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Optimistic about the prospect of China IV Sinopec entered the automotive urea industry
At the just-concluded 2012 Asian Diesel Vehicle Emissions & Adblue Forum, Prof. Qiao Yingbin, member of the Sinopec Science and Technology Committee, briefed the 300+ Chinese and foreign experts, scholars, and news media attending the conference on Sinopec's work on vehicle urea (Adblue). In preparation, Sinopec's progress in the automotive urea business has begun to enter the industry's attention.
In the policy market for vehicle urea, Sinopec is considered a latecomer to companies such as Sino-foreign joint ventures such as Yahua Sinochem and local privately-owned Kosalin. However, given the characteristics of vehicle urea products and the background and strength of large-scale central enterprises of Sinopec, it will certainly have a major impact on the industry structure of urea for vehicles. Although the market for car urea is only started in some markets such as Beijing and Shanghai.
Obviously, the “Announcement on the Implementation of National Phase IV Compression Ignition Engine and Vehicle Pollutant Emission Standards†published by the Ministry of Environmental Protection on December 29, 2011 has a significant impact on Sinopec’s decision-making. The “Announcement†requires 2013. July 1 formally implemented China's National IV emission standards, Sinopec entered at this time, for the right moment.
Prof. Qiao Yingbin gives a speech on “Sinopec Produces High Quality AdBlue at Economic Costâ€
Sinopec has a big advantage in the automotive urea industry
According to Professor Qiao Yingbin, Sinopec can directly produce high-quality, low-cost high-purity urea raw materials from large-scale synthetic urea plants and formulate Sinopec's own corporate product standards, which are equivalent to the corresponding ISO, DIN and JISK standards, among which insoluble The content is lower than the ISO international standard. "To improve our own product quality, and to be on the right track," Professor Qiao said, "More stringent standards ensure that there are no problems." Professor Qiao mentioned an example. A qualified car urea solution was placed in a hurrying glass. The composition of the solution was tested and the aluminum sample was found to be excessive, causing the liquid to fail. It can be seen that vehicle urea strictly controls the composition and storage.
Sinopec Adblue has a comprehensive storage, transportation and sales network. It is understood that in 2011, Sinopec sales of gasoline and diesel exceeded 100 million tons. At present, Sinopec has more than 500 oil depots and more than 30,000 gas stations, which can ensure that vehicles can be easily filled with diesel urea at the same time as filling diesel, and Adblue can be provided exclusively for fleets and transportation companies.
It is understood that Sinopec has already established a vehicle urea filling equipment for the high-speed airport to Shunyi line, which can be used when conditions are ripe.
Entering the automotive urea industry "other hidden secrets"
In fact, Sinopec has its own "difficulties" and considerations when it comes to the automotive urea market. At present, the profit of domestic urea is about 200 yuan per ton, and many urea produced by private chemical fertilizer plants do not meet the quality standards for vehicle urea. Sinopec has 7 300,000 tons of synthetic ammonia plants (4 of which produce high-quality diesel raw materials) with high quality but high cost. Professor Qiao Yingbin said that China is a large importer of chemical fertilizers. Sinopec guarantees its production tasks every year. Synthetic ammonia plants have been operating “losing money†while the profit of auto urea is higher. Sinopec plans to raise the price of urea raw materials by RMB 500/ton. It is used to produce urea for vehicles, so that the ammonia plant can achieve profitability.
Professor Qiao also stated that with the start-up of vehicle urea market and the increase in demand, the cost of urea for vehicles will decrease as the supply increases. Products prices will decline so that counterfeit and low-quality products will exit the market. Production tends to focus on a few companies. In the company, profits have gradually reached meager profits.
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Urea demand for vehicle is expected to be large
Professor Qiao Yingbin said that the National Twelfth Five-Year Plan requires a 10% reduction in nitrogen oxide emissions. From 2011 to 1015, the state promulgated and implemented the fourth and fifth national standards for vehicle fuel, while heavy-duty diesel vehicles are sold out using SCR technology. Adblue is an essential accessory product. If strict emissions are implemented, an average SCR-based commercial vehicle will require 1.2 to 1.5 tons of urea solution per vehicle for a year. According to a conservative estimate of 1 million commercial vehicle growth in the past two years, the annual demand for urea will be five years. Up to 7 million tons.
The vehicle urea sales calculated by another method are still huge. At present, the annual supply of vehicle diesel is 80 million tons, and the demand for vehicle urea solution is proportional to the consumption of diesel, which is approximately 4 to 6%, calculated as the median 5%, and the annual demand for vehicle urea is 400. Ten thousand tons, which has not taken into account the constant increase in fuel demand, is the most conservative calculation.
At present, vehicle urea is only used in areas such as Beijing, Shanghai, and the Pearl River Delta where it is the first to implement emissions from the country. The amount of urea used is small, and the storage and transportation of urea solutions for vehicles use special requirements for temperature and container materials, and there is also a limited shelf life. Therefore, it is not convenient for large-scale production and storage at present. Car urea has a shelf life of 2 years, but it must be used within 30 days after opening the package.
China National IV Early Light Vehicle Urea Enterprise Prepared