How can pilot and industrial trials of new process equipment be carried out legally and compliantly on operational chemical plants?
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Located in Shandong, our company is a producer of hazardous chemicals; due to poor management, we wish to undergo a transformation. The higher-level authority has a large-scale scientific research and testing project related to chemical processing equipment, and this project is compatible with the process equipment we currently have; therefore, we would like to take on this task. However, Article 27 of the Law of the People’s Republic of China on the Safety of Hazardous Chemicals stipulates that before transferring new processes related to hazardous chemicals, the development unit must complete a safety and reliability assessment of such processes, progressing from pilot tests and scale-up tests to industrial production. Any entity or individual is prohibited from conducting pilot tests or industrial trials of new processes on operational production facilities. Therefore, the local safety regulatory authorities do not approve it. I kneel here to thank those with relevant experience for offering their advice; if a viable solution can be found, I will surely reward them generously! ! !
Is it to conduct industrial-scale scale-up tests directly?
A joint venture can be established with the research institute to define the share of intellectual property rights, after which existing facilities can be leased to jointly carry out pilot and industrial-scale scale-up tests.
【Safety Assessment of New Processes】Before transferring new processes related to hazardous chemicals, the development unit shall complete a safety and reliability assessment of the process, and gradually scale it up to industrial production based on pilot tests, scale-up tests, and industrial trials. Any entity or individual is prohibited from conducting pilot tests or industrial trials of new processes on operational production facilities. ===== We need to take it step by step
The idea of establishing a joint venture was considered, but for certain reasons this option cannot be implemented. Our company holds a license for the production of hazardous chemicals; it is for this reason that the local authorities state that pilot tests cannot be carried out on operational production facilities, even if we have completed the safety and reliability assessments. In that case, can we proceed by having our company cancel its hazardous chemicals production license, stop production, and transform into a research company? Please, expert, give me some guidance: handshake
The idea of establishing a joint venture was considered, but for certain reasons this option cannot be implemented. Our company holds a license for the production of hazardous chemicals; it is for this reason that the local authorities state that pilot tests cannot be carried out on operational production facilities, even if we have completed the safety and reliability assessments. In that case, can we proceed by having our company cancel its hazardous chemicals production license, stop production, and transform into a research company? Please, expert, give me some guidance: handshake
How can one casually speak of “canceling the license for hazardous chemicals production”? This certificate is a symbol of wealth and status, it’s the pass to work in this industry – how could one give it up? “The idea of establishing a joint venture was considered, but for certain reasons this option cannot be implemented. ”Since it’s not possible to establish a traditional joint venture company, alternatives exist; project-based joint ventures can be set up, such as companies for pilot testing of new processes and equipment or for industrial-scale testing projects. The establishment and dissolution of such joint ventures can be based on specific phased goals, thereby simplifying rights, obligations, and benefits.
Carry out pilot and pilot-scale tests in collaboration with research institutions, then submit the new project through industrial-scale testing and technical upgrades; following the procedures step by step should work
Let’s talk about two cases, one successful and one unsuccessful. Case 1: In 2004, Shaanxi Xinxing Coal Industry collaborated with the Institute of Catalysis of the Chinese Academy of Sciences and Sinopec Luoyang Engineering Company to establish Xinxing New Energy Technology Company, aiming to carry out industrial-scale trials of MTO (methanol-to-olefins) on a ten-thousand-ton scale; the project was successful in 2006. Today, the DMTO process package is widely used both domestically and internationally, with dozens of units sold, yielding significant economic benefits. Case 2: In 2006, Anhui Huaihua Group collaborated with Tsinghua University and China National Chemical Engineering Corporation to develop an industrial test plant for FMTP (methanol-to-propylene). The project was successfully commissioned in 2009, but due to its complicated process structure, it lacked competitiveness in the market, and not a single unit was sold.