News Release

August 31, 2020 Press ReleaseC1 Chemical Business

Launch of Global First: Plant Converting Steel Mill Byproduct Gas to Chemicals, Slashing 560,000 Tons of CO2 Annually

In August 2020, a pioneering plant utilizing HighChem Company Limited's (Headquartered in Chuo-ku, Tokyo; President: Ushio Taka, hereinafter referred to as HighChem) SEG® technology commenced operations at a steel mill in China. This facility is the first in the world to produce ethylene glycol, a key raw material for polyester manufacturing, using byproduct gases (coke oven gas and blast furnace gas) from steel production. With continuous operation throughout the year, the plant is expected to reduce CO2 emissions by approximately 560,000 tons annually, marking a significant advancement in sustainable industrial practices.

This project is being carried out by Shanxi Yinan Chemical Technology Co., Ltd., a wholly owned subsidiary of China's major private steel company Shanxi Jinnan Iron and Steel Group Co., Ltd.*. This is a joint project to produce 10,000 tons/year of ethylene glycol and 140,000 tons/year of LNG. HighChem licensed SEG® technology in November 2017 to produce 300,000 tons/year of ethylene glycol.

*Shanxi Jinnan Steel Group Co., Ltd.
A major private steel company in China, headquartered in Linfen City, Shanxi Province with 6,000 employees.
The manufacturing capacity includes 5 million tons/year of iron, 7 million tons/year of steel, 7 million tons/year of materials, 3.7 million tons/year of coke, and 3.6 million tons/year of cement.

What is SEG® technology?
SEG® technology is a technology that uses synthetic gas as a raw material to produce non-petroleum-derived ethylene glycol (a type of raw material for polyester production). A wide range of raw materials can be used as raw materials, including coal, natural gas, and industrial exhaust gas. Therefore, it is attracting attention as an eco-friendly technology that can effectively utilize various waste gases and reduce CO2 emissions. Currently, HighChem has granted a total of 23 licenses for ethylene glycol technology with a total volume of approximately 9.4 million tons (as of August 2020). Of this, 750,000 tons of ethylene glycol is produced using industrial exhaust gas such as coke oven gas as a raw material, and if all of these projects come into operation, it is expected to reduce CO2 emissions by 1.25 million tons per year. Additionally, it is technically possible to produce ethylene glycol using biomass and CO2 as raw materials, and we are currently conducting research and development.

Inquiries from the press regarding this release
HighChem Co., Ltd. Administration Division Eriko Kuroiwa
TEL: 03-5542-0580 E-mail:kuroiwa@highchem.co.jp