GE adjusts its strategy for the Chinese coal chemical industry market
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Author/Source: China Chemical Industry News Date: 2009-4-8 -------------------------------------------------------------------------------- On April 1, U.S.-based GE Energy announced that, in order to meet the growing demand for larger-scale industrial gasification projects, it would introduce large-scale quenching gasifiers with a gasification combustion chamber volume of 50 cubic meters. The following day, Keith White, product director of GE Energy’s gasification business unit, said in an exclusive interview with our newspaper that China’s coal chemical industry is moving toward greater industrial consolidation and larger-scale projects; therefore, GE’s gasification technology must adapt to these changes by increasing the scale of its facilities and adjusting its strategy in China. Compared to some well-known foreign companies that possess gasification technology, GE does not seem to be as renowned in this field, especially in China. However, Case White’s list of successful cases demonstrates that GE’s gasification technology and its market strategies are indeed at the world’s leading level. GE gasification technology has been used in the production of ammonia, hydrogen, methanol, and other products for 60 years. Currently, among the users around the world who hold patents for GE gasification technology, 65 companies are already in operation, while another 20 companies are in the stage of engineering design or construction. In China, there are currently 37 GE gasification licensing trading projects. Among them, 27 are coal gasification projects, of which 17 are already in operation. These include the CO and methanol production projects using coking coal in Shanghai, the butyl and octyl alcohol production projects using coal by Sinopec Qilu, the synthetic ammonia production project using coal in Dalian, the methanol and synthetic ammonia production projects using coal in the Weihe River area, as well as the Shandong Lunan Fertilizer Factory. In GE’s global strategy for gasification technology, China is undoubtedly a crucial market. The 50-cubic-meter cryogenic gasifier technology introduced by GE Energy Group can process approximately 3,000 tons of coal per day per unit, with a syngas production rate of around 210,000 standard cubic meters per hour. It represents the largest capacity model of cryogenic gasifiers that GE is currently deploying in industrial applications around the world. To meet the requirements of current large-scale chemical projects, the 50-cubic-meter gasifier simplifies operations; by reducing the number of gasifiers, it helps to cut down on project investment and operating costs, making the operation more economical, safe, and stable. Case White told reporters, “This large-capacity quenching gasifier helps meet customers’ demands for larger-scale projects and larger gasifiers.” We believe that large-scale gasifiers hold great appeal for coal gasification enterprises in China. China’s economic growth has prompted many gasification companies to build large-scale projects. ” GE Energy of the United States not only has a keen sense of the future development of China’s coal chemical industry, but also acts swiftly to expand its influence; its advancements in large-scale gasification technology are directed toward new forms of coal chemical manufacturing such as methanol and MTO (methanol-to-olefins). In recent years, GE Energy’s gasification technology has been increasingly used in large-scale coal gasification projects in China, including the chemical plant operated by Xineng Energy Company, a subsidiary of SNOW GROUP, in Inner Mongolia. This plant produces 4.5 million standard cubic meters of syngas per day for use in the production of chemicals. GE has also signed a licensing agreement with Shenhua Baotou Coal Chemical Co., Ltd., which will build a plant in the Inner Mongolia Autonomous Region to produce over 12 million standard cubic meters of syngas per day for use in manufacturing chemicals. Currently, well-known foreign gasification technology companies are competing in China’s gasification market. GE has adjusted its strategic focus and is using its large-volume quenching gasification technology with a capacity of 50 cubic meters to overcome obstacles and strive to gain a competitive advantage in this market. Confident in achieving this strategic goal, Case White told reporters that among GE’s 37 projects in China, the localization rate for gasification units has reached over 90%; for the units that utilize GE’s gasification technology, most of the equipment can be manufactured in China itself. Furthermore, the annual operation rate of GE’s 4 gasification solid feed enterprises in China exceeds 90%, with a stability level of over 96%. Furthermore, for the GE gasification technology project, the time from contract signing to the start of operations is only two to three years, resulting in a significantly faster project progress compared to domestic and foreign competitors. Perhaps these three advantages are precisely GE’s trump cards in its strategy to enter the Chinese coal chemical industry market.
"Compared to some well-known foreign companies that possess gasification technology, GE does not seem to be as renowned in this field, especially in China. There’s a problem with this statement; GE Technology is actually what was once Texaco, and the first project undertaken after the acquisition was the Nanjing Huisheng methanol project. Those who are older may not be familiar with GE, but everyone knows Texaco, haha. At that time, GE acquired Texaco’s gasification business from Chevron in order to leverage its strengths in gas turbines to advance IGCC development and offer a one-stop solution. However, in China, the main focus of gasification is indeed the production of chemicals. Given the huge market for coal chemical products in China, GE still needs to vigorously develop cryogenic gasification furnace technology. However, GE is after all a diversified company; unlike other specialized oil and chemical companies, it does not engage sufficiently in the chemical processing aspects following gasification, which in turn limits the advancement of GE’s gasification technology. This post was last edited by Ma Hai on 2009-4-11 14:02.]
China has all kinds of technologies in the field of gasification; it’s practically a laboratory for such technologies. Unreliable technologies from other countries are brought to China for industrial application, and China has suffered a lot as a result
Compared to coal gasification, GE technology is essentially the original Texaco technology; the first plant using this technology in China was located in Lunan, and it has been in operation for over a decade. Compared to other coal chemical technologies, GE technology is more mature.
GE’s adjustment of its gasification business strategy in China is a good thing for both the company itself and domestic owners. Firstly, for its own sake, it can better compete in the market and gain an advantage in large-scale coal chemical projects, such as those involving 500,000 tons or more of coal-derived olefins, methanol, or even larger-scale projects. Given TEXACO’s performance over the past decade or so in China, there should be no problems with this. Additionally, it enables enhanced research and development in coal gasification. It can be said that after GE acquired TEXACO’s technology, there were hardly any major changes; rather, it was the domestic project owners who made some modifications during their own use of the technology. Thus, it is easy to understand why GE’s market share has been gradually eroded by SHELL and other competitors. I plan to go to GE for a visit in a while to try to get an idea of the latest developments: lol For owners, there are more options available; under the same conditions, they can have one or two fewer units installed. Of course, owners will also be more concerned about the reliability of the technology. For GE gasification furnaces with single-nozzle top injection, it is necessary to determine how much further potential there is in terms of gasification capacity; it is likely that both the gasification pressure and the volume of the gasification furnace will need to be adjusted accordingly to ensure that both the gasification capacity and the conversion rate meet the required standards. As for whether any other modifications are needed, those who are aware of this can contribute to further discussions on these aspects.