Talk every Monday:
Hydrogen production from coal is the main route of hydrogen in China:
At present, China’s hydrogen production mainly depends on fossil energy, while the scale of hydrogen production from clean energy and energy utilization of hydrogen is still in its infancy. In China, the proportion of hydrogen produced by coal chemical industry reaches 61%, the proportion of hydrogen produced by natural gas is 19%, and the hydrogen produced by electrolytic water accounts for less than 1%.
The cost of hydrogen produced by dry pulverized coal gasification process is about 0.91 yuan / m3, i.e. about 10 yuan / kg. In areas rich in coal resources, the coal price may be as low as 200 yuan / ton. In this case, the cost of coal hydrogen production is about 7 yuan / kg, and the coal hydrogen production route has significant cost advantages.
Hydrogen production from coal is the main route of hydrogen in China. The technology includes two main ways: coal coking and coal gasification. 1) In hydrogen production from coal coking, coke is the main production, and coke oven gas is a by-product. As city gas, it is also the raw material for hydrogen production; 2) In coal gasification to produce hydrogen, coal reacts with steam or oxygen (air) under high temperature and pressure to obtain gas products with hydrogen and carbon monoxide as the main components. Then, after purification, CO conversion, separation and purification, the product hydrogen with certain purity is obtained.
Hydrogen has great room for growth in the future:
Hydrogen is now more a chemical intermediate than an energy use. The application of hydrogen in transportation accounts for only 1%. By the end of 2020, the number of hydrogen fuel cell vehicles in China has reached 73.52 million, entering the initial stage of commercialization. It is expected that the production and sales scale of hydrogen fuel cell vehicles will exceed 30000 in 2025, and the application of hydrogen in transportation will grow rapidly. According to the prediction of China’s hydrogen energy and fuel cell industry development report 2020, the average annual demand for hydrogen will be about 35 million tons in 2030. By 2050, the demand for hydrogen will be close to 130 million tons.
The large-scale production of renewable energy hydrogen production line is difficult to achieve in a short time, and China’s stock of industrial by-product hydrogen is less, which can not support the rapid development of the industry and the hydrogen demand in the mature period. We believe that coal based fossil energy combined with carbon dioxide resource utilization scheme will still be the mainstream hydrogen supply mode in the rising stage of hydrogen energy industry.
Market review:
Sector performance: this week, CITIC’s primary petroleum and petrochemical index rose or fell 1.10%, ranking 19th among 30 industry indexes. The Shanghai index rose or fell 0.60% this week, and the CITIC primary petroleum and petrochemical index was 0.5% higher than the Shanghai index. Oil sales and storage sub segment dragged down the growth of petroleum and petrochemical sector, engineering services (+ 6.54%), oilfield services (+ 1.67%), other petrochemical (+ 1.47%), oil refining (+ 0.85%), oil exploitation (- 0.33%), oil sales and storage (- 4.88%).
Rise and fall of individual stocks: this week, the petroleum and petrochemical sector led the rise of individual stocks, including Yueyang Xingchang Petro-Chemical Co.Ltd(000819) (+ 28.88%), Haohua Chemical Science & Technology Corp.Ltd(600378) (+ 22.03%), Xinjiang International Industry Co.Ltd(000159) (+ 10.30%), Shandong Xinchao Energy Corporation Limited(600777) (+ 0.09%), Hengli Petrochemical Co.Ltd(600346) (+ 6.94%); Stocks leading the decline include Jiangsu Eastern Shenghong Co.Ltd(000301) (- 13.93%), Sinopec Shandong Taishan Pectroleum Co.Ltd(000554) (- 9.97%), St Haiyue (- 6.58%), Oriental Energy Co.Ltd(002221) (- 3.52%), and Shanxi Blue Flame Holding Company Limited(000968) (- 3.41%).
Risk tip: policy risk; Geopolitics exacerbates risks; Risk of sharp fluctuations in crude oil prices and continuous deterioration of global covid-19 epidemic;
