Guidance for Stimulus Program Issued   

(Continued Page 6 of Issue No.32)
11. Coal chemicals. Local governments shall define the layout and scale of the coal chemical industry according to the local conditions such as coal resources, water supply, environmental permits and transportation. Those provinces lacking coal are discouraged from developing coal chemical projects. Development of coal chemicals using poor quality coal that contains high sulfur and ash is supported. China should have its own coal gasification technologies. The total methanol capacity will be controlled strictly. New projects for producing methanol as a final product will not be approved in principle. The government will guide the dimethyl ether segment to develop rationally and accelerate the chemical's application in civil use and to replace diesel. China will promote stable and orderly construction of demonstration projects for coal to olefin, coal to methane and coal to monoethylene glycol. Before some demonstration projects become operational successfully, development of coal to oil capacity is constrained. Coal based IGCC projects are encouraged.       

12. Advanced chemical materials. The government will control the total capacity for producing methyl silicone monomer by increasing the regulatory threshold for entry into this sector, while new projects with a capacity of less than 100 000 t/a will be constrained. Encouraged items include phenyl monomers of silicone, synthesizing alkoxyl silane, comprehensive utilization of silicon tetrachloride (a byproduct in production of polysilicon), high performance silicon rubber, new types of silicone oil, special silicon resins, coupling agents for silane, silicone modified materials. In the fluorine related sector, companies are limited to construct new projects making general purpose sulfur hexafluoride, hydrogen fluoride with a capacity less than 10 000 t/a, and perfluorooctanesulphonate (PFOS) and perfluorooctanoic acid ammonium salt through the electrolysis method. Outdated hydrogen fluoride, aluminum fluoride and crystallized fluoride salt units shall be eliminated. Development of other high performance and environmentally friendly fluorine-containing derivatives is encouraged. The government encourages R&D in polycarbonate, long-chain polyamide, thermally stable polyamide and liquid crystal polymers and will actively promote applications of modified polyphenylene oxide, polyphenylene sulfide and polyetheretherketone, in which Chinese firms own the intellectual property rights. Local supply capabilities for plants using MDI, TDI and other polyurethane feedstock will be increased further. For the elastomers family, development emphasis will be placed on polyurethane elastomer, polyester elastomer, polyurea elastomer, and styrene series thermoplastic elastomers such as SBS, styrene-isoprene-styrene, hydrogenised styrene-butadiene-styrene. The government encourages development of resin based compound materials having a skeleton of carbon fiber, aramid fiber, ultrahigh molecular polyethylene fiber and polyphenylene sulfide fiber.

13. Fine chemicals. In the coatings segment, China will accelerate its efforts to eliminate the process for making chlorinated rubber by the solvent method, and those coatings containing DDT, TBT, PFOA, lead oxide and other hazardous substances. The construction on ferrous oxide production line with a capacity of less than 10 000 t/a will be constrained. Development emphasis shall be placed on waterborne coatings, powder coatings, high solid content coatings, UV cured coatings and other environmentally friendly products. Before 2015, new projects or expansions for dyestuffs will not be allowed. China will eliminate 107-type adhesive and control development of general purpose adhesives such as solvent based chlorinated rubber family, styrene-butadiene thermal plastic rubbers, polyurethanes and polyacrylates, but focus on developing modified, waterborne, hot-melted, UV cured and high solid content adhesives. Other fine chemicals emphasized include high purity gases, high performance sealing materials, polyacrylamide, polyaspartic acid, chitosan, propanoic acid, methionine, etc.

14. Biochemicals. The government requires manufacturers of traditional bio-chemicals such as citric acid, lysine, humic acid and lactic acid to accelerate renovations in order to save energy, reduce pollution and increase recovery and reuse of wastes. Development is encouraged for bio-pesticides, humic acid pesticides, bio-fertilizers, plant growth regulators, fully degradable agricultural film, non-grain ethanol, biomass diesel, biomass macro molecular materials, new enzymes, high performance water treatment flocculants, bactericides, biomass fillings, polyhydroxyl alkanoates, polylactic acid, dodecanedioic acid, single cell protein, biological chips, interferon, biological sensors, and other high-end biological products.      

   In the published guidance, CPCIA introduces the main measures the government will use to promote improving the industrial structure. Firstly the government will, according to the development status of he petrochemical industry, responsively modify the Guidance for Adjustment of Industrial Structure and the Catalogue for the Guidance of Foreign Investment Industries. The government will strictly enforce the permit conditions, quality standards, energy consumption standards, pollutant discharge standards and other related laws or regulations. As to the outdated units that must be eliminated, the governments will control the supply of energy, water and funds. CPCIA is in charge of compiling the Guidance Suggestions of Supporting Technologies for Stimulating the Petroleum and Chemical Industry and will widely promote the advanced, applicable and grown technologies all over this industry and organize to develop major key and common technologies. Under governmental guidance, the enterprises shall aggressively perform well in work safety, professional health and environmental protection, helping the petrochemical industry become sustainable. (the end)