Kingfa Bio-based BDO is expected to be put into production by the end of the year

Kingfa Science & Technology will announce its 2023 interim report on August 29, and its Liaoning Kingfa Bio-based BDO project will become the focus of attention.

Kingfa Science and Technology stated on the investor interaction platform on February 7, 2023 that the company will establish Liaoning Kingfa Biomaterials Co., Ltd. in 2022, actively deploy bio-based monomers and bio-based material technology research, and steadily promote the annual production of 10,000 tons of bio-based BDO projects Construction, the project is expected to be put into operation by the end of 2023. In addition, the company's PLA project with an annual output of 30,000 tons has achieved successful trial run and stable production at the end of 2022. At present, the company's PLA-related products have achieved external sales.

There are very few bio-based BDO manufacturers in the world, and the output is not high. Abroad, there are the Genomatica bio-based BDO project in the United States, and the 65,000-ton bio-based BDO project in cooperation between Cargill in the United States and Helm in Germany. In China, the bio-based BDO project of Yuanli Chemical (603217) will be put into operation in 2021 (the designed annual production capacity is 30,000 tons), and it will be exported to the EU market in batches.

Currently, the price of petroleum-based BDO is 11,400 yuan/ton, and the price of bio-based BDO is 40,000 yuan/ton. With Kingfa Bio-based BDO put into production, it is believed that the price of this product will be further reduced.

Under the strategic background of carbon neutrality and carbon peaking, the development of the bio-based material industry will be an inevitable trend. Compared with traditional petroleum-based products, bio-based 1,4-butanediol is environmentally friendly, renewable raw materials, and energy-saving. It has the advantages of emission reduction and will not cause damage to the environment. It is a green product that meets the development requirements of carbon emission reduction and provides new choices for customers.