this man is not calm

Chapter 501: Perfection is Impossible
After the call was connected, Jin Shang chatted for a few words and then hung up.

"The first shipment of biodiesel has arrived in Northern Europe, and the price is acceptable..."

Jin Shang, who was in a good mood, introduced the current status of the transaction to the two.

Judging from the current market, the price of biodiesel is about 15% to 20% more expensive than international standard diesel, and the supply is in short supply. The price of aviation fuel (additives) made from biodiesel will increase by at least 60%.

Not only is it expensive, but you may not be able to buy it even if you spend money.

Before the 240,000 tons of fuel were shipped, they were snapped up by several major European distributors. In the end, an airline from Amsterdam defeated the energy group from Antwerp and won the deal.

Not only in the East, but also in the West, plans to reduce fossil energy and find alternative energy were formulated earlier and implemented more abstractly.

Having placed a heavy bet on diesel vehicles, several large European shipping groups, automobile companies and internal combustion engine manufacturers have all favored the biodiesel route, causing prices to be driven up very high.

There are very few companies in China that are engaged in the recycling and reuse of kitchen waste and waste oil. The only company that can keep up with the production and has the ability to export is Jinxi Culture.

Over the course of more than half a year, raw materials were sourced from several large food factories, oil workshops and waste oil treatment centers, and with the help of "gutter oil", waste tire rubber oil and plastic catalytic oil production, with the technical support of the oil company, nearly 500,000 tons of biodiesel were produced. Half was exported, one-fifth was processed into aviation fuel, and the rest was used for self-use.

The current output is sufficient and is far from reaching its peak. The potential of several large cities is so exaggerated that it is really gratifying.

It has to be said that our country is indeed a major oil-consuming country, and the development potential of the biodiesel industry is far ahead in the world.

"Non-standard diesel, our group company has so much production capacity and inventory?"

After listening to Jin Shang's explanation, Hong Renquan couldn't help but ask curiously,
“How much gasoline and diesel does the entire company use in a year?”

"Two hundred and one hundred thousand tons. It's mainly used for ship fuel, logistics and freight, peak load regulation of power plants, business transfers, taxis, and fleets to maintain the normal operation of the company..."

As he spoke, Jin Shang looked at Zheng Liang and knew that
"The news from above should be confirmed. The overall strategy is to proceed step by step, focusing on reducing dependence on fossil energy, rather than forcefully promoting electrification and completely destroying gasoline and diesel..."

"It's inevitable."

He took a sip of tea leisurely and then put the cup down. Zheng Liangzhi, who had a wide network of contacts, had already confirmed a lot of news.
"Diversification, safety, green, low-carbon and environmental protection, adapting to the new situation of the international market..."

It is definitely not possible not to follow. Otherwise, the cars and ships produced will not be able to enter overseas ports and markets, waterways will be restricted, taxes and fees will increase, and transportation costs will increase, which will make the pressure on import and export trade rise sharply.

This is still an economic consideration, and then there is internal pressure.

The approach of first polluting and then controlling is a bit costly. If a good foundation is laid from the beginning, we can leave clear water and blue sky for our descendants in the future.

Green mountains and clear waters are the real gold and silver mountains. Who doesn’t want his hometown to be a beautiful place with beautiful mountains and clear waters, outstanding people and beautiful scenery?
Half a century ago, the Gyeonggi region was full of bare hills, a yellow-brown expanse, with not much grass growing. There were several sandstorms a year, and who could stand it?

Flipping through the document in his hand and then clicking on the key paragraphs, Jin Shang added with certainty:
"If these preferential policies can be implemented, it will be of great benefit to us. In addition, the scope of application of adding 2% biodiesel to aviation fuel is much wider than I thought. The six major airlines, more than a dozen main routes, seven local routes, and international flights (including stopover flights) must meet the requirements..."

Only some areas, such as snowy plateaus, extremely arid desert airports and some routes affected by recognized external factors can be exceptions.

This force is much greater than Jin Shang had imagined.

"I understand why the previous documents were so vague..."

Hong Renquan explained to Jin Shang,
"I don't think anyone has expected that we have a biodiesel manufacturing plant in our country that produces hundreds of thousands of tons of biodiesel annually. Based on the current diesel price, the output value exceeds 500 million yuan..."

"Just over 700 million."

