Report from CSPPLAZA
Recently, CGNPC’s 50MW Delingha CSP trough project has determined the molten salt procurement bidding. Sinkiang Nitrate Minerals Co., Ltd.(SNM) will provide Sodium nitrate products for the project, while Wentong Group will offer Potassium nitrate products for the project.
There were 8 companies which had purchased the bidding, that is, Xilong Chemical Industry Incorporated Co. Ltd., Wentong Group, ZheJiang Lianda Chemical Co. Ltd., ShenZhen Enesoon Technology Co. Ltd., JiangXi Jinlida Potassium Industry Co. Ltd., Sinkiang Nitrate Minerals Co., Ltd.(SNM), SQM(Beijing) and BASF(China) Co. Ltd., Guangzhou Branch. But there were only 4 companies attending the bidding, including Sinkiang Nitrate Minerals Co., Ltd.(SNM), Wentong Group, JiangXi Jinlida Potassium Industry Co. Ltd. and SQM(Beijing).
Besides, only one company, Sinkiang Nitrate Minerals Co., Ltd.(SNM), had bidden for the Sodium nitrate products. And the rest companies had bidden for Potassium nitrate products, that were, Wentong Group, JiangXi Jinlida Potassium Industry Co. Ltd., and SQM(Beijing). CGNPC’s 50MW Delingha CSP trough project needs about 21000 tons of sodium nitrate 14000 tons of potassium nitrate. This round of bidding went on with the Asian Development Bank loan(ADB loan). As for rules of ADB loan, one who is qualified with low price has the rights to get the bids.
As with the forecast from CSPPLAZA, in the bidding, Sinkiang Nitrate Minerals Co., Ltd.(SNM) won the bid for sodium nitrate without barriers and Wentong Group won the bid for potassium nitrate at the lowest price. It is reported that, the biding price of Sinkiang Nitrate Minerals Co., Ltd.(SNM) was 62.79 million Yuan, equivalent to 2990 Yuan/ton; the price of Wentong was 55.72 million Yuan, equivalent to 3980 Yuan/ton (including taxes and freight). SQM, the international well-known manufacturer in molten salt, offered 65.52 million Yuan and the highest bidding price was from JiangXi Jinlida Potassium Industry Co. Ltd., which was 67.55 million Yuan.
According to the component percentage of the solar salt, which is 60% sodium nitrate and 40% potassium nitrate, the unit procurement price of molten salt for CGNPC project is 3386 Yuan and the total procurement price is 118.51 million Yuan.
CSPPLAZA knows that, both Sinkiang Nitrate Minerals Co., Ltd.(SNM) and Wentong Group begin to focus on the manufacturers in the field of thermal power generation in recent years. Besides, Sinkiang Nitrate Minerals Co., Ltd.(SNM) is the wholly-owned subsidiary of Wanxiang Group(China), which was built in Xinjiang autonomous region of high-tech zone in 2005, November. And the SNM is the outcome of Investment Promotion and Capital Introduction Policy of the Xinjiang autonomous region. The SNM mainly explores and develop the sodium nitrate resources along the line of Gobi-Lake, then manufactures sodium nitrate and potassium nitrate products through the domestic high-technology. And Wentong Group has a history of 50 years, inorganic chemical industry one of the largest potash production enterprises in China, has more than 50 years of history. His main products are potassium carbonate and potassium nitrate. In addition, Wentong Group also is the world’s largest enterprises in the production of Potassium Carbonate globally and Potassium Nitrate domestically. At present, Wentong Group cooperates with another large enterprise, Qinghai Salt Lake Industry Group Company Limited, to develop the business of Concentrated Solar-thermal Power (CSP).
CSP plants always have huge demands for molten salt products. So, it is the first plant for CGNPC project to verify the domestic molten salt products’ capacity based on the commercial and large-scale power plants. As for price, domestic molten salt products have a competitive advantage on price over international leading brand products. But the key aspect is product quality, whether domestic molten salt products can meet the needs of commercial operation and guarantee the stable operation of the power plant, remains to be verified by the actual practice.
It is expected that, as the launch of CSP demonstration projects, there will be more and more traditional manufacturers in agricultural and chemical nitrate entering into the CSP industry.