Who has a feasibility study report for a 100,000-ton or 200,000-ton methanol project?
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Who has a feasibility study report for a 100,000-ton or 200,000-ton methanol project? How much is the investment approximately? How much land is it covered by?
Correction: After checking the feasibility study, it is 300,000 tons and 31.6 hectares, with the total estimated investment for the project amounting to 985 million yuan
I’ll look for it for you; it must be there
The investment is for a methanol plant using natural gas as a feedstock, right? It’s been many years since a feasibility study for such a small-scale methanol plant was conducted
Investment Analysis for 300 kt/a Methanol Production 1 Market Analysis of Methanol Investment Projects The chemical industrial park in our city has already seen the first batch of large-scale foreign-invested projects; namely, a 600 kt/a acetic acid plant that came online in 2006, with carbon monoxide and methanol serving as its raw materials. The owner responsible for the supply of carbon monoxide has entered into a contract with a third-party supplier, and a process plan for producing carbon monoxide using natural gas as raw material has also been established. In addition, the project requires 300 kt of methanol per year. The acetic acid project is likely to be expanded to 1,200 kt/a in the coming years, at which time the demand for methanol will reach 600 kt/a. Secondly, the methamine plant integrated by Yangzi Petrochemical and BASF is planned to need to purchase 52.2 kt of methanol annually starting from 2005. Therefore, starting from 2006, the demand for methanol in the Nanjing market will exceed 300 kt/a, and in the future, it will surpass 600 kt/a due to the expansion of acetic acid production. At present, there are no methanol plants in the markets surrounding the Nanjing Chemical Industrial Park. To reduce transportation costs, building methanol plants in nearby locations becomes a viable option. Over the past decade, the selling prices of methanol in both domestic and international markets have generally ranged from 1,200 to 4,350 yuan per ton, with an average price of around 1,900 yuan per ton. Since 2003, the market for petrochemical products has continued to show positive trends, with the domestic sales price of methanol remaining between 2,200 and 2,400 yuan per ton. Methanol is a widely available product and one of the most basic petrochemicals; the market supply exceeds demand slightly, and its price often fluctuates in line with international oil prices and those of other petrochemical products. There are two methods for methanol production. One involves the synthesis of methanol from gasified syngas; the raw material costs for this method are low, but the investment required is high, and a certain scale is necessary to achieve good economic benefits. Secondly, methanol is produced using natural gas as a raw material; the total investment required is low, and its production costs are greatly influenced by natural gas prices. With the oil crisis and stringent requirements regarding vehicle exhaust emissions, methanol is set to become an environmentally friendly gasoline, and its market prospects remain promising. For the 600 kt/year acetic acid project in Nanjing Chemical Industrial Park, the need for 300 kt of methanol per year represents a very significant business opportunity. To seize this business opportunity, the key lies in selecting the appropriate production process so as to keep the cost of methanol production below the market price of methanol available on the market; only in this way can long-term and reliable supply contracts for methanol to acetic acid production projects be ensured. Therefore, it is extremely urgent and necessary to analyze the resources surrounding the Nanjing Chemical Industrial Park, select a practical methanol production process, and produce methanol products that are competitive in the market. 2 Selection of process methods for methanol production and economic investment analysis: Whether it is the coal gasification process or processes using natural gas as raw material, there are reliable sources of raw materials available in the Nanjing Chemical Industrial Park area. The coal from Yanzhou, Shandong Province, is rich in low-cost, high-sulfur coal suitable for gasification, and can be transported to Nanjing by rail or barge. “The natural gas from the \"West-to-East Gas Transmission\" project has a high methane content and low sulfur content, making it the most suitable raw material for synthesizing gas. It could be introduced to Nanjing in 2004; therefore, gasification or methanol production using natural gas as a raw material is feasible in Nanjing. 