Signing of cooperation agreement between Yan’an Energy Chemical and Shaanxi Gas Turbine Group

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On May 12, during the third Silk Road Expo and Western China Investment Fair, Yan’an Energy and Chemical (Group) Co., Ltd. signed a framework agreement with Shaanxi Gas Turbine Group for a project aimed at the integrated circular utilization of low-grade coal on a scale of 5 million tons per year; the two parties will cooperate in the field of distributed energy. The 5 million tons per year low-grade coal cogeneration and circular utilization project is a sub-project of the \"Yan’an Comprehensive Energy Base Development Plan\" approved by the National Energy Administration; it has been registered and approved by the Yan’an Development and Reform Commission, and construction commenced in March 2017. This project achieves comprehensive circular utilization of coal resources, yielding good economic and social benefits. In the field of coal chemical industry, the integrated recycling of low-rank coal has become an important development direction for this sector. The 5 million tons per year low-grade coal multi-product integrated utilization project of Yan’an Energy Chemical is a typical integrated project for coal, electricity, chemicals, and heat production. Shaanxi Blower will make every effort to advance this project as a model project in future collaborations. In the future, the two parties will work together closely to jointly develop a demonstration project for an energy interconnection island in the field of coal chemical industry, striving for common progress. The 5 million tons per year low-grade coal multi-product cyclic comprehensive utilization demonstration project of Shaanxi Zichang Chemical Co., Ltd. is located in Zhaojiagou, Yuziwan Village, Wayaopu Sub-district, Yan’an City, Shaanxi Province. It covers an area of 1,470 mu, with a total investment of 5.5 billion yuan. The project is funded and constructed by Yan’an Energy Group Zichang Chemical Co., Ltd., and its construction is planned in two phases. The project relies on the subchang coal resources (washed medium-rank coal), and uses a self-developed, energy-saving furnace as the core technology for pyrolysis. Depending on the particle size of the coal, it employs medium- and low-temperature pyrolysis for differentiated processing, gasification with fixed-bed operation under 2.5 Mpa and liquid slag removal, integrated thermal-electric recycling of pyrolysis gases and coal sludge, as well as heating for urban areas. This approach enables the differentiated transformation and hierarchical utilization of coal, extends the industrial chain, facilitates the complementary use of various energy sources and the recycling of waste, thereby achieving efficient multiple product outputs. After completion and commissioning, the main products include high-end paraffins, coal tar, methanol, LNG and other chemical products, as well as heat and electricity. It is estimated that once the project is fully completed, it will generate annual revenues of 5 billion yuan and profits and taxes of 1 billion yuan, while creating 1,200 job opportunities. The first phase of this project is a demonstration project for the integrated cyclic utilization of 1.5 million tons of low-grade coal, with an investment of 1.742 billion yuan and a planned construction period of 18 months. Construction on the project began at the end of March 2017, with the goal of completing the ordering and installation of the main equipment for the project within that same year. The winning bidder for the overall design of Phase 1 of the project and the design of the methanol plant is: Shanxi Chemical Engineering Design Institute (lead contractor), Taiyuan Coal Industry Design and Research Institute.