Construction begins on Rongxin Chemical’s 800,000-ton per year olefin production project in Shandong Energy Group

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On July 14, the LuMeng Energy strategic cooperation project – the 800,000-ton per year olefin production facility of Shandong Energy Group Rongxin Chemical Co., Ltd. – officially commenced construction. The project is located in the Dalat Economic Development Zone of Ordos City, Inner Mongolia Autonomous Region, covering an area of 1,887 mu. It mainly involves the construction of an 800,000-ton/year methanol-to-olefins plant, a 400,000-ton/year polyethylene plant, a 400,000-ton/year polypropylene plant, a 15,000-ton/year 1-butene plant, as well as supporting auxiliary facilities. The project uses methanol as a raw material and employs MTO technology to produce polymer-grade ethylene and polymer-grade propylene monomers. These monomers are then polymerized to manufacture high-density polyethylene and high-performance polypropylene products. Additionally, by-products such as 1-butene, isobutane, C5+, and MTBE are also generated. The project is expected to be completed and put into operation during the 15th Five-Year Plan period. Rongxin Chemical Co., Ltd. is a coal conversion enterprise under Shandong Energy Group. It was established in the Dalat Economic Development Zone of Ordos City in 2009; to date, 13 billion yuan has been invested in it, with the first phase of the project – a coal-to-methanol facility with an annual production capacity of 900,000 tons – as well as the second phase, a coal-to-ethylene glycol facility with an annual production capacity of 400,000 tons, having been completed and put into operation. Since its commissioning in 2014, it has produced a total of 14 million tons of key chemical products such as methanol and ethylene glycol, generating sales revenue of 26 billion yuan and paying 3.76 billion yuan in taxes and fees. It has also created employment for 1,200 people, and has been awarded honors such as the \"2016-2017 **Quality Project Award\" and the Inner Mongolia Autonomous Region’s \"May 1st Labor Medal\". Leveraging Shandong Energy Group’s proprietary, world-leading \"multi-nozzle opposed water-coal slurry gasification technology,\" the first phase of Rongxin Chemical’s project was equipped with a water-coal slurry gasifier capable of processing 3,000 tons of coal per day per unit. During the 12th Five-Year Plan period, the company undertook two \"863 projects.\" It won the Second Prize for Scientific and Technological Progress in 2016, as well as the First Prize for Scientific and Technological Progress from the China Petroleum and Chemical Industry Federation in 2017. It was recognized as a \"High-Tech Enterprise\" in Inner Mongolia Autonomous Region, as well as a \"Super-large Scale Coal Gasification Technology Research and Development Center\" in that region. With the completion of the second-phase project, a coal slurry gasifier of 4,000 tons per day was built, which is currently the largest of its kind in the world. It was included in the **Key Scientific and Technological Projects for 2017 and won the Second Prize for Scientific and Technological Progress in Inner Mongolia Autonomous Region. In the period to come, Rongxin Chemical Co., Ltd. will actively work toward achieving the goals of carbon peak and carbon neutrality. By leveraging its super-large-scale water-coal slurry gasification platform, it will strive to increase the production capacity of chemical products, promote the expansion and upgrading of the industrial chain involving methanol, olefins, and high-end new materials. It will transform the regional resource advantages into industrial and economic advantages, foster the advanced, diversified, and low-carbon development of the coal chemical industry, and create large-scale industrial clusters. The company is committed to becoming a leading demonstration base for coal-based new chemical materials as well as an industry hub for the clean and efficient use of energy in China.