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List of Shenhua’s operational/under-construction/planned coal chemical projects Author/Source: Date: 2017-04-17 Clicks: 62 In January 2017, China set new goals for the coal chemical industry. Recently, the **National Development and Reform Commission officially issued the \"Plan for the Innovative Development and Layout of the Modern Coal Chemical Industry\" (hereinafter referred to as the \"Plan\"). This Plan outlines 8 key tasks, one of which is to plan and establish demonstration areas for the modern coal chemical industry. Four modern coal chemical industry demonstration zones in Ordos, Inner Mongolia; Yulin, Shaanxi; Ningdong, Ningxia; and Zhundong, Xinjiang are also included in the plan. The Shenhua coal-to-olefins upgrading demonstration project ranked first in terms of comprehensive indicators and has been designated as a key construction project to be promoted in the near future. Shenhua Group’s coal chemical industry operations are primarily carried out by its two subsidiaries: Shenhua Ningxia Coal Industry Group Co., Ltd. and China Shenhua Coal-to-Oil Chemicals Co., Ltd. Many of these coal chemical projects have their own nicknames. 【Largest Producer】 Since 1997, Shenhua Group has taken it as its responsibility to ensure **energy security, and has actively engaged in research and development as well as industrial demonstration of coal-to-oil chemical technologies. Through years of development, Shenhua has established a comprehensive system in this field, becoming the world’s largest producer of coal-to-oil chemical products. 【First Modern Direct Coal Liquefaction】 Shenhua Ordos Direct Coal Liquefaction Pilot Project: This is a direct coal liquefaction project featuring Shenhua’s own intellectual property rights; it is the world’s first industrial-scale pilot project built using modern direct coal liquefaction technology, with an annual production capacity of 4 million tons of oil products. Since its successful commissioning on December 30, 2008, the first production line (with an annual output of 1.08 million tons of oil products) has been operating steadily and efficiently, enabling China to become the first country in the world to master the key technologies for million-ton-scale direct liquefaction projects. 【Largest single-unit scale】 Shenhua Ningmei Coal Indirect Liquefaction Pilot Project: This is the world’s largest coal-to-oil project on a single-unit basis; it is a pilot project for the deep processing of coal in China, with a designed production capacity of 4.05 million tons of synthetic oil products per year. The project involves the construction of two FTO synthesis production lines with an annual capacity of 2 million tons each, as well as one production line for the comprehensive utilization of methanol coal slime with an annual capacity of 1 million tons. It enables the conversion of 24.61 million tons of coal per year, making it one of the largest projects in terms of initial investment in the global petrochemical and coal chemical industries. 【First Coal-to-Olefins Pilot Project】 Shenhua Baotou Coal-to-Olefins Project: It is the world’s first and **-class coal-to-olefins pilot project. It marked the first industrial application of China’s independently developed methanol-to-olefins (DMTO) process technology, opening up a new path for the coal-based energy and chemical industry. It holds great demonstrative significance for China’s advancement of a low-carbon economy. 【China’s first coal-to-propylene plant】 Shenhua Ningmei’s 500,000-ton coal-to-olefins project: its designed production capacity is 520,000 tons per year of polypropylene; as by-products, it generates 184,800 tons per year of gasoline, 41,200 tons per year of liquid fuel, and 13,800 tons per year of sulfur. The total investment in this project is approximately 19.5 billion yuan. China’s first coal-to-propylene demonstration project. Phase 1 commenced construction in April 2008, and successful trial operation was achieved in April 2011 ； Phase 2 began construction in March 2011, and successful commissioning with feedstock was achieved on August 27, 2014. In accordance with the 13th Five-Year Development Plan for the petrochemical industry, China will make significant efforts to develop strategic emerging industries such as new chemical materials, biochemistry, modern coal chemistry, and productive service industries. From 2016 to 2020, China’s coal chemical industry will enter a phase of upgrading and demonstration; numerous projects in areas such as coal-to-oil, coal-to-methanol/olefins, coal-to-natural gas, coal-based large-scale ammonia production, coal-to-ethylene