Breaking Foreign Technical Monopolies and Boosting Confidence in Chinese Manufacturing — A Record of Shenhua Ningmei’s Efforts to Achieve Domestic Production of 4 Million Tons of Coal-to-Oil Product

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This post was last edited by zxf905 on 2016-11-9 at 09:12. Breaking foreign technological monopolies and boosting confidence in Chinese manufacturing – A record of Shenhua Ningmei’s efforts to achieve domestic production of 4 million tons of coal-to-oil per year. 2016-11-09 05:49:00 Source: Xinhua News Agency. Reporters from Xinhua News Agency: Sun Bo, Ma Jun, Xu Jin. Breaking foreign technological monopolies and boosting confidence in Chinese manufacturing – A record of Shenhua Ningmei’s efforts to achieve domestic production of 4 million tons of coal-to-oil per year. This is a strategically important world-class project that has emerged in the desert. 　　It bears the heavy responsibility of promoting the clean utilization of coal in our country and addressing the issue of overcapacity in coal production ； It bears the mission of providing technical strategic reserves for China’s energy equipment manufacturing in the \"post-oil era\". 　　As the world’s largest single-unit coal-to-oil project, with a capacity of 4 million tons, the Shenhua Ningmei Group’s project has played the role of a \"model laboratory\" throughout its implementation. By collaborating with 29 domestic enterprises and research institutions, it succeeded in completing 37 tasks related to the localization of key technologies, equipment, and materials; the localization rate for this project exceeds 98%, thereby breaking the foreign technological monopoly. Moreover, many of its performance indicators are at the world’s leading level. A group of domestic companies now have the capability to compete on equal terms with world-class firms such as Siemens and Shell. 　　Working together to advance technological innovation and unleash the potential of Made in China. As winter sets in, entering the construction site of the coal-to-oil project, one is struck by the grandeur typical of modern large-scale enterprises: 12,000 large-scale devices stand side by side, while red, yellow, blue, white, and green pipelines along with countless transmission cables serve as the arteries, veins, and nerves of the enterprise, connecting the 5-square-kilometer area into a highly efficient and responsive \"giant\". Tens of thousands of workers are working in an orderly manner, making a final push to produce oil products before the end of the year… In the past, the core technologies related to coal chemical processing were monopolized by foreign giants. We engaged in difficult negotiations with South Africa’s Sasol company for 10 years regarding the introduction of coal-to-oil technology; their conditions became increasingly stringent, and it was impossible to proceed with acquiring this technology. ”Yao Min, the deputy general manager of the group, said that although China’s coal chemical industry has developed rapidly, it lacks strong support from \"Made in China\" products; its core technologies and high-end equipment rely on imports, at an exceptionally high cost. 　　During this period, breakthroughs were achieved in key domestic autonomous technologies. Zhongke Synthetic Oil Company has achieved industrial demonstration applications on a million-ton scale, breaking Sasol’s technical monopoly and surpassing it in various economic indicators. In 2013, Shenhua Ningmei’s 4 million-ton coal-to-oil project was approved by the **National Development and Reform Commission, and it was tasked with achieving self-sufficiency in key technologies, equipment, and materials. 　　“The tasks related to localization include the most critical technologies such as Sinochem’s synthetic oil FTO synthesis and oil processing systems; dry coal powder gasification technology with a daily coal input of 2,200 tons; large-scale air separation units with a capacity of 100,000 standard cubic meters; compressors for propylene refrigeration systems; as well as pumps for special process streams, along with the localization of key valves and materials. ”Cai Lihong, the chief commander of the construction command team for the Shenhua Ningxia Coal-to-Oil project, said that introducing foreign technology involves low risks but high costs, and it also comes with various constraints; therefore, it is inevitable for domestic companies to work together on this task. 　　Thanks to the willingness of Shenhua Ningmei Group to take risks and pursue domestic and open innovation, the coal-to-oil project has become a \"**model laboratory**.\" The results show that a group of domestic enterprises have managed to turn the tables in competition with manufacturing giants from Europe, the United States, and Japan. 　　In response to the specific requirements of dry coal powder systems, Suzhou Antewei Valve Company developed the world’s first double-disc valve, whose service life is more than twice that of German-made valves, earning it a reputation in the market. 　　The 100,000-unit air separation unit developed by Hangzhou Hangyang Company is capable of producing enough oxygen in one hour to fill 14 Beijing Water Cubes; it is the largest oxygen production unit of its kind in the world. As a result, this company has become a leading force in the field of air separation technology globally. 　　The steel used in the Fischer-Tropsch reactor, the key component in coal-to-oil production, requires high standards; no material in the world meets these requirements. Japanese steel companies requested that the technical specifications be lowered when bidding, but the product developed by Wuyang Iron and Steel Company of Hebei Iron and Steel Group exceeds the quality of steel produced by foreign companies. 　　The \"Shenning Furnace,\" independently developed by Shenhua Ningmei Group, is capable of processing various types of coal, addressing the limitation of Siemens gasification furnaces which can only handle high-quality coal. This provides a way for the clean utilization of low-quality coal, which otherwise loses its competitiveness in China’s coal gasification market. 　　