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On January 2, 2025, a ceremony was held in Beijing to mark the start of construction for the project undertaken under the general contract by Beijing Petrochemical Engineering Co., Ltd. (referred to as Beiyou Engineering): the optimization of Inner Mongolia Zhuozheng Coal Chemical Co., Ltd.’s (referred to as Zhuozheng Company) production capacity from 1.2 million tons per year to 1 million tons per year in methanol production from coal; a project aimed at further processing and comprehensive utilization of methanol and acetic acid to produce high-end chemicals and new materials; and a project to build an ethanol production facility with an annual capacity of 600,000 tons. This project is an important initiative for Beiyou Engineering to strengthen and optimize its \"coal-based ethanol\" product line, to further develop the market in Inner Mongolia, and to gradually increase its market share. As the first major EPC project signed by the company at the beginning of 2025, the company will strictly adhere to the terms of the contract. Adhering to the principle of \"building first-class projects and creating enduring landmarks,\" it will take full account of the specific characteristics of this project, organize management in a scientific manner, and strengthen controls over safety, quality, and the project process. This approach will ensure that the project’s operational processes are optimized, energy consumption is reduced, and economic benefits are maximized. The ethanol project is a key strategic move by HuiNeng ZhuoZheng to expand its industrial chain; it will enable ZhuoZheng to develop downstream products in various areas, thereby enhancing HuiNeng Group’s core competitiveness and influence in the chemical industry. With the project now underway, both parties will work together in good faith, leveraging their respective strengths to make every effort to advance the construction, aiming to turn it into a model of EPC turnkey projects. It is reported that the project is located in the Nalinhe Industrial Park of the Sulihe Economic Development Zone in Wushen Banner, Ordos, Inner Mongolia. It is one of the “Five Key Projects” in Inner Mongolia Autonomous Region, and it involves optimizing the product portfolio based on the existing Zhuo Zheng facility, which currently produces 1.2 million tons of methanol and 1 million tons of acetic acid per year. Taking into account the high oil content in the coal resources of Wushen Banner, high-efficiency clean comprehensive utilization of coal by means of quality-based classification and coupled powder gasification technology is employed to produce methanol, acetic acid, ethanol, polyoxymethylene (POM), polyglycolic acid (PGA), etc. The process flow of the upgraded project is long and the associated technological processes are complex. The 600,000 tons per year ethanol plant that is now under construction represents an important milestone in this project. Once completed, it will facilitate the coordinated development of the coal-based industries in the region, contributing to the establishment of a core area for a **modern coal chemical industry demonstration base in Wushen Banner.
About twenty years ago, I provided consulting services to this company; those coal owners knew nothing at all, but they had money. Now that coal chemical industry has reached a certain scale, I hope it will continue to develop better and better.