Urea potential for vehicles
According to the notice issued by the Ministry of Environmental Protection of the State of the People's Republic of China, as of January 1, 2018, all light diesel vehicles manufactured, imported, sold, and registered in the country must meet the requirements of the National Five Standards. Compared with the National IV standard, the National Five standard imposes a strict 28% limit on the emission of nitrogen oxides (NOx) from diesel vehicles, and the combined hydrocarbon and nitrogen oxide (HC+NOx) indicators are strictly 23%, and for diesel vehicles. The particle concentration (PM) limit was increased by 82%, and a new particle number (PN) detection was added. Under such circumstances, vehicle urea as a diesel exhaust gas treatment product gradually entered the public eye.
Urea for Cars
The so-called car urea refers to a urea aqueous solution having a urea concentration of 32.5% and a solvent of ultrapure water. The raw materials thereof are urea crystals and ultrapure water. It is understood that heavy-duty trucks, passenger cars and other diesel vehicles must meet the national five emission standards. The appropriate selective catalytic reduction (SCR) system should be used for tail gas treatment. This system must rely on the urea solution to treat the nitrogen oxides in the exhaust gas. Utilize the urea solution to produce ammonia after the high-temperature exhaust gas of the engine is used as the reducing agent for selective catalytic reduction of the diesel exhaust gas, so that the exhaust gas Nitrogen oxides are converted into harmless steam and nitrogen to reduce emissions. Therefore, vehicle urea can be said to be an essential product for diesel vehicles such as heavy-duty trucks and passenger cars that meet the national five emission standards.
In order to achieve emission standards for diesel vehicles, the consumption of vehicle urea is approximately 4% to 6% of diesel consumption. In 2015, the apparent consumption of diesel in China was 170 million tons. Calculated at a median 5%, the annual demand for automotive urea was 8.5 million tons. As the world's second largest auto market, China has more than 23 million heavy trucks, and 700,000 units of national five-standard heavy trucks each year. Each heavy truck consumes 2 tons of vehicle urea each year. The future vehicle urea market The rise in demand will be explosive.
Market capacity supervision
Judging from the guidance of national policies, the potential of the automotive urea market is huge. However, the specific size of this market depends on the supervision of the implementation of the National 5th emission standard. At present, the five vehicles in the country generally adopt the vehicle-mounted automatic diagnostic system (OBD) to monitor exhaust emissions in real time. When the diesel vehicle does not refuel vehicle urea, the OBD system will immediately issue a warning. With the acceleration of the elimination of yellow-labeled vehicles throughout the country, the capacity of the automotive urea market will further increase.
At present, the domestic automotive urea production enterprises are more scattered, and some technologies are not closed, and the quality of products varies greatly. This causes problems with crystallization, deposition, and the like of urea used in vehicles. Under such circumstances, users will have mistrust of car urea products, and they will also exclude the formal enterprises. This is the biggest problem in the current automotive urea industry. Also, in the early days of the market, we started a price war and pulled the price very low. Regular businesses could not sell at a price. This led to the lowest price of domestic car urea in the world. In this regard, Kossell said that the company does not participate in the price war, but more concerned about the improvement of product quality, use of the effect of occupying the market.
Supply channel is key
Industry insiders agree that the channel is the key to the sale of urea for vehicles. For the smooth promotion of the national five emission standards, one obstacle still needs to be overcome, namely the construction and popularization of urea filling stations. At present, buses have fixed refuelling points, and it is relatively easy to build a matching urea filling station. However, for trucks with wider distribution and more decentralized operations, it is problematic to build urea filling stations. However, if the construction of filling stations cannot be widely popularized, it will be difficult for truck users to add urea. At present, Kosan is working with many parties to build refueling stations across the country to solve the problem of user recruitment.
Kelansu now has an annual production of 600,000 tons of vehicle urea production line, production of 10L, 200L, 1000L and other packaging specifications of automotive urea products, suitable for different customers. In the sales channels, Kosan has not only connected with a number of OEMs, bus companies, logistics fleets, etc., but also directly provided corresponding products and service plans, served major customers through direct sales, and also used the power of dealers. To achieve social refueling and seize the automotive urea market.
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Crushing Machine
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