【Haichuan Chemical Project Updates】Fujian Zhongjing to Build World’s Largest BDO Plant with Annual Production Capacity of 900,000 Tons

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On the 24th, the signing ceremony for the introduction of GlaxoSmithKline’s world’s largest BDO production technology with an annual capacity of 900,000 tons, for hydrogen energy utilization and the butane series industry chain, by Fujian Zhongjing Petrochemical Co., Ltd. (referred to as “Zhongjing Petrochemical”), was held in Fuzhou. This marks Sinopec Zhongjing’s investment of 18 billion yuan in developing a carbon-four new materials industry chain, thereby accelerating its progress toward the high-end chemical industry. Zhongjing Petrochemical is the world’s largest producer of biaxially oriented polypropylene film (BOPP). It has invested 28 billion yuan to establish a complete carbon trioxide-based production chain that includes a liquid chemical terminal, low-temperature storage tanks, propane, propylene, polypropylene, and polypropylene film. In 2022, it was ranked among the top 500 Chinese enterprises. The carbon-four new materials industry chain project utilizes the large amount of hydrogen byproduct generated from propane dehydrogenation to produce the chemical material BDO (1,4-butanediol), which can be used in the manufacture of lithium batteries, spandex for high-end fabrics, and fully biodegradable plastics. The total investment in the project is 18 billion yuan, with an annual output value exceeding 60 billion yuan. It will be constructed in three phases, with completion and operation planned within three years. “The C4 industry chain can reduce the costs of the C3 industry chain by approximately 2.5 billion yuan per year, yielding significant economic and social benefits. ”said Sheng Jin, chairman of the board of directors of Zhongjing Petrochemical. Currently, 135,000 tons of hydrogen are produced annually in the process of propylene production via propane dehydrogenation; this hydrogen is mainly used as fuel, but its value can more than double when used as an industrial raw material. Enterprises build carbon-IV industry chains by using maleic anhydride hydrogenation units to consume the hydrogen from carbon-III industry chains, and by utilizing the large amount of reaction heat generated during the oxidation of butane to produce ultra-high pressure steam for use in the carbon-III industry chains. This approach makes full use of the advantages of coupling to address the issues related to hydrogen and steam supply as well as the utilization of reaction heat. It is reported that the project’s key core patent technology – BDO production via the maleic anhydride method – utilizes Sinopec’s advanced process technology. Su Liyun, President of BDO’s Greater China region, said that China boasts efficiency and a large market, while the UK has creativity and technology; by combining the strengths of enterprises from both sides and working hard for over two years, utilizing cutting-edge scientific and technological solutions, a significant breakthrough has been achieved in terms of the design capacity of BDO devices. On site, Zhongjing Petrochemical also held a project cooperation signing ceremony with more than 10 domestic strategic partners and major equipment suppliers, including the Beijing Aerospace Power Research Institute and China National Chemical Engineering Third Construction Co., Ltd.