Is it promising to build large-scale coal-based fertilizer plants at present?
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The future of the fertilizer industry remains uncertain: 1. **Stringent requirements for energy conservation and emission reduction exist, yet low-efficiency fertilizer production facilities still account for a significant proportion, suggesting the possibility of structural adjustments. 2. Domestic fertilizer prices are capped, export tariffs keep rising, and foreign fertilizer prices are high. 3. The investment for a large-scale fertilizer plant using coal as raw material still requires 2–3 billion yuan. Is it feasible to build a new large-scale fertilizer plant using this approach?
China is a major coal-producing country, and it is feasible to build large-scale fertilizer plants powered by coal in areas rich in coal resources.
In fact, it is entirely feasible to set up such facilities in a systematic manner. The problem is that currently everyone is rushing to do this, with projects of increasing scale, and most of them focus on fertilizer and methanol production. The products are limited in variety, and they are highly susceptible to market fluctuations. All these are high-energy-consuming industries, subject to significant constraints in terms of resources. If there are fluctuations in the economic cycle, I am not optimistic about these enterprises.
Natural gas is the best choice for producing ammonia, but it is also in short supply in China; therefore, the construction of new ammonia production facilities using natural gas is not allowed. It would be better to upgrade and expand existing fertilizer plants that use coal in areas where coal resources are abundant.
Still dealing with coal-related issues!:L. It’s more or less ready now; once work starts on it, it will turn into a \"problem\" instead:lol. It’s just my personal opinion. Currently there is already strain, the coal industry is booming, but not enough resources are available to meet such development needs, and the demand on the downstream side is also limited.
Did everyone notice? The domestic industry situation follows certain cycles: the chemical industry was at its lowest point in previous years, with many companies closing down; it has since experienced a revival, with new projects being launched in large numbers. By the time all these projects come online, it is likely that the industry will have reached its peak, after which it will start to decline again!
A planned economy also has its advantages; a laissez-faire market economy turns the market into a mess.
For projects with such high energy consumption, it’s better to have fewer of them
Personally, I think companies that have coal resources should get involved in this; selling processed products yields a higher added value than selling raw coal. Companies without resources should, considering those resources, try to locate themselves in areas with coal in order to reduce transportation costs. Looking at the cost trends of nitrogen fertilizers, the rising costs will certainly be higher than those of coal. **Small nitrogen-based fertilizers will be adjusted in a planned manner according to the needs of energy conservation and emission reduction; it is likely that the industry will move in the direction of cement and electrolytic aluminum production. The best time to go is early.
From the perspective of the energy structure, coal is best used for power generation.
In the long run, coal chemical industry must continue to develop. After all, natural gas and oil are finite resources, and their prices will keep rising; the conversion costs will also increase, which will force continuous development and improvement of coal chemical technologies in order to reduce the costs associated with their construction and use. At present, large-scale fertilizer manufacturers still have a certain competitive advantage in terms of raw material costs, provided that they operate on a large scale – with each production unit having a capacity of 700,000 to 1 million tons or more.
Why don’t we import large amounts of urea instead of exporting it? We lack resources; coal chemical processing is currently being tested in China, and we pay a high price for this, with a high degree of dependence as well! Others sell technology and brands, while we sell resources and raw materials – it’s a shame for future generations! Decision-makers are inactive!
What everyone has said makes a lot of sense. In my opinion, although there is an excess of fertilizers in the country, a significant proportion of domestic fertilizer production facilities have high energy consumption. And though China has relatively abundant coal resources, they are not infinite. Structural adjustment of fertilizers is inevitable in the future, taking into account **energy and agricultural policies. It’s also difficult to prepare a comprehensive report for newly installed equipment. The current facts are sufficient to show that the price abroad is nearly 400 dollars, while in China it is limited to over 1,700 yuan.