpg Zhu Qiliang, Chief Engineer of the Design and Engineering Company of China National Chemical Second Construction Corporation. The prospects for hydrogen energy utilization are promising, but at present focus should be placed on building technical capabilities; if projects are to be launched, caution is necessary from an economic perspective. 　　Hydrogen can be utilized either through combustion or fuel cells; in Shanxi, the use of hydrogen should primarily focus on extracting hydrogen from coke oven gas. Hydrogen refueling stations have capacities of several hundred kilograms, with the largest reaching up to 2 tons. A hydrogen refueling station built as part of the Shanghai Chemical Industry Park is capable of handling 2 tons of hydrogen per day; with 1.05 million tons available, it would be possible to build around 1,400 such stations. The resources involved are substantial, and the prospects are promising, but caution is needed when implementing such projects. 　　Why be cautious? From a cost perspective, taking a bus over 8 meters in length as an example, it consumes 4.1 to 4.5 kilograms of hydrogen per 100 kilometers; electric vehicles use 80 kilowatt-hours of electricity, while gasoline requires 22 liters. Calculated per 100 kilometers, the cost is 80 yuan for electricity, assuming a price of 1 yuan per kilowatt-hour; 147 yuan for gasoline, based on a price of 6.7 yuan per liter for 92# gasoline; and 300 yuan for hydrogen, at a rate of 60–70 yuan per kilogram. It is evident, from an economic perspective, that hydrogen energy is not cost-effective at present. However, **with financial support and in line with policy guidelines, there are subsidies available now for building hydrogen refueling stations and developing fuel cell vehicles**. For companies, it is possible to make preparations in terms of technology and other aspects at present, but large-scale investment is not yet feasible. 　　Why is hydrogen so expensive? It’s because there are standards for its production; the required purity level for hydrogen is 99.97%, which isn’t extremely strict, but the requirements regarding impurities are very high. There are 13 types of impurities, including water, formaldehyde, CO, CO2, oxygen, helium, argon, and others. Especially for hydrogen sulfide, the total sulfur level is 0.004 ppm, which is equivalent to the ppb range. Hydrogen technology R&D institutions, design firms, hydrogen production companies, coking plants, and others all need to make improvements in line with these standards and build up technical capabilities, so that they can start construction immediately once hydrogen energy is used on a large scale. 　　Coking enterprises should make overall considerations regarding their own resources and resources in the surrounding areas, in accordance with the principle of maximizing benefits. Regardless of the method used to produce hydrogen, it is advisable to opt for electricity when that is appropriate and for chemical methods when those are suitable; there is no need to blindly pursue what is popular. At the same time, a tailored approach should be adopted, taking into account the rational combination of coke oven gas and coal-derived gas. Liu Bo.jpg Liu Bo, Deputy General Manager of Chengdu Tongchuang Weiye New Energy Technology Co., Ltd. China is leader in the technology for producing high-purity hydrogen from coke oven gas; hydrogen refueling stations that are modular, integrated, and highly safe and reliable, and provide comprehensive support for hydrogen-powered vehicles, have already been developed. 　　Chengdu Tongchuang Weiye is a technology-based company specialized in gas purification, and it has been working to promote hydrogen energy since 2013. Seizing the opportunity presented by the project to produce high-purity hydrogen from coke oven gas, the company partnered with South Korea’s Hyundai Motor Company to introduce high-purity hydrogen technology of 9/9 purity level to the South Korean market; this marked the first time that Chinese gas purification technology was introduced there. The hydrogen-powered vehicles of the Hyundai Group that are in use on the streets of Seoul today utilize this technology. This technology has also been recognized in Japan. 　　