In the BDO showdown, calcium carbide became the winner

The Institute of Biodegradable Materials reported that BDO prices have been declining recently due to sluggish downstream demand and market confidence
.
With the release of 300,000 to 400,000 tons of BDO production capacity in the second half of the year, and the completion of more than 4 million tons of production capacity in 2023, BDO will face a decisive battle
.
BDO companies with their own calcium carbide raw materials have more advantages in cost, and will add chips to their participation in this round of market competition, and even become the winner of the market competition
.

1.
The calcium carbide route acetylenic aldehyde method BDO is the current mainstream process

The acetylenic aldehyde method of the calcium carbide route accounts for 80% of China's BDO production capacity
.
BDO production process is divided into acetylenic aldehyde method, allyl alcohol method, maleic anhydride method and so on
.
China's existing 2.
175 million tons of BDO production capacity, only Changlian Chemical (Panjin) 150,000 tons, Dalian Chemical (Jiangsu) 50,000 tons using the allyl alcohol method, the remaining 1.
975 million tons (accounting for 91%) all use the acetylenic aldehyde method
.

The acetylenic aldehyde method is divided into calcium carbide route and natural gas route according to the source of its raw materials
.
Among the acetylenic aldehyde BDO, in addition to Yanchang Petroleum 100,000 tons, Sichuan Tianhua 85,000 tons, and Chongqing Jianfeng 60,000 tons using the natural gas route, the remaining 1.
73 million tons (80% of the total production capacity) use the calcium carbide route
.

The calcium carbide route acetylenic aldehyde method BDO is mainly distributed in the northwest region
.
Zhongtai Meike Chemical, located in Xinjiang, is the largest BDO manufacturer with a production capacity of 260,000 tons
.
Xinjiang Tianye ranked second with 210,000 tons, and Lanshan Tunhe, Xinjiang Cathay Pacific, and Ningxia Great Wall Energy ranked third with 200,000 tons each
.
Shaanxi Shaanhua 130,000 tons, Henan Energy Kaixiang 110,000 tons, Inner Mongolia Dongyuan Technology 100,000 tons, Henan Energy Hemei 100,000 tons followed closely
.
The total production capacity of the acetylenic aldehyde method of the calcium carbide route in the northwest region is 1.
48 million tons (accounting for 68% of the production capacity)
.

2.
Under the goal of "dual control" of energy consumption, calcium carbide has become a hard currency

In order to reverse the situation of “dual control” of energy consumption at the bottom of the country, Inner Mongolia has set the goal of reducing energy consumption per unit of GDP by 3% in 2021 and controlling the incremental energy consumption within 5 million tons of standard coal
.
Inner Mongolia has implemented "dual control" of energy consumption from the beginning of 2021.
In order to achieve the "dual green" indicator, some league cities have adopted stricter policy control to promote the elimination of backward production capacity in high energy-consuming industries
.

Inner Mongolia's latest target is that the total capacity of calcium carbide should not exceed 15 million tons
.
In July 2022, Inner Mongolia issued the "Implementation Opinions on Completely, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Neutralization", resolutely implementing the requirements to curb the blind development of "two high" projects, and the "14th Five-Year Plan" clearly defined the total amount of calcium carbide.
The production capacity shall not exceed 15 million tons, and the restricted production capacity of the calcium carbide industry shall be withdrawn in an orderly manner
.
In the work arrangement of the Inner Mongolia Department of Industry and Information Technology in 2022, it is required to withdraw 2.
08 million tons of calcium carbide by the end of 2022
.

Ningxia is also a double-high area, with a heavy industrial structure and low energy utilization efficiency.
The energy consumption per unit of GDP (2.
02 tons of standard coal/10,000 yuan) is 4.
1 times the national average
.
In June 2021, Zhongwei City, Ningxia, issued a production restriction policy, mainly involving 22 enterprises in four industries including steel, ferroalloy, silicon carbide, and calcium carbide
.
In December 2021, the "Guiding Catalogue for Industrial Structural Adjustment with Dual Control of Energy Consumption (Trial)" was issued, which clearly stated that it would impose strict restrictions on high energy-consuming industries such as calcium carbide
.

Recently, the national mandatory standard "Energy Consumption Limit of Calcium Carbide and Its Downstream Industry Unit Product" drafted by China Petroleum and Chemical Industry Federation and other units is currently soliciting public opinions to set benchmark levels and benchmark levels for industry energy consumption.
Eliminate outdated acid production units that cannot meet the energy consumption standards
.

3.
The circulation of calcium carbide indicators is limited, and the battle for calcium carbide has been staged

The National Development and Reform Commission has been promoting energy conservation and carbon reduction in key areas since October 2021, which requires the accelerated withdrawal of calcium carbide plants of 100,000 tons per year and below
.
This means that the production of calcium carbide with high energy consumption and high emissions is difficult to approve and will become "gold" hard currency in the future
.

Although the national policy allows the circulation of calcium carbide indicators across provinces and regions, local governments are more cautious about the outflow of local resources, and are more willing to encourage local enterprises to develop downstream products, which objectively causes the circulation of calcium carbide indicators to be restricted
.
For example, Pingluo County, Shizuishan City, Ningxia Autonomous Region encouraged the development of downstream calcium carbide products, relying on Ningxia Binhe Yongtai Chemical Company and other enterprises to develop BDO and other series products, so that the self-use rate of calcium carbide in Pingluo County increased from 21% to 70%
.

The natural gas route to prepare BDO has become another option, but the approval of natural gas to acetylene projects is limited.
In 2007, the "Natural Gas Utilization Policy" promulgated by the National Development and Reform Commission stipulates that the production of acetylene from natural gas is a restricted project, and the requirements for project approval are very strict
.