Communicator

#airproducts #luan #changhzi #china #gasification #coal

#ningxia #baofeng #china #baofengenergy #coal #greenhydrogen #gasification #coaltoolefins #sustainability

Satellite View of the Daesan Petrochemical Complex with Manufacturing Sites from 롯데케미칼 (Lotte Chemical) | LG화학 (LG Chem) | 한화토탈에너지스 (Hanwha TotalEnergies) | HD현대케미칼 (HD Hyundai Chemical) | HD현대오일뱅크 (HD Hyundai Oilbank) | 코오롱인더스트리 (Kolon Industries) | 한화솔루션 (Hanwha Solutions) | 현대OCI (Hyundai OCI) | via Goggle Maps

South Korea’s petrochemical sector is undergoing a pivotal transformation as Lotte Chemical and Hyundai Chemical advance plans to integrate their naphtha cracking facilities at the Daesan Petrochemical Complex. This consolidation is a direct response to China’s overwhelming ethylene overcapacity—a structural market shift that has eroded profitability across Asia. By merging operations, the companies aim to fortify competitiveness through operational synergies and strategic realignment, setting a precedent for industry-wide adaptation.

China’s Ethylene Oversupply: The Imperative for Restructuring

China’s aggressive petrochemical expansion has created a global supply glut, with ethylene capacity in 2025 is forecast to be 121% more than local demand. This surplus has flooded international markets, compressing margins for producers reliant on naphtha feedstock, like those in Korea. Lotte Chemical’s 64% operating profit decline and HD Hyundai’s 58% drop reflect the severity of this pressure. The Daesan integration addresses this crisis by targeting ₩70–100 billion in annual savings through shared infrastructure, streamlined management, and optimized feedstock procurement.


Daesan Petrochemical Complex Aerial View | Hyundai Engineering & Construction (Accessed 14^th June 2025)

The Daesan Integration: Scope and Strategic Rationale

The merger centers on combining Lotte Chemical’s 1.1 million-ton ethylene facility with HD Hyundai Chemical’s 850,000-ton unit at Daesan—a joint venture already co-owned by both entities. This consolidation will unify control over naphtha cracking technologies and derivative production, including polyethylene, propylene, and aromatics. Critically, it leverages the Daesan complex’s proximity to Chinese markets while mitigating the cost disadvantages Korean players face against Middle Eastern and North American rivals.


Lotte Chemical's domestic petrochemical complex in Daesan, South Chungcheong province (Courtesy of Lotte Chemical) | via The Korea Economic Daily, 7^th Feb 2022

Beyond Cost Savings: Portfolio Diversification and Innovation

While cost savings are vital, the merger’s strategic value lies in enabling portfolio diversification. The integrated entity can redirect capital from commoditized products toward high-value sectors, such as advanced materials and feedstock innovation, including exploration of crude-to-chemicals (TC2C) processes to bypass naphtha volatility. This shift aligns with Korea’s broader industrial policy, which now incentivizes specialization over volume-driven growth.


TC2C Block Flow Diagram - © portfolio planning PLUS

Industry-Wide Implications and Policy Support

The Lotte-Hyundai initiative transcends bilateral cooperation—it signals a necessary evolution for Korea’s petrochemical industry. As China’s overcapacity persists, further consolidation is inevitable. The Korea Chemical Industry Association, supported by government and consulting reports, advocates reducing generic capacity by as much as 50%, particularly in hubs like Daesan and Yeosu where overlapping facilities are most concentrated. Legislative proposals now offer tax incentives for coordinated output cuts, and the government is expected to use a “carrot and stick” approach to accelerate reform, rewarding active participants in restructuring while withholding support from those that resist.

Conclusion: A Template for Resilience in the Asian Petrochemical Sector

China’s ethylene oversupply has irrevocably altered the petrochemical landscape, making the Lotte-HD Hyundai integration a tactical imperative rather than an optional efficiency play. By transforming Daesan into a hub of optimized production and innovation, the partnership offers a template for Korean industry resilience. Success will depend on sustained commitment to high-value differentiation and policy-supported restructuring—a path that may define Asia’s chemical sector for decades.

