The propylene oxide industry in the "double carbon" era will enter a new round of reshuffle

From October 29th to 30th, the 2021 (4th) China Propylene Oxide Industry Chain Technology Development and Industrial Development Forum was held in Taizhou, Jiangsu
.
The message was conveyed at the meeting: The propylene oxide industry in the "two-carbon" era will enter a new round of reshuffle, and the path of industrial upgrading will become clearer day by day.
Advanced production capacity and upstream and downstream integration projects are expected to continue to benefit
.

As the largest producer and seller of propylene oxide in Asia, China has ushered in a new round of capacity expansion this year, and it is expected that the new capacity will be no less than one million tons
.
With the successive introduction of "dual carbon", "dual control" and carbon-related policies, the variables in the development of the propylene oxide industry are also increasing
.

Lv Xiaodong, an expert from Sinopec Economic and Technological Research Institute, said at the meeting that the improvement of safety and environmental protection requirements will further increase the entry threshold for the propylene oxide and polyether polyol industries
.
Ethylene oxide and propylene oxide are included in the catalogue of special controlled chemicals, which will also increase the concentration of the propylene oxide and polyether polyol industries.
have a profound impact
.

"Dual control of energy consumption will affect the start-up and efficiency of the industry in the short and medium term.
In the medium and long term, it will limit the expansion of high-energy-consuming industries, making related industries gradually become 'permissible' industries, and the supply gap will be enlarged
.
Therefore, it is good for industries with a low proportion of raw material costs, as well as for existing enterprises, advanced production capacity, and connecting enterprises in the new energy and environmental protection industries
.
It is expected that the policy will stimulate the acceleration of some projects in the short term, but the cycle of new projects will become longer in the future.
, the enthusiasm for investment and construction will also weaken
.
" Lv Xiaodong said
.

Sun Jie, deputy general manager of Jiangsu Yida Chemical Co.
, Ltd.
, believes that the current production processes of propylene oxide (HPPO), propylene oxide/styrene, propylene oxide/methyl tert-butyl ether, etc.
There are characteristics, but no process has absolute advantages
.
Among them, HPPO enjoys the encouragement of national industrial policies, as well as the advantages of environmental protection, low energy consumption, and low investment
.
She suggested that when enterprises invest in propylene oxide projects in a "dual-carbon" and "dual-control" environment, they should not only consider the sources of energy indicators and pollution control indicators, but also comprehensively consider their advanced nature, integrity, source of raw materials, and supporting facilities.
After considering various factors such as product price, upstream and downstream industry chain, sales channels, capital situation, etc.
, then choose the process technology route that suits you
.

Ni Ji, chief analyst of Orient Securities Chemical, believes that according to the statistics of China's carbon accounting database, China's current total annual carbon emissions are about 10 billion tons
.
Among them, industrial manufacturing accounted for 39%, and petrochemicals contributed 400 million tons
.
If the emissions from the coal chemical industry are considered, the total emissions from the petrochemical industry are about 1 billion tons, and the task of achieving the "dual carbon" goal is urgent
.
In the future, the chemical industry will usher in multiple changes such as production route changes, cost curve reconstruction, and switching between new and old demands.
Enterprises should find their own positioning and way out as soon as possible in the new demand and new cost curve generated by carbon neutrality
.

In Ni Ji's view, the project of propane dehydrogenation (PDH)-propylene-propylene oxide integrated industrial chain will usher in development opportunities in the "two-carbon" era
.
In the carbon neutral scenario, the carbon price is included in the cost, corresponding to a substantial increase in the cost of hydrogen
.
In the future, the profit center of light hydrocarbon chemical industry should be shifted from the olefin side to the hydrogen side
.
Among them, PDH projects are mostly located in the eastern coastal areas, and the coal index is tight, which is suitable for the development of chemicals that only require hydrogen.
Synthetic ammonia, hydrogen peroxide, 1,4-butanediol (BDO), adipic acid, etc.
are good choices
.
Hydrogen peroxide can be used to produce lithium iron phosphate.
BDO and adipic acid are the main raw materials of polybutylene terephthalate-adipate (PBAT), and both have huge potential explosive markets
.
"Ni Ji said
.

The forum was jointly sponsored by China Chemical Industry News Co.
, Ltd.
and Jiangsu Yida Chemical Co.
, Ltd.
, and co-organized by Changzhou Ruihua Chemical Engineering Technology Co.
,
Ltd.
Nearly 200 industry representatives attended the conference
.