R&D Progress of and Feasibility Study Report on Mercury-free Catalyst in China Foreign Economic Cooperation Office, Ministry of Environmental Protection of the People’s Republic of China December, 2011 Contents 1. DEVELOPMENT OF PVC INDUSTRY AND MERCURY USAGE IN CHINA....................... 1 1.1 DEVELOPMENT OF PVC INDUSTRY IN CHINA ........................................................................ 1 1.2 STATUS QUO OF MERCURY USE IN CALCIUM CARBIDE PROCESS-BASED PVC INDUSTRY .......... 8 2. PROGRESS OF MERCURY POLLUTION PREVENTION AND CONTROL IN THE CALCIUM CARBIDE PROCESS-BASED POLYVINYL CHLORIDE INDUSTRY .................... 9 2.1 UNDER GUIDANCE OF INDUSTRIAL POLICIES, BOOSTING THE MERCURY POLLUTION PREVENTION AND CONTROL .......................................................................................................................... 9 2.2 SPEED UP THE TECHNOLOGICAL INNOVATION, PROMOTING THE MERCURY CONSUMPTION REDUCTION OF THE INDUSTRY BY NEW TECHNOLOGY ................................................................ 12 3. IMPORTANCE AND URGENCY OF THE R&D OF THE MERCURY-FREE CATALYST .. 15 4. R & D DEVELOPMENT OF MERCURY-FREE CATALYST AT HOME AND ABROAD .... 18 4.1 FOREIGN MERCURY-FREE CATALYST RESEARCH SITUATION ................................................. 18 4.2 MERCURY-FREE CATALYST RESEARCH SITUATION OF CHINA ................................................ 20 4.3 PROBLEMS IN R & D PROCESS .......................................................................................... 25 5. FEASIBILITY ANALYSIS AND TECHNICAL & ECONOMIC PROSPECTS OF MERCURY-FREE CATALYST ................................................................................................. 28 5.1 TECHNICAL FEASIBILITY ASSESSMENT ................................................................................ 28 5.2 ANALYSIS ON TECHNICAL AND ECONOMIC PROSPECTS......................................................... 30 6. KEY AREA OF FUTURE WORK ........................................................................................ 33 6.1 CONTINUOUSLY STRENGTHENING THE APPLICATION AND PROMOTION OF THE MERCURY POLLUTION PREVENTION AND CONTROL TECHNOLOGY .............................................................. 33 6.2 PROMOTING THE DEVELOPMENT AND INTRODUCTION OF RELEVANT POLICIES, REGULATIONS AND STANDARDS ........................................................................................................................... 34 6.3 STRENGTHENING THE RESEARCH AND DEVELOPMENT OF THE MERCURY-FREE CATALYST ...... 35 6.4 STRIVING FOR FINANCIAL SUPPORTS FROM MULTIPLE CHANNELS ......................................... 36 1. Development of PVC Industry and Mercury Usage in China 1.1 Development of PVC Industry in China 1.1.1 Overview of China’s PVC Industry Polyvinyl chloride (PVC) is not only one of the five general synthetic resins, but also a pillar product for the sustainable development of the chlor-alkali industry. With a chlorine consumption proportion of more than 30%, PVC is an important staple organochlorine product. PVC is a kind of thermoplastic synthetic resin developed early in China. Currently, according to different sources of raw materials and routes of production processes, domestic PVCs can be roughly divided into two sorts – calcium carbide process-based PVC and ethylene process-based PVC. The ethylene process route covers the production of 1,2-dichloroethane (EDC) through ethylene oxychlorination with petroleum ethylene as its raw material, the polymerization of PVC through ethylene dichloride (EDC) pyrolysis to vinyl chloride monomer (VCM), and PVC production through import of a small amount of 1,2-dichloroethane and VCM. Since its inception, the PVC industry has played a vital role in construction of China’s national economy, thus the development of the PVC industry is closely associated with that of the national economy. In the 21st century, the continuous growth of national economy has stimulated the demand of chemical and building material industries, offering a broad space for the development of domestic PVC industry. Promoted by multiple favorable factors, the overall scale and strength of the industry have been growing in recent years. Since 2003, China’s PVC industry has entered the ascending channel, and its scale has maintained an average annual growth rate of over 10%. At present, China has steadily occupied the first place among the PVC producers across the world. Statistics by China Chlor-Alkali Industry Association show that by the end of December 2010, China had 94 PVC manufacturing enterprises, with a total capacity of 20.427 million tons per year. The PVC production capacity was mainly distributed in Shandong, Inner Mongolia, Henan, Tianjin and Xinjiang, and there were seven provinces and autonomous regions where the PVC capacity exceeded 1 megaton. In 2010, the number of enterprises with a PVC 1 capacity of at least 400,000 tons per year increased to 17, and their gross capacity accounted for 45.8% of the total. China’s PVC industry is moving in the large-scale direction. >200 万吨 100-200 万吨 50-100 万吨 <50 万吨 > 2 million tons 1-2 million tons 0.5-1 million tons < 0.5 million tons Figure 1: Distribution of PVC Capacity in China With regard to output, China’s PVC output has witnessed an evident increase in the 21st century, and particularly in 2005, stimulated by many positive factors, such as the fast expansion of domestic capacity and rapid increase in downstream demand, the PVC output increased by 33.15%. From 2006, the annual output increase slowed down due to the large scale base of plants of domestic PVC industry and the declining growth rate of downstream industry demand. From the second half of 2008, the global financial crisis resulted in the contraction in demand of domestic PVC industry, production restriction and negative output growth for the first time. After that, along with the recovery and development of the national economy, China’s PVC output was somewhat restored and has reached 11.3 million tons by the end of 2010. (See Figure 2) 2 1200 40 1000 35 33.15 32.04 30 23.4 25.58 22.84 800 20.08 17.77 18.34 25 20 18.1 15 600 10 3.85 400 5 0 -5 200 -9.26 0 -10 -15 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PVC产量 年增长率% PVC 产量 年增长率 PVC output Annual growth rate Figure 2: Variation Trend of PVC Output in China (2000-2010) (Unit: 10,000 tons, %) With years of rapid development, the evolvement of domestic PVC industry and the entire chlor-alkali industry has taken on some new characteristics and trends: (1) The focus of large-scale and resource-oriented production is shifted westward As of the end of 2010, the average production capacity of domestic PVC enterprises had already topped 200,000 tons per year, indicating a significant increase compared with less than 50,000 tons per year at the turn of the century. Especially over the last few years, relying on their resource superiority, such as abundant coal and electricity, the vast central and western regions have newly constructed a batch of large-sized supporting chlor-alkali projects of “PVC + Caustic Soda” with a capacity of above 300,000 tons per year, enormously enhancing the scale and strength of the chlor-alkali industry in those regions. 3 (2) The proportion of calcium carbide process-based PVC is growing In the past few years, in response to the rising energy cost all over the world and taking advantage of abundant coal and electricity, the central and western regions have launched a group of large-scale calcium carbide process-based PVC supporting projects with a capacity of above 300,000 tons per year. This has, to a certain extent, further promoted the overall scale of domestic production plants for calcium carbide process. Statistics reveal that by the end of 2010, the scale of calcium carbide process-based PVC plants had made up 80.9% of gross domestic capacity. 90, 5% 53, 3% 47.5, 3% 628.2, 38% 182, 11% 223, 14% 428, 26% 西北* 华北 华中 西南 华东 东北 华南 Northwest China 西北 North China 华北 Central China 华中 Southwest China 西南 East China 华东 Northeast China 东北 South China 华南 Figure 3: Distribution of Calcium Carbide Process-based PVC Capacity (2010), (Unit: 10,000 tons/year, %) *Note: As most of the PVC production plants in Inner Mongolia are located in the northwest regions neighboring Ningxia, Shaanxi, etc., the PVC plant capacity in Inner Mongolia is hereby incorporated into that of Northwest China. (3) The product quality is 4 constantly improved and differentiation development is formed In the past few years, thanks to the technical progress made in calcium carbide process-based PVC process, especially the successful development and application of such technologies as automatic control, large polymerizer and its supporting steam stripping, drying and VCM refining, the quality of calcium carbide process-based PVC has basically met the requirements on ethylene process-based PVC. Seen from the greater development environment, the market demand for high-quality PVC is on the rise. China’s PVC growth model will turn from simple throughput increase to market segmentation and domination through multiple varieties and brands. With the aggravating competition in PVC market, the customer demand-centered development pattern which subdivides product categories and adheres to resin specialization and high-end tendency of products will be much clearer. (4) The circular economy and cleaner production are vigorously promoted Technically, in order to improve the production capacity of single kettle plants, enterprises have begun to adopt large-scale polymerizers of more than 100 cubic meters and the complete technique thereof, in addition to polymerizers of 70 cubic meters and the complete technique thereof in general use. Moreover, as to technical solutions, the employment of advanced formula technology, hermetic feed technology, anti-sticking technology, new steam stripping technology, new drying technology, DCS control technology and the like, has advanced the self-control level and efficiency of production plants, improved product quality and reduced the consumption of energy and raw and auxiliary materials by a big margin. For environmental protection, the technologies developed include the “hydrochloric acid desorption” to recycle and synthetize excessive HCl for cyclic utilization; “ultrafiltration membrane + reverse osmosis membrane” and biomembrance process to treat centrifugal mother liquid, and “pressure swing adsorption (PSA) (automated program control)” to recover vinyl chloride, acetylene and hydrogen in rectified tail gas. 1.1.2 Development background and importance analysis of