By Zhang Songchen, Zhang Cheng, Consulting Department of China National Chemical Information Center
On July 1, 2021, the National Development and Reform Commission (NDRC) announced the 14th Five-Year Plan for Circular Economy Development to promote the development of circular economy. On January 17, 2022, the NDRC officially issued the Guiding Opinions on Accelerating the Construction of the Recycling System for Waste Materials, clearly proposing that by 2025, the recycling policy system for waste materials will be further improved, the level of resource recycling will be further promoted, the recycling network system of waste materials will be basically formed, more than 1 000 green sorting centers will be established, the recycling volume of 9 major renewable resources such as waste plastics and waste rubbers will reach 450 million tons, about 60 large and medium-sized cities will take the lead in establishing a basically complete recycling system for waste and old materials. Liaoning Province, Qinghai Province, Heilongjiang Province, Guangxi Zhuang Autonomous Region and other provinces had successively launched provincial-level circular economy development plans from the end of 2021 to 2022.
Driven by policies such as "double carbon" and "green environmental protection", the petrochemical industry, as a traditional high-energy-consuming and high-pollution industry, is facing greater transformation and upgrading pressure toward green and low-carbon growth. The following will focus on two parts to review the exploration of the petrochemical industry in the field of circular economy in 2022, which are the resource utilization of chemical-related wastes and the development of bio-based chemical products.
With the support of clear state policies, the resource utilization of China's chemical wastes and bio-based chemical industry have experience a rapid development, especially the recycling of waste plastics and the biodegradable plastic industry, showing a thriving and rapid development trend. The recycling of rubber tire and power battery, with the support of policies and technologies, is rapidly moving towards industrialization. New products are emerging in the field of bio-based chemicals, and the petrochemical industry is actively using circular economy to promote the green and low-carbon transformation.
Plastic recycling
Driven by the concept of environmental protection and low-carbon in China, the government and various industry participants have also done a lot of work to promote the development of the plastic recycling industry. At present, an industrial structure covering the entire industrial chain has been basically established, laying a good foundation for development.
In March 2022, the Ministry of Agriculture and Rural Affairs and the Ministry of Finance jointly issued the Notice on Carrying out the Pilot Work for the Scientific Use and Recycling of Mulch Films, focusing on key film-using areas, and supporting the promotion of thick and high-strength mulch films and fully biodegradable mulch films, so as to systematically solve traditional mulch films problems of being hard to recycle and high cost of replacement. In May, the Ministry of Ecology and Environment issued the Technical Specifications for Pollution Control of Waste Plastic, which strengthened the requirements for full life cycle management and environmental risk prevention and control, adapted to the development needs of the waste plastic recycling industry, and clarified the requirements for chemical regeneration pollution control.
While continuously improving relevant policies at the national level, Beijing, Jiangsu, Shandong, Guangdong and other provinces and cities have successively introduced relevant policies to promote the development of the plastic recycling industry. Beijing focused on deepening the governance work from 8 aspects, and proposed 23 specific measures. Jiangsu Province issued the Implementation Plan for the Action of In-depth Green and Low-Carbon Development of Public Institutions, requiring public institutions at all levels in the province to resolutely implement the requirements for plastic pollution control, so as to reduce the use of disposable plastic products. Shandong Province and the Ministry of Ecology and Environment hosted the 2022 "National Low Carbon Day" event in Jinan. Guangdong Province issued the Guangdong Province Plastic Pollution Control Action Plan (2022-2025), proposing that by 2025, the operation of the plastic pollution control mechanism will be more effective, the whole chain of plastic product production, circulation, use, recycling, and disposal will achieve more significant results, and white pollution will be effectively restricted.
Driven by the policies, domestic enterprises have begun to layout in recycling sorting and plastic recycling. China’s first low-value recyclable sorting center project, located in Haicang District, Xiamen City, is in the equipment installation stage. After completion, the service area will cover the entire Haicang District, and the designed daily sorting capacity is about 45 tons. Nippon Paint China announced a strategic cooperation with LyondellBasell, aiming to turn plastic wastes into treasures and create new green and environmentally friendly plastic packaging for Nippon Paint's coating system products.
Rubber recycling
In 2022, the Ministry of Industry and Information Technology approved the release of 1 036 industry standards, including the Evaluation Requirements for Green Factories in the Tire Industry (HG/T 6061-2022) and the Green Supply Chain Management Requirements for Tire Manufacturing (HG/T 6062-2022), two of which provided a basis for the green transformation and upgrading of the tire industry. Dalian City issued the Implementation Plan for the Construction of the Waste Materials Recycling System in Dalian City, which proposed three coordinated developments between the utilization of waste materials and industries, namely, the coordinated development of the utilization of waste metals and equipment manufacturing industry, the coordinated development of the utilization of waste and old materials and the disposal of hazardous wastes, and the coordinated development of the utilization of wasted tire plastics and chemical industry.
