China outlined energy conservation plans for 2024 – 2025, petchem sector in focus
According to an official statement, about 25% of the calcium carbide production in the country consumes more energy than the official benchmark set by the government.
The Chinese government has outlined an action plan to cut carbon emissions while setting the target for efficient energy usage in key industries for 2024 and 2025. The plan requires the country to use 2.5% less energy for every unit of GDP growth, and industries, including building materials and petrochemicals must achieve specific changes in order to hit the target.
According to an official statement, about 25% of the calcium carbide production in the country consumes more energy than the official benchmark set by the government. Only 3% of the sector is using less energy than the benchmark at the moment, and through transformation and upgrading, this figure must rise to 30% by 2025.
Calcium carbide is a key feedstock in the production of carbide-based PVC.
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The proportion of production and energy usage compared to the government’s benchmark |
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2024 - Use more than the benchmark |
2024 - Use less than the benchmark |
2025 - Use less than the benchmark (target) |
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Refinery |
20% |
25% |
30% |
|
Steam Cracker - Ethylene |
30% |
20% |
30% |
|
PX |
18% |
23% |
50% |
|
Coal-based methanol |
25% |
15% |
30% |
|
Coal-based olefins |
0% |
48% |
50% |
|
Coal-based MEG |
25% |
20% |
30% |
|
Calcium Carbide |
25% |
3% |
30% |
China has been limiting the expansion of the coal-chemical industry over the past years on environmental concerns. Still, the coal-chemical sector processed nearly one-quarter of the country's coal throughput as both fuel and feedstock. The latest decarbonization plan focuses on “strictly and rationally” controlling coal consumption, which would negatively impact the industry.
Market sources said that as coal-based petrochemical plants rush to upgrade their equipment to newer and more energy-efficient, some short-term supply disruption is expected. Old and inefficient plants are bound to be shut down permanently.