The boiler system of Xinjiang Shuguang Luhua Biotechnology’s project, which has an annual production capacity of 100,000 tons of BDO along with 120,000 tons of PBAT, was ignited successfully on the first attempt

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On November 13, the boiler unit of Xinjiang Shuguang Luhua Biotechnology Co., Ltd.’s project aimed at producing 100,000 tons of BDO along with 120,000 tons of PBAT per year was successfully ignited for the first time. The successful ignition of the project’s boiler unit signifies that all the utility systems such as water, electricity, and gas in this project have been connected and put into use. This provides a solid foundation for the subsequent tasks, including the purging of the plant’s steam networks, the testing of turbines and other large-scale equipment, as well as the testing of various process units. It also marks the beginning of the transition from the construction phase to the trial operation phase of the project. The project is located in the Economic Development Zone of Tiemenguan City, Xinjiang. Leveraging the region’s abundant natural gas resources and favorable industrial development policies, it employs advanced, mature, safe, and environmentally friendly green manufacturing technologies to produce products such as acetylene, 1,4-butanediol, and biodegradable plastics. Once completed and put into operation, it will contribute to the integration of the industrial chain and value chain in the Tiemenguan Economic Development Zone, thereby providing strong impetus for the development of an important chemical and new materials industry base in southern Xinjiang under the Xinjiang Production and Construction Corps. The Xinjiang Shuguang Luhua Natural Gas Acetylene Project utilizes the technology of partial oxidation of natural gas to produce acetylene, with Chengda Company being responsible for preparing the process specifications as well as carrying out the EPC general contracting for the construction. For the first time, a number of Chengda Company’s process technologies were applied in this project; the new acetylene cracking furnace, as well as the natural gas and oxygen preheating furnaces, were successfully installed and commissioned, marking a comprehensive improvement in Chengda Company’s technologies related to natural gas and acetylene. It is reported that the total investment planned for this project amounts to 10 billion yuan, with implementation taking place in three phases. The current phase of the project, which includes a production line capable of manufacturing 100,000 tons of BDO per year along with 120,000 tons of PBAT as a by-product, has seen an investment of 3.569 billion yuan since construction began last April. Project Overview: Project Name: Xinjiang Shuguang Luhua Biotechnology Co., Ltd. – 100,000 tons per year of BDO production along with 120,000 tons per year of PBAT production. Location: Shuangfeng Circular Economy Industrial Park, Tiemenguan Economic and Technological Development Zone, Second Division. Project Overview: This is a new construction project; the main structures include a production complex, office buildings, a boiler room, a strip coal storage area, raw material warehouses, product warehouses, and tank areas ； The main units include an acetylene production plant from natural gas, a methanol plant, a formaldehyde plant, a BDO plant, a PBAT plant, etc ； At the same time, utility facilities such as power supply, water supply, site hardening, and landscaping, as well as environmental protection measures, are constructed concurrently. The total investment for the project is 3,568.8797 million yuan, of which 411.3 million yuan is allocated to environmental protection measures. Xinjiang Shuguang Luhua Biotechnology Co., Ltd. was established through joint investment by Anhui Shuguang Chemical Group Co., Ltd., Xinjiang Lvyuan State-owned Capital Investment and Operation Co., Ltd., and Donghua Engineering Technology Co., Ltd. According to the Supplementary Agreement on Shareholders’ Capital Contributions, Shuguang Luhua’s registered capital is 1,000 million yuan, of which our company contributes 50 million yuan in cash, accounting for a 5% stake ； Anhui Shuguang contributes 650 million yuan in cash, holding a 65% stake in the company ； Xinjiang Lvyuan contributes 300 million yuan in cash, holding a 30% stake.