calcium carbide process-based PVC industry Currently, except for a very small number of calcium carbide process-based PVC plants in India and other places, the majority of 5 global calcium carbide process-based PVC production plants are located in China. Adoption of such a characteristic development model different from the PVC industry in other countries and regions rests primarily on the following three reasons: (1) China’s energy structure is featured by "oil and gas shortage, yet abundant coal" The conflict between scarce oil and gas resources and huge market demand has hindered the healthy development of China’s national economy in recent years too significantly to be ignored. According to preliminary estimates, if all the existing PVC plants at home use ethylene process instead, the annual crude oil consumption of China will increase by about 80 million tons, equivalent to more than 30% of the total crude oil imports in 2010. It is undoubtedly a heavy burden for its weak energy supply capacity. As domestic and international oil and gas resource prices have mounted up in recent years, the cost of ethylene process-based PVC production process remains high. Against such backdrop, domestic ethylene process-based PVC manufacturers are hardly able to compete with the international giants advantageous in scale and technologies. Meanwhile, relatively abundant domestic coal reserves provide an alternative path for the survival and development of Chinese PVC industry. Calcium carbide process-based PVC production process with coal as the primary raw material enormously reduces the production costs of China’s PVC industry and gives full play to the comparative advantages of domestic industry. As a result, the domestic PVC industry has made a qualitative leap on the scale and strength. Meanwhile, in the context of increasingly complex friction of interests in the international energy market in the 21st century, reducing consumption of oil and gas resources and dependence on imported energy sources is also in accord with the national interests of safeguarding Chinese energy security. (2) It is difficult for ethylene process route to fully meet the demand of comprehensive and healthy development of domestic PVC industry Ethylene process-based PVC production route requires the 6 manufacturers having access to large-scale ethylene plants capable of ethylene supply for PVC production, or settling down in areas adjacent to the ports to facilitate the import of vinyl raw materials (such as ethylene, EDC or VCM) from overseas. Such limitation has led to the present concentration of ethylene process-based PVC production plants in the eastern coastal areas, making it difficult to extend to inland and to the less developed western regions, and raw materials heavily dependent on the import market. For this reason, the balanced and coordinated development of the whole industry is hardly achieved by relying solely on the development of ethylene process-based PVC production route. In a sense, calcium carbide process-based PVC manufacturers that take off and grow quickly by virtue of profuse coal resources in central and western regions represent the new development direction of PVC industry in China. Furthermore, to a large extent, they turn around the unfavorable situation of the raw material costs of domestic PVC industry, but also drive the nationwide coordinated layout of the PVC industry and boost the economic development in central and western regions. (3) Calcium carbide process-based PVC industry has stepped in a virtuous path With the recent advances in industrial technologies at home and abroad, the technical problems in calcium carbide process-based PVC production have been resolved successively, while enterprises have made considerable progress in product quality, pollution control, etc. Centering on the industrial chain characteristics of calcium carbide process route, some of the major domestic calcium carbide process-based PVC manufacturers vigorously carry out circular economic development strategy, and make the industrial chain taking calcium carbide process-based PVC as core bigger and stronger, in a bid to build up a large-scale industrial cluster with "coal-power-salt" integration. Calcium carbide process-based PVC production route has arisen as an optimal solution to the development of a considerable number of domestic chlor-alkali chemical enterprises, notably in central and western regions. From an overall perspective, the development of calcium carbide process-based PVC industry is in line with the status of domestic energy structure and even the objective requirements of domestic PVC industry and even the whole chlor-alkali industry. Healthy and 7 rapid growth of Chinese characteristic calcium carbide process-based PVC industry not only lays a foundation for the great-leap-forward development of China’s chlor-alkali industry in the past five or six years, but also will serve as the backbone in the future to enhance the international competitiveness of China’s PVC industry and the whole chlor-alkali industry . 1.2 Status quo of mercury use in calcium carbide process-based PVC industry Catalyst used in the synthesis of vinyl chloride in calcium carbide process-based PVC production takes activated carbon as the carrier and is prepared by impregnated adsorption of 10-12% mercuric chloride. It does not participate in reactions, but its activity may weaken due to mercury sublimation and catalyst poisoning. If down to a certain extent, catalyst shall be replaced and deactivated mercury catalyst will turn into waste mercury catalyst. Mercuric chloride is used as catalyst in almost all current domestic calcium carbide process-based PVC production. Given a mercuric chloride catalyst consumption of 1.2 kg per ton of PVC produced (mercuric chloride takes up about 11% of the high-mercury catalyst), China’s PVC output through calcium carbide process is estimated to reach 8 million tons in 2010, and therefore mercury catalyst and mercury used in the industry amount to about 9,600 tons and 781 tons respectively. As far as the current situation is concerned, in the rapid development process of chlor-alkali industry in China, calcium carbide process-based PVC industry has become one of the major domestic consumers of mercury. Mercury is a kind of scarce resource and heavy metal highly sensitive to environment, and its supply shows a decreasing trend. Use of and dependence on mercury resources in calcium carbide process-based PVC production have emerged as an important issue for development and survival of China’s calcium carbide process-based PVC industry. How to reduce excessive reliance on mercury resources is an urgent task related to the development, but also the key to sustain the development of China’s calcium carbide process-based PVC industry. 8 2. Progress of Mercury Pollution Prevention and Control in the Calcium Carbide Process-Based Polyvinyl Chloride Industry On December 28, 2009, the State Council approved the Guidelines for Strengthening the Prevention and Control of Heavy Metal Pollution (GBF [2009] No. 61) (hereinafter referred to as "Guidelines") from the Ministry of Environmental Protection, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other five ministries, regulating a series of deployments for strengthening the prevention and control of heavy metal pollution. The relevant departments developed the heavy metal pollution prevention plan, and listed the heavy metal-related chemical industry as one of the key industries on which pollution prevention and control is conducted. Since then, with a view to implementing the requirements of the "Guidelines" of the State Council, enhancing the understanding of the enterprises and relevant departments over the importance and urgency of strengthening the mercury pollution prevention and control, and speeding up the promotion of low-mercury catalyst and the research and development of mercury-free catalyst, the relevant state ministries and commissions have released the industrial policies one by one, guiding the promotion and implementation of industrial mercury pollution prevention and control work at the policy level. Meanwhile, co-organized and driven by China Petroleum and Chemical Industry Association and China Chlor-Alkali Industry Association, numerous domestic calcium carbide process-based polyvinyl chloride manufacturers, catalyst manufacturers, research institutes and others have conducted a lot of meaningful trials and exploration on the mercury pollution prevention and control, and the domestic industries have made some achievements on the mercury pollution prevention and control. 2.1 Under guidance of industrial policies, boosting the mercury pollution prevention and control Under the increasingly serious mercury pollution prevention and control situation in the calcium carbide process-based polyvinyl chloride industry, the relevant state ministries and commissions attached great importance to guiding and promoting the reduction of mercury emission of the industry at the policy level. Following the issuance of the Circular on Guidelines for Strengthening the 9 Prevention and Control of Heavy Metal Pollution (Guo Ban Fa [2009] No. 61) by the General Office of the State Council on December 28, 2009, such policies and measures as Guidelines for Strengthening the Prevention and Control of Mercury Pollution of the Polyvinyl Chloride Industry, Implementation Program for Cleaner Production Technology of the Polyvinyl Chloride Industry and Circular on Strengthening the Mercury Pollution Prevention and Control in the Calcium Carbide Process-based Polyvinyl Chloride and Related Industries (Huan Fa [2011] No.4) were issued successively, reflecting the principal idea of “mercury minimization and elimination” for the prevention and control of mercury pollution of the calcium carbide process-based polyvinyl chloride industry. Judging from the national industrial policy and facing the important international responsibilities and obligations undertaken by China, China shows its determination and positive efforts on the heavy metal pollution prevention and control. Under such circumstances, the application of advanced technology for reducing mercury consumption of the calcium carbide process-based polyvinyl chloride industry, and the promotion of the scientific & technical breakthroughs on mercury-free catalyst technology have become the key contents of the mercury pollution prevention and control of the industry actively guided by the state. The industry association sets foot in the actual production situation of the calcium carbide process-based