glycol, and coal-to-hydrogen will be built and put into operation during the 13th Five-Year Plan period. Shenhua Group, which is committed to \"improving the clean utilization of coal,\" should play a leading role in this regard. Let’s take a look at what coal chemical projects Shenhua has already put into operation, is currently building, and plans to build http://img.yf116.cn/image/img/20170417/911403310035.jpg Projects in operation: 1. Shenhua Baotou’s 600,000-ton coal-to-olefins plant: already in operation; the second phase is under construction. The upgraded demonstration project at Shenhua Baotou for coal-to-olefins production has an annual capacity of 2 million tons of coal-to-methanol and 700,000 tons of polyolefins. It is reported that Shenhua will use the excess syngas from the first and second phases of its olefin projects to produce 600,000 tons of ethylene glycol. Together with the 600,000 tons of coal-based ethylene glycol produced by Guoneng, the total amount of ethylene glycol produced in Baotou City will reach 1.2 million tons. Meanwhile, methanol will reach 3.8 million tons, and olefins 1.3 million tons. It is reported that the total investment for the second phase of Shenhua Coal Chemical’s project is 17 billion yuan, while the total investment for Shenhua Coal Chemical’s ethylene glycol project is 5 billion yuan. 2. Shenhua Shaanxi Methanol Downstream Processing Project: Commissioned. The Shenhua Shaanxi Methanol Downstream Processing Project is a key project under Shenhua Coal-to-Oil Chemicals Co., Ltd. for coal-to-olefins production; it is located near Qingshui Gou Village, Dabaochang Town, Shenmu County, Yulin City, Shaanxi Province, within the Qingshui Coal Chemistry Industrial Park of the Yushen Industrial Zone planned by Shaanxi Province. The land area is approximately 211.09 hectares, with a total investment of 11.057 billion yuan. Using methanol as a raw material and DMTO technology, the project first produces intermediate products such as ethylene and propylene through the Methanol to Olefins (MTO) process, and then generates final products like low-density polyethylene (LDPE), ethylene vinyl acetate copolymer (EVA), and polypropylene (PP) via polymerization. The main units of the project include one 600,000-ton/year MTO unit, one 600,000-ton/year olefin separation unit, one 300,000-ton/year polyethylene unit, and one 300,000-ton/year polypropylene unit; the Fifth Construction Company is responsible for building the core 600,000-ton/year MTO unit. Construction of the project began in 2012, with the MTO unit starting to be built in 2013. On June 28, 2015, the MTO unit was delivered at a high standard, and it is now fully completed. 3. Shenhua’s 180,000-ton-per-year coal indirect liquefaction demonstration project: Now in operation. This project utilizes Shenhua’s independently developed FTO synthesis catalyst technology to convert syngas into liquefied fuels such as naphtha and paraffinic hydrocarbons. 300,000 tons per year each for polyethylene and polypropylene in the Baotou coal-to-olefins project. With a total investment of 17 billion yuan, it is the world’s first large-scale coal chemical project that uses coal as raw material to produce polyolefin plastics through a process involving coal gasification to produce methanol, methanol conversion to produce olefins, and olefin polymerization. 4. Shenhua Ningxia Coal’s 520,000 tons/year coal-based polypropylene project: The total investment is 19.5 billion yuan. Located in the Ningdong Energy and Heavy Chemical Industry Base in Ningxia, the project has a designed production capacity of 520,000 tons per year of polypropylene; as by-products, it generates 184,800 tons per year of gasoline, 41,200 tons per year of liquid fuel, and 13,800 tons per year of sulfur. The total investment in this project is approximately 19.5 billion yuan. China’s first coal-to-propylene demonstration project. Phase 1 commenced construction in April 2008, and successful trial operation was achieved in April 2011 ； Phase 2 began construction in March 2011, and successful commissioning with feedstock was achieved on August 27, 2014. It officially entered the production phase in January 2015. 