How Far Has the Satellite Chemical Alpha-Olefin Project Progressed?

The satellite chemical alpha-olefin project is a landmark engineering feat in the field of new chemical materials in China. Its technological breakthroughs and industrial progress have not only broken foreign monopolies but also propelled China from being a "low-end polyolefin producer" to a "high-end material innovator."

The project has now entered the peak construction period, and after the first phase is put into production in 2026, Satellite Chemical is expected to become one of the world's largest α-olefin suppliers, driving Lianyungang to develop a new materials industry cluster worth hundreds of billions.

The technical breakthrough of Satellite Chemical's α-olefin project began in 2018 when the company officially launched the pilot-scale technology development for high-carbon α-olefins. After five years of research and development, in February 2023, the industrial trial plant with a capacity of a thousand tons of α-olefins was successfully put into operation on the first try. It achieved stable operation and met the predetermined targets by March of the same year. The core achievement of this phase is the independently developed...High Selectivity Production Technology of High-Purity 1-Octene by Tetramerization of EthyleneOn September 17, 2023, through the achievement appraisal organized by the China Petroleum and Chemical Industry Federation, it was recognized that the overall level reached international advanced standards, and the purity index of 1-octene was superior to similar products both domestically and internationally.

The key to technological breakthroughs lies inCatalyst innovation Process optimizationThe new metal catalyst developed by Weixing Chemical has achieved high selectivity in the production of 1-octene (purity >99.2%). Through independently designed equipment, it has solved the challenges of efficient product separation and long-term operation of the reaction system. This technology fills a domestic gap and lays the foundation for the construction of subsequent 10,000-ton industrial-scale installations.

In June 2023, Satellite Chemical officially announced.Alpha-Olefin Integrated Utilization High-end New Materials Industrial Park ProjectThe total investment is 26.6 billion yuan, and the project is located in the Xuwei New Area of Lianyungang. It will be constructed in two phases. The project uses ethane as a raw material to achieve low-carbon production through an integrated light hydrocarbon platform, and extends downstream to produce high-end polyolefins, POE (polyolefin elastomers), PAO (poly α-olefins), and other new materials. Additionally, the by-product hydrogen will be utilized to reduce carbon emissions.

Phase 1 constructionThe project (with an investment of 12.15 billion yuan) includes two sets of 100,000 tons/year α-olefin units and a 900,000 tons/year polyethylene unit, etc. It was launched in June 2024, with completion planned for the end of 2025 and production scheduled to start in early 2026. As of July 2025, long-lead equipment orders have been completed, and the project is progressing according to plan.Phase II construction(With an investment of 14.45 billion yuan) including three sets of 100,000 tons/year α-olefin units, three sets of 200,000 tons/year POE units, etc., and it is planned to be completed by the end of 2026.

Of note is that Satellite Chemical is simultaneously advancing.Pilot Test of Polyethylene Elastomer (POE)In May 2025, the approval was granted for the construction of a 500-600 tons/year pilot plant to gain experience for large-scale POE production. Additionally, the company has applied for several patents, such as the "Polyethylene Elastomer Process Tail Gas Treatment Device," to further optimize the production process.

α-olefins are core raw materials for high-end polyolefins and new energy materials. Domestic 1-octene has long been reliant on imports, with imports accounting for over 90% of consumption in 2023. After the commissioning of the Satellite Chemical project, the first phase with a production capacity of 100,000 tons per year of α-olefins will prioritize meeting domestic demand in fields such as POE and high-end polyethylene, and is expected to replace 30% of imports.

In downstream applications,POEIt is a core growth point. With the explosion in demand for photovoltaic encapsulation films, the domestic POE gap is expected to reach 800,000 tons by 2025. Satellite Chemical plans a POE production capacity of 600,000 tons per year, which will synergize with its self-produced α-olefin capacity to capture the new energy materials market. In addition, products such as PAO (lubricant base oils) will also enter the high-end industrial sector.

In recent years, major domestic companies have been investing in α-olefin projects, and α-olefins are gradually becoming a competitive field for large companies. The statistics of domestic α-olefin production capacity under construction and planning are as follows:

Source: China Chemical Industry Parks (2024 Statistics)

Amid the intensifying competition in the domestic ethylene industry, Satellite Chemical's alpha-olefin project demonstrates multidimensional advantages.

In international competition, Satellite Chemical'sEthane feedstock advantage Technological barriersThe core competitiveness is formed. The company has secured low-cost raw material supply by signing a lease agreement with EPS for 12 ethane carriers, and the high selectivity of the ethylene tetramerization technology (with 1-octene accounting for 70%) makes its products superior in purity and cost compared to international giants like Chevron Phillips.

As the completion milestone of the first phase of the project approaches by the end of 2025, Satellite Chemical's α-olefin project has entered a critical stage of construction. The successful commissioning of the project will advance China's technological sovereignty in key material areas such as POE and high-carbon α-olefins, providing solid material support for strategic industries like photovoltaics and new energy.