the Hua-ting polypropylene (PP) project with annual production of 200,000 T [复制链接]
1. Marketing investigation
The proved oil reservoir in the world is around 1,030,000,000,000 kL, and if current annual consumption rate of 35,000,000,000 is kept, world oil will be used up in 30 years, the situation is worse in China: Chinese oil reserve will be used up in 20 years at the current rate. It is forecasted that in 2010 China will import 61% of its oil consumption (around 335,000,000~368,000,000 L). Natural gas reserve in China (7,100,000,000,000 m3) is around 2% of that of total world, and China will run out it in 47 year with annual production of 1,520,000,000,000 m3. Transportation is the major user of oil and gas (more than 50%). On the other hand, the coal reserves and production are the top 1 in the world, the coal reserves in China which can be recoverable is around 1,886,000,000,000 T, which can be exploited in 100 years with annual production of 19,000,000,000 T, almost one magnitude larger than oil and gas. As a result, for Chinese energy structure, the ratio for the first energy consumption in China among coal, oil, gas and hydro-power is 76.2%:16.8%:2.5%:4.5%.
As the oil and gas prices will be inevitably increased due to the fact that they are non-renewable, the cost for the petrochemical industry will be so expensive that it will not be sustainable. Due to the energy and resource characters and structure in China, the chemical industry using black coal as the raw materials is showing competent advantages, so coke coal industry, ammonia and methanol from syn-gas made from black coal are developing rapidly, and the technology
research and industrialization process of coal liquefaction for gasoline, methanol transformed to olefin (MTO), dimethy ether (DME) and polyethylene (PE), polypropylene (PP) and other integrated coal chemical productions are in blooming. In 20 years, coal chemical industry will become a very important developing direction for energy industry in China, and China will become the largest coal chemical industry country in the world.
Ethylene and propylene are the very important basic raw industrial materials for the petrochemical industry, the ethylene production in the world is only less than ammonia, the amount of ethylene and propylene production symbolizes the petrochemical industry development level for a country. From ethylene and propylene, many downstream derivatives and products can be made such as polyethylene, polypropylene, polyvinyl chloride (PVC), EO, etc., and these downstream
plants are concentrated in East China such as Jiangsu Province and Shanghai where there lacks the natural resources and raw materials. In 2005, the consumption of ethylene in China is 16,000,000 T while the domestic production is 7,550,000
T, in 2006, it is 9,600,000 T. In 2005, the consumption of propylene in China is 7,853,700 T while the domestic production is 7,673,700 T, in 2006, the propylene consumption is 8,720,000 T and the production capacity is 8,400,000 T. Thus, China imported large amount of ethylene and propylene from abroad. The domestic ethylene production capacity will reach 17,000,000~18,000,000 T and market demand will be around 23,800,000 T in 2010, similar situation is also true for propylene.
PP is widely used for fibers, membranes, sheets, injection molding products, blow molding products in the world, it is expected that the rate will be 5.7% during the period from 2005 to 2010 and 4.0% during the period from 2010 to 2015. The total amount of PP consumed in 2005 is 39,882,000 T, it will become 52,620,000 T in 2010 and 64,000,000 T in 2015 in the world. In 2005, the producers and consumers of PP are mainly distributed in North America, Western Europe and Asia. The PP production capacity of in the world reached 42,830,000 T and the production was 39,880,000 T in 2005, it is forecasted that the production capacity in 2010 will be 57,580,000 while the consumption will be 52,660,000 T in the world.
As for the domestic market, the PP has been widely used for the weaving and braiding products, electronic and electric devices, building materials, computers, sport equipments, agricultural films, irrigation materials, clinical equipments, pipe and plate materials, for office supplies, etc.. Although the PP industry in China has been built and developed rapidly in the past decades, there still exists large gap between China and advanced countries, although there are
many PP plants in China, the production capacities are very small and the costs are very high for most of those plants. In 2006, the production capacity and actual production in China were 6,940,000 and 5,840,000 T, respectively, the difference between them was made up by importing PP from abroad. It is estimated that in 2010 the domestic PP market demanding will reach 12,600,000 T while the full production capacity only 10,700,000 T by then, and the shortage for PP in domestic market will be continued in the future, accordingly, the price for PP has been increased steadily due to the larger market demand, less natural resources, higher cost and shortage of supply in China, for example, the PP price in 2000 was 7,230 Yuan/T, it became 12200 Yuan/T in 2006. It is forecasted that the price for PP in the following years will be over 12,000 Yuan/T, for the purpose of the economical evaluation of this PE project, the price of 13,500 Yuan/T is used for PP.
