In early 2008, the China Petroleum and Chemical Industry Association and its affiliated professional associations were actively engaged in various initiatives. 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 these guidelines, the Association is leading energy efficiency benchmarking efforts among major energy-consuming industries."
This year marked the third year of the Eleventh Five-Year Plan, a crucial middle-year period. 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 the latest data from the Petrochemical Association, during 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 across six key energy-consuming industries also showed reductions. For instance, crude oil processing energy consumption dropped to 77.2 kg per ton, down 1.9% year-on-year; ethylene energy consumption fell to 1,158.2 kg per ton, a decrease of 2.9%; ammonia energy consumption reached 1,456.7 kg per ton, down 1.8%; CAUSTIC SODA energy consumption was 537.9 kg of standard coal per ton, a 3.6% drop; SODA ASH energy consumption decreased to 380 kg of standard coal per ton, a 4.2% decline compared to 2005; and CALCIUM CARBIDE energy consumption per ton fell to 1,124.1 kg of coal, down 1.9%.
However, Li Yongwu expressed concerns that the industry's energy-saving achievements are still not sufficient. He noted that the current energy-saving efforts fall short of the Eleventh Five-Year Plan's goals, and the task of meeting the set targets remains significant. One reason is the high base of energy consumption in the industry, while another is the rapid growth of high-energy-consuming sectors, which undermines overall energy efficiency improvements.
He further pointed out that numerous coal chemical projects have been planned in various regions, especially in central and western China. Traditional high-energy industries like calcium carbide, caustic soda, soda ash, and nitrogen fertilizer continue to expand. Additionally, modern coal chemical industries such as coal-to-oil, coal-to-methanol, DME, and methanol-to-olefins are gaining momentum, increasing total energy consumption and putting more pressure on energy-saving efforts.
"If the growth rate of these high-energy-consuming industries exceeds the industry average and cannot be reversed, it will not only make it difficult to achieve the overall energy-saving goals of the Eleventh Five-Year Plan, but also threaten the sustainable development of the industry," Li warned.
Another major issue is the rapid growth of "two high" (high energy consumption and high pollution) products. Due to strong market demand and profitability, many industries expanded their production capacity. Investments in nitrogen fertilizers, soda ash, caustic soda, calcium carbide, and yellow phosphorus increased by about 30%, leading to overcapacity. For example, yellow phosphorus production capacity exceeded 2 million tons, with an operating rate below 40%, while calcium carbide production capacity surpassed 20 million tons, with an operating rate of just 70%.
Moreover, the basic work in energy conservation and emission reduction lags behind. Current energy consumption standards are outdated or non-existent in some areas, making it difficult to accurately reflect the industry's actual conditions. There is a need to improve statistical systems, standard frameworks, and supervisory mechanisms to support better energy efficiency control.
Additionally, the development and promotion of energy-saving and emission-reduction technologies remain insufficient. While some companies have developed effective technologies, they often hesitate to share them due to competitive concerns. Strengthening technological innovation and promoting mature solutions are urgent priorities.
Finally, Li emphasized the urgent need to establish an exit mechanism for outdated production capacities. Without such a policy, it is difficult to phase out inefficient and polluting facilities, despite their negative impact on energy use and environmental sustainability. He called for immediate government action to create a clear framework for this purpose and to promote the adoption of energy-efficient technologies across the industry.
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