Thursday, July 25, 2013

Current situation of domestic HFO-1234yf projects

According to China Fluoride Materials Monthly Report issued by CCM in July, The current situation that some refrigerants, such as difluorochloromethane (R22), will be banned from using in the air conditioning industry because of their destruction to the ozone layer, will increase the market demand for 2,3,3,3-tetrafluoropropene (HFO-1234yf), a new type of air conditioning refrigerant. HFO-1234yf has huge market prospects because of its environmental protection performance. Its ozone depletion potential (ODP) and global warming potential (GWP) are just 0 and 4 respectively.

Changshu 3F Zhonghao New Chemical Materials Co., Ltd. (3F Zhonghao) is the first enterprise of China which has produced HFO-1234yf. Arkema (Changshu) Fluorine Chemical Co., Ltd. (Arkema Changshu) has announced its intention to invest in the HFO-1234yf project, whichwill be completed by the end of 2013. Moreover, Zhejiang Quhua Fluorine Chemical Co., Ltd., a subsidiary of Zhejiang Juhua Co., Ltd. (Zhejiang Juhua), has invested in the research and development of the HFO-1234yf project.In June 2010, Shanghai 3F New Material Co., Ltd. (3F) approved its subsidiary-3F Zhonghao, to construct the HFO-1234yf project in cooperation with DuPont Company, the chief HFO-1234yf provider of the world. In H2 2012, 3F Zhonghao's HFO-1234yf project started operations and has generated enormous profits for 3F Zhonghao.
3F may expand its production capacity for HFO-1234yf because it believes that the current situation is conducive to the development of its new refrigerant project. The restriction of domestic R22 use will increase the demand for environmentally friendly refrigerant for the refrigerator and air conditioning industries. Moreover, the recovery of export markets will help 3F improve its operating conditions. For instance, the US may replace 1,1,1,2-tetrafluoroethane (R134a) in 2-3 years, which may increase the demand for HFO-1234yf.

Arkema Changshu invested USD88.89 million in the construction of the HFO-1234yf project mainly because it believes that the market demand for HFO-1234yf of the global market will increase sharply. It started to be constructed in May 2013 and will be completed at the end of 2013.

Arkema Changshu is one of the largest investment companies of Total Group in China. Its main products include hydrogen fluoride (HF), difluorochloromethane (R22) and organic fluorine chemicals. Due to the high expense and strict restriction of HFO-1234yf production technology protection, in Dec. 2011, Juhua invested USD1.29 million in the research of the 4th generation of fluorine refrigerant products, including HFO-1234yf and 1,3,3,3-tetrafluoropropylene (HFO-1234ze). Juhua believes that the project will increase its influence and social status in the domestic fluorine chemical industry if it succeeds in the research of the new refrigerant technology.
At present, which refrigerant will be the most suitable one for air conditioning systems is still unclear. Volkswagen and Daimler AG announced that HFO-1234yf involves a hidden danger of combustion as an air conditioning refrigerant. Volkswagen will research using carbon dioxide as a refrigerant for air conditioning systems. Meanwhile, Daimler AG has recalled those vehicles using HFO-1234yf as the air conditioning refrigerant. But, General Motors Corporation does not think it is a problem.

Market review of fluorite in H1 2013
Do-Fluoride's HF project obtains government subsidy of USD1.68 million
Current situation of domestic HFO-1234yf projects
Domestic market price of R22 decreases continually in June 2013
Jiangxi Shilei's fluorine chemical project makes progress
Market review of AlF3 in H1 2013.
Fluorine material research centers increase domestic enterprises' competitiveness.
Zhonghao Chenguang's PTFE project passes the approval process
Progress of Jiangxi Bailian's fluorine chemical project
Sichuan Huangming's LiFP6 project makes progress.
Gansu Peilin extends its fluorine chemical industrial chain
Import and export analysis of fluorine chemicals in China in May 2013

China Fluoride Materials Monthly Report, a monthly publication issued by CCM on 20th, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. You can keep pace with the latest dynamics through its timely, complete and professional report.

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