On September 13, the National Development and Reform Commission (NDRC) and 14 other ministries jointly issued a notice titled “Implementation Plan for Expanding Biofuel Ethanol Production and Promoting the Use of Ethanol-Blended Gasoline for Vehicles,” which stipulates that the use of ethanol-blended gasoline will be promoted in Northeast China and other provinces and cities starting in 2017, with the goal of achieving near-universal coverage of ethanol-blended gasoline nationwide by 2020. Previously issued standards for ethanol-blended gasoline require that the content of oxygenates in such fuel not exceed 0.5 wt% . This means that components such as methyl tert-butyl ether (MTBE) and etherified light gasoline can no longer be used as gasoline blending components. Does C4 still have a future in gasoline blending? How should relevant companies quickly adjust their strategies and plan ahead? Zhang Yong, General Manager of KaiRui Environmental Technology Co., Ltd. (hereinafter referred to as “KaiRui”), recently accepted an interview with a reporter from this magazine.

　　[CCN] During the process of upgrading fuel quality in China, blending components such as MTBE and etherified light gasoline have been widely adopted. With the widespread promotion of ethanol-blended gasoline, meeting the standard of an oxygen content not exceeding 0.5 wt% will restrict the use of these components, particularly MTBE. How do you view this issue? How should relevant companies respond? Are there any precedents from other countries?

　　[Zhang Yong]

　　MTBE is produced by reacting the isobutylene component—derived from liquefied petroleum gas (LPG), a byproduct of catalytic and thermal cracking of crude oil in refineries—with methanol. Used as a substitute for tetraethyl lead, it serves as an additive in clean gasoline to increase its octane rating. According to statistics, China’s current MTBE production capacity stands at approximately 17 million metric tons, involving nearly 10 million metric tons of isobutylene C4 resources (excluding unusable olefins). If the new policy is strictly enforced, not only will MTBE producers be affected, but if new outlets cannot be found for these C4 resources, it will also trigger new resource and environmental issues.

　　However, MTBE companies need not be overly pessimistic; they can adopt a different approach to their development. Based on the experience of the United States, after banning MTBE, some states began developing ethyl tert-butyl ether (ETBE) by retrofitting existing MTBE facilities to produce ETBE. ETBE is produced by reacting the isobutylene component of C4 with ethanol. It is a superior high-octane gasoline blending component compared to MTBE, as it can utilize bioethanol while avoiding the drawbacks of ethanol-blended gasoline. Even if the government were to mandate the widespread adoption of ethanol-blended gasoline by 2020—rendering MTBE and ETBE ineligible as gasoline additives—the addition of alkylate to gasoline could still provide a new outlet for isobutylene. Alkylation oil is an important gasoline component consisting primarily of isooctane and other C8 isomeric alkanes. The isobutene polymerization reaction can produce isooctene, which can then be hydrogenated to yield the isooctane component.

　　[CCN] As a leading enterprise in China’s resin catalyst and catalytic distillation element industries, as well as a renowned developer of petrochemical process technologies, what support can KaiRui provide to companies in the transformation and restructuring of the C4 industry chain?

　　【Zhang Yong】

In fact, MTBE units can be retrofitted to produce ETBE or to carry out indirect alkylation reactions. Due to our export business, we frequently interact with international clients and have a keen insight into industry trends; as a result, Kaier has long been strategically positioned in this field. More than a decade ago, when the national policy on ethanol-blended gasoline was introduced, we had already begun considering, planning, and developing new technologies to address gasoline upgrading. The ethyl tert-butyl ether (ETBE) technology and ethanol-blended light gasoline etherification technology developed by our company utilize bioethanol, isobutene, and catalytic light gasoline to produce ETBE and ethanol-blended light gasoline. Ethanol-blended light gasoline etherification can also reduce the olefin content in gasoline by 3 to 5 percentage points, addressing the requirement for lower olefin content under the National VI gasoline standard.

　　At the same time, the indirect alkylation technology we have developed effectively addresses the challenge of utilizing C4 olefins to produce oxygen-free, high-octane gasoline blending components. This process involves the polymerization (dimerization) of C4 olefins under the catalysis of a resin catalyst to form isooctene, which is then hydrogenated to produce isooctane.

　　Among these technologies, the ETBE production technology has completed operation at a thousand-metric-ton-scale demonstration plant, and its catalyst has been in use for several years in multiple ETBE plants across Europe and the United States. The indirect alkylation production technology has completed pilot-scale testing, and both the isobutene coupling technology and its catalyst have been successfully commercialized. We look forward to collaborating with interested companies.

　　Blazing a New Trail in C4 and Bioethanol Utilization

　　【CCN】Compared to MTBE, what are the advantages of ETBE? As you just mentioned, ETBE has already gained popularity in developed countries. What is the status of technological breakthroughs in China?

　　【Zhang Yong】

　　Compared to MT