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Competitiveness Needs to Be Developed for Coal-Based Oxidized Chemicals Author/Source: Sinochem News Network Date: December 20, 2019 Clicks: 66 Slowing consumption of methanol and acetic acid; the quality of ethylene glycol becomes crucial; the development of ethanol depends on costs – On December 19, the 2019 (3rd) Symposium on the Development of Coal-Based Oxidized Chemicals was held in Jingzhou, organized jointly by the Coal Chemicals Committee of the China Petroleum and Chemical Industry Federation and the Jingzhou People’s Government. The meeting discussed a series of innovative breakthroughs in the development and application of coal-based oxidized chemicals in our country, and also identified the key points and directions for high-quality development. Hu Qianlin, Secretary of the Party Committee and Deputy Secretary-General of the Petrochemical Federation, explained that according to statistics from the federation’s Coal Chemicals Committee, in the first three quarters of this year, China’s total production of coal-based oil was 5.2 million tons; coal-based natural gas production amounted to 3 billion cubic meters. Thanks to policies aimed at ensuring a stable supply of natural gas, the capacity utilization rate increased slightly, with an expectation that it will exceed 4 billion cubic meters for the whole year. The production of olefins from coal (methanol) was 8.98 million tons, and companies saw strong sales and good profits. Coal-based ethylene glycol production totaled 2.28 million tons. Hu Qianlin introduced a series of innovative breakthroughs in the development and application of coal-based oxidized chemicals in China. Firstly, significant progress has been made in coal-based ethylene glycol technology; the scale of this industry is growing rapidly, the quality of the product is continuously improving, and acceptance by end-users is increasing. Coal-based ethylene glycol is now being used on a large scale in the polyester fiber industry. Secondly, coal-based methanol and ethanol technologies are mature, serving both as raw materials and fuels, offering broad prospects for dual development in the chemical industry. Thirdly, a number of new coal-based oxidized chemical technologies are on the verge of making breakthroughs, such as green processes for converting carbon dioxide into dimethyl carbonate/ethylene glycol using immobilized ionic liquids as catalysts, industrial trials for producing high-carbon alcohols in large quantities from syngas, and complete sets of technologies for producing MMA from ethylene and syngas using ionic liquids as catalysts. Gu Zongqin, Secretary of the Party Committee of the Petroleum and Chemical Industry Planning Institute, introduced the market situation of coal-based oxidized chemicals such as methanol, ethylene glycol, acetic acid, and ethanol, and put forward development suggestions. Methanol currently faces a temporary oversupply of production capacity, which needs to be gradually reduced. However, driven by the interests associated with the integration of coal-based chemical industries at various stages of the production chain, production capacity will continue to grow. Future technological advancements in the conversion of methanol into aromatics could serve as a driving force for the growth of methanol usage. There is already an oversupply of acetic acid capacity, and it will take some time to absorb this excess supply. The markets for its downstream products are mature, and consumption growth is slowing down; without the emergence of new application areas, any increase in market demand will be very limited. Companies without strong competitive advantages should proceed with caution when investing in such projects. The utilization rate of ethylene glycol capacity is not high. In 2018, China’s consumption of ethylene glycol was 16.4 million tons, with 9.8 million tons coming from imports, while the utilization rate of domestically produced coal-based ethylene glycol was only 52%. Gu Zongqin pointed out that the product quality of coal-based ethylene glycol is a key factor for it to enter the market. Companies need to work with their downstream customers to improve quality so that it meets the requirements for fiber-grade polyester, while also actively participating in the development of their own standards for coal-based ethylene glycol, rather than simply adopting the standards for petroleum-based ethylene glycol. The development of ethanol produced from coal depends on cost competitiveness, which is not significant when oil prices are low. Gu Zongqin specifically reminded businesses that the implementation plans previously **released regarding the expansion of fuel ethanol production and promotion referred to bioethanol, not coal-based ethanol; coal-derived ethanol is not covered by these plans. Some universities and research institutions have announced their innovative achievements in the field of coal-based oxidized chemicals and established partnerships for industry-university-research collaboration. During the opening ceremony, a signing ceremony for the strategic cooperation project in Jingzhou’s green energy and chemical industry was also held.