5. Shenhua Ningmei’s 500,000-ton methanol-to-olefins project: With a total investment of 6.5 billion yuan, this project is located in Areas B3 and C3 of the Ningdong Energy and Chemical Industry Base. The plant covers an area of 56.55 hectares, and the total investment amount is 6.5 billion yuan. Construction of the project officially began in March 2011, and the main structure was completed on June 30, 2014, after which it entered the stage of trial operation with materials fed into the system. The project mainly includes a methanol-to-propylene plant, a polypropylene plant, as well as supporting auxiliary and utility facilities. It consumes 1.67 million tons of methanol per year; through the methanol-to-propylene process, 474,000 tons of propylene and 20,000 tons of ethylene are produced annually. Using the polypropylene production process, 500,000 tons of polypropylene products are manufactured each year, while 184,800 tons of mixed aromatics and 41,200 tons of liquid fuel are generated as by-products. 6. Shenhua Ningmei Group’s 600,000 tons per year methanol production project: The total investment in this project was 4 billion yuan, and it is now in operation. 7. Shenhua Ningmei’s 60,000 tons per year polyoxymethylene production facility: Also in operation. This is the largest fine chemical production facility of its kind in China built and put into operation by Shenhua Ningmei Group, and it contributes to the optimization and upgrading of the industry’s product structure. 8. Shenhua Ningdong Coal Chemical Industry Base: In operation. The coal chemical industry base of Shenhua Ning Coal Group is an important part of the Ningdong Energy and Chemical Industry Base; it covers an area of 25 square kilometers and construction began in October 2004. To date, 5 projects have been completed, 3 are under construction as part of the 12th Five-Year Plan, and 2 projects are in the preliminary stage. By 2020, it is expected that the Ningdong Energy and Chemical Industry Base will have completed a total investment of 260 billion yuan. Ongoing projects: 1. Shenhua Ningxia Coal’s 250,000 tons per year methanol and 210,000 tons per year dimethyl ether project – commissioning was successful. This is the first project to start operation in the Ningdong Coal Chemical Industry Base; the total investment in this project amounted to 1.43 billion yuan, and it has now been successfully commissioned. 2. Shenhua Urumqi’s 680,000-ton coal-based new materials project: Under construction. The Shenhua Xinjiang 680,000-ton coal-based new materials project is located in the Ganquanbao Industrial Zone in Urumqi, Xinjiang. It utilizes a pressurized water-coal slurry process, with a total investment of 22.3 billion yuan. In late February 2016, the PP production unit of this project completed its trial operation. 3. Shenhua Ordos Coal Direct Liquefaction Project of 3.2 million tons: Under construction. On December 30, 2008, the first production line with a capacity of one million tons was put into operation for coal feeding trials as part of Shenhua Group’s Ordos Coal Direct Liquefaction demonstration project ； By December 31, 2008, the entire production process was operational, allowing for the successful shaping of coal slag and the production of qualified diesel and naphtha. The investment for this project amounts to 24.5 billion yuan, with a construction period from 1998 to 2020. This is a coal direct liquefaction project with independent intellectual property rights owned by Shenhua; it is the world’s first industrial demonstration project built using modern coal direct liquefaction technology, with an annual production capacity of 4 million tons of oil products. 4. Shenhua Yulin 680,000-ton methanol-to-olefins project: With a total investment of 11 billion yuan, this project is under construction. The Shenhua Yulin 680,000-ton methanol-to-olefins project is part of the downstream processing facility for methanol developed by Shenhua Coal-to-Oil Chemicals Co., Ltd.; it is located near Qingshui Gou Village in Dabaochang Town, Shenmu County, Yulin City, Shaanxi Province, within the Qingshui Coal Chemistry Industrial Park that is part of the Yushen Industrial Zone planned in Shaanxi Province. The project covers an area of approximately 211.09 hectares, with a total investment of 11.057 billion yuan. The projects mainly include a 680,000 tons per year methanol-to-olefins (MTO) plant, a 300,000 tons per year low-density polyethylene plant, and a 380,000 tons per year polypropylene plant. 5. Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project: With a total investment of 121.6 billion yuan, the first phase of this ongoing project involves an investment of around 10 billion US dollars; it will produce approximately 3.5 million tons of fine chemical and plastic products per year. The factory consists of 23 process units, along with supporting utility systems, auxiliary production facilities, and storage and transportation facilities. The production facilities include key units such as 3.32 million tons per year of methanol, 1.22 million tons per year of MTO (methanol-to-olefins), and 500,000 tons per year of chlor-alkali products. For downstream processing of ethylene and propylene, there are facilities for producing 400,000 tons per year of ethylene glycol, 210,000 tons per year of ethanolamine/ethylenediamine, 340,000 tons per year of polyether polyols, 150,000 tons per year of acrylic acid, 200,000 tons per year of acrylates, 200,000 tons per year of methyl chlorides, 510,000 tons per year of EDC/VCM (dichloroethane/chloroethylene), and 500,000 tons per year of polyvinyl chloride. The project is of a large scale, features a long industrial chain, and utilizes advanced technology; all products meet the highest international standards. 6. Shenhua Ningmei Ningdong 4 million tons per year of indirect coal-to-oil production: Under construction. On December 28, 2016, Li Jianhua, Secretary of the Party Committee of the Ningxia Hui Autonomous Region, announced that the world’s largest coal-to-oil project – Shenhua Ningmei Group’s 4 million tons per year coal indirect liquefaction demonstration project – had been completed and put into operation in Ningxia. The Oil Product Line A of this project successfully underwent commissioning on December 21, 2016, producing qualified oil products. With a total investment of 55 billion yuan, it undertakes 37 major tasks related to the localization of technologies, equipment, and materials, achieving a localization rate of 98.5% for the project. 7. Shenhua Ningmei 1 million tons/year dual hydrocarbon project: The first phase is under construction, with a total investment of around 12.8 billion yuan. It uses by-products such as naphtha and LPG as raw materials. The main facilities to be built include a 1.4 million tons per year olefin production plant via pyrolysis, a 400,000 tons per year polyethylene plant, a 450,000 tons per year polypropylene plant, a 150,000 tons per year synthetic ammonia plant, and a 350,000 tons per year aromatic extraction plant, among others. Preparations for the proposed projects: 1. The 700,000-ton coal-to-olefins project jointly developed by Shenhua Ningmei and Saudi Basic Industries: preparations are in progress, with a total investment of 20 billion yuan. This project uses coal as raw material and employs dry coal powder gasification technology, followed by processes such as gasification, methanol synthesis, methanol-to-olefins conversion, propylene polymerization, and ethylene polymerization. The annual production capacity is over 700,000 tons of coal-based olefin products, including 200,000 tons per year of LDPE (low-density polyethylene), 100,000 tons per year of EVA (ethylene-vinyl acetate copolymer), 50,000 tons per year of UHMWPE (ultra-high molecular weight polyethylene), and 380,000 tons per year of PP-ICP/RCP (polypropylene). Supporting facilities such as storage and transportation systems, utility systems, auxiliary systems, and environmental protection systems are also in place. 2. Shenhua Yulin Energy Chemical’s 400,000 tons per year synthetic gas-based ethylene glycol production project: The environmental impact assessment process is currently in progress. The project is located within the site designated for Shenhua’s existing methanol downstream processing facilities in Shaanxi, adjacent to the Shenhua Yulin circular economy coal utilization project that is under construction. The raw materials (CO, H2) required for the ethylene glycol plant, as well as the auxiliary materials and utility services, are provided by the CTC project. The products and by-products are transported away via the CTC project, while the production wastewater, general solid waste, and hazardous waste are treated through the CTC project. 3. Shenhua Coal-to-Olefins Upgrade Demonstration Project (Shenhua Phase II): Under preparation, with a total investment of 18.6 billion yuan. The capacity of the Shenhua Baotou Coal-to-Olefins Upgrade Demonstration Project is 2 million tons per year of coal-to-methanol and 700,000 tons per year of polyolefins. The construction site is located at No. 1, Shenhua Science and Technology Park, Jiuyuan Industrial Park, Baotou City, Inner Mongolia. This project has been included in the **Modern Coal Chemical Industry Development Plan**. 4. Shenhua Hulunbuir Coal-to-Olefins Project: This project is planned to be built in the Yimin Coal Chemical Industry Base in eastern Inner Mongolia. With a total investment of around 42.573 billion yuan, it will utilize low-grade lignite from the Yimin coal field as raw material to construct an olefins production facility with an annual capacity of 750,000 tons; sulfur, mixed C4 compounds, C5 compounds, and other by-products will be generated as part of this process.