The Energy Bureau unveils a major initiative to launch 14 coal chemical projects and reserve 16 more

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The controversial coal chemical industry has received a significant boost from the energy regulatory authorities! 　　According to Huaxia Energy Network, the **Energy Administration recently sent notices to the development and reform commissions (energy bureaus) of 14 provinces and regions including Hebei, the China Petroleum and Chemical Industry Federation, as well as relevant enterprises, issuing the \"13th Five-Year Plan for the Development of Advanced Coal Processing Industries\" (hereinafter referred to as the \"Plan\"). 　　The Plan shows that by the end of 2015, China’s production capacities for coal-to-oil, coal-to-natural gas, and coal-to-olefins (including methanol-to-olefins) were 2.54 million tons per year, 3.1 billion cubic meters per year, and 8.62 million tons per year respectively, while the actual production volumes in 2015 were 1.15 million tons, 1.88 billion cubic meters, and 6.48 million tons respectively. 　　The Plan states that by 2020, it is expected to establish coal-to-oil production capacity of 13 million tons per year, coal-to-natural gas production capacity of 17 billion cubic meters per year, and capacity for the differentiated utilization of low-grade coal amounting to 15 million tons per year (in terms of coal processing volume). Compared to the 12th Five-Year Plan period, the production capacity has increased significantly. 　　The growth rate set out in the Plan is a significant boon for the coal chemical industry, and its development will begin to accelerate. This stands in sharp contrast to the booming industry situation two or three years ago. 　　In 2014, the once-popular coal chemical industry began to decline sharply; major state-owned enterprises such as State Power Investment Corporation, Datang Group, and CNOOC rushed to withdraw from this sector. **In July of that year, the Energy Administration issued a notice stating clearly that: \"The construction of coal-to-natural gas projects with an annual production capacity of 2 billion cubic meters or less, as well as coal-to-oil projects with an annual production capacity of 1 million tons or less, is prohibited.\" ”This is seen as the regulatory authorities putting a brake on the coal chemical industry. 　　In the following two years, against the backdrop of a sharp drop in international oil prices, the coal chemical industry managed to recover from its low points and even received special attention from **leadership. On July 19, 2016, ****, who was on an inspection tour in Ningxia, visited the Ningdong Energy and Chemical Industry Base to learn in detail about the progress of the Shenhua Ningmei Coal Indirect Liquefaction Demonstration Project – the world’s largest coal-to-oil project of its kind. He praised China’s innovative achievements in the field of coal chemistry. 　　On December 28, 2016, **** issued important instructions regarding the commissioning of Shenhua Ningmei’s coal indirect liquefaction demonstration project, stating that the completion and operation of this major project represent a valuable exploration of ways to achieve energy security through efficient, clean, and low-carbon development methods, and are an important achievement of the strategy focused on innovation-driven growth. 　　The realignment of the coal chemical industry strategy has brought about tremendous changes to the development of the entire industry. Starting from the fourth quarter of 2016, the coal chemical industry underwent a transition from a downturn to a turning point. It is expected that during the 13th Five-Year Plan period, the total investment in coal chemicals will double: 63.4 billion yuan for coal-based ethylene glycol, 158.5 billion yuan for coal-based olefins, 163.6 billion yuan for coal-based oil, and 195.7 billion yuan for coal-based gas. 　　According to the **Energy Bureau’s Plan**, during the 13th Five-Year Plan period, emphasis will be placed on carrying out demonstration projects for five types of approaches, including coal-to-oil, coal-to-natural gas, differentiated utilization of low-grade coal, coal-based chemical production, and comprehensive utilization of coal and oil. There are 14 projects scheduled for implementation and 16 projects in the reserve list. (Author/Wang Dong) The detailed list is as follows: http://file.china-nengyuan.com/999/news_editor/images/2017/03/201703061022_26437700.jpg