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Progress of Xinjiang Zhongtai Jinhui Technology’s 300,000-ton BDO project. Author/Source: Coal Chemical Industry Information Network. Date: May 12, 2023. Clicks: 21. On May 9, the diacetylene flare for the BDO unit, which is part of Package A of the installation work for Xinjiang Zhongtai Jinhui Technology’s project with an annual production capacity of 300,000 tons of BDO, was successfully installed in place. On April 15, the foundations of 317 electrical panels and cabinets in areas 1, 2, and 3 of Xinjiang Zhongtai Jinhui Technology Co., Ltd.’s project with an annual production capacity of 300,000 tons of BDO were successfully approved in a tripartite inspection, marking the official start of the electrical equipment installation phase for the substation. On April 16, the formaldehyde circulation tower of the project was successfully lifted, marking the completion of its installation and the activation of its lighting system. Project Overview: This project includes a calcium carbide-based acetylene production facility with an annual capacity of 120,000 tons, 3 formaldehyde production units, each with an annual capacity of 240,000 tons, a natural gas-based hydrogen production plant with a capacity of 28,000 Nm3/h, 3 BDO production units, each with an annual capacity of 100,000 tons, along with various supporting infrastructure and auxiliary systems. On January 29, 2022, the Department of Ecology and Environment of the Xinjiang Uyghur Autonomous Region issued a public notice regarding the status of acceptance of environmental impact assessment documents for construction projects. The annual production capacity of 300,000 tons of BDO at Xinjiang Zhongtai Jinhui Technology Co., Ltd. requires a total investment of 5,115,660,000 yuan. The BDO is produced using the alkyne-aldehyde process route, and the main facilities include a hydrogen production unit capable of producing 28,000 Nm3/h of hydrogen from natural gas, a calcium carbide-acetylene plant with an annual capacity of 120,000 tons, three formaldehyde production units each with an annual capacity of 240,000 tons, three BDO production units each with an annual capacity of 100,000 tons, and a facility for recycling 20,000 tons of waste sulfuric acid per year. Project Review: On the evening of June 7, 2022, Zhongtai Chemical announced that, in order to extend the industrial chain of the circular economy, improve the company’s industrial structure, enhance the competitiveness of its products, and take advantage of the opportunities in the BDO market, Xinjiang Jinhui Zhaofeng Energy Co., Ltd. (hereinafter referred to as “Jinhui Zhaofeng”), a subsidiary controlled by the company, and its wholly-owned subsidiary Xinjiang Zhongtai Jinhui Technology Co., Ltd. (hereinafter referred to as “Jinhui Technology”) plan to invest in a project to produce 300,000 tons of BDO (1,4-butanediol) per year. The total investment for this project is 5.116 billion yuan, with a construction period of 27 months. It is expected that by the time the project comes online, the new industrial park area in Baicheng County, Aksu Region, Xinjiang, where the project is located, will have facilities for coal processing, coking, cement production, conversion of coke oven exhaust gas into LNG, and calcium carbide production. In addition, infrastructure such as water supply systems, power plants, sewage treatment plants, and fire protection systems will also be in place, enabling the creation of a complete circular economy industry chain for resource transformation. Relying on the abundant resources of coal, salt, limestone, etc. in Baicheng County, Xinjiang, Jinhui Zhaofeng has established and put into operation facilities with an annual production capacity of 1.3 million tons of coking products, 1.8 million tons of washed coal, 1 million tons of cement, 2×350MW thermal power plants for its own use, as well as 88,000 tons of LNG. It is currently constructing a calcium carbide production facility with an annual capacity of 750,000 tons, which is expected to be completed by July 2022. The company announced that BDO, being a key raw material for producing biodegradable plastics, has seen a shortage in supply and soaring prices in recent years, driven by its emerging downstream products such as PBAT/PBS as well as traditional downstream products like PTMEG. By leveraging the local resources, Jinhui Technology is developing this project, which helps the company strengthen, expand, and extend its chemical industry capabilities, thereby reinforcing its competitive advantages and leading position in the industry. It is understood that the Aksu region is rich in resources, especially in terms of coal, oil, natural gas, and rock salt reserves. Bai County boasts large coal reserves, a wide variety of coal types, and high quality, making it easy to extract coal. It is one of the counties in the autonomous region that produces millions of tons of coal each year. Coking coal and limestone are essential raw materials for the production of calcium carbide, which is part of this project. The local advantages in resource allocation provide favorable conditions for the development of heavy chemical industries, ensuring that raw materials and utility services such as calcium carbide, natural gas, water, and electricity, which are essential for these projects, are available at reasonable prices in sufficient quantities. At the same time, Jinhui Technology signed an EPC general contract (provisional estimate) with Chengda Engineering for the 300,000-ton-per-year BDO production project of Xinjiang Zhongtai Jinhui Technology Co., Ltd.; the contract value is approximately 4.284 billion yuan (provisional estimate), and the project will be constructed by China Chengda Engineering Co., Ltd. under an EPC general contracting arrangement. The scope of this project includes facilities for 120,000 tons per year of calcium carbide acetylene production, 3×100,000 tons per year of BDO production, 3×240,000 tons per year of methanol to formaldehyde conversion, and 28,000 Nm3/h of hydrogen production from natural gas; as well as the utility systems and auxiliary facilities required to support these facilities. The signing of the contract will not have a significant impact on the company’s operational results for the year 2022. With the completion of the project, it will have a positive impact on the company’s future business development and operational performance.