The main problem in the development of northern coal chemical industry bases is a lack of water

Thread Content

Author/Source: China Chemical Industry News Date: 2009-4-15 -------------------------------------------------------------------------------- How to build coal chemical industrial bases in the coal-rich but water-scarce areas of northern China has long been a matter of concern within the industry. On the eve of the 2009 China (Ningxia) Coal Chemical Industry Development Strategy Summit Forum held at the end of March, reporters visited the Ningdong Energy and Chemical Industry Base in Ningxia. An investigation into the water resources situation in this **level energy-intensive chemical industry base revealed that, in order to develop the Ningdong base properly, the local authorities and many enterprises consider water to be a primary resource; they have adopted various water-saving measures such as reducing water consumption and emissions, promoting circular economy practices, and implementing water rights trading. However, these measures can only meet the short-term needs of base development and are insufficient to ensure long-term water supply. Coal chemical industry is a water-intensive sector; a coal-to-oil plant with an annual production capacity of 1 million tons can consume up to 10 million tons of water. Without sufficient water resources, the development of this industry faces significant risks. To this end, the northern coal chemical industry bases, represented by Ningdong in Ningxia, Yulin in Shaanxi, and Ordos in Inner Mongolia, have made water resource security a top priority from the very beginning of their planning and construction. Based on the actual conditions in recent years, the Yulin base in Shaanxi and the Ordos base in Inner Mongolia rely heavily on groundwater resources, and concerns regarding their ecological environment have begun to emerge. In contrast, the Ningdong base in Ningxia is located near the Yellow River, giving it relatively better access to water resources. However, the inherent water shortage in the northern region means that limited water supplies also pose a significant challenge to the development of the Ningdong base. For this reason, these bases have placed great emphasis in recent years on finding new sources of water resources and reducing water consumption; among the most important approaches are **water rights restructuring at the institutional level, as well as water conservation, emission reduction, and the adoption of a circular economy at the corporate level. According to Tian Jisheng, the executive vice general manager of Guodian Yinglite Energy Chemical Group Co., Ltd., the cost of industrial fresh water in Shizuishan City, Ningxia is over 2 yuan per ton, which is higher than the break-even point for wastewater treatment and reuse at 1.6 yuan per ton. This indicates that it is profitable for enterprises to carry out wastewater treatment and reuse; the price of reusable reclaimed water is around 1.2 yuan per ton. Therefore, many local enterprises in Ningxia place great emphasis on water conservation and emission reduction, as well as the development of circular economy systems, achieving virtually zero wastewater discharge. However, given the enormous water consumption of large energy and chemical complexes, efforts by enterprises to save water and reduce emissions can only alleviate some of the pressure, but not address the issue at its root. To this end, Ningxia began construction of the Ningdong water supply project at the end of 2003. According to Dai Xiaoping, the technical supervisor of the Yazhidang Reservoir for this project, the first phase of the Ningdong water supply project was completed in 2005, with a total water supply volume of 159.7 million cubic meters, of which 135.7 million cubic meters were supplied for industrial use. Upon completion of the second phase, the total water supply volume will be 360.2 million cubic meters. It is understood that the construction of the Ningdong water supply project is a successful example of water rights transformation implemented in Ningxia. To ensure the timely construction of the Ningdong base, the autonomous region, in light of the low efficiency of water use in local agriculture, implemented water-saving irrigation projects in the Hexi Irrigation Area of Qingtongxia. A range of water-saving measures were taken, such as lining irrigation channels and adjusting the crop mix, in order to save water. From the total 4 billion cubic meters of Yellow River water allocated to Ningxia each year, water was saved through water rights transfers, with the water saved in agriculture being sold on a paid basis to industry, thereby enabling water resources to generate greater economic benefits. Li Jiangong, the executive deputy director of the Ningdong Office in the Ningxia Autonomous Region, told reporters that in Ningxia, the industrial output generated per ton of water is nearly 20 times that of the agricultural sector. To develop the energy and heavy industry in Ningdong, the autonomous region has formulated over 20 specific plans related to water utilization. It is stated that the water supply and consumption volume of the Ningdong water supply project corresponds to the water usage quotas obtained by various users in the Ningdong area through water rights conversion. At the project initiation stage, all water users at the base apply to the Autonomous Region Water Resources Department for water allocation quotas, sign water rights transfer agreements, and pay fees for the transfer of water resources. The water resources management department uses this funds to launch water-saving renovation projects; the agricultural water saved is converted into industrial water, which is now priced at 2.35 yuan per ton. This transformation of water rights integrates investment in water conservation with the transfer of water rights, thereby creating a water conservation incentive mechanism and an investment management system that are in line with market principles, providing supplementary support for the water supply in the Ningdong area. Li Jianguo told reporters that at present, water rights conversion has enabled the supply of about 30% of the industrial water needed by the Ningdong base. According to reporters, another important coal chemical industry hub in the north, Ordos in Inner Mongolia, has invested over 400 million yuan since 2005 to develop 7 water rights conversion projects. Of the 700 million cubic meters of Yellow River water allocated to this city for agricultural use, 77.78 million cubic meters were obtained through water rights conversion, thereby essentially resolving the water supply issue for the city’s coal chemical projects. At present, although the coal chemical complexes in the northern regions claim that their water supply is secure, some industry experts express concerns about the long-term outlook: with a series of large and very large coal-fired power and coal chemical projects coming online, industrial water demand will increase rapidly, leading to an increasingly severe water shortage. At the same time, due to climate changes, the flow rate of the Yellow River is continuously decreasing, while the demand for water for industrial and agricultural purposes is on the rise. In the event of extreme weather conditions such as persistent droughts, water resource conflicts will intensify significantly. The reporter learned at the Ningdong base that many local officials and managers of coal chemical enterprises place their hopes for ensuring a long-term supply of water for the base’s operations in the West Route of the South-to-North Water Diversion Project. It is evident that the progress of the long-awaited West Route of the South-to-North Water Diversion Project will largely determine the implementation timeline of the long-term plans for the coal chemical industry bases in the north.