On June 25, the 14th meeting of the Zhejiang-Singapore Economic and Trade Council was held in Hangzhou. At the meeting, our company signed an investment agreement for the Liuheng Oil Sludge Harmless Disposal Project, the largest comprehensive utilization project of oil sludge in Zhoushan. 

According to relevant government officials, as a world-renowned ship repair center, Zhoushan currently produces about 80,000 to 100,000 tons of oil tank sludge every year and the ship tank-bottom sludge that needs to be processed by the ship repairing industry. By 2020, with the increase in new storage capacity for oil products, the amount of waste oil sludge is expected to exceed 150,000 tons/year. Over the years, the follow-up treatment of these oil sludge has always had problems such as high cost and high environmental pressure.

As the third largest island in the Zhoushan archipelago, Liuheng has formed a prototype of a port industry based on shipbuilding, port logistics, leisure tourism and other industries based on its unique port advantages. In 2018, Liuheng's shipbuilding and repairing industry continued to maintain steady development in its transformation and upgrading, and the output value of shipbuilding and repairing increased by 11% year-on-year. While the shipbuilding industry is developing well, the problem of oil sludge stockpiling in various shipyards cannot be ignored.

In order to solve the problem of sludge, Liuheng Management Committee has been constantly looking for more environmentally friendly and sustainable treatment methods. With the continuous strengthening of economic and trade exchanges between Zhejiang Province and Singapore, Singapore Magellan Global Investment Holdings Pte. Ltd’s new concept on the harmless treatment of oil sludge finally entered their vision.

Zhoushan Magellan Environmental Protection Technology Co., Ltd.'s Liuheng sludge harmless treatment project plans to adopt the patented technology of advanced anaerobic thermal analysis equipment in Europe and the United States, which can meet the requirements of harmless, improved, and resource-free treatment. In the anaerobic thermal analysis process, the oil recovery rate is more than 99%, and the final residue material produced can reach an oil content of less than 1% and pass the leaching toxicity test. For this kind of residue material and the iron made after the treatment of the paint bucket, the hazardous waste content is tested by the national technical supervision department to be lower than the national standard, it can be recycled and turned waste into treasure.

At present, the total planned investment of this sludge harmless disposal project is 550 million yuan, which will be constructed in Liuheng Xiaohu Industrial Park in two phases. The project is expected to complete two processing production lines for oil tank sludge, ship sludge and paint buckets, with a designed processing capacity of up to 100,000 tons per year. The project plans to produce about 20,000 tons of by-product oil and 5,000 tons of finished iron each year. After it is put into production, the annual output value is initially expected to reach more than 300 million yuan.

The implementation of our company's Liuheng sludge harmless disposal project will not only help solve the problem of sludge storage in various shipyards on-site, but also reduce the impact on the surrounding environment; at the same time, it will promote Liuheng's improvement of the shipbuilding industry chain and it is also of great significance to speed up the construction of the international ocean vessel green building island.