Focusing on carbon peak and carbon neutrality

Focusing on “carbon peak and carbon neutrality” – the superhard material industry, it is time to show its true strength!

At the National Two Sessions in 2021, “Carbon Peak, Carbon Neutrality” was written into the government work report for the first time, and it became one of the “hot words” of the two sessions. Representatives and committee members from all walks of life started discussions around it. One of the important topics of the ninth meeting of the Central Finance and Economics Committee held on March 15 was to study the basic ideas and main measures for achieving “carbon peak and carbon neutrality”.

Putting forward the goal of “carbon peak and carbon neutrality” is the inherent requirement and inevitable trend for my country’s economy to enter high-quality development. This will bring great pressure to the adjustment and transformation of industrial structure, but at the same time it contains huge potential and is very likely Give birth to a new growth pole for industrial development. As a strategic emerging industry, how will superhard materials change at both ends of supply and demand?

Supply side: contributors of “carbon peak, carbon neutral”

Under the goal of “carbon peak and carbon neutrality”, traditional industries will face optimization of their internal structure, and at the same time, the need for internal alternatives will become prominent. Superhard materials are used for grinding purposes and are more green and environmentally friendly than ordinary abrasives such as brown corundum and silicon carbide. From the point of view of the formation mechanism, during the smelting process of brown corundum and silicon carbide, the reduction reaction will produce gases such as carbon dioxide and carbon monoxide, while the superhard materials represented by diamond do not.

Therefore, in terms of the goal of “carbon peak and carbon neutrality”, superhard materials have a great advantage. At the policy level, the country may accelerate the pace of replacing some ordinary abrasives with superhard materials. Although environmental protection technologies such as waste gas collection for the production of ordinary abrasives are relatively mature, overall, the superhard material industry is still “skilled” in terms of energy efficiency.

To give another example, in terms of the formation mechanism, the CVD method to prepare diamonds, carbon dioxide, methane, etc. can be used as reactants, no matter how much its consumption is, only for the purpose of “carbon peak and carbon neutrality”, the production of diamond is not only No carbon dioxide is produced, but carbon dioxide needs to be consumed instead. It is not an exaggeration to say that diamond is a real contributor to “carbon peak and carbon neutrality”.

Demand side: “Carbon peak, carbon neutral” driver

At present, my country’s fossil energy accounts for 85% of primary energy, and generates about 9.8 billion tons of carbon emissions per year, accounting for nearly 90% of the total carbon emissions of the whole society. To solve the problem of carbon emissions, the key to reducing energy carbon emissions is to change the way of energy development, accelerate the promotion of clean replacement and electric energy replacement (“two alternatives”), completely get rid of fossil energy dependence, and eliminate carbon emissions from the source. Under the background of “carbon peak and carbon neutrality”, the control of traditional fossil energy will become the focus. On the contrary, the new energy industry will enter a high-prosperity development cycle, and the entire industry chain is expected to usher in demand expansion.

The future demand for photovoltaics, wind power, and new energy vehicles will enter a significant expansion stage, and the penetration rate is expected to continue to rise, which will promote the strengthening of the entire industry chain including upstream raw materials, midstream equipment manufacturing, downstream consumer end, and operators. According to predictions by relevant agencies, under the background of “carbon peak and carbon neutrality”, the global new installed capacity of photovoltaics is expected to grow rapidly. It is estimated that the compound growth rate of diamond wire saw demand will reach 18% from 2021 to 2025, and it is expected to be 2021 and 2022. The global demand for diamond wire saws will reach 57.46 million kilometers and 76.64 million kilometers respectively.

In 2020, my country will officially become the country with the largest car ownership in the world, and the stock of 275 million vehicles will put tremendous pressure on emission reduction. In order to achieve the long-term plan of “carbon peak and carbon neutrality”, the popularization of new energy vehicles is a general trend. The “New Energy Vehicle Industry Development Plan 2021-2035” issued by the State Council puts forward a plan that by 2025, my country’s new energy vehicle technology will achieve a major breakthrough, and sales volume will reach 20% of the overall sales of new vehicles.

The rise of new energy vehicles and the decline in engine and gearbox output are bound to have an impact on the superhard tool market. However, the transition from traditional fuel vehicles to new energy vehicles is accompanied by lightweight vehicles. The entire vehicle and parts are replaced by cast iron and steel parts with aluminum alloys, such as steering blocks and control arms. The super-hard tools are made of aluminum alloy. It has obvious advantages in the processing of other light materials. As a result, the demand for super-hard tools in the automotive field will increase in the future, and will even exceed the demand for super-hard tools in traditional fuel vehicles.

Superhard material tools have the characteristics of high-speed, high-efficiency, and high-precision processing, which coincides with the modern processing technology of green, environmental protection, energy saving, and material saving required by “carbon peak and carbon neutral”. At the same time, the arrival of “carbon peak and carbon neutrality” will urge the new energy industry to press the “fast key” for development. How to seize this round of opportunities for the superhard material industry, take advantage of the trend, and take advantage of the trend, requires serious treatment and careful research. It is time for the superhard material industry to show its true strength.