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There is an urgent need to establish a standard system for a modern coal chemical industry system with Chinese characteristics. Author/Source: Date: 2018-03-21 Clicks: 11 During this year’s ** national conference, several prominent representatives from the energy and chemical industry spoke out in favor of the development of the coal chemical sector, suggesting that efforts should be made to create a modern coal chemical industry system with Chinese characteristics and global competitiveness by formulating differentiated tax incentives, enhancing collaborative research and development, and improving the standard system. Shao Junjie, a deputy to the National People’s Congress and chairman of Shenhua Ningmei Group, said that modern coal chemical industry is still in the stage of technological innovation and development, with many technical barriers that need to be overcome. Projects of significant scale such as coal-to-oil conversion require substantial funding, resulting in high financial costs and depreciation expenses; therefore, differentiated tax incentives should be provided to coal chemical enterprises. Jia Runan, a deputy to the National People’s Congress and general manager of Shenhua Baotou Coal Chemical Company, presented \"Suggestions for Promoting the Development of the Modern Coal Chemical Industry.\" He explained that the profitability of the modern coal chemical industry has declined significantly, its products lack sophistication at the high-end level, and an standards system is urgently needed. Jia Runan suggested that **appropriate support should be provided to the coal chemical industry through industrial policies; for example, under the preferential industrial policies for the development of the western region, ‘the development and application of briquette and water-coal slurry technologies’ should continue to be included in the list of industries eligible for tax incentives, and a reduction or exemption from the carbon pentane consumption tax on by-products of coal-based olefins should be granted. He also suggested establishing industry integration platforms at the ** level to promote the integrated development of modern coal chemical industry with industries such as petrochemicals, power, metallurgy, building materials, and chemical fibers; as well as setting up cooperation platforms for research institutions and coal chemical enterprises in terms of research and development. Li Xiyong, a deputy to the National People’s Congress and chairman of Yankuang Group, pointed out that with international oil prices remaining low while domestic coal prices are high, imposing excessive consumption taxes on refined oil products is not conducive to the sustainable and healthy development of the coal-to-oil industry. He suggested that relevant policies should be introduced to support and encourage the development of this industry, by offering appropriate tax reductions for refined oil product consumption by coal-to-oil enterprises, and exempting demonstration projects from such taxes. Deputy Ren and Li Jinping, chairman of Shanxi Lu’an Group Company, put forward suggestions regarding the development of the industry related to coal-based fully synthetic lubricant base oils. He believes that this industry is a coal chemical industry with Chinese characteristics, but it is still in the stage of development and growth. It is necessary to explore reforms to the mechanism for collecting consumption taxes, reduce or exempt taxes such as those on refined oil consumption, value-added tax, and income tax, and implement a policy of refunding taxes immediately upon export of clean oil products. Wu Ying, a representative from the Xilaifeng Coking Plant of Inner Mongolia Coal Coking Company, submitted a proposal titled \"Suggestions on Increasing Support for the Transformative Development of the coal coking industry.\" She suggested increasing policy support for the transformation and development of the coal coking industry by establishing guidance funds for such transformation, and by encouraging financial institutions to adopt differentiated credit policies, in order to motivate coal coking enterprises to develop large-scale coking and coal chemical projects. She also suggested **increasing research efforts on key common technologies related to the coal-coke-chemicals industry chain, such as environmentally friendly and efficient coke production, pressure gasification of chemical coke combined with the use of coke oven gas to produce syngas, and the advanced separation of coal tar to produce fine chemicals.** According to reporters, since last year, investment in China’s coal chemical industry has accelerated, with various coal-producing regions and enterprises increasing their investments in this sector. Industry analysts predict that by 2020, investment in coal chemical industry in China is expected to exceed 500 billion yuan.