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Hualu Hengsheng: Integrating Green Chemical Industry with Nature Author/Source: Sinochem News Network Date: June 15, 2022 Clicks: 24 Over the years of its development, Hualu Hengsheng has always adhered to the corporate mission of \"integrating the green chemical industry with nature and giving back to society through high-quality products.\" Guided by the environmental policy of \"green chemistry and sustainable development,\" the company fully implements the concept of green development, strengthens ecological civilization construction through innovative growth and transformation, and moves forward steadily toward the goal of becoming a fully green and modern chemical enterprise. The concept of sustainability is an integral part of the modern approach to development. As a leader in China’s new coal chemical industry, Hualu Hengsheng has always adhered to principles of intensive, innovative, safe, sustainable, intelligent, and shared development. It continues to promote the transition from old to new forms of energy and industrial upgrading, resulting in steady improvements in safety and environmental protection standards. The level of sophistication and intelligence in its operations has also increased significantly, thereby enhancing its competitive strength and position in the industry. The company has also successfully entered a new phase of optimization, transformation and upgrading, as well as high-quality and efficient development. “Since the 12th Five-Year Plan period, Hualu Hengsheng has gradually phased out outdated production capacities, shutting down those facilities that were still profitable but used outdated technologies, generated high energy consumption, and emitted large amounts of pollutants. The facilities built before 2000 have been largely eliminated, thereby further enhancing the company’s capacity to comply with environmental regulations. At the same time, efforts are being made to foster high-end industries. Multiple transformation and upgrading projects have been carried out successively to continuously expand the relevant industrial chains involving polyurethane raw materials, carbonylation-derived products, new chemical materials, and new energy materials. By utilizing state-of-the-art process equipment, these projects will significantly reduce energy consumption and operating costs upon completion, while meeting ultra-low and ultra-clean emission standards. The proportion of high-end chemical products has increased significantly, which not only boosts efficiency but also greatly improves resource utilization. The company also places strong emphasis on energy-saving management throughout the entire process, actively carries out technological upgrades and renovations, and boosts the efficiency of comprehensive utilization. Its coal conversion rate remains among the highest in the industry, and its carbon emission reduction efforts are also at a leading level in the sector. “During the 13th Five-Year Plan period, Hualu Hengsheng adhered to **industrial policies and industry development trends, remained committed to improving quality and efficiency, and pursued simultaneous gains in economic benefits and environmental benefits. The company’s industrial park has successfully passed the provincial ** certification; it obtains excess steam from nearby power generation enterprises, thereby enabling integration and circular utilization within the industrial chain of the larger park, and addressing the constraints posed by resources such as land, water, electricity, and steam on development. The company’s 1.5 million tons per year project for green chemical new materials has been included in Shandong Province’s first batch of priority projects for the transformation of old and new economic drivers, and some parts of this project are already in operation and generating results. Entering the 14th Five-Year Plan period, Hualu Hengsheng has adhered to the requirement set by Shandong Province to achieve breakthroughs in the transition to new forms of economic development within five years. It focuses on maintaining a high standard of development and pursuing high-end advancements, increases investment in technology, launches new high-end chemical projects, expands its portfolio of chemical materials, and enters the field of new energy products. By pooling resources and operating in an efficient manner, the company develops green products that require less use of resources and energy and result in lower carbon emissions. Through recycling and integrated production methods, it reduces overall energy consumption as well as the average carbon emissions across the entire industrial chain ； Adhering to precise investment and lean operations, we strive for chain-based development, clustered layout, park-based production, and integrated management, in order to further strengthen and expand our competitive advantages. We are committed to turning the company into a modern chemical enterprise that features a scientific structure, optimized resources, efficient integrated production, lean management, international standards, and leadership in the industry. Lean management is a strong support for green development. For traditional manufacturing industries, production is the foundation of operations, and online production management is key to improving operational efficiency. Hualu Hengsheng continues to carry out activities aimed at saving energy and reducing consumption, as well as improving quality and efficiency; over the past 10 years, these efforts have resulted in cost savings and efficiency improvements worth more than 3 billion yuan. The company invests a significant amount of human and financial resources each year in upgrading energy-saving and consumption-reduction technologies, and has been awarded the title of leader in energy efficiency for industries such as coal-based synthetic ammonia, methanol, and acetic acid on seven occasions. On one hand, Hualu-Hengsheng implements benchmarking management by breaking down indicators such as processes, consumption, and equipment operation. It identifies industry benchmarks one by one to determine gaps and formulate corrective