2.1 Methanol production via coal gasification process and economic analysis: In coal gasification for production, due to the poor operational reliability of coal gasifiers, a configuration of two in operation and one in standby, or one in operation and one in standby, is usually adopted. A single furnace can produce a large volume of gas; the syngas generated can be used not only in methanol production facilities but also to produce hydrogen and carbon monoxide for other plants, or as fuel for gas-fired power plants. Near the Nanjing Chemical Industrial Park, there is a Yangzi/BASF integrated gas-fired power plant, a Nanhua facility with an annual production capacity of 300 kt of synthetic ammonia, and acetic acid plants that require methanol and carbon monoxide. These facilities ensure the feasibility of producing syngas, methanol, hydrogen, and carbon monoxide through coal gasification. 2.1.1 Introduction to coal gasification processes There are mainly four techniques for producing syngas from coal as raw material: Texaco water-coal slurry gasification, Sherron dry coal gasification, Lurgi pulverized coal gasification, and UGI atmospheric pressure gasification. UGI’s atmospheric gasification technology is mature and reliable, but it requires the use of smokeless lump coal. Due to limitations such as low equipment capacity and high amounts of waste generation, it cannot meet the requirements for large-scale applications. Although Lurgi gasification technology is mature and large-scale units of this type are already in operation in China, its biggest drawback is the low gasification temperature. The harmful substances generated, such as tar and wastewater, are difficult to treat, resulting in high pollution levels. The utilization rate of raw materials is low, and the methane content in the crude syngas is high; therefore, it is suitable only for use as city gas, not as syngas. The Shell Coal Gasification Process (SCGP) is one of the most advanced coal gasification technologies in the world today. It has reached a new level in terms of safety, efficiency, and environmental protection. The high-quality gas produced by this process can be used as a feedstock for ammonia and methanol synthesis. The service life of the water wall is 25 years, while the design life of the nozzles is 1 year. However, since dry powder is used as the feed material, the gasification pressure cannot be too high, which makes operation somewhat difficult. Currently, there is only one facility in the world that produces crude gas for power generation; the technology and key equipment required have to be imported, and using this method for producing syngas carries significant risks. “\"Pressurized gasification of water-coal slurry\" is a major research project developed by the American company Texaco in the 1970s to replace petroleum with \"clean coal.\" And in the early 1980s, the first set of demonstration-scale commercial plants was built – 100 MW-class IGCC power plants. In addition to high oxygen removal costs, this technology has the following features: (1) A single furnace can handle large amounts of coal, resulting in high production capacity ； (2) High vaporization pressure, low power consumption ； It has a high content of useful gases (CO+H2), making it suitable for use as syngas ； (3) Wide range of raw materials available, high utilization rate ； (4) Low levels of waste water, waste gas, and solid waste ； (5) Large number of users, high rate of domestic equipment usage. The biggest drawback of Texaco is the short lifespan of its burners, which is only 45 days, and the refractory bricks need to be replaced annually, with a replacement period of 45 days as well. The Texaco enhanced quenching process was chosen because its advantages over other methods are more significant; it has more operational experience compared to other gasification processes, and there are many successful applications of it in China. 2.1.2 Economic analysis of syngas production through coal gasification: In this scheme, two gasifiers are used with one as a backup. The capacity of a single gasification furnace to produce syngas is 131,486 Nm3/h. With an annual methanol production of 300 kt, the excess syngas is supplied to external parties. The input and output of syngas produced by gasification are shown in Table 1. Table 1 Summary of Inputs and Outputs in Coal Gasification for Syngas Production
| Item | Quantity | Total/CNY•h-1 |
|------|----------|----------------|
| Raw materials | 103 | 503.78 |
| Coal (247.7 CNY/t) | t•h-1 | 135.35; 33,526 |
| Industrial water (1.4 CNY/t) | t•h-1 | 771; 1,079.4 |
| Oxygen (446 CNY/t) | Nm3•h-1 | 76; 512,487 |
| Water (4.2 CNY/t) | t•h-1 | 93.9; 394.38 |
| Electricity (0.5 CNY/kW·h) | kW•h | 23,800; 11,900 |
| Coal storage cost (31.3 CNY/t) | t•h-1 | 104; 3,255 |
| Recycled water (0.23 CNY/t) | t•h-1 | 20,000; 4,600 |
| By-products | 84 | 319 |
|------------|----|-----|
| Slag (18.72 CNY/t) | t•h-1 | 30.06; -563 |
| Syngas as fuel (500 CNY/t) | Nm3•h-1 | 165; 213 (155.3 t); -77,650 |
| Medium-pressure steam (90 CNY/t) | t•h-1 | 41; -3,690 |
| Sulfur (585 CNY/t) | t•h-1 | 4.13; -2,416 |
| Fixed assets/10,000 CNY | 155 | 895; 16,741 |