The localization of coal-to-oil projects has enabled China to develop large-scale coal chemical industries without being subject to foreign monopolies. “For technologies we do not possess, foreign companies charge exorbitant prices or impose restrictions; once we master them, the prices drop sharply. Although the coal-to-oil project requires an investment of over 50 billion yuan, the core technologies obtained as a result are something that cannot be acquired no matter how much money is spent. ”Zhang Zuoli, Secretary of the Party Committee of Shenhua Ningmei Group, said with deep feeling. 　　Domestic autonomous technologies help \"Made in China\" products go global. The implementation of domestic production for coal-to-oil conversion has spurred the development of related equipment manufacturing industries in China, put an end to the exorbitant profits earned by imported products, and reduced costs for building large-scale coal chemical projects. 　　“The localization rate of this project exceeds the **required standards: 98.5% when calculated based on process technology and the number of equipment units, and over 92% when calculated based on investment amount. The original plan was to invest 55 billion yuan, but now the investment is expected to be around 50 billion yuan, representing a 10% reduction in costs; the reason for this is the localization of core technologies. ”Shao Junjie, chairman of Shenhua Ningmei Group, said. 　　Inner Mongolia North Heavy Industry Group is responsible for advancing the technology related to high-end P91 steel pipes. Gao Wenhai, the company’s deputy general manager, said, “Previously, P91 steel pipes were imported from the United States, Germany, and Japan at 150,000 yuan per ton, and it took over a year to deliver them.” Since Beihang Heavy Industry began supplying them, the price of P91 steel pipes has dropped by 70%, with a delivery time of just 90 days. ”　　Such examples are common in coal-to-oil projects; the cost-performance ratio of domestic technology and equipment has improved significantly, resulting in substantial cost savings. 　　After the development of the 100,000-unit air separation compressor unit by Shenyang Blower Group, its performance level became comparable to that of Mann+Hummel and Siemens products; as a result, these latter companies reduced their prices from 170 million yuan per unit to 120 million yuan per unit. The valves supplied by Ningxia Wuzhong Instrument Company for coal-to-oil and gas conversion plants have a service life that is five to six times longer; their price is less than half that of well-known foreign products. This alone results in savings of 1 billion yuan… Not only that, but a number of domestic companies have grown together through joint efforts in research and development, competing on equal terms with companies such as Siemens, Mitsubishi Heavy Industries, and Shell. This has helped break the \"superstition\" surrounding imported technology and equipment, allowing \"Made in China\" products to gain recognition. 　　Companies such as Shanxi Lu’an and Inner Mongolia Yitai have successively adopted the technology of Zhongke Synthetic Oil Company. At the same time, Zhongke Synthetic Oil Company has expanded its operations overseas, entering markets in countries such as the United States, Australia, India, South Africa, and Russia. 　　Taking the 100,000 cubic meter air separation unit demonstration project as an opportunity, Hangyang Company intensified its efforts to expand into foreign markets, successfully winning bids for projects in Qaveh and Bushehr in Iran, thereby significantly increasing its market share. 　　Leveraging the research and development achievements of coal-to-oil projects, the steel plates produced by Wuyang Iron and Steel Company of Hebei Iron and Steel Group have gained widespread recognition; they are exported to Central Asia and the Middle East, helping to promote Chinese manufacturing on the global stage. 　　Deng Jianjun, chairman of Wuyang Iron and Steel Company under HBIS Group, Ma Yushan, general manager of Wuzhong Instrument Company, and Zhou Zhiyong, chief engineer of Hangyang Oxygen Company, told reporters that the localization of coal-to-oil projects not only demonstrates to the world the new image of Chinese equipment manufacturing enterprises in terms of innovation and reform, but also boosts confidence for future development. 　　Reduce excess production capacity and accelerate industrial upgrading. “Coal exploitation and use pose significant environmental pressures; its cleaner utilization is essential.” The coal-to-oil process technology of Shenhua Ningmei has seen further improvements, resulting in higher quality oil products. If promoted in large cities, it can help address the problems of vehicle exhaust pollution and fog formation. ”　　At the coal-to-oil plant, Cai Lihong picked up a bottle of clean diesel produced using Sino-Science synthetic oil technology and explained that, based on the trial use of this diesel in Beijing’s sanitation vehicles during the APEC meeting in 2014, it boasts advantages such as ultra-low sulfur content, low aromatic compounds, high cetane number, and low ash content; its emissions of various pollutants are significantly reduced, making it superior to the National V standard. 　　In October this year, the 4 million-ton coal-to-oil project of Shenhua Ningmei Group began trial operation, and oil products will be produced within the year. The project will produce 4.05 million tons of synthetic oil products per year, of which 2.73 million tons will be diesel. Once operational, it will be able to convert 20.46 million tons of coal into useful products annually. 　　“The coal used for coal-to-oil conversion accounts for about one-third of the group company’s annual coal production, and the value generated per ton of coal through coal-to-oil conversion is equivalent to 7 times that of selling the coal directly. If we adhere to the development strategy of clean energy and explore a high-tech, advanced coal-to-oil processing model, the problems of excess coal production capacity and declining profitability can be resolved. ”Zhang Zuoli said.