polyvinyl chloride industry, actively plays a role of bridge and tie, studies and develops the admittance conditions for the low-mercury catalyst manufacturers and waste mercury catalyst recycling enterprises. According to the mercury pollution prevention thought of "accelerating the elimination of high-mercury catalyst, realizing the moderate development of low-mercury catalyst, and speeding up the promotion of mercury-free catalyst", the relevant industrial policies on mercury catalyst in the calcium carbide process-based polyvinyl chloride industry have been studied, and the corresponding elimination and support policies have been perfected. Meanwhile, relevant government departments should be coordinated to issue the industry measures, economic policies and others that encourage enterprises to adopt low-mercury catalyst, and such economic policies and measures as reduction of product tax and reduction of sewage charges of enterprises are proposed for encouragement. At the same time, the distribution principles and conditions for mercury catalyst production and waste mercury catalyst recycling should be 10 developed, so as to link with the layout of calcium carbide process-based polyvinyl chloride manufacturers, thus narrowing the transport radius of mercury-containing wastes. In addition, to further improve the organization and management capabilities in respect of the mercury pollution prevention and control of the industry, China Petroleum and Chemical Industry Association and China Chlor-Alkali Industry Association jointly organized and founded a leading group and a expert group for mercury pollution prevention and control, wherein the former is composed of leaders of China Petrochemical and Chemical Industry Association, China Chlor-Alkali Industry Association, the Ministry of Environmental Protection, the Ministry of Industry and Information Technology, China National Petroleum & Chemical Planning Institute and other relevant departments, and the experts of key enterprises and research institutes, and the latter is responsible for directing the mercury pollution prevention and control and making the relevant decisions. Under the circumstances that the objectives, direction and implementation methods of mercury pollution prevention and control of China and the mercury minimization and elimination working direction, it needs to vigorously promote the promotion and application of low-mercury catalyst as well as speed up the development and application of mercury-free catalyst, and other new environmentally friendly catalysts, so as to make major breakthroughs as early as possible, thus fundamentally solving the mercury pollution problems, and ensuring the long-term sustainability of calcium carbide process-based polyvinyl chloride. According to current development of the industry and the application status of mercury catalyst, the calcium carbide process-based polyvinyl chloride industry of China has developed a preliminary route for the mercury reduction. (see Table 1) Table 1: Route for Mercury Reduction of China Time First stage Second stage Promotion of low-mercury catalyst Stage of promoting low-mercury catalyst and reducing mercury consumption Complete replacement of high-mercury catalyst by low-mercury catalyst 11 Third stage Research and Industrial test of development, fixed-mercury promotion of catalyst fixed-mercury catalyst Research, development Basic research and and development stage of promotion of mercury-free catalyst mercury-free catalyst Stage of promoting fixed-mercury catalyst and reducing mercury consumption Pilot plant test and industrial test of mercury-free catalyst Stage of promoting mercury-free catalyst and eliminating mercury In accordance with the route for reduction of mercury emission of China, the first stage focuses on mercury consumption reduction, emphasizes the promotion of low-mercury catalyst and promotes the industrial test of fixed-mercury catalyst and the basic research and development of mercury-free catalyst, with the aim of popularizing low-mercury catalyst in the entire industry by the end of 2015, so as to significantly reduce the mercury consumption; the second phase focuses on the promotion and application of fixed-mercury catalyst for further reducing the low-mercury catalyst consumption and promotes the pilot plant test and industrial test of mercury-free catalyst; and the third stage focuses on full promotion and application of mercury-free catalyst, until then, the industry will enter the mercury-free stage. 2.2 Speed up the technological innovation, promoting the mercury consumption reduction of the industry by new technology The mercury in the calcium carbide process-based polyvinyl chloride production process mainly goes into the waste mercury catalyst, waste activated carbon with mercury, waste hydrochloric acid with mercury, and waste alkali and so on. For the rather severe mercury pollution prevention and control situation of China’s calcium carbide process-based polyvinyl chloride production, and with the great importance of the government, the active publication of associations and the gradual promotion of enterprises, the mercury pollution prevention and control work of China is moving forward steadily. As the most direct way to reduce the mercury usage amount of China’s calcium carbide process-based polyvinyl chloride industry, the reduction of the usage amount of mercuric chloride catalyst and the replacement of existing high-mercury catalyst by low-mercury catalyst or even the mercury-free catalyst can radically reduce the 12 usage amount of mercury in manufacturing enterprises, thus having become the main direction of China’s industry. As the most direct way to reduce the mercury usage amount of the calcium carbide process-based polyvinyl chloride industry, the wide promotion of the low-mercury catalyst in the industry is of great significance. The low-mercury catalyst has the use performance equal to even better than that of the high-mercury catalyst, the activated carbon is adopted for absorbing the lost mercury in the calcium carbide process-based polyvinyl chloride production process and the activated carbon with mercury and the waste mercury catalyst used are recycled and reused by the qualified manufacturers. Therefore, the low-mercury catalyst significantly reduces the consumption and emissions of mercury. According to preliminary estimates, if all calcium carbide process-based polyvinyl chloride production plants of China apply the low-mercury catalyst rather than the high-mercury catalyst, and the cleaner production technology aiming at mercury pollution prevention and control is applied, 70 percent of the mercury usage amount will be reduced. However, at present, enterprises of the calcium carbide process-based polyvinyl chloride industry have encountered many difficulties and problems in the promotion and application of the low-mercury catalyst. From the equipment and technology, the use of low-mercury catalyst has raised higher requirements on the process control level of enterprises, and at present, a large number of calcium carbide process-based polyvinyl chloride manufacturers of China have great differences in equipment strength and technical level, restricting the use effect of the low-mercury catalyst to some extent. On the other hand, seen from the supply of low-mercury catalyst, since the use of low-mercury catalyst has been promoted in the calcium carbide process-based polyvinyl chloride industry of China, the mercury catalyst manufacturers have launched their own low-mercury catalysts, and the product quality, the market competition and other factors have restricted the promotion and application of the low-mercury catalyst in the industry to some extent. Industrial Standard on Low-mercury Catalyst for Vinyl Chloride Synthesis has been released on June 15, 2011, which can effectively guide the low-mercury catalyst industry and regulate the product quality, while helping to supervise and urge the catalyst manufacturers to improve the production technology and product 13 quality of the low-mercury catalyst, thus laying a solid foundation for further application and promotion of the low-mercury catalyst in the industry. With the high attention and substantial support of the state and the active efforts of the industry, the mercury pollution prevention and control in the calcium carbide process-based polyvinyl chloride industry of China is moving forward steadily and has achieved gratifying results. By the promotion of low-mercury catalyst and the R&D and application of a series of technologies such as hydrochloric depth desorption, mercuric chloride processing with sodium hydrosulfide and waste catalyst recovery by distillation method, the mercury pollution prevention and control has achieved initial results on the reduction of the mercury usage amount and the improvement of the mercury recovery efficiency. Correspondingly, while actively conducting the mercury pollution prevention and control, the enterprises of the industry have put a lot of human, material and financial resources into the research and development and promotion of advanced technologies, and the improvement and upgrade of equipment, which objectively increased the economic pressure of the enterprises of the industry. In accordance with the route for the reduction of mercury emission, the use and popularity of low-mercury catalyst is a transitional stage for the development of the polyvinyl chloride industry of China, which will eventually accelerate the thorough and irreversible transformation from the low-mercury catalyst to mercury-free catalyst. At present, China is still in the basic research and development stage of mercury-free catalyst, and with the technical breakthroughs of research institutions and manufacturers of China, the initial progress has been made in the fields relevant to the research and development of mercury-free catalyst; however, the industrial application even the universal application in the industry are some way off. 14 3. Importance and Urgency of the R&D of the Mercury-free Catalyst As mentioned earlier, almost all manufacturers of China apply the mercuric chloride catalyst for the production of calcium carbide process-based polyvinyl chloride. Mercury, as a scarce resource and a heavy metal highly sensitive to the environment, has been increasingly exhausted and its supply has been decreasing year by year. The mercury pollution is getting worse. Therefore, the limit on the mercury emissions and use has become a global trend. China is a major mercury consumer and producer, and is involved into