The hydrogen energy market urgently needs well-developed hydrogen refueling infrastructure to support hydrogen-powered vehicles; consequently, hydrogen refueling stations have emerged as a necessary component of this infrastructure. Under today’s conditions in the land-scarce real estate market, skid-mounted, integrated hydrogen refueling stations with high safety and reliability are better suited for entry into the hydrogen energy equipment market. On the existing basis, further modifications should be made to the existing moving and stationary equipment, as well as catalysts and adsorbents, in order to reduce costs and make them affordable for ordinary people. Hu Zhuolin1.jpg Hu Zhuolin, Director of the External Cooperation Department at Lu’an Aspen Hydrogen Power Technology Co., Ltd. The development of hydrogen energy requires tailored strategies for each enterprise; it is necessary to adapt to local conditions, make full use of one’s own advantages, and ensure local consumption of hydrogen. 　　Lu’an Asben Hydrogen Power Company has just established a hydrogen energy enterprise whose activities include the production of hydrogen, its transportation, hydrogen fuel cells, and research on hydrogen-powered vehicles. The key focus of the company’s hydrogen energy development plan is to carry out major scientific and technological projects aimed at developing low-cost, high-efficiency hydrogen fuel cell technologies and implementing related engineering demonstrations, in collaboration with institutions such as Taiyuan University of Technology, Shanxi University, and North University of China. 　　The company has partnered with the American company AP to establish a joint venture aimed at building hydrogen storage facilities and hydrogen refueling stations, thereby creating an integrated supply chain that covers long-distance transport vehicles, liquid hydrogen tankers, pipeline-based hydrogen delivery, and hydrogen refueling stations. 　　The source of hydrogen should be determined based on local conditions. Hydrogen production from chemical process exhaust gases must comply with the standards for hydrogen used in fuel cell vehicles, requiring the installation of additional equipment on top of the existing 98% pure hydrogen produced in chemical processes. The costs involve the value of the raw gas, as well as the expenses associated with purification equipment and loading systems. Coke oven gas should be burned back in the furnace for heating purposes; any remaining gas is not converted, and all useful components are separated out, with methane and hydrogen being extracted. The remaining CO is then used in Fischer-Tropsch synthesis to produce high-quality waxes or fine chemical products. In terms of photovoltaic hydrogen production, the cost of photovoltaic power generation has now reached the level of the price at which thermal power is sold to the grid. Making full use of this energy for local consumption can yield significant economic and social benefits. 　　Hydrogen transportation is primarily carried out using compressed hydrogen tube trailers for on-site consumption, in order to minimize the distance traveled. **To plan hydrogen refueling stations effectively, it is necessary to first determine the locations, scale of construction, and the vehicles that will be used, based on pilot operation areas. **It is also necessary to clarify the regulatory authorities; the renovation and expansion should be carried out in conjunction with existing gas stations and CNG stations. Hydrogen fuel cell vehicles should first be used as a model in public transportation, with gradual expansion to areas such as logistics vehicles; support in terms of road rights is needed to complement pure electric vehicles. 　　The Development of Hydrogen Energy Industry in China 　At present, the number of fuel cell vehicles in China has exceeded 3,000, with 25 hydrogen refueling stations in operation across the country; the infrastructure for hydrogen refueling is continuously being improved. Industries such as mining, electricity generation, and automobile manufacturing have formed alliances to work together on the commercialization of fuel cell vehicles, reflecting a development trend toward a complete hydrogen industry chain. 　　●In 2016, a new energy vehicle production facility located in the Foshan (Yunfu) Industrial Transfer Park in Guangdong began operations, with an annual production capacity of 5,000 hydrogen-powered vehicles. 　　●In 2017, China’s first large-scale production line for automated hydrogen fuel cell engines was put into operation. Once the project is fully completed, this facility will be able to produce 10,000 fuel cell engines per year. Shanghai plans to build 5 to 10 hydrogen refueling stations by 2020, with 3,000 fuel cell vehicles in demonstration use; by 2025, it aims to have 50 hydrogen refueling stations and 30,000 fuel cell vehicles, while aiming for an annual industrial output value of 300 billion yuan by 2030. 　　