Recently, the China Petroleum and Chemical Industry Federation released the 2024 annual list of "Energy Efficiency Leaders" for key products in the petroleum and chemical industry, with three products from our company making the list. This marks the 13th consecutive year that Hualu Hengsheng has been included in this ranking.
In the industry-specific and product-specific rankings released this time, Hualu Hengsheng ranked 5th among methanol producers using bituminous coal as raw material and 3rd among urea producers driven by carbon dioxide compressor steam turbines. Jingzhou Hengsheng ranked 2nd among acetic acid producers.
Over the years, the company has consistently intensified structural adjustments, continuously elevating product sophistication, specialization, and precision while enhancing overall energy efficiency.
First, we adopted a balanced approach of reduction and expansion to phase out outdated production capacities. As early as 2014, Hualu Hengsheng decisively eliminated fixed-bed gasification systems and the 180,000-ton/year synthetic ammonia production line that remained profitable but featured obsolete processes and high energy consumption. In 2015, six medium and small boilers with excessive pollutant emissions and low thermal efficiency were decommissioned. Following 2016, two 150,000-ton/year urea plants and two 40,000 m³/h air separation units were successively phased out. Concurrently, we implemented traditional industry upgrading and clean production integration projects, including a gasification platform upgrade utilizing cutting-edge clean coal gasification technologies. All equipment represents China's largest-scale and most efficient systems in the industry. Upon completion, the three interconnected gasification platforms achieved significant improvements in scale, operational efficiency, and safety performance, resulting in annual savings of 154,300 tons of standard coal equivalent and a 52% reduction in exhaust emissions.
Secondly, expanding industrial chains and enhancing resource efficiency. Hualu Hengsheng seized strategic opportunities from Shandong Province's major project on transitioning old and new growth drivers, extending existing industrial chains to propel industries toward mid-to-high-end development. Since entering the 14th Five-Year Plan period, the company has invested 26 billion yuan in over 10 major transformation projects and established the Jingzhou base, forming a "one core with two wings" operational framework featuring dual flagship operations. Focusing on high-end fine chemicals, chemical new materials, and new energy materials with close industrial linkages and broad market prospects, the company has strategically entered product sectors like nylon new materials and lithium battery chemicals. Transitioning from new coal chemical technologies and basic chemical raw materials, it has shifted focus to emerging fields of new energy and high-end chemical materials. By developing green products with low resource consumption and carbon emissions, the company has extended industrial chains through circular utilization and flexible co-production to reduce overall energy consumption. Over the past five years, comprehensive energy consumption per 10,000 yuan of output value decreased by 38.76%, carbon dioxide emissions per 10,000 yuan of output value dropped by 46.59%, and nitrogen oxide emission intensity per 10,000 yuan of output value declined by 36.18%.
Thirdly, optimizing energy consumption structure and comprehensive resource utilization. The company actively implements Shandong Province's energy conservation and coal reduction requirements. While continuing to expand downstream industrial chains, it has not merely expanded its expertise in coal gasification leadership or increased thermal coal consumption. Instead, it has shut down some coal-fired boilers and leveraged external resources to address steam supply needs. In May 2017, Hualu Hengsheng signed a supply chain complementarity framework agreement with neighboring Huaneng Dezhou Power Plant, utilizing the latter's medium-low pressure steam from power generation to provide energy for new projects, achieving integrated industrial chain integration and circular utilization within the park. Currently, the company's thermal coal consumption has decreased to 26% of total coal consumption. Additionally, the company adopts advanced energy-saving technologies and processes, continuously improving the "three networks" for raw material utilization, waste treatment, and thermal energy utilization. By maximizing resource efficiency and eliminating waste, the company consistently exceeds annual energy-saving targets set by provincial authorities.
In recent years, Hualu Hengsheng has leveraged its position as a provincial leader in coal-based fine chemical industry chain development. Without significantly increasing energy consumption metrics, the company has strategically built, strengthened, expanded, and extended industrial chains, achieving integrated development through cluster-based layouts, park-oriented production, and unified operations. With an investment of 18 billion yuan in its Jingzhou base, the company has optimized core business operations while scaling up production capacity and amplifying brand competitiveness. The implementation of multiple new projects has established a dual-driven strategy combining "new energy + advanced materials" and coordinated development between its Dezhou headquarters and Jingzhou base.