all the seven priorities relevant to mercury, and China is also the major exporter of mercury-containing products. Currently, with the increasing appeal for the legally binding international instrument internationally, China will be subjected to the reduction of mercury supply and demand in the future, and the waste mercury disposal in the export trade, it’s safe to say, fundamentally eliminating use of mercuric chloride catalyst in the calcium carbide process-based polyvinyl chloride industry and the R&D of the mercury-free catalyst have become the important aspects for the development of calcium carbide process-based polyvinyl chloride industry of China. The necessity and importance for the R & D of the mercury-free catalyst is mainly reflected in the following areas: (1) Shortage of mercury resource at home and abroad In recent 20 years, the development of the polyvinyl chloride industry and the battery industry of China has accelerated the consumption of mercury, and the mercury resource in China has basically dried up. According to the data of Ministry of Land and Resources, China now only has about 11,000 tons of mercury reserves, excluding the reserves of strategic resources and the reserves that cannot be developed or used, and the volume of remaining reserves available is still unclear. As the amount of available mercury is relatively small, the current price of mercury has reached RMB 320,000 Yuan/ton, which was more than double of the price at the beginning of 2010 of RMB 140,000 Yuan/ton. Meanwhile, the price of mercury catalyst has risen from RMB 2,600 Yuan/ton at the beginning of the year to RMB 70,000 Yuan/ton at present. As the European Union has completely forbidden the mercury exports since July 2011 and closed major mercury mines, the severe shortage of mercury resource will seriously affect the survival of the mercury-consuming 15 industries. (2) Pressure on the reduction of mercury emission from the international community The core of discussion on the mercury-related problems by the international community is to restrict and then eventually eliminate the use and exploitation of mercury, and to strictly manage the mercury pollution from a variety of sources and causes; for the export of mercury-containing products, some countries have raised the recall mechanism for the mercury-containing products exported. China is a major mercury consumer, China's total demand for mercury has occupied more than half of global mercury demand, ranking the first in the world. And the mercury consumption in the production of calcium carbide process-based polyvinyl chloride has accounted for 60% of total mercury consumption of China, which determines that the acetylene process-based polyvinyl chloride will be the most important area for the international mercury convention performance in the future. Under the constraints of the international mercury convention, the calcium carbide process-based polyvinyl chloride industry will face the great pressure from no available mercury resources. (3) Impact of domestic policies To strengthen the heavy metal pollution prevention and control of China and maintain the environmental safety, on December 28, 2009, the State Council released the Circular of the General Office of the State Council on the Approval and Transmission of the Guidelines for Strengthening Prevention and Control of Heavy Metal Pollution Submitted by the Ministry of Environmental Protection and other Departments (GBF [2009] No. 61), providing for the objectives of and requirements on the pollution prevention and control of key industries. Subsequently, for the key industries of mercury pollution prevention and control of China, calcium carbide process-based polyvinyl chloride industry, the Ministry of Industry and Information Technology, China Petroleum and Chemical Industry Association and China Chlor-Alkali Industry Association, and China Chemical Industry Environmental Protection Association jointly drafted Guidelines for Strengthening the Prevention and Control of Mercury Pollution in the Polyvinyl Chloride Industry, which points out that all industries will have used low-mercury catalyst by 2015 and the recovery rate of the waste mercury catalyst will reach 100%. 16 In February 2010, the Department of Energy Conservation and Resources Utilization of the Ministry of Industry and Information Technology released the Implementation Program for Cleaner Production Technology of the Polyvinyl Chloride Industry, making clear the working concept of “Mercury Minimization and Elimination". After that, the Ministry of Industry and Information Technology released the Notice on Printing and Distributing the Implementation Program for Cleaner Production Technology of 17 Key Industries including Polyvinyl Chloride, and the overall goal of cleaner production for the industry has been regulated in the cleaner production implementation program for the polyvinyl chloride industry. On January 19, 2011, the Ministry of Environmental Protection released the Notice on Strengthening the Mercury Pollution Prevention and Control in the Calcium Carbide Process-based Polyvinyl Chloride and Related Industries (HF [2011] No.4), which regulates that by the end of 2015, the high-mercury catalyst will have been completely eliminated; according to the industrial needs, the low-mercury catalyst production capacity should be expanded in a reasonable and moderate mode, the low-mercury catalyst production level should be perfected and raised to meet the needs of alternative applications; and the research and development of mercury-free catalyst should be encouraged. In addition, Guidance Catalogue for Industry Structure Adjustment (2011) includes the mercury-free and other new, highly efficient and environmentally friendly catalysts and assistants, mercury recycling & treatment technology for mercury-containing wastes, and development and application of alternatives for mercury-containing products into the encouragement list. Judging from the national industrial policy, the application of advanced technology for reducing mercury consumption of the calcium carbide process-based polyvinyl chloride industry, and the active promotion of the scientific & technical breakthroughs on mercury-free catalyst technology have become the key contents of the mercury pollution prevention and control of the industry actively guided by the state. On the whole, under the huge impact of the severe mercury emission reduction situation and the shortage of mercury resource at home and abroad, the dependence on the mercury-containing catalyst has been the bottleneck for the development of the calcium carbide process-based polyvinyl chloride industry. The R & D of mercury-free catalyst is the only way to solve this problem 17 fundamentally, which affects the sustainable development of the industry and is relevant to the survival of the entire industry. 4. R & D Development of Mercury-free Catalyst at home and abroad The replacement of mercury-containing catalyst by new mercury-free catalyst is the fundamental way to resolve the problem that there is huge mercury consumption in the calcium carbide process-based polyvinyl chloride industry of China, and has always been the research focus of the polyvinyl chloride industry. According to the data collected from trade journals both at home and abroad, by the research over the catalytic activities of a variety of metal chlorides both at home and abroad, it is found that the catalyst efficiencies and selectivity of some metals are superior to those of the mercuric chloride system, indicating that mercury-free catalyst has certain potential for development, but the stability is still unsatisfactory, and the large-scale industrialization has not been applied at present. The researches of mercury-free catalyst at home and abroad are divided into the solid phase catalytic system and the liquid phase catalytic system. 4.1 Foreign mercury-free catalyst research situation 4.1.1 Solid phase mercury-free catalyst The mercury-free catalyst research began with the solid phase mercury-free catalyst. The solid phase catalyst dominated by activated carbon or aluminum oxide load mercury-free metal chloride is the direction of the early mercury-free catalyst study. Although many scholars have researched the elements with 4d and 5d electrons and with external electronic structures similar with mercury in the VIII, IB, IIB groups, the different experimental conditions resulted in that no consistent catalytic activity relationship is reached and the capacity of catalytic activity cannot be explained. The foreign researches in recent years have mainly focused on some precious metal salts, such as K2PtCl6 and HAuCl4, which have better reactivity in laboratory, but the industrial application is hard to be realized due to high costs. 18 Aker Solutions was a European company with the patent of acetylene-based vinyl chloride technology, who started the research and development of mercury-free catalyst from 1995-1996. According to the Company, in the mid-1990s, an acetylene process-based vinyl chloride factory in the Middle East conducted the industrial test for more than 12 months, but because the acetylene process-based vinyl chloride production had no market efficiency, the factory changed the process to the ethylene process. Since 2006, Aker Solutions and Johnson Matthey have jointly developed the mercury-free catalyst for the production of the vinyl chloride monomer by acetylene process. The catalyst, a special formula, is a strip cylinder with a diameter of 3 mm. It can be used in the existing tubular reactor, without changing the production conditions. The metal in the waste catalyst can be extracted for preparing new catalyst. The experiments conducted by the Sonning Common R & D Center of Johnson Matthey in the UK show that, the mercury-free catalyst can produce the activity higher than that of the mercury catalyst. At present, the company has started cooperation with Chinese enterprises. In addition to the technical issues which call for further verification, the operating cost and economy of the company are also difficult to be determined. 