Highlights: On June 22, 2026, China Wuhuan, Tianjin Cement Institute, and Hubei Yihua signed a million-tonne phosphogypsum-to-sulphuric acid project, with an annual processing capacity of 1 million mt of phosphogypsum, production of 400,000 mt of sulphuric acid, and by-product blending materials, utilizing the third-generation green and low-carbon calcination technology.
The backdrop is that in May 2026, a sulphur geopolitical crisis forced sulphur source substitution. Each tonne of phosphogypsum-based sulphuric acid can substitute 0.3–0.35 mt of imported sulphur, and becomes economically viable when sulphur prices exceed 1,500 yuan/mt. The project creates a “solid waste – sulphur resource – calcium material” green circular closed loop, combining environmental protection, economic, and strategic value.
1. Project Signing Information
Signing date: June 22, 2026
On June 22, 2026, China Wuhuan Engineering Co., Ltd. (under China Chemical Engineering Group), Tianjin Cement Industry Design & Research Institute Co., Ltd., and Hubei Yihua Chuxing Ecological Technology Co., Ltd. officially signed the contract for a 1-million-mt/year phosphogypsum-to-sulphuric acid with co-production of blending materials project. The project plans to construct one set of facilities for producing sulphuric acid from phosphogypsum with co-production of blending materials, processing approximately 1 million mt of phosphogypsum annually, producing 400,000 mt of industrial sulphuric acid, and yielding silicate blending materials as a by-product.
2. Project Background: Sulphur Crisis Drives “Sulphur Source Substitution”
In H1 2026, the sulphur geopolitical crisis fully ignited the phosphate chemical industry chain. Shipping disruptions in the Strait of Hormuz, a severe global sulphur shortage, and rigid shortages of high-grade phosphate ore pushed wet-process purified phosphoric acid prices up 70% in half a year, exceeding 11,000 yuan/mt. Wengfu’s wet-process 85% phosphoric acid was quoted at 12,000 yuan/mt, and its plants in Fujian and Sichuan cut or halted production due to excessive costs.
This round of sulphur crisis exposed a long-overlooked structural weakness in China’s phosphate chemical industry – heavy reliance on imported sulphur for sulphuric acid raw material.When the Strait of Hormuz, the “chokepoint” of global sulphur shipments, was blocked, the entire wet-process phosphoric acid industry chain fell into a passive position.Against this backdrop, phosphogypsum-to-acid accelerated its shift from an “environmental burden” to “sulphur source substitution.” SMM explicitly stated: When sulphur prices exceed 1,500 yuan/mt, phosphogypsum-to-acid becomes economically viable, enabling the establishment of independent acid source redundancy.
The signing of this million-tonne project by Hubei Yihua emerged precisely under this macro backdrop – it is not an isolated environmental protection project, but a typical microcosm of China’s phosphate chemical industry seeking “technological substitution” driven by “geopolitical premiums.”
3. Technical Route: “Phosphogypsum Green and Low-Carbon Calcination High-Efficiency Acid Production Technology”
The project adopts the “Phosphogypsum Green and Low-Carbon Calcination High-Efficiency Acid Production Technology” jointly developed by China Wuhuan and Tianjin Cement Institute.
The core of the technology lies in: phosphogypsum undergoes high-temperature reduction decomposition, generating high-concentration sulphur dioxide flue gas for acid production, while the calcium-based solid residue is converted into a silicate blending material with stable quality.
From a technological generation perspective, the phosphogypsum-to-sulphuric acid process has evolved to its third generation — the semi-reduction decomposition + oxidative sintering process. This third-generation technology has significantly reduced energy consumption and investment, markedly improving its economic viability, making it potentially competitive with sulphur-based acid production. Each tonne of sulphuric acid produced from phosphogypsum can replace 0.3-0.35 tonnes of imported sulphur while reducing carbon emissions from the cement clinker process by 40%-50%. The project will form a triple circular economy loop of “solid waste—sulphur resources—calcium resources”.