|----------------------------|-----|----------------|
| Coal preparation system | 2,976 | |
| Gasification unit | 69,195 | |
| Acid gas removal | 16,555 | |
| Cryogenic separation | 9,466 | |
| Flue gas compression | 4,820 | |
| Methanol production unit | 30,000 | |
| Sulfur recovery unit | 21,533 | |
| Land (300 CNY/m2) | m2 | 1,350; 45,000 |
| Other costs | | 3,750 |
| Product: Methanol | t•h-1 | 37.5; 958 |
As can be seen from Table 1, the annual production of 300 kt of methanol from coal via gasification results in a cost of 958 CNY per ton. This is mainly due to the low price of raw coal, as well as the use of syngas as a fuel, which adds value to the product. Annual after-tax profit: (1,900 – 958) × 37.5 × 8,000 × (1 – 15%) ÷ 10,000 = 24,021 (10,000 yuan); the return on investment after income tax is: 24,021 ÷ 155,895 × 100% = 15.41%. Therefore, producing methanol from coal as a raw material results in low production costs, strong resistance to market risks, and high return on investment. Due to high fixed asset investment, the larger the scale, the better the efficiency. All excess syngas is sent to the gas power plant at the Yangzi-BASF integrated petrochemical complex in the Nanjing Chemical Industrial Park as fuel. Therefore, a gasification process capable of producing 300 kt of methanol per year for supply to the acetic acid plants in the Nanjing Chemical Industrial Park represents a good option as a process design. 2.2 Production of methanol from natural gas and economic analysis: The use of natural gas to produce methanol is common both domestically and internationally. Its main purpose is to use low-cost natural gas resources to produce methanol, which facilitates transportation and enables the realization of the value of those natural gas resources. In the Nanjing area, there are no low-cost natural gas resources. It is clearly uneconomical to purchase new equipment and use natural gas from the \"West-to-East Gas Transmission\" project to produce methanol. However, given that Sinopec Yangzi Petrochemical Co., Ltd. (hereinafter referred to as Yangzi Petrochemical), located near the Nanjing Chemical Industrial Park, has excess production capacity in its hydrogen production facilities, it is worth considering the possibility of utilizing this idle capacity to produce syngas, which could then be used to manufacture the methanol required by the acetic acid plants in the Nanjing Chemical Industrial Park. 2.2.1 Introduction to Synthesis Gas Production from Natural Gas Many production methods can be used to generate the synthesis gas required for various major petrochemicals: (1) Methane steam reforming ； (2) Naphtha conversion method ； (3) Autothermal conversion method ； (4) Oxygenation secondary conversion method ； (5) Various hydrocarbons, petroleum coke, and partial oxidation of coal ； (6) Hydrogen and carbon dioxide retroconversion method. The above process methods (1) and (2) can be directly applied to the hydrogen production unit at Yangzi Petrochemical. Given that naphtha is used as a raw material for producing syngas, and its market price is much higher than that of natural gas, it is clearly not advisable to use naphtha as a raw material for syngas production. Other methods require the purchase of new equipment, and are even less suitable given Nanjing’s lack of cheap natural gas resources for methanol production. The H2/CO ratio of the syngas produced by synthetic gas industrial production technologies varies approximately between 6 and 1.5. If there is a high demand for pure hydrogen in the vicinity, hydrogen can be separated from syngas and sold. Without a large hydrogen-consuming source, it can only be used as fuel, which is extremely uneconomical. Methanol production is the largest user of syngas, and its raw material is syngas itself. The hydrogen production unit at Yangzi Petrochemical, located near the Nanjing Chemical Industrial Park, consists of two parallel units, A and B, with a total hydrogen production capacity of 23,600 m3/h. Since it was built and put into operation in 1989, it has been in use for 15 years now; its asset depreciation has been completed, and its net asset value is almost zero. Due to the numerous renovations carried out on the aromatics complex at Yangzi Petrochemical over the past 10 years, the hydrogen produced as a by-product of the reforming units has increased. Meanwhile, the demand for hydrogen in the main hydrogen-consuming units, such as the hydrocracking unit, has remained relatively stable. As a result, operating 50% to 80% of the capacity of the Hydrogen Production Unit A is sufficient to meet the hydrogen needs of the aromatics complex, while the Hydrogen Production Unit B has been shut down for extended periods of time. Therefore, idle equipment can be utilized to produce industrial methanol, which is in short supply in the surrounding market. 