In early 2008, the China Petroleum and Chemical Industry Association, along with its affiliated professional associations, became increasingly active. According to Li Yongwu, President of the China Petroleum and Chemical Industry Association, during an interview with China Industry News, "The National Development and Reform Commission has developed the Implementation Plan for Energy Efficiency Targeting Activities for Key Energy-Consuming Enterprises. Based on this plan, the Association is organizing major energy-consuming industries to conduct energy efficiency benchmarking initiatives."
This year marked the third year of the Eleventh Five-Year Plan, a crucial mid-term phase. The petrochemical industry officially entered its “CSC Year†focused on energy saving and emission reduction.
Despite some progress, the energy-saving situation remains challenging. According to recent data from the Petrochemical Association, in the first three quarters of 2007, the energy consumption per unit of added value in the national petroleum and chemical industry continued to decline. Similarly, the comprehensive energy consumption per unit product in six key energy-consuming sectors also showed reductions. For example, crude oil processing energy consumption dropped to 77.2 kg per ton, a 1.9% decrease year-on-year; ethylene’s energy consumption was 1,158.2 kg per ton, down 2.9%; ammonia consumption fell to 1,456.7 kg per ton, a 1.8% decrease; CAUSTIC SODA energy consumption was 537.9 kg of standard coal per ton, down 3.6%; SODA ASH consumption reached 380 kg of standard coal per ton, a 4.2% drop compared to 2005; and CALCIUM CARBIDE energy consumption was 1,124.1 kg of coal per ton, down 1.9%.
However, Li Yongwu expressed concerns that the industry's energy-saving achievements are still not sufficient. "The current results of energy-saving efforts fall far short of the requirements set by the Eleventh Five-Year Plan," he said. "Meeting the energy-saving targets outlined in the plan remains a huge challenge. On one hand, the industry’s overall energy consumption base is too high. On the other hand, the rapid growth of high-energy-consuming industries is diluting the effectiveness of energy-saving measures."
He further explained that many coal chemical projects have been planned across regions, especially in central and western China. Traditional high-energy sectors such as calcium carbide, caustic soda, soda ash, and nitrogen fertilizer continue to expand. Modern coal-based chemical industries like coal-to-oil, coal-to-methanol, DME, and methanol-to-olefins are gaining momentum, increasing total energy use and complicating energy-saving efforts.
"If the growth rate of these high-energy-consuming industries continues to outpace the industry average, it will not only make it difficult to meet the overall energy-saving goals of the Eleventh Five-Year Plan, but also threaten the sustainability of the industry’s development," Li warned.
Another pressing issue is the rapid growth of "two-high" (high energy consumption and high pollution) products. Due to strong market demand and profitability, production capacity in sectors like nitrogen fertilizers, soda ash, caustic soda, calcium carbide, and yellow phosphorus has expanded sharply, often at rates of around 30%. This has led to overcapacity. For instance, yellow phosphorus production capacity exceeds 2 million tons, but operating rates are below 40%, while calcium carbide production capacity surpasses 20 million tons, with an operating rate of just 70%.
Additionally, the foundational work for energy conservation and emission reduction lags behind. Current energy consumption standards are outdated or nonexistent in many areas, making it hard to accurately track industry performance. There is also a lack of updated energy efficiency standards and design specifications for high-energy products, which hinders effective control of new industrial capacities.
Moreover, investment in energy-saving and emission-reduction technologies is insufficient. Companies have focused more on expanding production than on developing green technologies. Even when innovations are made, sharing them within the industry is limited due to competitive interests. This highlights the urgent need to accelerate technology development and improve industry-wide integration.
Li also emphasized the importance of establishing an exit mechanism for outdated production facilities. Many high-polluting and inefficient plants remain operational due to the absence of clear policies for closure. Without a structured approach, it is difficult to eliminate obsolete capacity, which is essential for achieving energy-saving and emission-reduction goals.
Finally, he called for increased support for the practical application of energy-saving technologies. While some promising technologies have shown success, their promotion and implementation remain inadequate. More effort is needed to scale up these solutions across the industry.
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