"Isn't that right? Think about how much the GDP of Beijing was last year, and how much the GDP of the whole country was. If we sell all of it to Western Europe, we will get more than 1 billion in foreign exchange. It's totally worth it."

What is the cost?
The repeatedly banned gutter cooking oil, second-hand butter and palm oil from food processing factories that lose money no matter how they are recycled, waste tires and medical solid waste, used clothing that are seriously polluting and don't know how to deal with, etc., can be made into biodiesel (recycled oil) by using wind power and photovoltaic energy that would be wasted if not consumed, in combination with catalysts.

Although the manufacturing cost of biodiesel is higher than standard petroleum, this cost is definitely not borne by Jinxi Culture, but will ultimately fall on the actual oil users!
This involves resource allocation and benefit distribution at the macro level.

The so-called low-carbon environmental protection and greenhouse effect topics all serve this purpose.

We are all smart people and can understand some topics at a glance. The competition for carbon emissions and development rights is a bloodless energy war disguised as a "green" war. Laymen can watch the fun, but experts must understand the ins and outs.

In this field, Jin Shang and a large number of companies under Jinxi Culture are just one of the newly emerging forces. They are not yet enough to influence the overall situation, but they are enough to make their own voices heard and let more people listen carefully.

We chatted about international energy issues and the preparations for the upcoming listing of the commodity trading market. The topic then returned to the testing and trial use of a number of new energy vehicles currently being conducted.

"According to the current situation, the proportion of diesel substitute fuel should not exceed 30%, which will not affect the use and does not require major modifications. Methanol and natural gas... are more suitable to be controlled at 15%. This can be adjusted dynamically according to the cost of oil consumption, which is not a big problem. It is enough to manage the distribution, transportation and refueling of finished oil well. The subsequent maintenance cost is very low..."

"Fifteen percent. At the moment, it seems like a small improvement."

If we follow the previously agreed strategy of taking small steps and moving forward steadily, focusing on reducing energy consumption and saving costs, it will definitely be enough, but...

"What about the others? I heard that the replacement rate of dual-fuel engines is over 90 percent."

"That's true. But..." Hong Renquan brought another very bad news.

"If diesel is only used as an ignition agent and natural gas is mainly burned, then ... the exhaust temperature will be quite high and a lot of energy will be wasted. Only by installing an exhaust gas recovery and recycling system can energy efficiency be improved."

"So, dual-fuel diesel engines that use natural gas as the main fuel are best used in ships, heavy trucks, and very large agricultural machinery?"

The characteristic of a diesel engine is that it is durable and can maintain high-power operation for a long time. The diesel (heavy oil, fuel oil or residual oil) ignites and actually acts as a spark plug. Its performance depends on the alternative fuel.

For example, the natural gas mentioned by Hong Renquan has an extremely high temperature after combustion. It would be a pity if the exhaust gas was discharged in vain. However, it is impossible to install complex recycling, processing and reuse systems on small and medium-sized vehicles.

From the perspective of improving energy efficiency, natural gas is not a suitable motor vehicle fuel, and if it were not cheap enough, it would not become a mainstream alternative fuel for internal combustion engines.

“What about methanol?”

"That's another extreme problem. Methanol gasification (atomization) will absorb a lot of heat energy, which will reduce the temperature in the cylinder. This will certainly reduce the generation and emission of nitrogen oxides, but it will also bring about the disadvantages of incomplete combustion, excessive hydrocarbons and formaldehyde in the tail gas, and easy carbon deposition..."

This will certainly increase the stress on the exhaust treatment system and add additional maintenance costs.

From a professional perspective, there is actually no perfect internal combustion engine fuel. Gasoline and diesel, which have stood out after hundreds of years, are already the best. The development of the current industrial system is basically built on them.

Shaking his head in embarrassment, Jin Shang felt that he had thought the problem too simply.

"So, the current situation is that it is barely usable, adequate, and can save a lot of fuel costs, but the engine efficiency is actually quite average?"

"It's not only average, it's also just OK. The biggest problem is that the range extender and hybrid engine can't produce enough power, so the power is poor."

The power ceiling of the Miller and Atkinson engines is much lower than that of the Otto cycle engine. This is a problem that existed at the beginning of the design and it will certainly be difficult to improve in a short period of time.

The names of engines in this world may be different, but Jin Shang, who had some basic knowledge of mechanics in his previous life, knew what was going on as soon as he saw the schematic diagram.