2.2.2 Economic analysis of hydrogen production retrofit for syngas generation: The requirements for syngas in methanol production are: CO, 29.90% ； H2, 67.64% ； CO2, 2.49% ； (4.85 MPa, 35 ℃) ； Other impurities are negligible. However, using natural gas as the feedstock with a water-to-carbon ratio of 3.05, and at an exit temperature of 820°C in the steam reformer of the hydrogen production unit, the composition of the reformate gas is as follows: CH4, 2.7%; H2, 70.5%; CO, 13.5%; CO2, 13.3%. At 100% load of the ice production unit series, the total volume of dry gas in the converted gas is approximately 72,000 m3/h. The converted dry gas cannot be used directly as a feedstock for methanol plants; it is necessary to use CO2 removal units at the outlet of the conversion furnace, as well as additional deep cryogenic separation units, to produce syngas that meets the requirements of methanol production plants. An annual production of 300 kt of methanol requires 92,842 m3/h of syngas that meets the specified requirements. The additional investment in separation equipment is: 1 billion yuan. The cost calculation for producing syngas in the hydrogen production plant is shown in Table 2. Table 2: Summary of Inputs and Outputs for Synthesis Gas Production via Natural Gas Steam Reforming
| Item | Quantity | Total/CNY•h-1 |
|------|----------|----------------|
| Raw materials | 51 | 8,240 |
| Natural gas (as fuel) (1.31 CNY/Nm3•h-1) | 35,129 | 46,019 |
| Cooling water (0.23 CNY/m3)/m3•h-1 | 1,500 | 345 |
| Nitrogen gas (0.20 CNY/Nm3•h-1) | 200 | 40 |
| Deionized water (13 CNY/t)/t•h-1 | 140 | 1,820 |
| Electricity (0.5 kW•h)/kW•h | 7,200 | 3,600 |
| By-products | – | -3,200 |
| High-pressure steam (-80 CNY/t)/t•h-1 | 40 | -3,200 |
| Fixed assets/10,000 CNY | 2,708 | – |
| Renovation costs | 10,000 | 833 |
| Annual wages and management costs | 1,000 | 1,250 |
| Annual maintenance costs | 500 | 625 |
| Product | Quantity | Unit Cost/CNY |
|---------|----------|---------------|
| Carbynyl synthesis gas/Nm3•h-1 | 92,842 | – |
| Variable cost of synthesis gas/CNY•m3 | 0.524 | – |
| Total cost of synthesis gas/CNY•m3 | 0.533 | – |
As can be seen from Table 2, the consumption of natural gas and its price have the greatest impact on the overall costs. Therefore, it is also crucial to keep the natural gas purchase price at 1.31 yuan/m3, and this must be specified in the supply contract. 2.2.3 Economic analysis of converting the facility for hydrogen production to syn gas production for methanol manufacture: Based on an annual production capacity of 300 kt of methanol, the investment required for this conversion is estimated at 300 million yuan. With a raw material flow rate of 92,842 Nm3/h, 37.5 t/h of methanol can be produced. The methanol cost calculation is shown in Table 3 (the syngas price is given in Table 2 above). Table 3 Methanol Economic Analysis
Item | Quantity | Total/CNY•h-1
--- | --- | ---
Raw materials | 54 | 349.5
Syngas (0.553 CNY/Nm3) | 92 | 842
51 | 342
Cooling water (0.23 CNY/m3) | 1,800 | 414
Desalinated water (1.87 CNY/t) | 50 | 93.5
Electricity (0.5 kW•h) | 5,000 | 2,500
By-products | – | -2,000
Low-pressure steam (-50 CNY/t) | 40 | -2,000
Fixed assets/10,000 CNY | 4,561
Wages and management costs | 500 | 625
Manufacturing costs | 30,000 | 2,500
Other costs | 1,098 |
Maintenance costs | 338 |
Product: Methanol/t•h-1 | 37.5
Variable costs/CNY•t-1 | 1,396
Total cost of product/CNY•t-1 | 1,518
At an average market price of 1,900 CNY/t for methanol, a production capacity of 300 kt/a can generate a profit of: (1,900 – 1,518) × 37.5 × 8,000 ÷ 10,000 = 11,460 (10,000 CNY). The after-tax profit is 97,410,000 CNY (with a tax rate of 15%), resulting in an after-tax return on investment of: 97,410,000 ÷ 40,000 × 100% = 24.35%. It can be seen that by upgrading existing facilities, without adding personnel, land, or utilities, and without altering the properties of hydrogen—the main product of the hydrogen production plant—efficiency can be improved, thereby yielding certain economic benefits. It is indeed a good investment option. 2.3 Comparison of the two methanol production methods The two processes for methanol production are listed in Table 4. Table 4 Comparison of the two methanol production methods Item Methanol production via coal gasification Methanol production using natural gas as raw material Evaluation Total investment: 1,558.95 million yuan vs. 400 million yuan; the latter has a lower investment cost. Production scale: Can produce over 300 kt/a of methanol; limited to 300 kt/a only. The former has a higher production capacity. Production conditions: It is necessary to find a market for the by-product fuel gas; the supply of gas from western regions to the east must be reliable. The conditions for the former are more stringent. Production cost: 958 yuan/t vs. 1,518 yuan/t; the former has significantly lower costs. After-tax return on investment: 15.41% vs. 23.35%; the latter yields a higher return. Environmental impact: Higher investment required for environmental protection