●The proposed plan for the development of the hydrogen energy industry in Wuhan for 2018 was released. Within 3 years, Wuhan will build itself into a \"capital of hydrogen-powered vehicles\" with the Wuhan Development Zone as its core, and by 2050 it will become a world-class city based on new hydrogen technologies. 　　●In 2019, Lubao Group collaborated with Beijing Haidelison Technology Co., Ltd. to develop and produce Type VI hydrogen storage tanks, build hydrogen refueling station infrastructure, and manufacture components for hydrogen energy equipment. Meijin Energy plans to invest 10 billion yuan in building the Qingdao Meijin Hydrogen Energy Town in the West Coast New Area of Qingdao. The People’s Government of Datong City signed a hydrogen energy project investment agreement worth 800 million yuan with Datong Xinyan Hydrogen Energy Technology Co., Ltd. Hebei Zhengyuan Hydrogen Energy Technology Co., Ltd., a wholly-owned subsidiary of Yangquan Coal Chemical, plans to invest 2.884 billion yuan in building a new \"project for the clean and efficient comprehensive utilization of coal,\" with the aim of becoming the largest hydrogen supplier in North China. 　　●Recently, Lu’an Group plans to establish 2 hydrogen refueling stations in Taiyuan and 2 in Changzhi. In the future, around 60 will be installed in Shanxi Province. A partnership is being established to jointly develop a fuel cell production and system project within the Shanxi Comprehensive Reform Demonstration Zone. The project will be built in two phases: Phase 1 will have an annual production capacity of 1,000 units, while Phase 2 will achieve an annual production capacity of 20,000 units. The fuel cell stacks are designed to last over 15,000 hours, with a volumetric power density of 2.12 kW/L. Luan has a large amount of hydrogen, with a potential annual production capacity of 1 billion cubic meters. Currently, a project for producing high-purity hydrogen at a rate of 20,000 cubic meters per hour is under development; the first phase of this project, which involves production at a rate of 2,000 cubic meters per hour, has already seen completion of the feasibility studies and site selection process. 　　**Support Policies for the Hydrogen Energy Industry In recent years, hydrogen fuel cells in China have evolved from a nascent initiative to a rapidly growing sector, with regulatory bodies at all levels, from the central government to local authorities, playing a key role in driving this development. Hydrogen energy is being developed intensively in various regions, and plans related to hydrogen energy at all levels are also being formulated and introduced at full speed. 　　●In 2001, the \"10th Five-Year Plan\" 863 Program’s special project on electric vehicles established a technical framework consisting of \"three verticals and three horizontals\": pure electric, hybrid electric, and fuel cell vehicles as the \"three verticals\", while multi-energy powertrain control, drive motors, and power batteries constituted the \"three horizontals\". 　　●In 2006, the **Medium- and Long-Term Plan for Science and Technology Development** included hydrogen energy and fuel cell technology among the advanced energy technologies. 　　●The “Notice on Carrying Out Pilot Projects for the Demonstration and Promotion of Energy-Saving and New Energy Vehicles” issued in 2009 provided subsidies for fuel cell vehicles. 　　●The 2012 Development Plan for Energy-Saving and New Energy Vehicle Industries called for the development of fuel cell vehicles and the hydrogen energy industry for use in vehicles to keep pace with international standards. 　　●In 2014, the Action Plan for Energy Development Strategy (2014–2020) identified hydrogen energy and fuel cells as key areas for innovation. 　　●In 2015, \"Made in China 2025\" called for continued support for the development of fuel cell vehicles. 　　●In 2016, the \"Action Plan for Innovation in Energy Technology Revolution (2016–2030)\") established an innovation roadmap for hydrogen energy and fuel cells, clearly identifying the development of hydrogen production from renewable sources sowie innovations in hydrogen energy and fuel cell technologies as key tasks. The \"Blue Book on the Development of Infrastructure for China’s Hydrogen Energy Industry (2016)\") introduced for the first time a roadmap for the development of infrastructure and technological advancements in China’s hydrogen energy industry. 　　●In 2017, the “Administrative Measures for the Concurrent Management of Average Fuel Consumption of Passenger Vehicle Enterprises and New Energy Vehicle Credits” clarified the calculation method for credits regarding fuel cell vehicles. The “Medium- and Long-Term Development Plan for the Automotive Industry” calls for strengthening research and development of fuel cell technologies, and gradually expanding the scope of pilot demonstrations for fuel cell vehicles. 　　