11-27

[Exclusive] A New Lease on Life for MTBE Units—A Visit to China’s First Industrial Demonstration Unit for the Selective Polymerization of C4 Olefins

In 2017, a series of policies related to ethanol-blended gasoline for vehicles were introduced in China: On September 7, the General Administration of Quality Supervision, Inspection and Quarantine, in conjunction with the Standardization Administration of China, issued and simultaneously implemented two standards—GB 18351, “Ethanol-Blended Gasoline for Vehicles (E10),” and GB 22030, “Blending Components for Ethanol-Blended Gasoline for Vehicles”; On September 13, 15 ministries and commissions jointly issued a notice titled “Implementation Plan for Expanding Biofuel Ethanol Production and Promoting the Use of Ethanol-Blended Gasoline,” which stipulated that the use of ethanol-blended gasoline would be promoted in provinces and cities such as those in Northeast China starting in 2017, with the goal of achieving near-universal coverage nationwide by 2020. According to the technical requirements for Ethanol-Blended Gasoline (E10) (VIB), the content (by mass) of organic oxygen-containing compounds other than ethanol in ethanol-blended gasoline must not exceed 0.5%. This means that etherification products, such as MTBE, cannot be added to gasoline as blending components; by 2020, the use of MTBE will be phased out. As the primary outlet for isobutylene derived from C4, domestic MTBE production capacity has reached 17.5 million metric tons following a construction boom in recent years, and the integration of the upstream and downstream segments of the C4 industry chain has become highly mature. With the shutdown of MTBE plants, the retrofitting of facilities with a combined capacity of nearly 20 million metric tons is now an urgent task for the C4 industry chain. Refining companies face the following reality: on the one hand, they must find ways to utilize large quantities of isobutylene while also replenishing high-octane gasoline additives; on the other hand, downstream C4 deep-processing units—such as 1-butene separation, methyl ethyl ketone, sec-butyl acetate, and direct alkylation plants—all require the complete or partial removal of isobutylene. Therefore, before 2020, the primary challenge facing refineries will be how to utilize C4 resources—particularly isobutylene—following the shutdown of MTBE units, how to integrate upstream and downstream C4 units, and how to maximize the use of existing resources to minimize losses.