#lotte #lottechemical #hyundai #hyundaichemical #daesan #korea #petrochemicalcomplex #naphthacracker #ethylene #oversupply #consolidation

Ethylene Production Optimization in the Chiba Area scheduled for completion in fiscal year 2026.

April 1, 2025

Sumitomo Chemical Co., Ltd. and Maruzen Petrochemical Co., Ltd. (a subsidiary of Cosmo Energy Holdings Co., Ltd.) have announced a significant change to their ethylene production operations in the Chiba area. Maruzen Petrochemical will shut down its own ethylene production facilities by fiscal 2026, and all ethylene production will be consolidated at Keiyo Ethylene Co., Ltd. Keiyo Ethylene is a joint venture between Maruzen Petrochemical, which holds a 55% ownership stake, and Sumitomo Chemical, which holds 45%. The shareholding ratio will remain the same after the consolidation.

This move comes in response to several challenges facing the industry, including a global oversupply of ethylene due to new, large-scale plants in China, as well as declining domestic demand for ethylene in Japan. Both companies recognize the need to improve operating rates, lower costs, and reduce CO₂ emissions to remain competitive.

By consolidating production at Keiyo Ethylene, which is Japan’s most advanced and largest ethylene facility, Sumitomo Chemical and Maruzen Petrochemical aim to increase the operating rate and competitiveness of the Chiba petrochemical complex. The consolidation is also expected to lower fixed costs and advance green transformation initiatives, supporting the companies’ efforts to achieve net zero carbon emissions.

The Maruzen Chiba Plant, operated by Maruzen Petrochemical since April 1969, currently has a capacity of 525,000 tons per year (or 480,000 tons during repair years). Keiyo Ethylene, which began operations in December 1994, has a capacity of 768,000 tons per year (or 690,000 tons during repair years). The optimization and consolidation of ethylene production are targeted for completion by fiscal year 2026.

Overall, this consolidation is designed to ensure the long-term competitiveness and sustainability of the Chiba petrochemical complex by focusing production at the most efficient site and supporting environmental goals.


#sumitomo #maruzen #chemicals #ethylene #chiba #japan #consolidation #keiyo #cracker #steamcracker #ethyleneplant #plantclosure

Técnicas Reunidas / March 10, 2025 -- In a significant step toward Europe's energy transition goals, Técnicas Reunidas and Siemens Energy have been selected to carry out the Front-End Engineering Design (FEED) for the La Robla Green project, set to become one of Europe's largest renewable methanol production facilities. The ambitious initiative is located in La Robla, a municipality in the province of León, Spain.

The project is spearheaded by Spanish company Reolum, which specializes in innovative energy transition solutions. The planned facility will produce 140,000 tons per year of green methanol (e-methanol) by combining renewable hydrogen with biogenic carbon captured from a biomass cogeneration plant. This approach ensures a sustainable production process with significantly reduced carbon emissions compared to conventional methanol production methods.

Green methanol is gaining prominence as a key alternative fuel for decarbonizing sectors with traditionally high emissions, such as maritime transport and aviation. It can be used directly as fuel or serve as feedstock for sustainable aviation fuel (SAF), providing a crucial pathway toward achieving Europe's climate neutrality targets.

The La Robla Green project brings together the expertise of several global leaders in decarbonization technologies. Siemens Energy will lead the development of the renewable hydrogen unit, while Técnicas Reunidas will oversee biogenic carbon capture and e-methanol production units. Mitsubishi Heavy Industries will provide advanced CO₂ capture technology, and Johnson Matthey will supply its proprietary eMERALD™ technology, enabling direct hydrogenation of captured CO₂ into methanol.

