Sinopec invests 23.8 billion yuan in the overall design phase of the Dalu 800,000 tons/year coal-to-olefins upgrade demonstration project, a large-scale coal chemical project
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! Sinopec invests 23.8 billion yuan in a large-scale coal chemical project; the overall design for the Dalu 800,000-ton/year coal-to-olefins upgrade demonstration project has been launched. 2025-06-09 On June 6, a coordination meeting to initiate the overall design for the Dalu 800,000-ton/year coal-to-olefins upgrade demonstration project was held in Ningbo, Zhejiang, by Sinopec Great Wall Energy Chemical (Inner Mongolia) Co., Ltd. Responsible persons from Sinopec Great Wall Energy Chemical Co., Ltd., Yanshan Petrochemical Co., Ltd., Sinopec Ningbo Engineering Co., Ltd., etc., as well as Zhao Shuan, Deputy Secretary of the Jungeer Banner Party Committee and Head of the banner government, and other heads of relevant departments under the banner administration, attended the meeting to make every effort to advance the construction of key projects. At the meeting, a responsible official from Sinopec Ningbo Engineering Co., Ltd., the contractor for the overall design of the project, presented the overall design framework, process design, technical planning, and progress status of the 800,000 tons per year coal-to-olefins upgrade demonstration project. The participants held in-depth discussions on aspects such as the project’s layout, technical approach, and construction plans. On May 9, the candidates for the bid on the overall design project for the 800,000-ton/year coal-to-olefins upgrade demonstration project at Sinopec Great Wall Energy Chemical (Inner Mongolia) Co., Ltd. were announced. The candidate for the first bid package is Sinopec Ningbo Engineering Co., Ltd. The scope of work includes the overall design of the 2.26 million-ton/year coal-to-methanol unit as part of this project (including processes such as gasification, purification, methanol synthesis, and sulfur recovery, as well as the associated air separation units); all plant utilities (including heat power plants, chemical water treatment systems, water supply and drainage systems, heat exchange stations, the entire plant’s telecommunications system, the plant’s power supply and distribution system including 220kV substations, the plant’s fire protection system, and the plant’s flare system); storage and transportation facilities (including those for solids, liquids, olefin products, as well as external pipelines and warehouses); production auxiliary facilities (including testing and environmental protection facilities, repair shops, the factory’s intelligent systems, control rooms, lubricant stations, and washing stations); as well as external plant facilities such as shift worker dormitories and temporary structures. The work also involves preparing an estimate for the overall design and providing related technical services. Bidder for Section 2: Sinopec Engineering Construction Co., Ltd. Tasks: Overall design of the methanol-to-olefins plant (production capacity: 2.26 million tons per year, including OCC), as well as the supporting facilities; design of the polyethylene plant (350,000 tons per year), the polypropylene plant (450,000 tons per year), and the EVA/LDPE plant (100,000 tons per year); preparation of overall design estimates; and provision of related technical services. The 800,000-ton/year coal-to-olefins upgrading demonstration project of Sinopec Great Wall Energy Chemical (Inner Mongolia) Co., Ltd. is undertaken by this company itself; the funding for the project comes from bank loans and funds raised by the company itself. The allocation of funds is as follows: 70% from bank loans and 30% from the company’s own funds. This project is part of Great Wall Energy Chemical’s takeover of the 800,000-ton coal-to-olefins project that was previously owned by Guodian Investment (**Dian Tou Group Inner Mongolia Energy Co., Ltd.**). The project received approval from the **Development and Reform Commission** in August 2016, and all necessary procedures such as site selection, environmental impact assessment, and land pre-approval have been completed.
Project Overview: The 800,000-ton per year coal-to-olefins plant of Sinopec Dali will utilize a full range of technologies developed by Sinopec itself, including SE pulverized coal semi-waste boiler gasification, S-COS sulfur-resistant shift reaction, S-AGR acidic gas removal, and S-MS methanol synthesis, as well as Sinopec’s S-MTO technology. The capacity for methanol-to-olefins production is 2.26 million tons per year (including OCC), with 350,000 tons per year for polyethylene, 450,000 tons per year for polypropylene, and 100,000 tons per year for EVA/LDPE. In March 2023, Sinopec Great Wall Energy Chemical (Inner Mongolia) Co., Ltd. won the coal exploration rights for the Nalinhe Bayan Qaidam coal field in Inner Mongolia Autonomous Region for 30.15 billion yuan. The field is located in Wushen Banner, Ordos City, covers an area of 115.4319 square kilometers, and has coal reserves of 2.131 billion tons. The planned production capacity is 10 million tons, which will supply raw coal for the Great Wall Energy Chemical’s coal-to-olefins upgrading demonstration project. On July 8, 2024, the environmental impact assessment for the 800,000 tons per year coal-to-olefins upgrade demonstration project at Sinopec Great Wall Energy Chemical (Inner Mongolia) Co., Ltd. was launched. The original contractor for this project was China Power Investment Mengxi Energy Co., Ltd., established in July 2014. It is a wholly-owned subsidiary of **Power Investment Group Inner Mongolia Energy Co., Ltd., and is responsible for investing in and building the project to produce 800,000 tons of coal-based polyolefins per year in Mengxi. The project received approval from the National Development and Reform Commission in August 2016, and was identified as one of the demonstration projects for the upgrading of coal-based olefins as outlined in the relevant plans by the same commission; it was developed in a joint venture with the French company Total. Great Wall Energy Chemicals has taken over the 800,000-ton coal-to-olefins project formerly owned by **Power Investment Group Inner Mongolia Energy Co., Ltd. The project involves an investment of 23.8 billion yuan to build facilities including a 2.2 million tons per year coal-to-methanol plant and a methanol-to-olefins plant, a 340,000 tons per year polyethylene plant and a 530,000 tons per year polypropylene plant, along with supporting utility and auxiliary facilities. The main components of the project include key production units such as air separation, pulverized coal gasification, methanol synthesis, methanol-to-olefins, polyethylene, polypropylene, and sulfur recovery units. Auxiliary engineering mainly includes thermal power plants (integral gasification combined cycle process), water supply systems, and storage and transportation systems (coal depots, product storage areas, silos), etc.
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