In principle, it is impossible for extended-range vehicles and hybrid vehicles to drive too fast. Eighty or ninety kilometers per hour is good enough, and 130 kilometers per hour is the limit. If you increase the speed any higher, you will face more other troubles, which is a problem on another level.

For extended-range vehicles and hybrid vehicles that drive on congested roads in big cities, 50 to 60 kilometers per hour is enough to make things difficult most of the time.

The energy and power technology capabilities derived from CSSC Electromechanical have only made some achievements in the fields of diesel engines, boilers, generators, etc., but its strength in making gasoline engines is very average. For example, now, many problems have been encountered in the research and development of homogeneous charge compression ignition, heat-assisted ignition and special natural gas engines.

Even with the help of the "golden finger", scientific research still requires a gradual approach. Without prior accumulation, there will be no subsequent results. We can only take it step by step.

The successful development of technologies such as electronic fuel injection system, direct injection and high-pressure common rail is the result of CSSC's investment in the field of marine diesel engines over the past two decades. It is not a tree without roots or water without a source.

For things that are too complicated, we can only rely on professionals to control them. People like Jin Shang who only know a little bit can only provide funding and backup support. I hope the technical talents under his command will work harder.

"The extended-range vehicle market has been badly criticized by domestic and foreign automakers. How will the outside world respond if we enter the market from this direction?"

Zheng Liangzhi replied:
"It's not a big deal. For the peers, the term "extended-range vehicle" is just a waste of time. The manufacturers of extended-range vehicles are naturally inferior to others, and the market audience is also very narrow."

In 1998, when the price of refined oil was not very high, car owners were not as sensitive to fuel consumption as they are in later generations. Instead, they complained about various taxes and fees such as road maintenance fees, vehicle and vessel taxes, and transit fees. They said they were unfair, unscientific, and non-transparent. Local governments acted on their own, and the main pain point was that they collected money but did not provide services.

The extended-range electric vehicle jointly launched by Jinxi Culture's subsidiaries can be refueled and charged, which means the engine does not directly drive the wheels or gearbox. To put it simply, it is an electric vehicle with a diesel (gasoline, dual-fuel) generator on its back.

The most suitable usage scenario for this thing is undoubtedly the roads in big cities where people stop and go and there are occasional traffic jams.

Taxis, commuter cars and short-distance private cars are the main consumers. After testing, it was found that the fuel consumption at high speeds is on the same level as that of fuel vehicles with the same displacement, which may be higher or lower, depending on the road conditions and the driving experience of the driver.

Of course, the "bosozoku" who want to drive fast and the "young masters" who want to accelerate at lightning speed will definitely not like extended-range vehicles, as they think they are too low-class.

Later, the three of them talked for a long time, mainly about determining the policy direction, the overall strategy and control of the group company, and the pros and cons of large-scale projects.

According to the development plan formulated by Jin Shang, there is almost no hope of recovering the investment within ten years. If the market can be expanded after ten years, there is a certain possibility that it can grab a certain share of the mainstream market.

A car is not only a means of transportation and production, but also a platform for the successful integration of many technologies. It is the result of scientific and technological development to a certain level, which is what we often said in the previous life as "the most dazzling pearl in industrial history."

As for mild hybrid dual-fuel vehicles and super hybrid cars, they can only be purchased by the company itself, its sister units, and friendly companies, or provided to departmental activities as a showcase. For example, when a city holds a sports meeting, exposition, celebration or other large-scale event, it can be verified that a group of low-carbon and environmentally friendly new energy vehicles are used as concierge vehicles.

As for large-scale market launch, we will have to wait until the international crude oil price breaks through $30. There will be a considerable market capacity above $50. If it reaches $100, we can give it a “really good” evaluation.

After the two of them finished, Jin Shang carefully looked over the details of several documents at hand, and only breathed a sigh of relief when he found that there were no omissions.

After more than three years of entrepreneurship, the company's cash flow is now sufficient, and Jin Shang's personal assets are also rising steadily. With money in hand, he began to invest in some seemingly unreliable and money-burning projects. He is a typical example of a fool with a lot of money.

Few people understand that there are not many industries that can accommodate the troubles of Jin Shang and Jin Xi Culture. Only the Internet, automobiles, shipbuilding, finance, real estate, energy and logistics can withstand the impact of tens of billions or even hundreds of billions of funds.

(End of this chapter)