【Ten Years of Rapid Development in Chemical Processing Equipment】The world’s first pilot project for the co-processing of kerosene on a scale of 450,000 tons per year was brought online between 1736 and 2015

On September 15, 2015, the integrated industrial technology for kerosene co-refining (Y-CCO), independently developed by Shaanxi Yanchang Petroleum Group, passed the technical appraisal organized by the China Petroleum and Chemical Industry Federation in Beijing. Experts believe that this technology is generally at the world’s leading level. Its development and industrial application have overcome the technical challenges in two areas: the clean and efficient conversion of coal in the coal chemical industry, and the upgrading of heavy (low-quality) oils to lighter forms in the petrochemical industry. It holds great significance for reducing dependence on petroleum resources and ensuring **energy security. The appraisal expert committee, headed by Yuan Qingtang, an academician of the Chinese Academy of Engineering, believes that the industrialized technology for kerosene co-processing (Y-CCO) developed by Yanchang Petroleum, which uses medium- and low-rank coal as well as heavy (poor-quality) oil as raw materials and employs an online integrated process of slurry-bed hydrocracking and fixed-bed hydrocracking to produce light oils, features the following innovations: a synergistic reaction mechanism for kerosene co-processing was proposed, and for the first time, an industrial online integrated process combining slurry-bed and fixed-bed hydrocracking was developed; a proprietary catalyst-additive system for kerosene co-processing was invented, which provides more active hydrogen, effectively suppresses coking reactions, and enables high conversion rates and high liquid yields from high-inert-content coals and heavy oils, while also alleviating coking problems in the reaction and separation systems; a technology for underwater shaping and modification of coal-based asphalt sand was invented, which prevents the volatilization of light hydrocarbons from polluting the environment and expands the application areas of coal-based asphalt sand; special insulated linings and inner cylinders for slurry-bed reactors were invented, solving the challenges related to material selection and installation of insulation materials under conditions of high temperature, high pressure, and exposure to hydrogen; the use of a simply structured inner cylinder helps to prevent coking on the reactor walls. He Jiuchang, chairman of Yanchang Petroleum Group, explained that since the launch of experimental research on coal oil co-refining technology in April 2011, building on research conducted at home and abroad on slurry-bed (also known as suspension-bed) hydrocracking technology, Yanchang Petroleum has carried out research and development of new technologies, improvements to process technologies, and innovations in engineering integration. In January 2015, Yanchang Petroleum Group’s world’s first pilot project for the co-processing of kerosene on a scale of 450,000 tons per year, built in Jingbian, Shaanxi, using the Y-CCO technology, successfully carried out its first coal-fed trial operation. In August this year, the China Petroleum and Chemical Industry Federation organized experts to conduct an on-site assessment of the facility’s 72-hour continuous operation. The results showed that at a coal powder concentration of 41.0%, the coal conversion rate was 86.0%; the conversion rate of the catalytic cracking slurry at temperatures above 525°C was 94.0%, the liquid yield was 70.7%, the energy conversion efficiency was 70.1%, and the water consumption per ton of product was 1.6 tons. It is reported that the development of this technology not only addresses some of the shortcomings of direct and indirect coal liquefaction, but also provides new technical solutions for the processing of heavy and low-quality oils as well as coal tar in refineries. It facilitates the integration of heavy oil processing with modern coal chemical technologies, opening up a new pathway for coal-to-oil conversion and the upgrading of heavy (low-quality) oils in China, with promising prospects for industrial application. Based on the Y-CCO integrated industrialization technology, Yanjiang Petroleum has filed 27 patents, of which 10 have been granted.