In terms of enterprises, Cleantire Environmental Protection Co., Ltd. and Shandong Linglong Tyre Co., Ltd. signed a comprehensive strategic cooperation agreement to promote the tires recycling of full life circle. The two parties will make use of Cleantire’s advantageous technologies in pyrolysis of waste tires and recycling environmental protection carbon black and Linglong’s leading technology in high-end tire manufacturing, and carry out technological innovation, product application and project expansion centering the tires recycling of full life cycle, and jointly promote the establishment of a resource-recycling tire industry system.
Power battery recycling
With the rapid development of the new energy vehicle industry and the increasing amount of decommissioned power batteries year by year, the resource utilization of decommissioned power batteries has become a hot spot of social concern. A large number of research institutions and enterprises are actively making layouts in the industry to promote the continuous advancement of related technologies and industrialization.
In terms of research and development, new power battery recycling technologies keep emerging. The team of Professor Kang Feiyu and Professor Li Baohua from Tsinghua University has researched and developed an effective strategy for efficient and green recycling of decommissioned lithium-ion batteries.
In terms of industrialization, domestic enterprises have begun to promote the implementation of industrialization. Zhejiang Wangneng Urban Mining Technology Co., Ltd., a wholly-owned subsidiary of Wangneng Environment Co., Ltd., signed a Strategic Cooperation Framework Agreement with Huzhou Yongxing New Energy Co., Ltd. The two parties will jointly study the waste power batteries recycling technology and jointly establish a waste power battery recycling network. Gree Electric Appliances, Inc. of Zhuhai’s Titanium high-performance lithium titanate battery technology won the National Patent Gold Award by shortening the charging time and greatly prolonging the service life of the battery. China’s first short-range low-carbon waste lithium-ion battery resource recycling production line in Shaoshan City, Hunan Province has started construction, which is invested by Hunan Jiangye Electromechanical Technology Co., Ltd. (with an investment of RMB150 million), and once completion, it will process 22 000 t/a of waste lithium batteries. The main body of the first plant of the Sichuan 100 000 t/a waste lithium battery recycling project successfully sealed its roof, and it is expected to be completed and put into operation in July 2023. The Vehicle Power Battery Cycle Industry Center (Jiangsu) of Jiecheng New Energy project, with a planned total investment of RMB1.15 billion, settled in Liyang City, which is about to build a recycling project for the processing of 300 000 t/a of new energy vehicle decommissioned power batteries.
After years of development, China's power battery recycling industry has established a certain industrial foundation. According to the information disclosed by the Ministry of Industry and Information Technology, as of the end of August 2022, there were more than 190 automobile manufacturers and power companies in 31 provinces, autonomous regions and municipalities across the country. Enterprises such as battery comprehensive utilization have set up 10 235 recycling service outlets across the country, exploring the formation of a number of new business models such as "lease battery rental and sales" and "waste for raw materials", and the power battery recycling system has been gradually improving.
Biodegradable plastic
In order to promote the development of China’s degradable plastics industry, the state and local governments continually introduce various policies to promote the development of the industry. At the national level, Catalogue of Encouraging Foreign Investment Industries (2022 Edition) (Draft for Comment) has been released, which encourages foreign investors to invest in polylactic acid (PLA) and polyhydroxy fatty acid (PHA) fiber projects. In July, the Ministry of Industry and Information Technology publicly stated that it would attach great importance to the promotion of full biodegradable plastic films. In October, the State Post Bureau stated that by the end of 2025, postal express outlets across the country will ban the use of non-degradable plastic packaging bags, plastic tapes, and disposable plastic woven bags.
Some provinces and cities have launched relevant policies according to their own industrial characteristics and current development stage to promote the development of the degradable plastics industry. Shandong Province released the Development Plan of Chemical Industry in Shandong Province in the 14th Five-Year Plan and defined PLA and polybutylene adipate terephthalate (PBAT) as key products during the 14th Five-Year Plan period (2021-2025). Beijing, being prior to carry and try, carried out a 6-month pilot project to promote residents' habit of garbage sorting. Jiangsu Province released the List of Key Items of 14th Five-Year Ecological and Environmental Protection Plan to promote the implementation of related work related to the green transformation of express packaging, and promote the industry green, healthy and high-quality development. Henan Province released the Guiding Opinions on Promoting the High-quality Development of the Chemical Industry in Henan Province during the 14th Five-Year Plan, and proposed to focus on building "1" full-range biodegradable material industry, making "4" high-end functions better and stronger and striving to build the largest industrial cluster of biodegradable materials and high-end functional new materials in China.