measures, thereby continuously improving its process technology and management level. The company’s acetic acid products are designed to compete with those of multinational companies; through optimization, innovation, and upgrades, the annual production capacity of its acetic acid plants has been increased from 200,000 tons to 600,000 tons, with quality and energy consumption metrics reaching international advanced levels. On the other hand, the lean production management system is continuously strengthened, with a focus on systematizing process management, standardizing equipment management, regulating position management, and refining basic management, in order to achieve safe and stable operation over long periods of time. Currently, the maintenance cycle in the chemical industry is generally one to two years, while Hualu Hengsheng has extended it to over 4 years, and it continues to explore ways to achieve the goal of maintaining this period at four years while striving for five. In addition, Hualu Hengsheng also achieves comprehensive energy savings through refined management. First, strengthen the operational management of enterprises’ energy management systems. The company established the \"Objectives, Indicators, and Management Plan Control Procedures,\" thereby creating a series of long-term mechanisms for energy conservation management. Second, it encourages innovation and energy conservation among all employees. The company continuously increases incentives for energy-saving projects. Each year, it awards prizes for innovative achievements; special rewards worth tens of millions of yuan are given for maintaining or exceeding production targets, meeting project milestones, conserving energy and reducing consumption, and expanding market share. These efforts have greatly motivated employees to keep innovating and making breakthroughs in the field of energy conservation. Safety and stability are the red lines and bottom lines that must be strictly adhered to at all times. Safe production is the lifeline for chemical enterprises to survive; if safety is compromised, everything else becomes meaningless. Hualu Hengsheng always gives top priority to personnel safety, environmental safety, and equipment safety in all its operations. It revises its safety management systems on a yearly basis in accordance with the latest laws and regulations, and ensures that the \"five key aspects\" – proper performance by managers at all levels, adequate investment in technology, training and education, sound basic management practices, and effective emergency response – are all met, thus guaranteeing safety during project construction, commissioning, and production. Over the years, through continuous summarization, refinement, and improvement, the company has developed the \"3+1+2\" core philosophy for safe production management, gradually becoming a benchmark enterprise in this field when it comes to safety management. “3”, namely advanced and applicable technologies, stable and reliable equipment, and skilled and proficient employees. Hualu Hengsheng believes that in terms of industrial upgrading and technological transformation, only by adhering to the advancement and suitability of technologies can the resulting safety risks be minimized. The company focuses on optimizing existing assets and upgrading new ones; while phasing out outdated production facilities, it carries out renovation projects and adopts advanced process equipment, thereby effectively improving safety management conditions once the upgrades are completed. In terms of equipment operation and maintenance, all newly constructed projects utilize products from top domestic or international manufacturers. For equipment installation, only construction teams with superior technical capabilities are employed. Equipment maintenance adheres to the principles of safety, efficiency, and cost-effectiveness. Through management and control based on a whole-process project management approach, a unique safety-oriented maintenance management model has been established. The company places emphasis on safety education and skill training for its employees, implements safety training for all staff, adopts various training methods, and sets up multi-dimensional simulation platforms to cultivate a highly skilled workforce in all aspects, thereby ensuring the safe and stable operation of production. “1”, that is, to implement responsibilities and strengthen management. The company strictly implements a safety production responsibility system for all employees, has compiled a \"Compilation of Safety Production Responsibilities,\" applies the principle of \"dual responsibilities per position,\" and clarifies the safety production duties for each role. All employees sign safety target responsibility agreements every year; these targets are assigned across all levels and to every employee, ensuring full coverage as safety objectives are broken down into specific tasks. “2”, namely an accurate early warning system and a robust risk isolation shelter. The company acts as the \"first line of defense\" and the \"last line of defense\" against hazards, nipping them in the bud and minimizing potential damage. Protecting the ecosystem is an undeniable social responsibility. In line with national as well as provincial and municipal regulations regarding pollution control, and by taking advantage of its technical expertise and production characteristics, Hualu Hengsheng has developed a \"progressive\" environmental management model that focuses on \"source control, hierarchical utilization, and final treatment\" as its core principles. At the same time, focusing on the key environmental management aspects such as \"prevention, control, and regulation\" identified locally, and taking into account the company’s own characteristics in environmental control, an interactive and integrated long-term mechanism for environmental management is established. As early as the year 2000, when the company was founded, Hualu Hengsheng established an ISO14001 environmental management system and obtained certification for it; this system has been in operation continuously for 22 years to date. Backed by an environmental management