measures; no pollution. The former is subject to environmental regulations. Both methods have their advantages and disadvantages. In the long term, by choosing the gasification process, it is possible to produce products that meet the needs of various users, and the cost of these products is significantly lower than their market price. This approach provides strong resilience against market risks, and the production capacity can meet the future demand for 600 kt/a of methanol required for the expansion of acetic acid production. Therefore, for the 600 kt/a acetic acid project in the Nanjing area, gasification-based methanol production is more competitive in the market compared to natural gas-based methanol production, and it offers better economic prospects for future expansion. 3 Analysis of the optimal portfolio investment approach: The 300 kt/a ammonia synthesis plant owned by Nanhua Group Company, located near the Nanjing Chemical Industrial Park, is suffering severe production losses due to a chronic shortage of raw materials for the gasifiers that use tar and asphalt as feedstocks. The company plans to switch to a gasification process starting in 2005 to produce syngas, from which hydrogen will be separated for use in the ammonia synthesis plant, in an effort to turn that plant around and make it more profitable. By integrating this gasification unit with the syngas project required for 300 kt/a of methanol, investment costs can be reduced, and the utilization rates of products and by-products can be improved, resulting in very attractive prospects for overall economic benefits. 3.1 Feasibility analysis of investment project integration: A single Texaco gasification furnace can produce 131,486 Nm3/h of gas (with H2 at 37.13%, CO at 45.46%, CO2 at 15.52%, and other impurities). Theoretically, 300 kt/a of ammonia production requires 10,000 Nm3/h of hydrogen (>95% purity), while 300 kt/a of methanol production needs 92,842 Nm3/h of syngas (with H2 at 67.64%, CO at 29.9%, and CO2 at 2.49%). Clearly, two gasification units in operation along with one in standby is sufficient to meet both the hydrogen demand for 300 kt/a of ammonia production and the syngas demand for 300 kt/a of methanol production. Therefore, it is a feasible solution to share one gasification unit for 300 kt/a ammonia synthesis and 300 kt/a methanol production. This helps to avoid duplicate investment in projects within the same area, activates state-owned assets, increases their value, and ensures their optimal utilization. At the same time, it allows for maximum use of resources in the surrounding areas, resulting in a win-win situation for all parties involved. 3.2 Economic analysis of investment project integration: Project integration can reduce equipment investment. The original 300 kt/a ammonia synthesis plant had a syngas cooling box separation system, which reduced investment by 94.66 million yuan and saved land costs by 13.5 million yuan (see Table 1 for details). The integrated coal gasification investment project produces 300 kt of methanol per year, with a production cost of 868 yuan per ton. This is lower than the cost of building a coal gasification facility dedicated to methanol production at the same capacity (958 yuan per ton). The annual cost savings for this project amount to: (958 – 868) × 30 = 27 million yuan. In addition, the price of hydrogen for 300 kt of synthetic ammonia is 3,000 yuan per ton, which is an extremely low price that enables synthetic ammonia projects to achieve greater efficiency. Therefore, the project integrates coal gasification to produce 300 kt of synthetic ammonia and 300 kt of methanol per year, resulting in even more outstanding economic efficiency.
| Item | Quantity | Total/CNY•h-1 |
|------|----------|----------------|
| Raw materials | 103 | 503.78 |
| Coal (247.7 CNY/t) | t•h-1 | 135.35; 33,526 |
| Industrial water (1.4 CNY/t) | t•h-1 | 771; 1,079.4 |
| Oxygen (446 CNY/t) | Nm3•h-1 | 76; 512,487 |
| Water (4.2 CNY/t) | t•h-1 | 93.9; 394.38 |
| Electricity (0.5 CNY/kW·h) | kW•h | 23,800; 11,900 |
| Coal storage cost (31.3 CNY/t) | t•h-1 | 104; 3,255 |
| Recycled water (0.23 CNY/t) | t•h-1 | 20,000; 4,600 |
| By-products | 84 | 319 |
|------------|----|-----|
| Slag (18.72 CNY/t) | t•h-1 | 30.06; -563 |
| Syngas as fuel (500 CNY/t) | Nm3•h-1 | 165; 213 (155.3 t); -77,650 |
| Medium-pressure steam (90 CNY/t) | t•h-1 | 41; -3,690 |
| Sulfur (585 CNY/t) | t•h-1 | 4.13; -2,416 |
| Fixed assets/10,000 CNY | 155 | 895; 16,741 |
|----------------------------|-----|----------------|
| Coal preparation system | 2,976 | |
| Gasification unit | 69,195 | |
| Acid gas removal | 16,555 | |
| Cryogenic separation | 9,466 | |
| Flue gas compression | 4,820 | |
| Methanol production unit | 30,000 | |
| Sulfur recovery unit | 21,533 | |
| Land (300 CNY/m2) | m2 | 1,350; 45,000 |
| Other costs | | 3,750 |
| Product: Methanol | t•h-1 | 37.5; 958 |