In summary, the market potential for PP is very promising, based on the MTP production in the same area of Hua-ting, the project PP plant with capacities of 200,000 T annually is proposed here.
2. Technical availability
PP industry already has over 30-year history so far, and is one of the industries with largest general polymer products and consumption.
There are five industrial processes with the most competitive advantages to produce PP: Spheripol process, Unipol process, Borealis process, Amoco and Novolen process.
The Spheripol process is a combination of pre-polymerization in liquid phase, home-polymerization in liquid state and polymerization in gas state. Such a process uses two series ring-pipe type reactors so that the installation size
and cost as well as the energy consumed are significantly reduced. Due to the excellent catalyst properties, the properties for PP can be easily controlled by properly combining the catalyst with the polymerization processes.
The Unipol process transplants the corresponding PE installation to PP which uses the gas phase flowing bed reactor. One of obvious advantage for this process is the super cooling state gas phase flowing bed mechanism (SCM), which can increase the production capacity doubly by raising the solution phase ratio to 45%, thus, the production can be doubled at the same size and the cost be saved significantly. Such a process is very simple, flexible, economical,
safe and reliable, and is also very environment-friendly and energy-efficient.
Borealis process adapts one ring-pipe reactor module and one gas reactor module based on the module structure and multi-level polymerization design. The polymerization reaction is running at the critical conditions and the liquid in reactor becomes supercritical fluid which possesses the properties of low density, high heat transferring capability. The requirements for catalyst are very strict and the catalysts should work well at such critical reaction conditions.
Both BP-Amoco and Novolen processes are the gas state reactions. Flash evaporation is used for the heat radiating for BP-Amoco process while the recycling of propylene is used for heat radiating for the Novolen process.
Since 80s of last century, PP industry has been developed rapidly, initially China imported dozen PP installations including Spheripol and BP-Amoco equipments, currently the BP-Amoco single production line with the annual production capacity of 200,000 T is the largest one in China. At the same time, China also has developed the catalyst for PP production. Based digesting and absorbing the techniques from broad as well as the innovations in China, currently the key units such as ring-pipe reactor can be made in China, thus, the cost can be saved significantly by using the reactor made in China for the proposed PP project.
Generally the procedures for PP production are described as following.
Firstly, the supply, purification and refinement for raw material of propylene: the light and heavy compositions as well as the substances which may poison the catalyst such as CO should be removed before the polymerization reaction;
Secondly, the preparation, calibration and measurement of the assistant and main catalysts;
Thirdly, the activation of catalysts: first step, mixing the main catalyst pulp and two assistant catalysts together, second step, on-line mixing the activated catalyst with the cool liquid propylene and pre-polymerizing them in the small ring-pipe reactor;
Fourthly, polymerization reactions: the reactants in liquid state reacts with the aid of pulp catalyst and H2 (controlling the molecular weight for the polymer) in the first ring-pipe reactor, then the materials flowing from the first reactor will enter and react in the second reactor with fresh propylene and H2. Pumpers are used to keep the materials in the reactor flowing in high speed constantly and mixing homogeneously;
Fifthly, degassing and streaming the products: through such a procedure, the residual reactants and catalyst are separated from the polymer and recycled, the polymer is ready to be dried;
Sixthly, the polymer enters the flowing bed dryer and the water on the polymer surfaces can be removed by the N2, the wet N2 will be sent, dried and pumped again to be reused again. The polymer then is transported to powder storage through N2 closed loop for granization;
Seventhly, grainization procedure: the PP powder and suitable amount of additives are pressed together to be melted, mixed and grainized in water, then the massive subjects are filtered out, the other parts are dried in the centrifugal heater;
Finally, homogenization and storage of the final PP products, and the PP is ready for being packed.
The installation and mechanic equipments for PP production should be with the resistance against low temperature, anti-corrosion, surface polished in case of agglomeration. These equipments and devices are grouped mainly into: heat switchers (made in China), ring-pipe reactors (made in China), steamers (imported), containers and towers and filters (made in China), pumpers (imported or made in China) and grainization system which are the key equipments for PP and required to be imported from Germany or Japan.
Another important part of the installation is the control system, this PP project will adapt the discrete control system (DCS), at the same time, an independent emergency stop system (ESD), emergency stop control button and external alarming auxiliary console are also necessary for the control system. The control system for the process flowing will guarantee the whole installation is running under safe, stable condition with maximum efficiency and lowest consumption of raw materials. Thus, based on the request of patent product provider, the software package with patent may be necessary for operating the control system.