4.1.2 Liquid phase mercury-free catalyst The liquid phase catalyst is commonly known as homogeneous complex (coordination) catalyst, and the transition metal complex soluble in the solvent is used as the catalyst; all the reactions are completed in the homogeneous liquid phase system at the temperature of below 200 ℃. In the 1980s, GJ Hutchings, inspired by the organic amine-based alkali manufacturing mechanism in his study of solid phase mercury-free catalyst, developed the acetylene hydrogen chloride liquid phase mercury-free catalytic system containing Tri-n-butylamine-hydrochloride, isopropyl alcohol, dodecane and chloroauric acid; however, the highest conversion rate of acetylene was only 1.8%. In 1989, Hills AG in Germany proposed the following information in a patent that: if the palladium compound is used as catalyst for acetylene hydrochlorinate reaction in the aliphatic or cycloaliphatic carboxylic acid amide, the mass fraction of active material will be 0.1% - 1% and the conversion rate of acetylene will be higher than 80%, but the patent hasn’t mentioned the service life of the catalytic system. After that, all the patents of United States, 19 Japan, Italy and other countries released followed the basic principle of GJ Hutchings, and none of them mentioned the activity life of the catalyst and focused on the research of interaction of various components of the catalytic system, catalytic mechanism and reason for the inactivation of the catalyst. The oversea mercury-free catalyst researches in recent years have mainly focused on some precious metal salts, which are characterized in better reactivity but poor industrial application due to high cost. 4.2 Mercury-free catalyst research situation of China The mercury-free catalyst research of China has begun in the 1980s. As early as in 1973, Mr. Chen Rongti, a famous coordination chemist of China, has accepted the research subject of vinyl chloride mercury-free catalyst submitted by Tianjin Science and Technology Commission and started the initial exploration over the mercury-free catalytic system. After decades of efforts and with the close cooperation of production enterprises and research institutes, the active tries and exploration over different catalyst formulas, carrier types, catalyst preparation methods, applicable reaction technology and reactors have been made. To actively promote the research and development of the mercury-free catalyst and the industrial application of new technologies, the Technology Innovation Strategic Alliance of Calcium Carbide Process-Based Polyvinyl Chloride Mercury-Free Catalyst Industry was set up in Xinjiang in August 2010. The “Alliance” has China Petroleum and Chemical Industry Association as its chairman and China Chlor-Alkali Industry Association as the secretary-general, and was spontaneously founded by more than ten calcium carbide process-based polyvinyl chloride manufacturers, scientific research institutes and research institutions engaged in R&D and promotion of mercury-free catalyst in China. The Alliance is voluntarily organized by the China Petroleum and Chemical Industry Association as a means to share information on R&D of mercury-free catalyst. Sizeable enterprises on PVC production and related institutes join the Alliance as the members. The Alliance has been put into operation for more than one year and under the circumstances of lacking fund support, it promotes the breakthroughs in key technologies for R&D of mercury-free catalyst through the regular communication among its members. The 20 establishment of the Alliance sets up the mercury-free catalyst research and development system with the core of industrial association and the close cooperation of industry, academic and research institutes. The "Gas-solid-based mercury-free catalyst" and the "gas-liquid-based mercury-free catalyst" technologies have been defined as the key research projects of the industrial alliance. We have conducted a survey on 4 major mercury-free catalyst research and development enterprises and 5 research institutions of China in this year, of which 3 PVC enterprises and 4 research institutions have a feedback. According to relevant documents and the results of questionnaire survey, with the continuous attempts and exploration over the researches of the mercury-free catalyst and supporting technologies, reactors and others by some research institutions and calcium carbide process-based polyvinyl chloride manufacturers of China, the research and development of the mercury-free catalyst technology has made certain progress, some research institutions have cooperated with the manufacturers for planning or conducting the pilot plant test on the mercury-free catalyst formulas and for conducting the production line test. 4.2.1 Solid phase mercury-free catalyst and progress China has studied the solid phase mercury-free catalyst earlier with the research direction of gas-solid reaction and focusing on exploration of the mercury-free catalytic system with fixed-bed reactor and fluidized-bed reactor. On reaction technology, some research institutions conducted the research and development of the mercury-free catalyst based on gas-solid phase fixed-bed reaction technology. The metallic elements of VIII, IB, IIB groups, that is, the precious metal elements and some transition metal elements are used as the active components of the catalyst, and the activated carbon and new molecular sieve with specific pore structures and frameworks and surface groups as the catalyst carrier. Meanwhile, the institutions have tried to apply the technology to the gas-liquid bubble column reaction technology. At the same time, some research institutes have cooperated with the enterprises to carry out research over the industrial pilot plant test and application of the mercury-free catalyst circulating fluidized bed for synthesizing the calcium carbide process-based vinyl chloride. Now, the solution for the loss of active components of the mercury-free catalyst and the optimized formula 21 process were obtained, and the plants for bench-scale test of industrial fluidized bed of feather weight were built for the industrial bench-scale test of the optimized catalyst formula. The test results show that, the catalytic system has better indicators. The next step will be the mercury-free catalyst synthesis for kiloton polyvinyl chloride production capacity and the evaluation of the bench-scale test on fluidized bed. Seen from the catalyst formula, one of the research directions is to use the precious metal with high activity as the main active component of the catalyst. Some research institutions selected organic or inorganic substance as the assistant of complex agents, which is highly dispersed on the carrier by electronic transfer and bonding. Different metal assistants are selected depending on the supporting synergy among metals for improving the deactivation resistance property of the metal catalyst, reducing the usage amount of precious metals, and facilitating the recovery of precious metal catalysts. Now, substantial progress has been made in the research, the equipment for pilot plant test is being built and the patents are applied for. Another research direction is to use suitable transition metals rather than precious metals, and to select other metal assistants according to the mechanism of action, so as to promote the reaction among metals, thus significantly enhancing the performance of the active components of the catalyst. At present, some enterprises have cooperated with research institutions for completing the preparation and evaluation of the precious metal and non-precious metal catalysts with the carriers of activated carbon and porous oxide. It is understood that, the non-precious metal catalyst with the carrier of activated carbon can significantly improve the stability of the activated carbon carrier, but its activity is lower than that of the activated carbon. For the precious metal catalyst, the reactivity of activated carbon catalyst with two active components is investigated, and the results show that the precious metal has very good catalytic property and has relatively high acetylene conversion rate; in the research of non-precious metal catalyst with the carrier of porous oxide, it is found that the self-made oxide carrier with active component has higher activity, and the activity of precious metal catalysts is much lower than that of the precious metal catalysts with the carrier of activated carbon and also lower than that of the non-precious metal catalysts. In the research of the mercury-free catalytic system, the preparation and evaluation of the precious metal and non-precious metal catalysts 22 with the carrier of molecular sieve are made, the formula with high activity & stability and low active component has been preliminarily screened out, and the comparative evaluation over the carrier modification has been completed. It hopes to eventually form an optimized program for the mercury-free catalyst carrier processing, preparation process and catalyst evaluation. Based on the different active components used, some institutions have adopted complex method, chemical plating method and other innovative methods to form the self-assembly of the active components of catalyst to some extent, thus ensuring the active components properly load on the carriers of different natures, maximizing the performance of the active components, increasing the stability of the catalyst, and prolonging the service life of the catalyst. At present, the supported precious metal catalyst successfully developed by using the complex method is undergoing the pilot plant test, and the supported transition metal catalyst successfully developed by using the chemical plating method has its bench-scale test completed in the laboratory. In addition, in the research of the solid phase mercury-free catalyst, some research institutions not only use the activated carbon as the carrier, but also focus on the use of new molecular sieves, utilizing the special pore structure and surface property of the new molecular sieves to improve the performance of active components and strengthen the stability of the catalyst. Meanwhile, the institutions have made a lot of attempts on the regeneration and reuse of deactivated catalyst and other post-treatments and process conditions and have achieved some progress. 4.2.1 Liquid phase mercury-free catalyst and progress In recent years, China began to actively carry out the liquid phase mercury-free catalyst research. By making the most of foreign research results, China has carried out a number of exploratory experiments and researches. On the liquid phase mercury-free catalytic system, a research institution at present has designed with a new solvent which serves as the carrier of the catalytic system; selected the non-mercury metal ion as the catalyst, solving the mercury pollution problem; and applied the form of gas-liquid reaction, realizing the miniaturization of VCM reactor. 