As can be seen from Table 1, the annual production of 300 kt of methanol from coal via gasification results in a cost of 958 CNY per ton. This is mainly due to the low price of raw coal, as well as the use of syngas as a fuel, which adds value to the product. Annual after-tax profit: (1,900 – 958) × 37.5 × 8,000 × (1 – 15%) ÷ 10,000 = 24,021 (10,000 yuan); the return on investment after income tax is: 24,021 ÷ 155,895 × 100% = 15.41%. Therefore, producing methanol from coal as a raw material results in low production costs, strong resistance to market risks, and high return on investment. Due to high fixed asset investment, the larger the scale, the better the efficiency. All excess syngas is sent to the gas power plant at the Yangzi-BASF integrated petrochemical complex in the Nanjing Chemical Industrial Park as fuel. Therefore, a gasification process capable of producing 300 kt of methanol per year for supply to the acetic acid plants in the Nanjing Chemical Industrial Park represents a good option as a process design. 2.2 Production of methanol from natural gas and economic analysis: The use of natural gas to produce methanol is common both domestically and internationally. Its main purpose is to use low-cost natural gas resources to produce methanol, which facilitates transportation and enables the realization of the value of those natural gas resources. In the Nanjing area, there are no low-cost natural gas resources. It is clearly uneconomical to purchase new equipment and use natural gas from the \"West-to-East Gas Transmission\" project to produce methanol. However, given that Sinopec Yangzi Petrochemical Co., Ltd. (hereinafter referred to as Yangzi Petrochemical), located near the Nanjing Chemical Industrial Park, has excess production capacity in its hydrogen production facilities, it is worth considering the possibility of utilizing this idle capacity to produce syngas, which could then be used to manufacture the methanol required by the acetic acid plants in the Nanjing Chemical Industrial Park. 2.2.1 Introduction to Synthesis Gas Production from Natural Gas Many production methods can be used to generate the synthesis gas required for various major petrochemicals: (1) Methane steam reforming ； (2) Naphtha conversion method ； (3) Autothermal conversion method ； (4) Oxygenation secondary conversion method ； (5) Various hydrocarbons, petroleum coke, and partial oxidation of coal ； (6) Hydrogen and carbon dioxide retroconversion method. The above process methods (1) and (2) can be directly applied to the hydrogen production unit at Yangzi Petrochemical. Given that naphtha is used as a raw material for producing syngas, and its market price is much higher than that of natural gas, it is clearly not advisable to use naphtha as a raw material for syngas production. Other methods require the purchase of new equipment, and are even less suitable given Nanjing’s lack of cheap natural gas resources for methanol production. The H2/CO ratio of the syngas produced by synthetic gas industrial production technologies varies approximately between 6 and 1.5. If there is a high demand for pure hydrogen in the vicinity, hydrogen can be separated from syngas and sold. Without a large hydrogen-consuming source, it can only be used as fuel, which is extremely uneconomical. Methanol production is the largest user of syngas, and its raw material is syngas itself. The hydrogen production unit at Yangzi Petrochemical, located near the Nanjing Chemical Industrial Park, consists of two parallel units, A and B, with a total hydrogen production capacity of 23,600 m3/h. Since it was built and put into operation in 1989, it has been in use for 15 years now; its asset depreciation has been completed, and its net asset value is almost zero. Due to the numerous renovations carried out on the aromatics complex at Yangzi Petrochemical over the past 10 years, the hydrogen produced as a by-product of the reforming units has increased. Meanwhile, the demand for hydrogen in the main hydrogen-consuming units, such as the hydrocracking unit, has remained relatively stable. As a result, operating 50% to 80% of the capacity of the Hydrogen Production Unit A is sufficient to meet the hydrogen needs of the aromatics complex, while the Hydrogen Production Unit B has been shut down for extended periods of time. Therefore, idle equipment can be utilized to produce industrial methanol, which is in short supply in the surrounding market. 2.2.2 Economic analysis of hydrogen production retrofit for syngas generation: The requirements for syngas in methanol production are: CO, 29.90% ； H2, 67.64% ； CO2, 2.49% ； (4.85 MPa, 35 ℃) ； Other impurities are negligible. However, using natural gas as the feedstock with a water-to-carbon ratio of 3.05, and at an exit temperature of 820°C in the steam reformer of the hydrogen production unit, the composition of the reformate gas is as follows: CH4, 2.7%; H2, 70.5%; CO, 13.5%; CO2, 13.3%. At 100% load of the ice production unit series, the total volume of dry gas in the converted gas is approximately 72,000 m3/h. The converted dry gas cannot be used directly as a feedstock for methanol plants; it is necessary to use CO2 removal units at the outlet of the conversion furnace, as well as additional deep cryogenic separation units, to produce syngas that meets the requirements of methanol production plants. An annual production of 300 kt of methanol requires 92,842 m3/h of syngas that meets the specified requirements. The additional investment in separation equipment is: 1 billion yuan. The cost calculation for producing syngas in the hydrogen production plant is shown in Table 2. Table 2: Summary of Inputs and Outputs for Synthesis Gas Production via Natural Gas Steam Reforming