The chosen meters should be advanced, safe and accurate to ensure the PP installation will be run safely and be convenient for maintenances, usually the meters are almost all electronic devices. There are roughly eight kinds of meters: meters for checking the flowing rate, for online analysis, for temperature and pressure measurements, for measuring liquid level, for gauging the hydrocarbon concentration in the air, and controlling valve, etc.. The forces to drive these meters are by UPS or dry and clean compressed air without oil.
For the annual 200,000 T PP production, it will annually consume 192,800 T propylene and 8,000 T ethylene, use 140 T H2, consume 0.75 m3 fresh water and 1.5 m3 desalination water as well as 4,125 m3 cycling water per hour, and use 12,000 KWH electric power, 1.4 T vapor, 3,375 Nm3 nitrogen and 1,500 Nm3 meter air hourly. The annual catalyst and coolant (ICA) used will reach 60 T and 1,230 T, respectively. The investment will also cover the transportation cost for the installation, especially for those with no-standard size equipment such as reactor, regenerator and many towers.
The electric equipments include two 35 kV main transformers, seven 35 kV high voltage switchgears, twenty 10 kV vacuum switchgears, 120 low voltage switchgears and MCC, UPS, one set of DC power device, two power transformers, etc..
The communication system will be also installed such as administrative phone system, production scheduling phone station, computer information system, calling/talking system, wireless communication system, industrial monitoring TV
and automatic fire alarming system.
There will be two kinds of transportation method: shipment by road and pipeline transportation, the major raw materials such as methanol, ethylene and other olefin will be transported by pipeline, and others will be transported by trucks. Totally the annual transportation volume is estimated to be 262,150 T.
The water supply and drainage systems are designed according to the state standards and regulations on the principal of water-saving and efficiency. In order to save water, the air-cooling method will be adapted for the cooling system of the installation, and the production cooling system should use the recycling water. The initial stage for water supply can be saved because it has been built up by the methanol project in the same industrial park, for PP project, only water supply pumpers and drainage systems should be constructed. The water supply networks consist of fresh direct flowing water system, high pressure fire-fighting water system and cycling water system. The water supply for this PP project is estimated to be 6,800 m3/h. The drainage system consists of sewage network, industrial waste water network, polluted and fire-fighting water network and clean rain water network.
Because the steam dome has been designed for the upstream project of MTO, in the PP design, the boiling vapor from MTO can be used in this PP installation.
In summary, the techniques, process and installation for PP plants are very mature, and the production prerequisites can be in met in Hua-ting according to the layout above.
3. Favorable conditions of Hua-ting County for the project (abundant black coal, adequate water and power supply, complete upstream and downstream coal chemical and engineering industries, convenient transportation, solid industry foundation, people, etc.)
Hua-ting County is very suitable for such a MTO project, the reasons are listed as below:
Firstly, Hua-ting is one of the 13 coal mining bases in China and one of the three largest coal mines in North-West China. The black coal reserve in Hua-ting is 3,470,000,000 T which is distributed in an area of 150 km2, most importantly, Hua-ting coal mine is part of the Ordos basin reserve, which contains more than trillion tons coal and this basin plays an strategic role in Chinese energy structure and coal chemical industries, as an example, the Chinese base of coal liquefaction for gasoline is located at this basin. The prominent property for the coal in Hua-ting mine lies in that it is most suitable for coal chemical industries due to its high heat capacity, high chemical mobility, high volatile compositions, low amount of sulfur, low melting point and low amount of ash.
Secondly, the upstream methanol plant (produced from the syn-gas of coal) in Hua-ting will be operated fully in 2009. The investment for this methanol plant is around 2,900,000,000 Yuan and it is the key project for Gansu Province,
basically this plant will use the black coal in Hua-ting as the raw material to produce 600,000 T methanol annually. The MTO project with the capacity of 500,000 T ethylene and propylene is the prerequisite for PE and PP projects, and such a MTO will be integrated with the PE and PP projects. There will be more downstream industries to concentrate in the Hua-ting Industrial Park.
Thirdly, Hua-ting is becoming the transportation hub which connects Shanxi Province, Ningxia Hui Autonomous Area and Gansu Province, the distances between Hua-ting to the three metropolis cities of Xi’an, Lanzhou and Yinchuan are 300, 390 and 400 km, respectively. Bao-zhong railway and two provincial roads (304, 203) pass Hua-ting, which link Hua-ting with neighboring provinces, areas and cities. However, two other highways and one railway which interconnect with each other and link Hua-ting to neighboring cities and provinces are under construction right now. Thus, Hua-ting can be assessed easily, and the transportation of materials, products, goods and people to and from Hua-ting is
very convenient with very low cost.