23 It is understood that, the catalyst with gas-liquid reaction is used in a tower or tubular reactor which is characterized in that the new solvent has good solubility property against organic and inorganic substances, ensures the reaction occurs under the homogeneous conditions, and reduces the equipment size. The reactor is small and is of low investment; the new solvent has a wide operational temperature range, good thermal stability and chemical stability. The reactor is safe and reliable and compared with the traditional fixed-bed reactor, the liquid phase catalytic reaction system does not use the solid carrier, so it has great heat transfer effect, avoids the local overheating and reduces the catalyst sublimation, thus prolonging the service life of the catalyst, reducing the consumption, saving the costs and realizing the environmental protection; the catalyst production process is also environmentally-friendly, because the system does not use the solid carrier, so no pulverization, hardening or other problems will appear, and the synthetic VCM process is simple. Besides, there is no pollution caused by the solid carrier production and processing. After 720 hours of continuous operation of the catalytic system, it is found the catalyst is free from loss, the metal ions are free from inactivation, and the conversion rate and the selectivity remain unchanged; the catalytic system is free from maintenance and the production capacity is not affected. In addition, the new solvent is environmentally friendly. The new solvent has quite low vapor pressure and is odorless, pollution-free, non-flammable, and easy to be separated from products, easy to be recovered, suitable for repeated use and easy to use; the recovery of metals from new solvent is simple and the metal used can be recycled and re-activated, without secondary pollution. Currently, the liquid phase catalyst has relatively high VCM conversion rate under laboratory conditions, and after long-term continuous operation, the new solvent is free from loss, the metal ions are free from inactivation, and the conversion rate and the selectivity remain unchanged; its bench-scale test has been completed in the laboratory. In the pilot plant test, it is proposed to adopt the tower reactor for further improving the conversion rate. However, due to high cost of the mercury-free catalyst, the economical efficiency of its industrial application requires to be further improved. On the whole, with the joint efforts of production enterprises, research institutions, and professional institutions of China, the research and development of the mercury-free catalyst in China is 24 forming a force, and has made certain progress in the different research directions by the multi-angle shoulder-to-shoulder stance. 4.3 Problems in R & D process As mentioned earlier, at present, relevant production enterprises and research institutions of China have focused on the research and development of the mercury-free catalyst and conducted the scientific and technological breakthroughs on the mercury-free catalyst (including solid phase and liquid phase mercury-free catalysts), the supporting reactor thereof (fixed bed , fluidized bed, etc.) and other concerned. After several years of efforts, production enterprises and research institutions have made some progress, but also found some problems in the research and development. (1) Stability of the mercury-free catalyst In the laboratory stage, the enterprises and research institutions have found some mercury-free catalysts with the initial activity or selectivity greater than those of the mercuric chloride catalysts, but they are not put into industrial application, mainly because the stability of the mercury-free catalyst is not satisfactory and it is inactivated in a very short period of time, which cannot reach the industrial requirements. The carbon deposit on the catalyst surface, loss of active components of the catalyst, change of the valence state of the metal ion may greatly affect the stability of catalysts. Therefore, how to maintain the stability of the mercury-free catalyst, and how to speed up the regeneration of the mercury-free catalyst after the inactivation have been the key subjects for study over the mercury-free catalytic system. (2) Selection of reactors There are three reactors for preparing polyvinyl chloride by acetylene process: fixed-bed reactor, bubble column reactor and high-pressure autoclave reactor, all of which have their own strengths and weaknesses. The gas-solid phase fixed-bed reactor has a long history of application; however, how to quickly and effectively remove heat and maintain the stability of catalyst and the reaction has always been one of the drawbacks to be solved. Although the bubble column reactor and the high-pressure autoclave reactor can effectively avoid this phenomenon, their technological characteristics obstruct their wide application in industry. 25 (3) Control over catalyst cost In the research and development of the mercury-free catalyst, one of the suitable active components for the catalyst is previous metal. The precious metal catalyst is used in the reaction of acetylene process-based polyvinyl chloride and has the advantages of high activity, high selectivity, high yield and others. However, compared with the traditional mercury catalyst, the precious metal catalyst has higher cost, greatly increasing the burden on enterprises and restricting the application of precious metal catalyst. It’s safe to say, the development of high-performance precious metal catalyst and the bench-scale test in laboratory are of a very high possibility technically. The key for the research & development and the promotion of the mercury-free catalyst is to develop the type passing the rigorous market test with suitable cost. Therefore, it is necessary to develop new methods and new technologies, and apply a variety of ways to minimizing the usage amount of the precious metal in the catalyst in the preparation process, so as to bring into full play the effectiveness of precious metal, prolong the service life of the catalyst, and intensify the efforts of recycling the precious metal catalyst. The existing research results show that, most patented mercury-free catalysts for the calcium carbide process-based vinyl chloride are the precious metal solid phase catalysts with the carrier of the activated carbon, with a few of patented liquid phase catalysts. Precious metal catalyst has rather high activity and from the perspective of industrial application, the cost of fully relying on precious metal catalyst can be high. There is some concern when put into commercialized production operation, the shortage and high price of raw material would not sustain the production of catalyst to meet the demand of the whole carbide PVC industry. Nevertheless, it is clear that the industry is also facing the implications of the future mercury treaty limiting global mercury supply. Industry also forecasts that the sole mercury mine in China could be exhausted within 5 years, further the need to drive innovation and adaptation in the sector. Overall, the industry needs to think about the future cost and availability of mercury. Therefore, more information is needed about the availability of the alternative catalyst metal and its disadvantages over mercury. The study over the non-precious metal catalysts is relatively slow, mainly due to the poor activity and the easy-to-deactivate feature of 26 such catalysts; the research over the liquid phase catalyst is increasing. Such technical basis provides new ideas for the research over the mercury-free catalyst for the calcium carbide process-based vinyl chloride, so as to develop the catalysts with the active components of precious metals of low contents or of non-precious metals and the liquid-phase mercury-free catalysts. The new mercury-free catalyst is of high activity and little carbon deposit and can be regenerated and reused. Meanwhile, with the development of reactor technologies, the mercury-free catalyst preparation process and the supporting reactors are developed, reducing the technical difficulties in the industrialization of the mercury-free catalyst and becoming the new trend in the calcium carbide process-based mercury-free catalyst field. 27 5. Feasibility Analysis and Technical & Economic Prospects of Mercury-Free Catalyst With the rapid development of China's calcium carbide acetylene process-based polyvinyl chloride and the restriction of the international environment on the mercury resource application of the industry, the research on the mercury-free catalyst for the calcium carbide process-based vinyl chloride has become the technical barrier for the sustainable development of the calcium carbide process-based polyvinyl chloride industry of China. Subject to resource constraints, the petroleum ethylene process has become the dominated polyvinyl chloride process in foreign countries, and the mercury-free catalyst for the calcium carbide process-based vinyl chloride has been less studied. And China’s industry, under the great attention of industry and the active efforts of enterprises and research institutes, has made a number of attempts on the study over the mercury-free catalyst system and has made some progress. 