In principle, no new urea ammonia plant will be built in China within 3 years

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June was the time window for comments from the Ministry of Industry and Information Technology on the conditions for access to the synthetic ammonia industry. The draft of the Opinions proposes that, in principle, no new urea-synthesized ammonia plant will be built within 3 years (except for regional relocation and comprehensive utilization projects); at the same time, the single-series production of newly-built synthetic ammonia production facilities should not be less than 600 tons/day. June 8, the Director of petrochemical, chemical raw materials at the Ministry of Industry Jiang Jian told reporters, has received feedback from some companies, mainly around the scale of new projects and other hot spots.

It is understood that the access conditions are formulated in accordance with the principle of sustainable development in terms of total amount of balance, optimization of stocks, conservation of energy (capital) sources, protection of the environment, and rational distribution. Based on the severe reality of the overcapacity in the current synthetic ammonia industry, the entry conditions propose that in the “Twelfth Five-Year Plan” period, in principle, no new synthetic ammonia plant supporting urea will be built.

According to statistics from the China Nitrogen Fertilizer Industry Association, domestic urea production capacity in 2011 was around 15 million tons, and the surplus of synthetic urea was only nearly 10 million tons. As of the end of 2011, China's ammonia production capacity reached 65.5 million tons. In 2012, there will be 18 new synthetic ammonia and urea projects in operation in the country. The newly added synthetic ammonia production capacity will be 5.64 million tons, and the pressure of overcapacity will be further exacerbated.

Jiang Jian said that the formulation of the access conditions, an important original intention is to curb blind new projects, accelerate the elimination of backward production capacity, and then promote the optimization and upgrading of the industrial structure of the synthetic ammonia industry, and standardize the market competition order.

According to Jiang Jian, the access conditions are expected to be introduced during the year. After the conditions for admission are formally introduced, they may refer to the management methods for the entry of monoammonium phosphate and issue corresponding policies and measures. At present, this draft has already formed a preliminary draft.

The entry conditions also proposed that new ammonia plants should adopt advanced technologies and equipment, encourage localization technologies with independent intellectual property rights, and use continuous gasification technology for newly-built ammonia plants that use coal as raw material for urea; encourage existing companies to Technical restructuring of raw material structure adjustment, product structure adjustment, energy saving, environmental protection and safety. Requirements for access requirements: For newly constructed or rebuilt expansion ammonia projects that do not meet the access requirements, the environmental protection administrative department must not go through the formalities for environmental protection examination and approval, financial institutions must not provide credit, and the electric power department ceases power supply according to law; the synthetic ammonia construction project should be put into production 12 The energy consumption and pollutant emission targets specified in the access conditions will be met within the month, and those who fail to meet the deadline will be ordered to rectify or suspend production within the time limit.

Relevant person in charge of nitrogen fertilizer production enterprises such as Shanxi Jincheng anthracite coal mining and Jiangsu Linggu Chemical told the reporter that the vast majority of companies support the introduction of access conditions, which is conducive to the improvement of industry technology and environmental protection level, and is conducive to the long-term healthy development of the industry.

Another industry insider said that the current new project can basically meet the access requirements. However, the domestic small nitrogen fertilizer accounts for a relatively high proportion of the total production capacity. Among these enterprises, one group still cannot meet the requirements of energy consumption and pollution discharge.

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