“Kerosene co-refining technology makes full use of the synergistic effects between low-rank coal and heavy oil during hydrogenation reactions, representing an integrated innovation based on single-coal hydroliquefaction and heavy oil hydrocracking. ”Wang Junfeng, head of the Technology Department at Yanchang Petroleum, told reporters that the project has made rapid progress from concept to implementation. The kerosene co-refining technology was officially proposed in 2010 ； The project was officially approved in 2011, with construction starting the following year ； In July 2014, a test and evaluation unit for the co-processing of kerosene at a rate of 1 barrel per day was built, and in October of the same year, the world’s first industrial test and demonstration unit for kerosene co-processing was established ； In 2015, the kerosene co-processing unit completed its initial trial run successfully, achieving a seamless operation of the entire process and producing qualified oil products. The kerosene co-refining project has opened up a brand new technical pathway by spanning the coal chemical and petrochemical industries. Wang Junfeng explained that by mixing low-quality heavy oil with coal in a certain ratio to create oil-coal slurry, and then using an online integrated reaction system that combines suspension-bed and fixed-bed hydrogenation, it is possible to promote the liquefaction of coal and the lightening of heavy oil. This approach overcomes the technical challenges associated with the clean and efficient conversion of coal in the coal chemical industry, as well as the lightening of heavy oil in the petrochemical industry. It also creates a platform for the clean and efficient utilization of coal alongside the deep processing of low-quality heavy oil, opening up a new pathway for coal-to-oil production and the lightening of heavy oil in China. ” Although, compared with traditional coal direct liquefaction techniques, the co-processing of kerosene results in lower hydrogen consumption, lower investment costs, and higher conversion rates, the strict reaction conditions and complex operational requirements limit the number of coal direct liquefaction projects that have been approved for construction in China. This technology combines elements of both coal direct liquefaction and heavy oil processing, and it is highly anticipated by the industry; successful implementation of this technology is seen as a way to pave the way forward for the sector. “Coal, heavy oil = diesel; naphtha, solid fuels. At the exhibition booth for the pilot project on the co-processing of kerosene, the experimental raw materials and finished products on display indicate that these two raw materials with low added value can be transformed into clean, efficient, and high-value low-carbon fuels. The remaining solid waste is being explored as a material for construction purposes. Statistical data show that the completion of this project has resulted in a reduction of carbon dioxide emissions by approximately 50%, a coal conversion rate of 90%, and a decrease in the overall energy consumption per ton of oil by over 15%. It holds strategic significance for the clean and efficient conversion of coal resources, reducing dependence on oil resources, and ensuring **energy security.

The new breakthrough device has been in continuous operation for over 9 months. The coal-kerosene co-processing demonstration project covers an area of about 200 mu, with an estimated investment of over 1.8 billion yuan; it is planned to use 450,000 tons of oil-coal slurry to produce more than 330,000 tons of high-quality petroleum products. “After fully entering the commissioning phase in 2015, 7 commissioning trials were conducted successively to verify the feasibility of industrial scaling up of the slurry bed hydrocracking process package. ”Huo Pengju, deputy director of the Carbon Hydrogen Research Center of Yanchang Petroleum, told reporters. “Over the course of 3 years, without any prior examples of similar installations in operation or any experience from testing such devices to draw on, efforts were made to conduct a test run each time, summarize the experience gained, pursue technological innovations, and improve the relevant solutions. Major technical challenges such as wear and blockages, as well as issues related to smooth operation in backflow mode, were overcome. During the 7th test run, the installation operated continuously and stably for 273 days, setting a new record for the long-term safe and stable operation of kerosene co-processing technology in industrial settings. ”Huo Pengju explained that during the trial operation of this long-cycle kerosene co-processing unit, diversification tests were also carried out on heavy (low-quality) crude oils; various types of crude oils were successfully incorporated, further contributing to cost reduction and efficiency improvement. Yanchang Petroleum has a total refining capacity of over 20 million tons in Yan’an and Yulin; the Yulin refinery is the only refinery in Shaanxi with a capacity of 10 million tons. “The aviation industry is one of the characteristic and competitive industries in Shaanxi Province. A production facility capable of producing 200,000 tons of aviation kerosene per year was put into operation in 2016, with another facility with a capacity of 300,000 tons expected to come online next year. ”Cao Peikuan, the manager of Yulin Refinery and general manager of Oil and Coal Company, revealed. The kerosene co-refining project utilizes local low-rank coal and the production residues from the Yulin refinery, sharing the refinery’s water, electricity, and gas. “It is extremely difficult for such a large kerosene co-processing unit to operate safely and stably for over 9 months in a row. The project is now at break-even point. Our biggest challenge at present is not the costs, but rather the limited amount of heavy oil and residue that we can provide, which restricts our production capacity. ”Relevant officials told reporters that achieving break-even at the pilot stage indicates good profitability after expansion.

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