| Item | Quantity | Total/CNY•h-1 |
|------|----------|----------------|
| Raw materials | 51 | 8,240 |
| Natural gas (as fuel) (1.31 CNY/Nm3•h-1) | 35,129 | 46,019 |
| Cooling water (0.23 CNY/m3)/m3•h-1 | 1,500 | 345 |
| Nitrogen gas (0.20 CNY/Nm3•h-1) | 200 | 40 |
| Deionized water (13 CNY/t)/t•h-1 | 140 | 1,820 |
| Electricity (0.5 kW•h)/kW•h | 7,200 | 3,600 |
| By-products | – | -3,200 |
| High-pressure steam (-80 CNY/t)/t•h-1 | 40 | -3,200 |
| Fixed assets/10,000 CNY | 2,708 | – |
| Renovation costs | 10,000 | 833 |
| Annual wages and management costs | 1,000 | 1,250 |
| Annual maintenance costs | 500 | 625 |
| Product | Quantity | Unit Cost/CNY |
|---------|----------|---------------|
| Carbynyl synthesis gas/Nm3•h-1 | 92,842 | – |
| Variable cost of synthesis gas/CNY•m3 | 0.524 | – |
| Total cost of synthesis gas/CNY•m3 | 0.533 | – |
As can be seen from Table 2, the consumption of natural gas and its price have the greatest impact on the overall costs. Therefore, it is also crucial to keep the natural gas purchase price at 1.31 yuan/m3, and this must be specified in the supply contract. 2.2.3 Economic analysis of converting the facility for hydrogen production to syn gas production for methanol manufacture: Based on an annual production capacity of 300 kt of methanol, the investment required for this conversion is estimated at 300 million yuan. With a raw material flow rate of 92,842 Nm3/h, 37.5 t/h of methanol can be produced. The methanol cost calculation is shown in Table 3 (the syngas price is given in Table 2 above). Table 3 Methanol Economic Analysis
Item | Quantity | Total/CNY•h-1
--- | --- | ---
Raw materials | 54 | 349.5
Syngas (0.553 CNY/Nm3) | 92 | 842
51 | 342
Cooling water (0.23 CNY/m3) | 1,800 | 414
Desalinated water (1.87 CNY/t) | 50 | 93.5
Electricity (0.5 kW•h) | 5,000 | 2,500
By-products | – | -2,000
Low-pressure steam (-50 CNY/t) | 40 | -2,000
Fixed assets/10,000 CNY | 4,561
Wages and management costs | 500 | 625
Manufacturing costs | 30,000 | 2,500
Other costs | 1,098 |
Maintenance costs | 338 |
Product: Methanol/t•h-1 | 37.5
Variable costs/CNY•t-1 | 1,396
Total cost of product/CNY•t-1 | 1,518
At an average market price of 1,900 CNY/t for methanol, a production capacity of 300 kt/a can generate a profit of: (1,900 – 1,518) × 37.5 × 8,000 ÷ 10,000 = 11,460 (10,000 CNY). The after-tax profit is 97,410,000 CNY (with a tax rate of 15%), resulting in an after-tax return on investment of: 97,410,000 ÷ 40,000 × 100% = 24.35%. It can be seen that by upgrading existing facilities, without adding personnel, land, or utilities, and without altering the properties of hydrogen—the main product of the hydrogen production plant—efficiency can be improved, thereby yielding certain economic benefits. It is indeed a good investment option. 2.3 Comparison of the two methanol production methods The two processes for methanol production are listed in Table 4. Table 4 Comparison of the two methanol production methods Item Methanol production via coal gasification Methanol production using natural gas as raw material Evaluation Total investment: 1,558.95 million yuan vs. 400 million yuan; the latter has a lower investment cost. Production scale: Can produce over 300 kt/a of methanol; limited to 300 kt/a only. The former has a higher production capacity. Production conditions: It is necessary to find a market for the by-product fuel gas; the supply of gas from western regions to the east must be reliable. The conditions for the former are more stringent. Production cost: 958 yuan/t vs. 1,518 yuan/t; the former has significantly lower costs. After-tax return on investment: 15.41% vs. 23.35%; the latter yields a higher return. Environmental impact: Higher investment required for environmental protection measures; no pollution. The former is subject to environmental regulations. Both methods have their advantages and disadvantages. In the long term, by choosing the gasification process, it is possible to produce products that meet the needs of various users, and the cost of these products is significantly lower than their market price. This approach provides strong resilience against market risks, and the production capacity can meet the future demand for 600 kt/a of methanol required for the expansion of acetic acid production. Therefore, for the 600 kt/a acetic acid project in the Nanjing area, gasification-based methanol production is more competitive in the market compared to natural gas-based methanol production, and it offers better economic prospects for future expansion. 