5.1 Technical feasibility assessment Currently, the research of China’s industry on the mercury-free catalyst focuses on the solid phase and liquid phase mercury-free catalytic systems. Judging from the comparison, both the solid phase mercury-free catalytic system and the liquid phase mercury-free catalytic system have their own advantages and disadvantages in respect of service life, activity, stability and others. When the solid phase mercury-free catalyst is applied, gas-solid reaction occurs, and the precious metal or similar precious metal is used as the main active component of such catalyst. However, due to carbon deposit on catalyst surface and the loss of active component of the catalyst and other issues, the activity and life of such catalyst are not satisfactory. Meanwhile, it is found in the experiment that the catalytic system under study has the disadvantages that temperature runaway is likely to occur in the catalytic reaction, the temperature is difficult to be controlled, the catalyst recovery and regeneration are not easy to be realized, etc. In addition, because the solid phase catalyst is filled in the tube of the reactor, cooling water is applied to the external of the tube to reduce a lot of heat released by the reaction; therefore, the solid phase catalytic reactor has to occupy a large area, while the 28 increase of actual output is very limited. Judging from the active component of the solid-phase catalyst, the non-precious metal catalyst and the similar precious metal catalyst still have a gap with the existing mercury catalyst in respect of catalytic activity, transforming effects and others; therefore, after various studies and attempts on catalyst formulas, currently, the enterprises and research institutions at home and abroad still select the precious metal as the active component of the mercury-free catalyst. The precious metal is the material with higher catalytic activity other than mercury, and in spite of higher cost and poorer stability, the precious metal is simply for the laboratory test, and has a very high possibility technically. On the selection of mercury-free catalyst reactor, the gas-solid phase fixed-bed reactor is more widely used in the calcium carbide process-based polyvinyl chloride manufacturers in China, but before the application of the mercury-free catalyst, it is necessary to resolve the problems such as how to quickly and effectively remove the heat, and maintain the stabilities of catalyst and reaction. Although the bubble column reactor and the high-pressure autoclave reactor can effectively avoid this phenomenon, their process features obstruct the wild application in the industry. The liquid-phase mercury-free catalyst has the gas-liquid reaction, with uniform and stable temperature control, and the local overheating will not be caused; therefore, the hot points of bed layers of the catalyst will not be damaged, thereby reducing the heat transfer load of the reactor system; the active component of the catalyst is soluble in the homogeneous liquid phase system, so no carbon deposit will be produced on the catalyst surface, and the pulverization of the catalyst will not be caused by the impact of the gas pressure or the abrasion among particles. Therefore, the catalytic activity and stability of the liquid phase catalytic system are better than those of the solid phase mercury-free catalytic system in theory. However, on the other hand, the solid phase mercury-free catalytic system cannot match with the existing vinyl chloride industrial production plants, so its industrial promotion will require the development of suitable vinyl chloride converter for matching; In addition, the cause for deactivation of the liquid mercury-free catalyst is still uncertain, so its regeneration and recycling are subject to certain restrictions. 29 The solid phase mercury-free catalytic system and the liquid phase mercury-free catalytic system under study have their own shortcomings in the technical development process, requiring further improvement and perfection. With more efforts on the R & D by production enterprises, universities and research institutes of China, the successful breakthrough on the mercury-free catalyst from the technical level is still quite possible. 5.2 Analysis on technical and economic prospects At present, the development of the mercury-free catalyst at home and abroad is still in the research and exploration stage. The technical possibility of the success of research and development is only the important foundation for the research and development, application, and promotion of the mercury-free catalyst. The real industrial test or even the full promotion in the calcium carbide process-based polyvinyl chloride industry of China requires the economic evaluation over the mercury-free catalyst. To a certain extent, the cost of the mercury-free catalytic system and the acceptance degree by existing manufacturers decide whether the industrial application of the mercury-free catalyst can be achieved, thus fundamentally removing the important source of the mercury pollution in the calcium carbide process-based polyvinyl chloride industry of China. From the economic considerations on the R&D and promotion of the mercury-free catalyst, as noted earlier, various studies and attempts on catalyst formulas come out the result that, the enterprises and research institutions at this stage still select the precious metal as the active component of the mercury-free catalyst based on its activity and selectivity advantages. The high price of precious metal objectively increases the production and use cost of the mercury-free catalyst. And at present, the calcium carbide process-based polyvinyl chloride of China has nearly the same cost as the overseas ethylene process, and under the circumstances that the manufacturers of China have to operate at the break even or even a slight loss, the costly precious metal mercury-free catalyst will be more difficult to promote in the industry. Currently, some overseas institutions plan to promote the mercury-free catalyst preliminarily researched among the calcium carbide process-based manufacturers in China. There is some concern when put into commercialized production operation, the shortage and high price of raw material would not sustain the 30 production of catalyst to meet the demand of the whole carbide PVC industry. More information is needed about the availability of the alternative catalyst metal and its disadvantages over mercury in order for this technology to be widely accepted by Chinese manufacturers. Currently, the key for the research and development of the precious metal catalyst is to, on the premise of cost control, effectively reduce the usage amount of precious metal in the catalyst and apply the new technology and new process for maximizing the effectiveness of precious metals, so as to realize the organic technical and economic combination of the mercury-free catalyst. Seen from the adaptation of the mercury-free catalytic system to existing production plants, the solid phase mercury-free catalytic system can basically adapt to existing production processes and production plants of China’s calcium carbide process-based polyvinyl chloride manufacturers, and because the solid phase mercury-free catalytic system can well adapt to existing production plants, the technical requirements on the existing installations are not high in the application and promotion stage, that is to say, the solid phase mercury-free catalytic system has not high additional costs in industrial test and promotion stages but has strong operability. On the contrary, although the liquid phase mercury-free catalyst has the advantages of strong activity, high conversion rate, no limitation of catalyst mechanical strength, easy recycling of metals and others, its gas-liquid reaction results in the mismatching with the calcium carbide process-based production plants of China, and the development of corresponding vinyl chloride converter and support equipment thereof is quite difficult, which increases the technical and financial needs for matching with the mercury-free catalyst. Considering the rather high economic and technical cost possibly faced by R&D and promotion of mercury-free catalyst and its subsequent related supporting techniques, selection of optimal R&D and promotion program for industrial mercury-free catalyst by taking account of the technicality and economy of mercury-free formula as well as the economy of subsequent industrial promotion is the key factor to be considered in R&D of calcium carbide process-based polyvinyl chloride mercury-free catalyst in China. On the whole, the research of the mercury-free catalyst has to go 31 through technical, engineering and economic assessments, with the difficulties gradually increasing. Once a problem is found in any stage, the industrial application and promotion of the mercury-free catalyst cannot be realized. Thus, in a sort of sense, the research and development of the mercury-free catalyst is of great uncertainty. Meanwhile, due to the uncertainty in the research and development of the mercury-free catalyst, all stages, from the formula screening at the research and development stage, the plant setup, running test and data acquisition at the industrial test stage to the design and reconstruction of supporting equipment at the promotion stage and others concerned, require a lot of funds. In a sort of sense, the enormous funding gap at each stage during the research and development of the mercury-free catalyst has also been an important factor restricting the research and development of the mercury-free catalyst to some extent. In addition, under the severe mercury pollution prevention and control situation both at home and abroad and the increasing scarcity of mercury, the R & D and application of mercury-free catalyst are particularly critical. 32 6. Key areas of future work In the face of the increasingly severe heavy metal pollution and control situation in China, the government, the industrial associations, and the manufacturers are cooperating with each other to enhance the promotion of low-mercury catalyst, to conduct the cleaner production and circular economy by applying the effective mercury recovery technology, and to take effective measures to promote the mercury pollution prevention and control of the calcium carbide process-based polyvinyl chloride industry. Priority must be assigned to achieving cost-effective mercury-free PVC production processes. China can reduce the demand for new mercury for its manufacturing sectors by fostering the development of closed-loop systems that manage mercury as a valuable resource, and by reducing the requirement for mercury in manufacturing processes and products. At the same time, China needs to increase financial support and policy support, and further promote the research and development of mercury-free catalyst, so as to facilitate the mercury-free application in the calcium carbide process-based polyvinyl chloride industry of China. 6.1 Continuously strengthening the application and promotion of the mercury pollution prevention and control technology China’s production enterprises should optimize the production process to reduce catalyst consumption, properly handle the potential mercury pollution sources, and actively implement the circular economy and the cleaner production, so as to further strengthen their mercury pollution prevention and control capacity. The development of a mercury free catalyst is a critical element required to achieve the government’s announced goals for this sector, including by 2020 to promote mercury-free catalyst use and gradually achieve mercury-free production across the PVC industry. A policy of preventing fresh mercury from entering China’s industrial PVC system is under consideration based on a recommendation made by the China Council for International 33 Cooperation on Environment and Development in its Special Policy Study on Mercury Management in China and could be an important step toward mercury pollution prevention and achieving mercury-free production across the PVC industry. The enterprises should be supported to enhance the application and promotion of the low-mercury catalyst, the application of the low-mercury catalyst and the efficient mercury recovery technology should be promoted, and the construction of a demonstration project for the integration of low-mercury catalyst production and waste mercury catalyst recycling by new technology should be driven. The industrial associations further organize the optimization and perfection of the low-mercury catalyst production and use, develop the low-mercury catalyst promotion plan, hold the universal design training courses on low-mercury catalyst use and mercury pollution prevention and control, and accelerate the promotion of advanced mercury pollution prevention and control technology and products. 