From a loss of 38 million yuan in 2000 to achieving profits and taxes totaling 400 million yuan by 2004, Hubei Yihua Group Co., Ltd. has transformed from a small synthetic ammonia plant into a large-scale enterprise group with three core industries: coal chemical, phosphate chemical, and salt chemical. The company's journey from weakness to strength has raised questions about its success. Recently, Cai Zhong, the deputy chief engineer of the company, revealed that their secret lies in focusing on product innovation and process optimization.
As a high-energy-consuming chemical enterprise that relies heavily on coal, phosphate rock, calcium carbide, and electricity, Yihua Chemical must prioritize resource recycling and the development of a circular production system, both for economic and social benefits. Since 2001, the company has implemented energy-saving technologies as a core strategy to build a multi-channel energy-saving system.
One key initiative was adjusting the raw material route for synthetic ammonia production. By adopting pulverized coal gasification technology, the company replaced expensive lump coal with cheaper pulverized coal, significantly lowering production costs. In 2004, Yihua produced 800,000 tons of synthetic ammonia, saving 1.04 million tons of high-quality lump coal annually and reducing raw material costs by approximately 124 million yuan each year.
Another major effort involved maximizing heat recovery in various production processes. Through the use of synthetic ammonia three-gas recovery, sulfuric acid waste heat recovery, and cogeneration via a self-powered power plant, the company achieved maximum energy conservation and consumption reduction.
For example, during synthetic ammonia production, a large amount of "three gases"—gas-making blow-by gas, synthetic release gas, and decarbonization and air release—is generated. These gases contain high combustion heat components. After combustion, flue gas reaching up to 1200°C is sent to a waste heat boiler to produce steam. High-pressure steam is used for power generation, while low-pressure steam is utilized in production. This energy cascade utilization approach ensures optimal energy use.
The company invested 100 million yuan to install 11 sets of waste heat recovery and power generation systems. These systems generate 2 million tons of by-product steam annually and 160 million kWh of power, resulting in nearly 200 million yuan in annual cost savings. This technology not only reduces coal and electricity consumption but also significantly lowers emissions of harmful gases like carbon monoxide.
In addition, Yihua developed pentaerythritol mother liquor recovery technology, extracting dipentaerythritol valued at up to $3,000 per ton. Alongside sodium formate production, this initiative generates an annual efficiency of 50 million yuan. The separated water is reused in pentaerythritol production, achieving zero emissions and minimizing environmental impact.
The gasification slag from synthetic ammonia production still contains some calorific value, with an annual output of 600,000 tons. To maximize reuse, the company uses circulating fluidized-bed boilers to generate steam and electricity, making full use of available resources. Similarly, calcium carbide slag from PVC production—once a difficult-to-use solid waste—was addressed through the adoption of U.S. Monsanto’s power wave desulfurization technology. This not only enabled waste reuse but also helped solve China’s coal-fired power plant desulfurization challenges, keeping operating costs below 0.025 yuan per kWh.
Furthermore, Yihua collaborates with downstream cement and brick plants to utilize these waste residues. Through comprehensive waste residue utilization, the company increases annual efficiency by 40 million yuan.
By continuously innovating and optimizing its processes, Yihua has not only improved its financial performance but also made significant strides in sustainability and environmental protection. Its story serves as a powerful example of how strategic resource management and technological advancement can drive long-term growth.
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