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Shenghong Advances Integration Project for Succinic Anhydride/BDO/PBAT – Author/Source: Energy & Chemical Industry News, Date: 2021-10-21, Clicks: 40. On October 14, Shenghong Refining & Chemicals (Lianyungang) Co., Ltd. published the first round of public consultation regarding the environmental impact assessment for the first phase of its biodegradable materials project. The Degradable Materials Project (Phase I) of Shenghong Refining & Chemicals (Lianyungang) Co., Ltd. involves an investment of 7.64 billion yuan. It is located in the Lianyungang Petrochemical Base in Xuwei New Area, Lianyungang City, Jiangsu Province, and involves the construction of a 340,000-ton/year maleic anhydride plant, a 300,000-ton/year BDO plant, a 180,000-ton/year PBAT plant, as well as associated utility systems and auxiliary facilities. In addition, in April this year, Shenghong established a biodegradable materials project in Inner Mongolia. On April 19, 2021, the People’s Government of Ordos City in Inner Mongolia signed a project investment agreement for a green new materials and circular economy industrial park with Jiangsu Sierbang Petrochemical Co., Ltd., a subsidiary of Shenghong Holding Group. Thus, Shenghong’s billion-yuan investment project was officially launched in the Dalate Economic Development Zone. The total investment for this project is 127 billion yuan, to be carried out in two phases. Of this, 67 billion yuan will be invested in the first phase, with completion planned by August 2024. The project will focus on the production of methanol and various high-end new materials as well as fine chemical products such as acetic acid, formaldehyde, acrylic acid, 1.8 million tons per year of olefins and biodegradable materials, as well as superabsorbent resins. Upon completion of the project, it is expected to generate sales revenue of 23 billion yuan, annual profits and taxes of around 3 billion yuan, and provide employment for 6,000 local residents. During the 14th Five-Year Plan period, Shenghong Group is focusing on the new energy and new materials industries. Shenghong Holding Group Co., Ltd. was established in 1992 in Shengze Town, Suzhou City, Jiangsu Province. The group operates three industrial bases in Suzhou, Lianyungang, and Suqian, with its business activities spanning the entire world. It has 1 listed company (Dongfang Shenghong, 000301), over 30 physical companies, and more than 40,000 employees. In 2021, Shenghong Group ranked 311st on the list of the World’s Top 500 companies, 89th among China’s top 500 enterprises, and 19th among China’s top 500 private enterprises. Shenghong plans to concentrate its resources during the 14th Five-Year Plan period on addressing the critical industrial needs in areas such as photovoltaic power generation, aerospace, new energy vehicles, biotechnology, and electronic information. It aims to accelerate the development of industries related to new energy and new materials as well as the implementation of related projects, thereby enhancing the company’s ability to provide high-quality products at the upper end of the industrial chain. The goal is to turn the company into a high-tech industry group with a strong capacity for supplying basic raw materials, world-leading research and innovation capabilities, and first-class capabilities in supplying new energy and new materials. The Shenghong Petrochemical Industrial Park is an innovative and ecological petrochemical industry cluster meticulously developed by the Shenghong Holding Group. Located in the **East-West-Central Regional Cooperation Demonstration Zone (Xuwei New Area, Lianyungang), the park covers an area of approximately 15 square kilometers and integrates functions such as production and research and development as well as logistics support. It adheres to a model that combines refining with chemical processing, aiming for balanced development across the entire high-end petrochemical industry chain. It is a highly competitive key brand among the **seven world-class petrochemical industry bases. Based on a platform for bulk petrochemical raw materials, the Shenghong Petrochemical Industrial Park is making comprehensive efforts to drive the transformation of strategic emerging industries. It is establishing a new \"1+N\" framework that combines a core raw material platform with diversified industrial chains in areas such as new energy, new materials, electronic chemistry, and biotechnology, in order to accelerate the development of a world-class base for the production and research of new energy and new materials. On October 14, 2021, the official website of Shenghong Petrochemical published the \"First Public Notice on the Environmental Impact Assessment for the Degradable Materials Project (Phase I) of Shenghong Refining & Chemicals (Lianyungang) Co., Ltd.\" Project Overview: Project Name: Shenghong Refining & Chemicals (Lianyungang) Co., Ltd. Degradable Materials Project (Phase I). Owner of the project: Shenghong Refining & Chemicals (Lianyungang) Co., Ltd. Nature of the construction: New construction. Location and investment: Lianyungang Petrochemical Base, Xuwei New Area, Lianyungang City, Jiangsu Province; investment amount: 764,093 million yuan. Main construction contents: include a 340,000-ton/year maleic anhydride plant, a 300,000-ton/year BDO plant, a 180,000-ton/year PBAT plant, as well as the accompanying utility systems and auxiliary facilities. “During the 14th Five-Year Plan period, **policies will strongly promote the development of biodegradable plastics. Degradable materials based on petrochemical raw materials mainly include diacid-diol copolyester series (including PBS, PBAT, PBSA), polyglycolic acid (PGA), polycaprolactone (PCL), and CO2 copolymers, etc. Among them, PBS, PBAT, PBSA, etc. are developing rapidly. However, the supply of 1,4-butanediol (BDO), one of the key raw materials, is limited and its prices have soared, posing a serious constraint on the development of biodegradable materials. The production routes for BDO include the Reppe process (alkynal process), the butadiene/acetic acid process, the propylene oxide process, the n-butane/cyclohexanone process, and others. Yahua Consulting believes that Shenghong Refining & Chemicals has a significant advantage in choosing the maleic anhydride method for BDO production, by using n-butane – a raw material produced as a by-product of its integrated refining and chemical processing projects