Driven by policies, domestic production capacity of biodegradable plastics has grown rapidly. According to incomplete statistics, in terms of PBAT/PBS, Xinjiang Huatai Heavy Chemical Co., Ltd. plans to build 120 000 t/a of PBAT, Yipu New Materials Co., Ltd.’s 90 000 t/a of PBAT and 30 000 t/a of PBS projects have officially launched, Xinjiang Dawning Luhua Co., Ltd.’s 100 000 t/a of 1,4-butanediol (BDO) and co-production 120 000 t/a of PBAT projects have officially started, Kanghui New Material Technology Co., Ltd.’s 450 000 t/a of PBS/PBAT/PBT degradable plastic project has completed construction. In terms of PHA, at the beginning of the year, Beijing Bluepha Microbial Technology Co., Ltd.’s biodegradable plastic PHA production line with a designed capacity of 25 000 t/a was started in Binhai County, Yancheng City, Jiangsu Province. At the end of the year, Hubei Weiqi Biotechnology Co., Ltd.’s 30 000 t/a synthetic bio-PHA biodegradable material green intelligent manufacturing project passed the examinations, and the pre-production process verification of 10 000-ton PHA production line was of a success. In addition, the main body of Hunan Juren Chemical Hitechnology Co., Ltd.’s 50 000 t/a of polycaprolactone (PCL) project has sealed its roof.
Bio-based chemicals
Longyan Zhuoyue New Energy Co., Ltd. invested RMB1.05 billion to build a biodiesel and bio-based plasticizer project in Longyan City, Fujian Province. Once the project is completed, it can achieve an annual production of 200 000 tons of biodiesel and bio-based plasticizers.
In terms of key intermediates of bio-based plastics, major companies have also carried out comprehensive explorations. In terms of key intermediates, Zhongke Guosheng (Hangzhou) Technology Co., Ltd. signed a tonne supply contract for 2,5-furandicarboxylic acid (FDCA) products with downstream customers, which is the largest single supply contract for FDCA products in China. The 20 000 t/a of sugar-based 1,3-propanediol (PDO) production unit jointly built by Guangdong Tsinghua Smart Biotech Co., Ltd. and Shanxi Changqing Biotechnology Co., Ltd. succeed in the first start-up; Cathay (Taiyuan) Biotechnology Co., Ltd.’s 40 000 t/a of biological-based sebacic acid has been put into trial operation.
In terms of plastic and polymer products, Wanhua Chemical Group Co., Ltd. released a 100% bio-based TPU, which uses bio-based pentamethylene diisocyanate (PDI) made from corn stalks, and its additives such as rice bran wax are also derived from corn.
Prospects of circular economy development in petrochemical industry in 2023
After the development in 2022, the development of circular economy in the petrochemical industry has reached a new height, and gratifying changes have taken place in the utilization of waste resource and the development and application of bio-based product.
The resource utilization of chemical waste is prosperous, but there are big differences in development among major categories:
Plastic recycling is still dominated by physical recycling, and driven by policies, the industry chain of physical recycling is improving, the upstream recycling sorting system and technology are becoming mature, and the demonstration application scenarios in downstream keep expanding. It is expected that the entire industry will usher in a period of rapid development. While physical recycling develops rapidly, the chemical recycling of waste plastics will also face a development opportunity, with the continuous maturity of the upstream recycling and sorting system.
The recycling of waste rubber is still being explored, although international giants (such as Bridgestone) and domestic enterprises (such as Linglong Tire) have made their layouts. However, the recycling of rubber tires, especially chemical recycling, still has a long way to go in economy and other aspects.
The recycling of power batteries is still in the early stages of development. As the technology continues to become mature, some industry participants have begun to carry out industrial layout and seize the development opportunity. With the further improvement of technology maturity and the maturity of the business model in the new energy vehicle industry, the market space for the power battery recycling industry will be huge in the future.
Bio-based and biodegradable chemicals are entering a new stage of rapid development with the support of policy and market demand. The rapid expansion of production capacity of degradable plastic products has been alleviated to a certain extent in 2022. However, with the gradual saturation of the market, the competition will become more intense in 2023, especially in sub-categories such as PBAT with more production capacity growth. The current policy support in bio-based chemicals is weak, but international leading companies have carried out lots of explorations. On the one hand, they use bioengineering methods to produce bulk chemicals. On the other hand, they use the substitution of intermediate products to realize the biological base of polymer products such as plastics. But generally speaking, the cost of bio-based chemicals is still high, and it is impossible to achieve large-scale replacement of traditional products in the short term.
In 2022, the petrochemical industry was marching on the path of green and low-carbon development. Entering 2023, on the basis of the existing good foundation, more explorations in the circular economy will be carried out successively, which will make more contributions to the green transformation and upgrading of the petrochemical industry.
