Hydrogen is a key feedstock to oil refining industry, and deep hydro-desulfurization is a principal mean for low-sulfur cleaner oil product formulation. With the country on the clean oil standards continue to upgrade, improve the refined oil production industry demand for hydrogen. ASIACHEM research shows, besides traditional dry gas to hydrogen, oil to hydrogen, natural gas to hydrogen and coal to hydrogen, Shandong local refinery also use the method of methanol to hydrogen as a hydrogen source for oil upgrades.
2016-2017 Shandong's 10 Methanol to H2 Projects (Built and to be Build)
1. Shandong Shengqi Chemical 1.6Mt/a heavy oil hydrorefining project and supporting projects, including 40000Nm3/h methanol to H2 Plants, has been built in 2016.
2. Shandong Haike Group 800kt/a oil upgrading project and supporting projects, including 20000Nm3/h methanol to H2 Plant, has been built in 2016.
3. Shandong Bin Yang gasification oil hydrogenation upgrade project, the main construction of 400kt/a diesel hydrogenation reforming plant and 30000Nm3/h methanol to H2 Plant, has been built in 2017.
4. Shandong Jincheng Petrochemical Group oil upgrading project and supporting projects, including 2.2Mt/a hydrocracking plant, 1.2Mt/a continuous reforming plant and 60000 Nm3/h methanol to H2 Plant, has been built in 2017.
5. Shandong Honghai Chemical 1.6Mt /a diesel reform and supporting projects, PhaseⅠ Project including 400kt/a diesel hydrogenation reforming plant, 800kt/a raw material pretreatment plant, 15000 Nm3/h methanol to H2, has been built in 2017.
6. Shandong Shenchi Chemical Group 160Mt/a residue hydrodesulfurization and supporting hydrogen production project, including 40000 Nm3/h methanol to H2, has been built.
7. Shandong Donghua Hualong Group oil upgrade joint project, the main construction of 1.6Mt/a hydrogenation reforming plant, 1.2Mt/a continuous reforming plant and 60000Nm3/h methanol to H2 Plant, the project is under construction.
8. Qirun Group oil upgrading project and supporting projects, 1.5Mt/a hydrocracking plant, 1.2Mt/a continuous reforming plant, 480kt/a aromatics extraction, 250kt/a isomerization plant, 100kt/a alkylation plant, 30000Nm3/h methanol to H2 plant, the project is under construction.
9. Guangrao Kelida Petrochemical 1.2Mt/a oil upgrading project and supporting projects, the main construction of 1.2 Mt/a oil upgrade plant, 25000Nm3/h methanol to H2 plant, the project is under construction.
10. Binzhou Banglian Energy 100kt/a light oil refining project, the project supporting the construction of 1500Nm3/h methanol to H2 plant, was approved by the EIA in June 2016.
2016-2017 Shandong Local Refinery Methanol to H2 Projects
Company | H2 Demand | Capacity（Nm3/h） | Methanol Consumption （kt/a） |
Shandong Shengqi Chemical | heavy oil refining | 40,000 | 169.6 |
Shandong Haike Group | oil upgrading | 20,000 | 84.8 |
Shandong Bin Yang gasification | diesel reforming | 30,000 | 127.2 |
Shandong Jincheng Petrochemical Group | oil upgrading | 60,000 | 254.4 |
Shandong Honghai Chemical | diesel reforming | 15,000 | 63.6 |
Shandong Shenchi Chemical Group | residue desulfurization | 40,000 | 169.6 |
Shandong Donghua Hualong Group | oil upgrading | 60,000 | 254.4 |
Dongying Qirun Group | oil upgrading | 30,000 | 127.2 |
Guangrao Kelida Petrochemical | oil upgrading | 25,000 | 106 |
Binzhou Banglian Energy | light oil refining | 1,500 | 6.36 |
Total | 321,500 | 1363.16 |
来源：亚化咨询《中国制氢产业年度报告2017》
Sources: ASIACHEM <China H2 Production Industry Annual Report 2017>
China H2 Production & Advanced Coal Gasification Conference 2017 will be held
on Oct 31 in Jinan, China, Contact Miss Hu at hyj@chemweekly.com for details.
Compared to oil to hydrogen, natural gas to hydrogen and coal to hydrogen, methanol to H2 costs are high, why Shandong local refinery still use the method of methanol to hydrogen as a hydrogen source for oil upgrades? ASIACEM analyses the main reasons are as follows.
1. Methanol to H2 plant investment is low, the construction period is short. As the process is simple, methanol to hydrogen plant investment and construction cycle is much lower than coal gasification and natural gas reforming to hydrogen.
2. Methanol to H2 plant is flexible and raw material is easy to obtain. Also due to methanol cracking to hydrogen process is short, so in different device size, methanol to hydrogen costs change little, so the size of the device can be designed according to hydrogen demand. The coal hydrogen is only suitable for large-scale hydrogen demand. At the same time, methanol is a fully marketable commodity, compared to natural gas, raw materials procurement and storage are easier.
3. Methanol to hydrogen project approval is easier. With the increasingly stringent environmental requirements, compared to other hydrogen production routes, methanol to hydrogen project approval is easier.
ASIACHEM thinks Shandong local refinery extensive use the method of methanol to hydrogen as a hydrogen source for oil upgrades will have a significant impact on the supply and demand balance of methanol in Shandong. The above 10 methanol to hydrogen plants, the total hydrogen production reached 321500Nm3/h, methanol demand will reach 1.36Mt/a. Methanol to hydrogen together with methanol to olefins (MTO), will become the most growth potential components of China's methanol demand structure.