system, the company fully complies with all applicable laws, regulations, standards, and requirements, integrating them into its operations and management practices. This ensures that pollutant levels remain within acceptable limits and that environmental risks are under control, thereby enabling continuous improvement in the company’s environmental performance and providing a solid foundation for its sustainable development. On the one hand, the company increases its investment in environmental protection efforts, adhering to the fundamental principles essential for the survival of a business; it spends over 100 million yuan each year on the operation of environmental protection facilities and on technological upgrades aimed at improving environmental performance. First, advanced detection and repair technologies are employed, with investments made in leak detection and repair systems that have now ensured coverage of the entire area. Secondly, it strengthens the testing of characteristic pollutants by regularly replacing and upgrading testing equipment, thereby establishing a testing system for such pollutants in both organized emission sources and areas around factories, to ensure that pollutant emissions are under control and monitored 24/7 in all aspects. Third, efforts have been made to strengthen the comprehensive control of dust pollution; large-scale dump cars and massive enclosed coal silos with a capacity of 100,000 cubic meters were built using dedicated railway lines. An investment of 150 million yuan was made to improve the conditions of existing coal storage areas, thereby reducing coal dust pollution. Fourthly, a combination of measures such as emission reduction at the source, comprehensive utilization, and end-of-pipe treatment is employed for wastewater management. There are currently 6 wastewater treatment units in place, which are sufficient to ensure that the wastewater generated by the existing production facilities meets the required discharge standards. On the other hand, the company starts from the production stage, replacing, upgrading, and modifying existing equipment to strictly control the emission of waste gases, wastewater, and solid waste. First, adjust the industrial structure and phase out outdated production capacity. The company has phased out old equipment and installed new water-coal slurry gasification units as well as purification systems based on a clean coal gasification platform, resulting in a reduction of 350 tons per year in sulfur dioxide emissions, 1,026 tons per year in nitrogen oxide emissions, and 96 tons per year in dust emissions. Second is the upgrading and renovation of flue gas from existing boilers. The company invested nearly 200 million yuan to upgrade the boilers to achieve ultra-low emission levels; as a result, sulfur dioxide emissions were reduced by 4,088 tons per year, nitrogen oxide emissions by 2,814 tons per year, and soot emissions by 599 tons per year. Third is the comprehensive management of odors. Based on the type of storage tanks and the properties of the products, the company employs measures such as pressure tanks, nitrogen sealing, and negative pressure recovery for emission control, and carries out proper recycling and treatment of exhaust gases. High-end intelligence is the inevitable path for future development. Hualu Hengsheng adheres to intelligent development, focuses on the integration of information technology and industrial applications, and actively builds intelligent factories and smart industrial parks. It was recognized as a \"Model Enterprise for the Intelligent Transformation of the Chemical Industry in Shandong Province\" in 2021; it is also a model unit for digital workshops in Shandong Province, achieving full coverage of intelligent control in its production systems. Among them, the park’s comprehensive emergency management platform for safety and environmental protection identifies early-warning and monitoring factors based on the identification and analysis of environmental risks in the park. Various environmental monitoring instruments are strategically installed at the sources of risk, key control areas, factory boundaries, park boundaries, and sensitive sites, thereby creating a monitoring network that integrates points, lines, surfaces, and areas. An advanced and functional early-warning management platform along with supporting facilities have been developed, and a monitoring, early-warning, and emergency response mechanism has been established to strengthen control over risk sources. This approach has helped achieve the goals set for the project and plays a vital role in preventing and managing environmental risks in the park. Backed by a data integration platform and core databases, the production control platform aggregates information such as device control data, production operation data, and real-time monitoring data on safety and environmental protection. It ensures that all production data from Hualu Hengsheng is sourced from a single source, thereby guaranteeing data accuracy, consistency, visual presentation, and effective sharing – all of which provide a scientific basis for decision-making in production and operations. This platform standardizes the enterprise’s production management processes, optimizes resource utilization, reduces material and energy consumption, effectively supports integrated production control, enhances the precision of enterprise production management, and boosts the company’s profitability and core competitiveness. Hualu Hengsheng is well aware that only by breaking free from the constraint that sees economic development as opposing environmental protection, and by creating pathways that link efficiency with environmental stewardship, can it continue to turn \"golden mountains and silver mines\" into \"lush green lands,\" and use those lush green lands to create more \"golden mountains and silver mines.\" By fostering a positive cycle in which business operations and environmental protection develop and progress together, it can take practical actions to achieve the goal of building a clean and beautiful world, and realize the lofty aspiration of creating a global community for all life on Earth.