China’s largest PGA project, the Inner Mongolia Zhuozheng methanol acetic acid project, is advancing at an accelerated pace

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The Inner Mongolia Zhuozheng methanol and acetic acid project is located in the Nalinhe Industrial Park of the Sulihe Economic Development Zone in Wushen Banner. It covers an area of approximately 7,500 mu, with a total estimated investment of 59 billion yuan. Building on the existing facilities that can produce 1.2 million tons of methanol and 1 million tons of acetic acid per year, this project involves on-site investigations and technical exchanges with 53 entities, including design institutes, patent holders for process technologies, and manufacturing companies. In line with industry guidelines aimed at promoting greenness, low carbon emissions, energy conservation, and environmental protection, advanced technologies such as efficient and clean comprehensive utilization of coal based on its different quality levels, large-scale pulverized coal gasification, fixed-bed hydrocracking, technologies developed by the Dalian Institute of Chemical Physics for converting methanol into ethanol and formaldehyde into methyl glycolate, as well as polyglycolic acid production techniques from Shanghai Pujing, are being employed. Total project investment: The total investment for the project is 590,000 million yuan, of which 177,000 million yuan comes from own funds, while 413,000 million yuan will be obtained through bank loans. Planned construction period: May 2023 to December 2030. Construction location: Nalinhe Industrial Park, Sulihe Economic Development Zone, Wushen Banner, Ordos City. Construction contents: Build a demonstration project for new materials with an annual production capacity of 2.6 million tons. The main products will be: 1 million tons per year of polyglycolic acid (PGA), 500,000 tons per year of ethylene-vinyl acetate copolymer (EVA), 100,000 tons per year of polyvinyl alcohol (PVA), 120,000 tons per year of polyoxymethylene (POM), 50,000 tons per year of ethanol, 730,000 tons per year of acetic acid, and 50,000 tons per year of vinyl acetate ； By-products: 40,000 tons/year of mixed alcohols, 80,000 tons/year of polyglycolic acid oligomers ； Complementary facilities include water, power, gas, and steam supply systems from the park to the factory premises, as well as utility systems and auxiliary facilities such as air separation units, thermal power systems, raw material storage and transportation systems, and wastewater treatment facilities for various types of raw water. Additionally, there are service-related facilities and living amenities, as well as ash disposal areas. The estimated investment for the first phase of the project is 25.5 billion yuan. Building on the existing facilities that produce 1.2 million tons of methanol and 1 million tons of acetic acid per year, this phase takes into account efficient and clean utilization of coal at different grades, as well as advanced processing techniques to enhance the value of products derived from methanol and acetic acid. By integrating green energy sources, the project aims to produce more than 30 different main and auxiliary products, including acetic acid, ethanol, polyglycolic acid, and polyoxymethylene. The annual output value is expected to be around 11.7 billion yuan. The first phase is scheduled to begin operations in October 2026, with construction of the second phase starting simultaneously. The long-term plan covers an area of approximately 7,800 mu, with an estimated investment of 59 billion yuan, aiming to enter the market for high-end fine chemical products in the fields of new energy and new materials. The project will be constructed in two phases and four stages, with an expected production volume of 110.15 million tons by 2027, and a total output of 2.6–3.2 million tons of new material products by 2030. It produces 19 types of products, including methanol, acetic acid, vinyl acetate (VAC), ethanol, formaldehyde, polyoxymethylene (POM), polyglycolic acid (PGA), ethylene-vinyl acetate copolymer, methyl lactate, mixed alcohols, polyglycolic acid oligomers, sulfur, coal tar, upgraded coal, liquefied natural gas (LNG), liquefied petroleum gas (LPG), naphtha, and special diesel. Through subsequent processes such as chain extension, chain supplementation, chain solidification, and chain strengthening, more than 30 types of products can be manufactured, thereby enabling the development of coal chemical projects in a direction characterized by higher quality, greater diversity, and lower carbon emissions. Since July 2025, the methanol project, the methanol-acetic acid extension project, and the new materials project of HuiNeng Holding Group’s Inner Mongolia ZhuoZheng Coal Chemical Co., Ltd. have launched a \"100-Day Intensive Campaign\". Thousands of workers are working hard at the project sites, and through measures such as increasing resource allocation, optimizing construction organization, and strengthening safety protocols, they are striving to make up for the time lost due to weather conditions and pushing full steam ahead toward achieving their annual goals.