IV. Industry Landscape: From “Demonstration” to “Cluster Breakout”
In its *Phosphogypsum-to-Sulphuric Acid Analysis Trilogy*, SMM noted that China’s phosphogypsum-to-sulphuric acid industry has transitioned from “isolated demonstration” to a “cluster breakout” phase. 2026 has become a “super year” for project environmental assessments and filings, and the next three years will be a critical window for industrialisation to materialise.
From a capacity landscape perspective:
Operational sulphuric acid capacity: approximately 1.2 million mt/yr
Capacity under construction and planned: over 4 million mt/yr
Capacity distribution: highly concentrated in the four major production areas rich in phosphate ore resources — Hubei, Guizhou, Yunnan, and Sichuan — presenting a structure where “Hubei leads, Guizhou holds potential, Yunnan has momentum, and Sichuan offers promise”
In terms of enterprise tiers, the Yihua group has planned four projects with a combined processing capacity of 4 million mt/yr, placing it in the second tier (intensive investment zone). The newly signed 1 million mt/yr project represents a key move by the Yihua group in the phosphogypsum-to-sulphuric acid sector. The first tier is led by Guizhou Phosphate Chemical Group’s “1468” installation (1.4 million mt processing / 650,000 mt sulphuric acid / 800,000 mt materials), a global benchmark. Hubei Province has formed a “Three Gorges Phosphogypsum-to-Sulphuric Acid Industrial Belt” centered on Yichang (Zhijiang, Yidu, Yuan’an, High-tech Zone), with project numbers accounting for over 65% of the national total.
V. Strategic Significance: Three Layers of Value Convergence
5.1 Environmental Value: Solving the “Solid Waste Siege”
China’s annual phosphogypsum production has exceeded 80 million mt, with its comprehensive utilisation rate remaining below 40% for an extended period. Large-scale stockpiling not only occupies land but also causes soluble phosphorus and fluoride contamination of soil and water systems, becoming a persistent challenge for the Yangtze River conservation initiative. This project, processing 1 million mt of phosphogypsum annually, will effectively resolve phosphogypsum stockpile disposal challenges.
5.2 Economic Value: Hedging Sulphur Risk
The 2026 sulphur crisis has demonstrated that:a phosphate chemical industry chain overly reliant on imported sulphur harbours significant vulnerabilities. Phosphogypsum-to-sulphuric acid utilises waste to produce acid, building autonomous acid source redundancy. Each tonne of sulphuric acid can replace 0.3-0.35 tonnes of imported sulphur, offering clear cost advantages when sulphur prices are high. When sulphur prices exceed 1,500 yuan/mt, the economic viability of phosphogypsum-to-sulphuric acid is triggered.
5.3 Strategic Value: From “Environmental Pressure” to “Economic Momentum”
SMM notes that phosphogypsum-to-sulphuric acid is shifting from environmental pressure to economic momentum. It is no longer merely a “cost item” for enterprises dealing with environmental protection checks, but a “profit item” capable of generating products (sulphuric acid, blending materials) and revenue. This shift fundamentally changes the commercial logic of phosphogypsum disposal — from “paying to process” to “turning waste into treasure”.
VI. Industry Outlook
The signing of this million-tonne-scale projectmarks one of the key periods where the phosphogypsum-to-sulphuric acid industry begins to grow rapidly and mature. According to SMM’s assessment,the next three years will be a critical window for the industrialisation of phosphogypsum-to-sulphuric acid to materialise. As projects with a combined processing capacity exceeding 10 million mt/yr from enterprises such as Hubei Sanning, Xinyangfeng, the Yihua group, Xingfa, and Xiangyun successively come online, China’s phosphogypsum-to-sulphuric acid industry is expected to double its capacity within three years.
The more profound significance lies in the fact that: the maturation of phosphogypsum-to-sulphuric acid technology will reshape the sulphur resource landscape of China’s phosphate chemical industry. As phosphogypsum-to-sulphuric acid evolves from a “demonstration project” into a “mainstream process”, China’s reliance on imported sulphur will decrease significantly, and the autonomous controllability of the phosphate chemical industry chain will be substantially enhanced. This technological substitution, driven by geopolitical crises, may well be a pivotal turning point for China’s phosphate chemical industry as it moves toward high-quality development.
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