6.2 Promoting the development and introduction of relevant policies, regulations and standards The state develops specific regulations, practically implants the concept of mercury-free catalyst to all industries, and truly implements the mercury catalyst governance. In addition, the state further strengthens the supervision, ensures each link from the basic research and development to final large-scale production of the mercury-free catalyst and the technology is real, reliable, free from false information and purposeful, and ensures quick and effective realization of the goals, proper arrangement of the funds and appropriate use of the funds. Based on the China Council Report, binding regulations and improved enforcement measures are under consideration for phasing policies in to track and control mercury entering the VCM/PVC sector’s waste streams and by-products. Meanwhile, the industrial associations and the enterprises are actively promoting the low-mercury catalyst production, the construction of recycling demonstration unit and the release of the waste and low-mercury catalyst recycling qualifications, and seeking for the economic, environmental, tax and other policies beneficial to the development of the calcium carbide process-based polyvinyl chloride industry. The state, through studying and 34 developing the environment admittance system for mercury catalyst production and waste mercury catalyst recycling, perfects the mercury catalyst production and waste mercury catalyst recycling management, directs and supervises the implementation of the Program for Comprehensive Mercury Pollution Prevention and Control in the Calcium Carbide Process-Based Polyvinyl Chloride Industry, and actively promotes the mercury pollution prevention and control of the industry. 6.3 Strengthening the research and development of the mercury-free catalyst Due to the important significance and effect of the research and development of the mercury-free catalyst to the calcium carbide process-based polyvinyl chloride industry, it is especially important to increase the fund investment and policy assistance for the basic research and development of the mercury-free catalyst, and promote the research institutes and research institutions to carry out the project. Section 6.4 addresses funding support. Chinese industry, in particular, notes the need for a transparent and accountable review process to assess the performance factors of promising technologies as they develop. In recognition of this, UNEP has initiated the development of a peer review process as one mechanism to verify the performance of mercury free catalyst in a Chinese VCM production line in a transparent and open process. UNEP will continue to work with government and industry representatives in China and internationally to establish and implement a fair and transparent process. This peer review process is designed as a review mechanism for emerging technologies at the commercial testing level. The peer review process is not designed to promote any one particular technology. At the same time, it is necessary to enhance the publicity efforts, ensure the calcium carbide process-based polyvinyl chloride manufacturers attach more importance to the development and promotion of mercury-free catalyst, encourage enterprises to actively participate in the research and development, and promote the cooperation between manufacturers and research institutes, so as to make the basic research and development enter the right path as soon as possible and lay a solid foundation for the pilot and promotion of the mercury-free catalyst. At the moment, the China Petroleum and Chemical Industry Association encourages 35 enterprises to enhance the investment of R&D on mercury-free catalyst mainly through Working Conferences of PVC production companies. In addition, the state should give full play the role of strategic alliances on the mercury-free catalyst, integrate the mercury-free catalyst research forces of China and implement the mercury-free catalyst pilot study relying on enterprises, so as to make breakthroughs within the shortest period of time. The Government will take steps to encourage uptake of mercury free technologies as they are developed while continuing efforts to develop competing methods. 6.4 Striving for financial supports from multiple channels There is an urgent need for significant investments in research on mercury-free technologies and processes for PVC production in China. Given the enormous funding gap in promoting the mercury pollution prevention and control work in the calcium carbide process-based polyvinyl chloride industry of China, striving for financial supports from multiple channels to meet the demands of the promotion of the low-mercury catalyst and the research and development of the mercury-free catalyst is extremely important for the development from “mercury minimization” to "mercury elimination" in the calcium carbide process-based polyvinyl chloride industry of China. Multiple funding channels include Chinese Government, industry and international channels. i. Industry Seen from the current situation, besides the large funding gap in the research and development of the mercury-free catalyst, with a large number of calcium carbide process-based polyvinyl chloride manufacturers in China and their great differences in the production status and the equipment and technology levels, the promotion of both low mercury catalyst and mercury-free catalyst requires a lot of funds for improvement or updating of equipment or technologies of enterprises. In addition, funds should be invested into improvement of the corresponding enterprise management level, thus strengthening the automation management, personnel training, etc. At present, the polyvinyl chloride industry of China has a relatively low overall profit level, and most enterprises have difficulties in production and operation, so under such circumstances, the funds from enterprises are unable to support 36 the promotion of the low-mercury catalyst and the R&D and promotion of the mercury-free catalyst. Nevertheless given the reality of limited mercury supply in the future, facilities that continue using the coal-based process should invest in the transformation to lower-mercury and eventually to mercury-free methods. ii) Government of China Given the practical problems in mercury pollution prevention and control in China, enhancing the support for the promotion of the low-mercury catalyst and the R&D of the mercury-free catalyst through striving for fund supports from multiple channels is extremely important and has a great effect on the calcium carbide process-based polyvinyl chloride industry of China. Based on the recommendation in the China Council Report, the government intends to explore how to foster these technologies further by instituting economic instruments and financial incentives to assist the sector’s transformation to mercury-free processes. iii) International Channels While the funds for R & D of mercury-free catalyst are actively sought after from the relevant state departments, regional and global financial aids are particularly important for the smooth implementation of the mercury pollution prevention and control, and the research and development of the mercury-free catalyst in the calcium carbide process-based polyvinyl chloride industry of China. FECO and Norway are carrying out a project called “Sino-Norwegian Cooperative Project on Mercury - Capacity building for reducing mercury pollution (SINOMER II)” (2010-2013). This project contains a sub-project, called" Technology and policy options for reducing intentional mercury use in industry and products”, study of VCM is part of the work, including: Investigate the process of mercury-containing catalysts in China. Present technological alternatives to the current Hg use in industries and products based on international experiences. Present policy options for promoting reducing Hg use in catalysts and disposal of used Hg-catalysts. UNEP will continue to work with government and industry representatives in China and internationally to promote a peer review process as a review mechanism for emerging technologies 37 at the commercial testing level. UNEP has indicated it will fund participation in such a review process as appropriate and as funds are available. In addition, UNEP has supported two multi-stakeholder meetings in China related to the PVC industry (June 2009 and September 2011) and has further indicated it will continue to support China in promoting such information sharing in the future, as requested and as resources allow. UNEP is also working with MEP to develop a proposal to the Global Environment Facility to strengthen China’s capacity for identification of mercury sources and priority actions to address mercury issues under a future global convention so that to protect human health and the environment from the toxic exposure of mercury. While this project is general to all mercury uses and releases in China, this project will help build capacity at the national level in China to address the PVC industry. In closing, it is suggested to set up a special support fund for R&D and promotion of mercury-free catalyst in the calcium carbide process-based polyvinyl chloride industry, coordinated by MEP jointly with UNEP. This fund would be developed by a International Partnership Task Force that would work together to identify needs, work plan and fundraise to promote mercury reductions from this sector. This would incorporate considerations of the future international Mercury convention, including potential funding and technical support that will be available through the Convention. 38