Fourthly, the weather in Hua-ting is very mild and vegetation is good (forest covers 37% of the Hua-ting land), and rainfall is around 607 mm annually, runoff is 190,000,000 m3, the three reservoirs in Hua-ting County contain 17,500,000 m3 water, the total water resource is 192,000,000 m3, so there is abundant water resource for coal chemical industries, such a situation is very rare for Gansu Province which is famous for the dry weather and bare land.
Fifthly, people in Hua-ting is the most valuable asset, people here work hard with good ambition, motivation and high tolerances, they are proud of being open-mind, innovative and cooperative. Hua-ting also has the solid industrial foundation and industrial tradition, and infrastructure such as power, transportation is improving significantly in recent years will be adequate for the proposed MTO and other coal chemical industries.
Sixthly, the government of Hua-ting county has formulated, promulgate and implement the official regulations which list the favorable conditions for attracting investments, and those conditions can be negotiated further. The favorable conditions cover almost every aspect of an investment such as land usage, taxation, fiscal policy, power and water supply, labors, etc., Hua-ting government will provide these documents on request.
Seventhly, Hua-ting has two stable power plants with the total capacity of 2×600 MW and 2×135 MW, respectively, which will provide enough power for plants. There are two 110 kV substations with the capacity 40 MVA. There are also
six 35 kV substations with capacity of 34.2 MVA. The power in Hua-ting is connected to the state power grid and plays an important role in the North-west power grid.
Eighthly, the market potential for PE and PP in North-western China is very promising, the products made from PE, PP are in short of supply because of the construction of many projects and fast economic growth in North-western China.
Finally, the industrial park of Hua-ting is a provincial level park where the upstream plants such as methanol (600,000 T/year), MTO, DME and others are under construction, among which the methanol plant will be in full operation in
2009. The infrastructure in the park such as transportation, water and electric supply and water drainage, office buildings and communication systems as well as the environment are being improved significantly. The downstream industries are also under considerations and evaluations now.
4. Environmental protection, energy saving plans, labor protection and rights
This project will take full considerations of environment and eco-system protections. According to the investigation, the dominant energy consumer for the PP plant is the water recycling system, the next one is the electric devices. Thus, in order to save energy and improve the energy efficiency, the design for the PP plant should be optimized to reduce the amount of recycling water usage and choose those equipments with high energy/power efficiency. The energy efficiency can be achieved by using the advanced techniques and key equipments, optimizing the processes, choosing the advanced cooling techniques for the polymerization reaction system, using the heat insulation measures for all the heater and cooler as well as the pipelines, etc.. The state regulation and standard for environment protection will be followed strictly. Totally 228,000,000 Yuan will be invested to monitor, remedy and recycle the waste gas, water
and solid as well as the noise, the waste gas, water and solids will be dealt and remedied with special equipments and procedure at the designed locations. Special equipments and processes will be used to minimize the pollution from
the PP plant.
The PP plant will also follow strictly the state regulations about occupational health, work place safety and labor policy. The building and the site layout will consider the safety and health hazards, the equipments such as DCS, ESD will be installed to monitor any leakage, special installation for dealing with emergencies such as the pool to collect waste water from accidents will be set up. Plans for all possible emergencies will be made in advance, emphasis will be placed on electricity and fire safety.
5. Cost breakdown, plant organization, profit expectation and other economic and financial parameters
The PP plant area is 8.55 hm2 with 147 personnel, quantity of earth work of 170,000 m3, annual operation hours of 8,000 with annual production of 200,000 T PP. The plant will consume 192,800 T propylene and 8,000 T ethylene annually, use 6,697 m3 water and 12,000 kWh power hourly. The annual quantity of transportation will be 262,150 T. The whole plant includes PP installation, auxiliary facilities and infrastructure. The PP installation is the key unit for the whole plant which consists of catalyst preparation, refinement of reactants, polymerization reaction, degassing of polymer produced, grainization by pressure, product packing, stacking, and storing. Auxiliary facilities includes liquid material cans area, central control area, central analysis and test area, intermediate product/storage area, comprehensive warehouse, final product storage, safety equipment (occupational health, fire department, etc.) and maintenance. Infrastructure includes water supply and drainage system, transportation network and environmental facilities, power distribution station, thermal power generator, communication system, heating and ventilation system and living area
such as office building, dorm building etc..
The total investment will be 2,106,070,000 Yuan, among which 1,731,170,000 Yuan will be used for fixed assets, 55,740,000 for liquidity assets. The average cost for the major products is 11,367 Yuan/T, 13,500 Yuan/T is taken for the average price of PP, so the annual profit is expected to be 268,930,000 Yuan, and the total investment can be reclaimed back in 7.45 years, the profit margin for the investment will be 9.57%, IRR will be 17.61% (before taxation) and
15.73 (after taxation), and average BEP will be 52.97%