3 Analysis of the optimal portfolio investment approach: The 300 kt/a ammonia synthesis plant owned by Nanhua Group Company, located near the Nanjing Chemical Industrial Park, is suffering severe production losses due to a chronic shortage of raw materials for the gasifiers that use tar and asphalt as feedstocks. The company plans to switch to a gasification process starting in 2005 to produce syngas, from which hydrogen will be separated for use in the ammonia synthesis plant, in an effort to turn that plant around and make it more profitable. By integrating this gasification unit with the syngas project required for 300 kt/a of methanol, investment costs can be reduced, and the utilization rates of products and by-products can be improved, resulting in very attractive prospects for overall economic benefits. 3.1 Feasibility analysis of investment project integration: A single Texaco gasification furnace can produce 131,486 Nm3/h of gas (with H2 at 37.13%, CO at 45.46%, CO2 at 15.52%, and other impurities). Theoretically, 300 kt/a of ammonia production requires 10,000 Nm3/h of hydrogen (>95% purity), while 300 kt/a of methanol production needs 92,842 Nm3/h of syngas (with H2 at 67.64%, CO at 29.9%, and CO2 at 2.49%). Clearly, two gasification units in operation along with one in standby is sufficient to meet both the hydrogen demand for 300 kt/a of ammonia production and the syngas demand for 300 kt/a of methanol production. Therefore, it is a feasible solution to share one gasification unit for 300 kt/a ammonia synthesis and 300 kt/a methanol production. This helps to avoid duplicate investment in projects within the same area, activates state-owned assets, increases their value, and ensures their optimal utilization. At the same time, it allows for maximum use of resources in the surrounding areas, resulting in a win-win situation for all parties involved. 3.2 Economic analysis of investment project integration: Project integration can reduce equipment investment. The original 300 kt/a ammonia synthesis plant had a syngas cooling box separation system, which reduced investment by 94.66 million yuan and saved land costs by 13.5 million yuan (see Table 1 for details). The integrated coal gasification investment project produces 300 kt of methanol per year, with a production cost of 868 yuan per ton. This is lower than the cost of building a coal gasification facility dedicated to methanol production at the same capacity (958 yuan per ton). The annual cost savings for this project amount to: (958 – 868) × 30 = 27 million yuan. In addition, the price of hydrogen for 300 kt of synthetic ammonia is 3,000 yuan per ton, which is an extremely low price that enables synthetic ammonia projects to achieve greater efficiency. Therefore, the project integrates coal gasification to produce 300 kt of synthetic ammonia and 300 kt of methanol per year, resulting in even more outstanding economic efficiency.
On the 2nd floor, there used to be my reply earlier, explaining that it was a project for producing methanol from coke oven gas; those were the figures based on my memory. It was only after obtaining the feasibility study that the content on the 2nd floor appeared. The original post was deleted for some reason: (
It seems there are such reports in the download area; I have downloaded them before
The 200,000 tons per year methanol production project utilizes Texaco gasification, low-temperature sulfur-resistant shift reaction, low-temperature methanol washing for purification, and Lurgi low-temperature methanol synthesis, along with a three-column distillation process to produce methanol that meets American AA grade standards. The investment required is approximately 1.2 billion yuan (including facilities for residential use and public services), and the project covers an area of around 600 mu
A feasibility study report contains a great deal of content; it is a complete system that cannot be explained in just a few sentences.
Good discussion topic, let’s continue. . . .
On July 7, 2006, the National Development and Reform Commission stated in its \"Notice on Strengthening the Management of Coal Chemical Industry Projects to Promote the Healthy Development of the Industry\" that competent authorities at all levels should generally not approve coal-to-oil projects with a capacity of less than 3 million tons per year, methanol and dimethyl ether projects with a capacity of less than 1 million tons per year, and coal-to-olefins projects with a capacity of less than 600,000 tons per year. The surge in coal chemical industry development was strongly curbed by **.
Now, 200,000 tons and 1.5 billion are out of reach