Which Process to Win out During the Upcoming DMC Reshuffle Period
Year:2020 ISSUE:6
COLUMN:ORGANICS
Click:106    DateTime:Mar.24,2020


By Zhu Jun, Shandong Hualu Hengsheng Chemical Co., Ltd.


Dimethyl carbonate (DMC) is an environmentally friendly chemical raw material with excellent properties and a wide range of applications. Lithium ion battery electrolyte, coatings, polycarbonate, adhesives, and pharmaceuticals, as high-end application fields of DMC, have great development potential, which will be the driving force and direction of the DMC development in the future.


Demand grows steadily

   Demand for DMC has steadily increased in recent years. Among the derivatives, lithium ion battery electrolyte and coatings are the major consumer markets. The lithium ion battery electrolyte is the biggest consumer (taking up more than 30% of the total consumption) and is considered to have the greatest potential.

   The output of DMC was about 420 000 tons in 2018 and reached about 468 000 tons in 2019, of which, 360 000 tons were premium products (more than 99.9%), mostly based on synthetic production process. Other grades were by-products, as well purified first-class products and qualified products, and they are mainly used in the low-end coating, low-end thinners, glues, and blending industries.

   In 2018, the consumption structure of domestic DMC was as below: electrolyte accounted for 30.56%; polycarbonate accounted for 22.22%; high-end coatings accounted for 13.89%; developing solutions, pharmaceuticals and pesticides accounted for 8.33% each; and polyurethane and adhesives took up 5.56%.

   DMC is a green chemical intermediate to replace traditional toxic chemical products. Its growth is greatly subject to the development of downstream industries and is affected by its way to be one of the energy-saving and environmentally-friendly industries. Lithium-ion battery electrolyte, coatings, polycarbonate, adhesives, and pharmaceuticals sectors are working on developing high-end and highly environment-friendly grades. Meanwhile, the development and promotion of emerging downstream sectors will strongly drive up the DMC industry.


DMC industry in reshuffle amid upgrading technologies

   In 2018, the total domestic DMC capacity was 770 000 t/a, 635 000 t/a of which were based on synthesis process, and the rest was by-products purified from synthesis gas to ethylene glycol process. Table 1 shows the main domestic DMC producers in 2018.

   Table 1  China's synthesis-based DMC producers in 2018

Producer

Capacity (kt/a)

Production process

Shandong Shida Shenghua Chemical Group

75

Transesterification

Jining Shida Shenghua

50

Transesterification

Shandong Haike Group

60

Transesterification

Shandong Wells

55

Transesterification

Taifeng Feiyang Chemical

30

Transesterification

Shandong Depu Chemical Industry Science and   Technology Co., Ltd.

40

Transesterification

Ningbo Zhetiedafeng Chemical Co.,   Ltd.

40

Transesterification

Taizhou Linggu Co., Ltd.

60

Transesterification

CNSG Anhui Hong Sifang Co., Ltd.

50

Methanol oxidative carbonylation

Jiangsu Aoke Chemical Co., Ltd.

30

EO transesterification

Anhui Tongling Chemical Co., Ltd.

90

Transesterification

Yulin Yunhua Co., Ltd.

55

Transesterification

   Some domestic DMC units were brought on stream in 2019. Wansheng New Materials put its DMC project into trial run in early 2020. Table 2 shows the domestic projects under construction or to be constructed.

   Table 2  Domestic DMC projects under construction or to be constructed

Company

Capacity (kt/a)

Production process

Location

Remark

Shandong Shida Shenghua Chemical Group

50×2

Vinyl carbonate transesterification

Quazhou

To be started up in 2021

 Yangquan Coal Mining Qiandao Hengyuan   Chemicals Co., Ltd.

40

Two-step alcoholysis of urea

Qingdao

Construction completed, but not on stream yet

Ko Yo Chemical (Group) Co

50

Two-step alcoholysis of urea

Dazhou

Designed capacity of 300 kt/a, with 50 kt/a phase I project   under construction

Dongfang HOPE Group Wansheng New Materials   Co., Ltd.

60

Methanol oxidative carbonylation

Chongqing

In trial run

CNSG Anhui Hong Sifang Co., Ltd.

50

Methanol oxidative carbonylation

Zhoukou

Phase II under construction

Zhongke Hui’an

50

Two-step alcoholysis of urea

Changzhi

In trial run

Hainan Huasheng New Materials Co., Ltd.

100

Transesterification

Dongfang

Two 260 kt/a PC units are expected to be constructed   and be put into production in 2020

Zhejiang Petrochemical Co., Ltd.

100

Transesterification

Ningbo

Under construction


   The early production processes of China's DMC products were phosgene, and the scale of the device was small. Later, due to toxicity, corrosion and environmental problems, they were gradually eliminated by the transesterification process. At present, the traditional transesterification process is still the dominant process, and the production capacity accounts for more than 90%.

   At present, the traditional PO transesterification process is dominant in the domestic DMC industry, while new EO transesterification, methanol gas phase oxidative carbonylation, methanol liquid phase oxidative carbonylation, and two-step urea alcoholysis process are also used. The market competition is likely to be more furious and a reshuffle will be coming soon, as mature, reliable and comprehensively competitive processes will be leading in the market. Table 3 indicates the comprehensive comparison of some processes.

   Table 3   Comprehensive comparison of different processes

Synthetic methods

Advantage

Disadvantage

Domestic application

Phosgenation


High yield

The process is complicated and the operation cycle is   long; the raw materials are very toxic

No any plant based on the process

Methanol oxidative carbonylation

Gas phase

Easy access to raw materials; simple production process  

Catalysts are expensive and side reaction generates   small amounts of nitric acid

CNSG Anhui Hong Sifang Co., Ltd.’s 50 kt/a unit has   been put into production


Liquid phase

Easy access to raw materials; low costs; high   production security

Catalyst features short life and strong corrosiveness

Wansheng New Materials Co., Ltd.’s 60 kt/a is   in trial run

Transesterification

EO

Mature technology; large market capacity of the by-product   ethylene glycol

Raw ethylene oxide is not easy to be transported and   stored

Jiangsu Aoke Chemical Co., Ltd.’s 20 kt/a unit


PO

Mature technology; raw material propylene oxide can be   purchased

By-product 1,2-propanediol has limited market capacity   and limited capacity per unit

Prevailing process in China

Urea alcoholysis

One-step

Raw materials are cheap and easily available, with no corrosion,   no pollution

A large or excessive amount of methanol needed; high   separation energy consumption and low selectivity

In R&Q phase


Two-step

Raw materials are cheap and easily available, with no corrosion   and high yield

Technical reliability yet to be verified

Shanxi Zhongke Hui'an’s 50 kt/a plant is in trial run; Yangmei   Qingdao Hengyuan Chemical’s 40 kt/a plant has not been put into operation yet;   Sichuan Ko Yo’s 30 kt/a is under construction; Hainan Huasheng New Materials Co.’s 10 kt/a   unit (fed by the PC unit)


   According to the current market conditions, the gap of cost of different processes is not big. Among the industrialized processes, the transesterification process is slightly higher in the full cost, and the methanol gas phase oxidative carbonylation process is optimal in the cost. It has not been long since the first methanol liquid phase oxidative carbonylation and urea alcoholysis units were put into production, so the two processes will have room to improve. The competitiveness of different processes is directly related to the reality of whether a producer is well equipped with raw materials and derivatives units, in addition to the characteristics of the process itself.

   Although the product has excellent properties and is environment-friendly, the overall market capacity is slightly limited. Producers that do not integrate raw materials and derivatives facilities may be driven out of the market in the future.