From a loss of 38 million yuan in 2000 to achieving profits and taxes of 400 million yuan by 2004, Hubei Yihua Group Co., Ltd. has grown from a small synthetic ammonia plant into a large-scale enterprise group with three key industries: coal chemicals, phosphate chemicals, and salt chemicals. The company’s journey from weakness to strength raises an important question—what is the secret behind its success? Recently, Cai Zhong, the deputy chief engineer of the company, revealed that their strategy lies in focusing on product development one step at a time.
As a high-energy-consuming chemical production enterprise, Yihua relies heavily on raw materials such as coal, phosphate rock, calcium carbide, and electricity. To sustain growth, the company has prioritized resource recycling and the development of a circular economy, ensuring both economic and environmental benefits. Since 2001, Yihua has implemented energy-saving technologies as the core of its operations, building a multi-channel energy-saving system.
One of the key initiatives was adjusting the raw material route for synthetic ammonia production. By adopting pulverized coal gasification technology, the company replaced costly 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 about 124 million yuan each year.
Another major effort involved maximizing heat recovery in various production processes. Through technologies like synthetic ammonia three-gas recovery, sulfuric acid waste heat recovery, and cogeneration from a self-powered power plant, the company achieved substantial energy savings and reduced consumption.
For instance, 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 generate steam. High-pressure steam is used for power generation, while low-pressure steam is reused in production. This energy cascade utilization approach ensures optimal use of resources. Yihua invested 100 million yuan to build 11 waste heat recovery and power generation systems, generating 2 million tons of by-product steam and 160 million kWh of annual power, saving nearly 200 million yuan each year. This not only reduces coal and electricity consumption but also significantly cuts 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 about 50 million yuan in annual efficiency. The separated water is recycled for pentaerythritol production, achieving zero emissions and minimizing environmental impact.
The gasification slag produced during synthetic ammonia production still contains some calorific value, with an annual output of 600,000 tons. Yihua reuses these slags in circulating fluidized-bed boilers to generate steam and electricity, making full use of coal resources. Meanwhile, calcium carbide slag from PVC production—a difficult-to-use solid waste—was addressed through a collaboration with U.S. Monsanto, introducing advanced 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. Additionally, partnerships with downstream cement and brick plants have further enhanced waste residue utilization, boosting annual efficiency by 40 million yuan.
Through continuous innovation and a commitment to sustainable practices, Hubei Yihua Group has transformed itself into a leading player in the chemical industry, proving that smart resource management and technological advancement are key to long-term success.
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