The methanol industry puts forward suggestions for orderly development

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According to the latest statistics from the China Nitrogen Fertilizer Industry Association, in 2012 more than 5.5 million tons of new methanol production capacity will come online in China, bringing the total production capacity to over 52 million tons. At the same time, the development of downstream applications for methanol is progressing slowly. On March 23, Li Shousheng, executive vice president of the China Petroleum and Chemical Industry Federation and president of the China Nitrogen Fertilizer Industry Association, said in an interview with reporters that the blind construction of methanol projects and disorderly competition must be stopped. At present, the Methanol Subcommittee of the Nitrogen Fertilizer Association has put forward the \"Suggestions on the Orderly Development of the Methanol Industry,\" which is currently under discussion within the industry. Li Shousheng said that over-investment in the methanol industry is now a consensus within the industry, yet it continues. In 2011, the operating rate of the methanol plant increased compared to the previous year, but it remained below 60%. With optimistic views on the prospects of coal-based olefins and methanol gasoline, some companies launched projects recklessly without carefully examining their own capabilities, regional layout, and technological advancement. Looking at the downstream consumption of methanol since 2011, there is a severe overcapacity in the production of products such as formaldehyde, acetic acid, dimethylformamide, and glyphosate, meaning that future consumption growth will be limited. Due to the restrictions set by the \"Standards for Dimethyl Ether in Urban Gas,\" dimethyl ether cannot be blended with liquefied petroleum gas, making it difficult to increase its consumption. “During the 12th Five-Year Plan period, coal-to-olefins projects were mainly focused on upgrade demonstrations, with limited construction scale. Li Shousheng emphasized that when investing in projects to produce methanol from coal as a raw material, it is necessary to take into account the resource capacity limits, and to act in accordance with one’s capabilities, available resources, and the environmental carrying capacity. At present, a few coal-producing provinces and regions fail to take into account ecological and environmental carrying capacities by introducing multiple large-scale coal chemical projects with similar structures in the same area or development zone; even in some areas that do not meet the required conditions, multiple such projects are established. These issues must be addressed. To this end, the Methanol Special Committee proposes the following recommendation: no new coal-to-methanol projects with an annual production capacity of 1 million tons or less should be established ； New methanol projects must meet all necessary conditions, employ advanced technology, have a rational layout, and come with complete regulatory approvals; in addition, they need to have downstream products for which there is market demand ； Large methanol producers need to optimize the structure of their products, focusing on the development of high-tech derivative products in areas such as new chemical materials, fine chemicals, and new energy ； Do not build coal-based methanol-to-olefins projects with an annual production capacity of 500,000 tons or less ； Large methanol manufacturers are strengthening cooperation with downstream enterprises to achieve integrated development across the supply chain. It is recommended that methanol manufacturers focus on energy conservation and emission reduction, enhance technological innovation, and achieve clean production ； Strengthen industry self-discipline and organize production rationally in line with market demands ； Actively participate in the development of industry information sharing platforms ； Establish a mechanism for phasing out outdated production capacity to ensure its smooth withdrawal. The recommendations also suggest that methanol producers in regions such as Shanxi, Shanghai, and Shaanxi should actively participate in the pilot projects for methanol-based gasoline organized by the Ministry of Industry and Information Technology, focus on the research and development of additives, address technical issues related to application and environmental protection, and promote the establishment of relevant standards as well as the development of distribution channels. It is also understood that draft versions of the **standards for energy consumption limits per unit of methanol production** for coal, natural gas, coke oven gas, and synthetic ammonia co-production have been released for public comment. Once implemented, the standards will serve as the basis for guidelines regarding the production and operation, construction, and phasing out of methanol plants in the future.