This collaborative effort aligns with Técnicas Reunidas' broader decarbonization strategy known as TRACK, aimed at accelerating the transition to a low-carbon economy. The project recently received substantial financial backing from the Spanish government: €180 million from NextGenerationEU funds allocated by the Spanish Ministry for Ecological Transition and Demographic Challenge. This funding supports Spain's H2 Valles Program initiative to establish major renewable hydrogen clusters across various regions including Aragon, Andalusia, Castile and León, Catalonia, and Galicia.

With this investment and collaboration among industry leaders, La Robla Green positions itself as a landmark project in Europe's renewable energy landscape. It is expected to significantly contribute to regional economic growth while advancing Spain's leadership in green technologies and sustainable fuels.

#greenhydrogen #emethanol #sustainablefuels #sustainableaviationfuel #saf #carboncapture #co2capture #sustainability

LA ROBLA GREEN project site that will include a carbon-negative green biomass energy generation plant and an e-methanol plant produced by combining CO₂ extracted from the Roblum biomass power plant with green hydrogen.


#spain #larobla #reolum #greenhydrogen #emethanol #biomassenergy #co2extraction #sustainability

Propane and Isobutane Dehydrogenation for Acrylic Acid and Esters Production (mentioned as planned projects without explicit details on dates or capacities.)


#coaltoolefins #gasification #methanol #dmto #methanoltoolefins #dcc #fcc #catalyticcracking #vcc #vebacombicracking #polyolefins #netzero #mtbe #sustainability #ccus #ocu #olefinconversionunit

Technology to produce methanol from syngas has been added.


#hydrogen #co #carbonmonoxide #syngas #methanol #hydrogenation #co2

#guangxi #shanghai #china #huayi #energychemical #gasislandproject # coal #coalgasification #methanol #ethyleneglycol #meg #aceticacid #coaltochemicals #coaltomethanol #coaltoolefins

Construction site of Xinjiang Zhongtai New Materials Co., Ltd.'s resource-based comprehensive utilization methanol upgrade demonstration project. Image provided by Zhongtai New Materials Co., Ltd.

Xinjiang Zhongtai New Materials Methanol Project Construction Accelerates.

2024-08-09 12:35:58 Source: Tianshan Net - Xinjiang Daily Original

Tianshan Net-Xinjiang Daily (reported by reporter Shi Xin) At present, the construction site of Xinjiang Zhongtai New Materials Co., Ltd.'s resource-based comprehensive utilization of methanol upgrading demonstration project is crowded with people and roaring machines. Construction personnel are working hard and efficiently to advance the project towards the October 30 deadline.

The project is an important project of Xinjiang Zhongtai New Materials Co., Ltd. (hereinafter referred to as "Zhongtai New Materials Company") in the modern coal chemical industry planning. It is located in Toksun County with a total investment of 5.991 billion yuan. The project makes full use of the characteristics and advantages of coal chemical industry, uses the by-product screening residues (coal powder and coke foam) of the company's semi-coke device as gasification raw materials, and turns low-value materials into production raw materials, thereby increasing their added value, extending the industrial chain, realizing the resource utilization of waste, and improving the development level of the coal classification and quality utilization industry.

At the same time, lignite tail gas (raw coal gas) can be purified to produce hydrogen, and using hydrogen as raw gas for synthesizing methanol can reduce raw coal consumption and carbon dioxide emissions.

On July 23, the first methanol synthesis tower of the project was successfully hoisted, marking the full entry into the peak stage of installation. At present, Zhongtai New Materials Company is scientifically formulating construction plans and accurately reversing construction plans with the project general contractor, construction unit, and supervision unit under the premise of ensuring quality and safety.

Ma Kui, Party Secretary and Chairman of Zhongtai New Materials Company, said that the implementation of the project can promote the comprehensive utilization of resources locally and nearby. After it is put into production, it can form mutual support between the internal industries of Xinjiang Zhongtai (Group) Co., Ltd., continuously enhance the overall competitiveness and stability of the industrial chain, and meet the methanol demand of Xinjiang fine chemicals and new chemical materials enterprises, while also creating 800 jobs.

