New PFY capacity to be launched slower amid “Carbon Dioxide Peaking”

Energy conservation and emission reduction terms

Carbon neutrality refers to the total amount of greenhouse gas emissions directly or indirectly generated by enterprises, groups or individuals in a certain period of time, which offsets the carbon dioxide emissions generated by themselves through afforestation, energy conservation and emission reduction, and realizes the "zero emission" of carbon dioxide.

Peak carbon dioxide emissions refer to a steady decline in carbon emissions after a plateau.

Emission peak and carbon neutralization together, referred to as "Dual Carbon."

China has set a carbon peak target of "striving to peak carbon dioxide emissions by 2030 and achieve carbon neutralization by 2060."

The startup of new PFY units to be slower on energy conservation and emission reduction

The polyester filament yarn capacity is mainly concentrated in Zhejiang and Jiangsu provinces, especially Zhejiang Province which accounts for nearly 70% of the total capacity.

Previously, the planning of the new polyester filament yarn factory was mainly arranged in Jiangsu and Zhejiang provinces, such as Jiaxing, Huzhou and Hangzhou in Zhejiang Province and Wujiang, Nantong, Suqian and Xuzhou in Jiangsu. Under the background of "carbon neutralization and emission peak," the relevant work of the two provinces will be further followed up. The approval of new direct-spun PFY units may be more difficult, and the actual launch progress has slowed down.

Policy background

On September 22, 2020, at the general debate of the 75th Session of the United Nations General Assembly, carbon neutralization was highlighted. President Xi Jinping said at the meeting that China will increase its national independent contribution and adopt more powerful policies and measures to strive to peak carbon dioxide emissions by 2030 and strive to achieve carbon neutrality by 2060.

On the morning of March 5, 2021, Premier Li Keqiang of the State Council delivered a government work report at the fourth session of the 13th National People's Congress. The report proposed to do a solid job in emission peak and carbon neutralization, and develop an action plan for peaking carbon emissions by 2030.

As the new goals of the country's independent contribution, emission peak and carbon neutralization have formed a new guiding direction for all links of work in China and have a great impact on the future development of all industries.

At the end of May, Zhejiang Province issued the "14th Five-Year Plan for energy conservation and consumption reduction and optimal allocation of energy resources in Zhejiang Province." In July, the National Energy Administration said: the 14th Five-year Energy Plan and the carbon peak implementation plan have been submitted for review; at the end of September, Jiangsu Province issued the "Jiangsu Province 14th Five-year Plan for Ecological Environmental Protection".

"The 14th Five-Year Plan for energy conservation and consumption reduction and optimal allocation of energy resources in Zhejiang Province" settled the main objectives of energy conservation and consumption reduction in Zhejiang Province during the 14th Five-Year Plan:

Through energy consumption calculation and public information inquiry, the energy consumption per ton of standard coal of direct spinning POY, direct spinning FDY and POY spinning DTY is around 155kgce /t, 185kgce /t and 85kgce /t respectively; Converting the output value based on the average price from CCFGroup, the two indicators of GDP contribution per unit energy consumption and energy consumption per unit GDP are both within the target. In addition, with reference to the local standard DB33 /683-2008 "Quota and calculation method of unit comprehensive energy consumption of polyester (long and staple) fiber," the unit comprehensive energy consumption of polyester direct spinning and DTY new devices is within the quota at present.

However, the original text of the "14th Five-Year Plan" for energy conservation and consumption reduction and optimal allocation of energy resources in Zhejiang Province clearly mentions the requirements for the future development of the chemical fiber industry and requires the release of energy consumption indicators, so the release of new capacity in the polyester and other chemical fiber industries will naturally be suppressed. The specific expression is as follows:

Chemical fiber industry: develop functional, differential high-tech and high-performance fibers, improve the product structure. Promote advanced technologies such as caprolactam recycling in large-scale polymerization units, liquid phase polymerization reaction of direct spinning, synthetic fiber melt spinning filament ring blowing cooling, high-efficiency drying and shaping, and intelligent and energy-saving compressed air system. Promote the technology of changing direct heating of natural gas into small-sized natural gas distributed heating and combined power supply technology to improve the utilization efficiency of natural gas. The "14th Five-Year Plan" will free up 600,000 tons of standard coal.

Textile, printing and dyeing industry: develop high-quality functional products such as radiation protection, flame retardant, water repellent, oil repellent, antibacterial, waterproof and moisture permeable, moisture absorption and quick drying ones, and enhance the added value of products. Focus on promoting products and technologies such as high-temperature and high-pressure airflow dyeing, ultra-low bath ratio high-temperature and high-pressure yarn dyeing, wax printing finishing and printing, non-ironing fabrics, inkjet printing and so on. Accelerate the construction of a printing and dyeing intelligent energy management system. Through the application of accurate measurement and identification system, setting machine online central control system and so on, intelligent detection and digital management are realized. The "14th Five-Year Plan" will free up 2.5 million tons of standard coal.

Chemical fiber is not explicitly mentioned in the "14th Five-Year Plan" Ecological Environment Protection plan of Jiangsu Province for the time being, but Chapter II "strengthen source control and promoting overall green transformation of economy and society" and Section II "accelerate green and low-carbon transformation of energy" require petrochemical, chemical and textile industries to carry out energy transformation, and the energy consumption per unit of industrial added value above scale will decrease by 17% compared with 2020. The original text is as follows:

Heighten efficient use of energy. Implement the energy efficiency leader action, tap the energy conservation potential in various fields in depth, and continuously improve the energy efficiency level of various industries. By 2025, the energy consumption per unit of industrial added value above scale will decrease by 17% compared with 2020. Strengthen energy conservation management in key areas and critical energy-using units, enhance energy conservation review of fixed asset investment projects, and implement a regional energy assessment system in industrial parks at or above the provincial level. Carry out energy efficiency benchmarking activities in high energy consumption industries, strictly evaluate and review energy conservation, and promote key industries such as steel, building materials, petrochemical, chemical and textile industries and critical energy-using units in other industries to deepen energy conservation transformation. Improve the online energy consumption monitoring system and build an early warning mechanism for monitoring total energy consumption and energy efficiency. Explore the establishment of a trading mechanism for energy use rights.