Hubei Yihua Signs 1 Mt/a Phosphogypsum-to-Sulfuric Acid Project amid Sulfur Supply Crisis

Hubei Yihua Signs 1 Mt/a Phosphogypsum-to-Sulfuric Acid Project amid Sulfur Supply Crisis

On 22 June 2026, China Wuhuan Engineering, Tianjin Cement Industry Design & Research Institute, and Hubei Yihua Chuxing Ecology signed a contract for a 1 Mt/a phosphogypsum-to-sulfuric acid project. The facility will produce 400,000 t/a of industrial sulfuric acid and cementitious admixtures using third-generation low-carbon calcination technology.

The project is a direct response to the May 2026 sulfur geopolitical crisis, when shipping disruptions in the Strait of Hormuz exposed China’s heavy reliance on imported sulfur for wet-process phosphoric acid. Phosphate acid prices surged over 70% to above 11,000 yuan/t. Phosphogypsum-based acid production becomes economically viable when sulfur prices exceed 1,500 yuan/t, replacing 0.3–0.35 t of imported sulfur per tonne of acid. The process creates a closed-loop cycle of solid waste, sulfur resources, and calcium materials.

China’s phosphogypsum-to-acid industry has moved from pilot to cluster stage. Existing capacity is about 1.2 Mt/a of sulfuric acid, with more than 4 Mt/a under construction or planning, concentrated in Hubei, Guizhou, Yunnan, and Sichuan. Hubei accounts for over 65% of national projects. Yihua has four projects totalling 4 Mt/a processing capacity, while Guizhou Phosphorus Group operates the largest 1.4 Mt/a flagship plant.

The project carries triple value: it alleviates the environmental burden (China generates >80 Mt/a phosphogypsum with <40% utilisation), hedges sulfur import risks, and turns a former liability into a profitable resource. Over the next three years, capacity is expected to double, significantly reducing sulfur import dependence and strengthening the resilience of China’s phosphorus chemical industry.

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