[Editor: Liu Hai]

#coaltomethanol #coal #newmaterials #zhongtai #turpan #china #xinjiang

Market Information at 10:36, November 22, 2024 | Sina Finance APA

According to Sinochem News, the Xinjiang Zhongtai New Materials Co., Ltd.'s resource-based comprehensive utilization methanol upgrade demonstration project, which was general contracted by China Tianchen Engineering Co., Ltd., a subsidiary of China National Chemical Corporation, successfully completed the handover ceremony of the gasification/air separation unit, marking the official entry of the project from the construction stage to the trial production preparation stage.

Tianchen Company is mainly responsible for the construction of the air separation and gasification units of the project. The air separation unit is equipped with two sets of 60,000 standard cubic meters/hour space separation equipment, and the gasification unit is equipped with three 286,331 standard cubic meters/hour (CO+H₂) synthesis gas gasifiers.

It is reported that since the start of the project, the Xinjiang Zhongtai Project Department has fully mobilized various resources, leveraged its project management advantages, led all participating units to overcome difficulties, promoted high-standard and high-quality construction of the project, and successfully completed the contract schedule goals.

#xinjiang #zhongtai #newmaterial #turpan #toksun #coal #coaltomethanol #gasification

Xinjiang Zhongtai Chemical's 1 million ton coal-to-methanol project.

Date: 2024-9-24 | China Carbide Network News.

On September 10, 2024, the Xinjiang Zhongtai New Materials Project substation constructed by the Xinjiang Branch of Sinochem Second Construction Group Co., Ltd. successfully received power for the first time, which was well received by all parties. The completion of this key node laid the foundation for the single-unit commissioning.

The Xinjiang Zhongtai Resource Comprehensive Utilization Methanol Upgrading Demonstration Project mainly constructs 1 million tons / year methanol and 18,900 tons / year sulfuric acid production lines, as well as air separation units , gasification units, low-temperature methanol-washed synthesis gas purification units, methanol synthesis units and supporting units.

The Xinjiang Zhongtai New Materials Resource Comprehensive Utilization Methanol Upgrading Demonstration Project is located in Tongxin Industrial Park, Alehui Town, Toksun County, Xinjiang. The planned total investment is about 5.99 billion yuan. The waste gas and screenings (coke powder and coal foam) produced by the semi-coke unit built by Zhongtai Group in Toksun County are used as raw materials to build a 1 million tons / year methanol project. The gasification unit is equipped with 3 Jinhua furnaces 3.0 , which mainly produce 286.331Nm3/h ( CO+H₂ ) of synthetic gas , with an annual operating time of 8,000 hours, 2 in operation and 1 in standby.

#zhongtai #newmaterial #coaltomethanol #china #turpan #xinjiang #coal #methanol

Shenmu Fuyou Energy Technology Co., Ltd. and production site in Yulin City, Shaanxi Province, have been added. It is a coal to chemical producer and a subsidiary of Shaanxi Coal Group.


#fuyoutechnology #shaanxi #yulin #china #coaltochemical #pyrolysis #coaltar #shaanxicoalgroup

#shaanxi #yulin #yulinenergygroup #china #coal #coaltochemical

Shaanxi Yulin Energy Chemical New Materials Co., Ltd. and manufacturing site created. Project is co-located with Yulin Energy Fine Chemicals Co., Ltd.

Coal-to-chemical site is in a project phase.


#shaanxi #yulinenergy #newmaterials #coaltochemical #epoxyresin #chloralkali

Yulin Energy Fine Chemicals Co., Ltd. and manufacturing site created. Details about actual activities of the site are not clear.

Project is co-located with Shaanxi Yulin Energy Chemical New Materials Co., Ltd.

#yulinenergy #china #shaanxi #coaltochemical #finechemicals