●In 2018, the China Hydrogen Energy and Fuel Cell Innovation Strategy Alliance was officially established in Beijing. This will further improve the quality and accelerate the pace of building a hydrogen energy society with Chinese characteristics. The “Notice on Adjusting and Improving the Financial Subsidy Policies for the Promotion and Use of New Energy Vehicles” sets out the requirements and standards for subsidies related to new energy vehicles for the year 2018. 　　●In March 2019, hydrogen energy was mentioned for the first time in the **work report**, with a call to advance the construction of charging and hydrogen refueling facilities. 　　Major domestic enterprises in the hydrogen energy and hydrogen fuel cell industry chain. The hydrogen energy and hydrogen fuel cell industry chain mainly consists of five segments: hydrogen production, storage and transportation, hydrogen refueling, fuel cell systems, and applications. 　　Hydrogen production consists of hydrogen generation and hydrogen production equipment. Hydrogen production companies include Shenhua Group, Shougang Oxygen, Xianghe Huarui, Huaneng Group, China Energy Conservation and Environmental Protection Wind Power, and Huachang Chemical; hydrogen production equipment manufacturers include Linde Group, the 718 Research Institute, Daliu Hydrogen Production, Beijing H2Pure, Pairehua, Chunhua Hydrogen Energy, and Suzhou Jingli. 　　Storage and transportation of hydrogen are divided into four categories: gaseous hydrogen storage, liquid hydrogen storage, solid hydrogen storage, and liquid organic hydrogen storage. Among gaseous hydrogen storage companies are Cotec, Tianhai, China Hydrogen, Enric, and Xinxing Heavy Industries. Liquid hydrogen storage companies include Furey Hydrogen Energy and the 101st Institute of Aerospace Science and Technology. Solid-state hydrogen storage companies comprise Haoyun Jinneng, Xiamen Tungsten, Shenjiang Technology, Corun, Antai Technology, and Shenjian Hydrogen Energy. Companies specializing in liquid organic hydrogen carriers include Wuhan Hydrogen Energy and Juli Hydrogen Energy. 　　The hydrogenation stage includes hydrogen stations, hydrogenation equipment, hydrogen storage tanks (cylinders), and compressors. Companies involved in the construction of hydrogen refueling stations include Furite Special Equipment, Shanghai Shunhua, South China Group, Shanghai Yilan, Jiuan Tong, Guoda New Energy, and Haipel; companies that produce hydrogen refueling equipment include Snowman Co., Ltd., Hanlong Precision Machinery, Houpu Co., Ltd., Hydrelson, and Scroll Precision Machinery; companies that manufacture hydrogen tanks (cylinders) include Sinoma Technology, Jingcheng Co., Ltd., and Air Liquide; and the company that produces compressors is Beijing Tiangao. 　　Fuel cell systems consist of a system framework, proton exchange membranes, catalysts, stacks, bipolar plates, and membrane electrodes. Companies that produce such systems include Yihuatong, Xinyuan Power, Shanghai Panye, Dalian Guangyang Electromechanical, Weichai (Fursai), H2Pure Energy, Nantong Zehuo, Guangdong Guohong, and Shangran Power. Proton exchange membrane manufacturers include Dongyue Group, SAEFU, and Wuhan University of Technology New Energy. Catalyst producers include Guiyan Platinum, Northern Rare Earths, Suzhou Qingdong Power, and Yuchen New Energy. Stack manufacturers include Shanghai Shenli, Beijing H2Pure, Xinyuan Power, Jiangsu Huayuan, Jiangsu Qingneng, Weichai, and Zhejiang Nandu. Bipolar plate manufacturers include Shanghai Shenli, Xinneng Graphite, Lianqiang Carbon, Jiangyin Hujiangxi, Lican Carbon, and Shanghai Hongfeng. Membrane electrode manufacturers include Century Fuyuan, Wuhan University of Technology, Xinyuan Power, and Shanghai Hesen. 　　Applications of hydrogen fuel cells include passenger cars, buses, logistics vehicles, forklifts, trams, and drones. Passenger car manufacturers include SAIC Motor, BAIC New Energy, Great Wall Motors, Changan Automobile, and GAC Group. Bus manufacturers include Foton Motor, Yutong Bus, Zhongtong Bus, Nanjing Golden Dragon, Zhongzhi New Energy, Wuzhoulong, Shanghai Shenlong, Anhui Ankai, Youngman Bus, King Long, Foshan Feichi, and Yangzijiang. Logistics vehicle manufacturers include Dongfeng Motor and Foton Motor, as well as Sinotruk. The forklift manufacturer is Anhui Heli. Tram manufacturers include CRRC Tangshan and CRRC Sifang. Drone manufacturers include Tongji University, Zonye Power, and Shanghai Qingneng.