【Haichuan Project Updates】Multiple locations plan to build BDO projects
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Due to the strict implementation of plastic restriction policies and the dual-carbon goals, demand for PBAT in China is about to experience a surge, which in turn will drive rapid growth in the future demand for BDO. Since 2021, many companies have begun to enter the BDO industry, and recently several more firms have released news related to BDO. On May 5, the Development and Reform Commission of the Guangxi Autonomous Region issued the \"Notice from the Office of the Leading Group for Promoting the Construction of Major Projects in the Guangxi Zhuang Autonomous Region on the Release of the Plan for Promoting Major Projects at the autonomous region level in the second batch for 2022\". The second batch of major projects includes the 1,4-butanediol project (BDO) for Guangxi Hua Yi New Materials Co., Ltd., with a total production capacity of 320,000 tons per year of maleic anhydride and 200,000 tons per year of BDO. It is planned to obtain approvals such as pre-land use review, site selection approval, energy efficiency assessments, and environmental impact assessments by the end of 2022.
On May 5, the coal-based chemical new materials and fine chemicals project of Xinjiang Yihua Chemical Co., Ltd. was approved for registration. Xinjiang Yihua Chemical Co., Ltd. plans to invest in the Zhundong Economic and Technological Development Zone in Changji Prefecture, Xinjiang, to build an industrial cluster based on coal-to-methanol and coal-to-synthetic ammonia production, with downstream industries such as melamine, BDO, DMC, DMF, and PBAT as its core components. The total investment for the project is approximately 21.463 billion yuan, with a construction period from April 2022 to December 2025. Among the various projects planned is one that involves using formaldehyde and acetylene as raw materials to build facilities capable of producing 100,000 tons of BDO per year, along with related production equipment ； And using BDO, PTA, and AA as the main raw materials, build 2×50,000-ton PBAT production facilities along with supporting equipment.
On April 28, the People’s Government of Pingluo County, Shizuishan City, Ningxia, held a signing ceremony with Ningxia Guanneng New Materials Technology Co., Ltd. for the “Polymer, biodegradable materials and related upstream industrial chain projects” carried out by Ningxia Guanneng New Materials Technology Co., Ltd.; this marked the official launch of a major investment project worth tens of billions of yuan aimed at producing products such as BDO, PBT, and spandex. The first phase of the project is scheduled to be completed in June 2024, with the main constructions including 200,000 tons per year of BDO, 120,000 tons per year of PTMEG, 120,000 tons per year of spandex, 120,000 tons per year of PBT, and 100 MW of photovoltaic power generation capacity. Phase 2 of the project is scheduled to be completed in December 2025, with the main constructions including 300,000 tons per year of BDO, 120,000 tons per year of PTMEG, 180,000 tons per year of spandex, 100,000 tons per year of NMP, 100 MW of photovoltaic power generation, and 6 units capable of producing hydrogen through water electrolysis at a rate of 5,000 m³/h each.
It is reported that Ningxia Wuheng Chemical will invest 1.2 billion yuan to build a 2×116,000-ton BDO production facility; trials of this facility are scheduled to begin in July 2022. The company will also invest additional funds to produce another 70,000 tons of BDO.
Recently, Wanhua Chemical also announced the establishment of a subsidiary, Wanhua Chemical (Ningxia) Co., Ltd., with plans to invest in the Ningdong facility to build MDI separation and BDO production facilities using the propylene method.
Both consumption and demand for BDO have seen significant growth. In recent years, the consumption of BDO in China has been on the rise, with an average annual growth rate of 12.3% from 2017 to 2021. In 2021, the total consumption of BDO in China was approximately 1.75 million tons, representing a year-on-year increase of 17.4%. With the implementation of plastic restriction policies, the demand for biodegradable plastic PBAT will drive a significant increase in the demand for BDO. Based on the projected growth in downstream PBAT demand, it is estimated that this figure could reach around 3.48 million tons by 2023. From 2020 to 2025, the compound growth rate of BDO demand in China will be 26.5%, and by 2025, China’s annual apparent consumption of BDO will reach 4.5 million tons.
Huayi established a chemical complex in Guangxi
This large-scale project in the Dundong Economic and Technological Development Zone is invested and constructed based on coal-to-methanol and coal-to-synthetic ammonia production, with a cluster of downstream industries such as melamine, BDO, DMC, DMF, and PBAT as its core.
The three major chemical industry bases: Fangchenggang, Qinzhou, and Beihai
100MW photovoltaic power generation and 6×5000 m³/h electrolysis for hydrogen production.
The 55,000-ton/year BDO project of Shandong Rui’an Biotechnology was launched. On February 14th, the launch meeting for this project, which involves the production of BDO using the maleic anhydride method and has a capacity of 55,000 tons per year, was held in Xi’an. The project was undertaken under EPC contract by Beijing Petrochemical Engineering Co., Ltd. This project was invested and constructed by Shandong Rui’an Biotechnology Co., Ltd., a subsidiary of Jiangsu Rui’an Applied Biotechnology Co., Ltd. It utilizes the New Materials Industry Park in Jining City, Shandong Province as a base to build a BDO production facility, thereby providing raw materials for the PBAT products manufactured there. The BDO production using the maleic anhydride method relies on Sinopec’s advanced process technology, with completion and commissioning scheduled for October 2023. The project takes \"environmental protection technology\" as the direction for industrial development, and it represents a major initiative by Shandong Rui’an Biotechnology Co., Ltd. to extend and strengthen industrial chains, thereby promoting the comprehensive upgrading of the industry.