Bidding process launched for Shaanxi’s $100 billion coal chemical project; 1.8 million tons of ethylene glycol for the first phase has been approved

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Bidding process launched for a billion-yuan coal chemical project in Shaanxi; 1.8 million tons per year of ethylene glycol production in the first phase has been approved. Author/Source: Huahua Net Coal Chemicals. Date: 2018-03-06. Clicks: 25. It was recently reported that the demonstration project for producing new chemical materials through the selective utilization of coal by Shaanxi Coal and Chemical Industry Group is progressing smoothly. The construction of the first phase of this project, which involves the production of 1.8 million tons per year of ethylene glycol from coal, has been approved, and the bidding process for the overall design of the project has also begun. Construction is scheduled to start in 2018. The “Demonstration Project for the Utilization of Coal at Different Quality Levels to Produce New Chemical Materials” in Yulin, Shaanxi is a large-scale coal conversion project that was given priority in the planning and construction by Shaanxi Coal and Chemical Industry Group during the 13th Five-Year Plan period; it is located in the Qingshui Industrial Park in Yulin City. The project produces 5.9 million tons per year of various products, including polyolefins, polyesters, polycarbonates, polystyrene, and acrylates, through the systematic integration of a range of advanced processing technologies such as coal pyrolysis and gasification. The project processes 20.14 million tons of raw coal per year, covers an area of 9.87 square kilometers, and has a total investment of 102.2 billion yuan. Among them, the first phase of the project involves the production of 1.8 million tons per year of ethylene glycol from coal, with an investment of around 21.9 billion yuan. A new 1.8 million tons per year coal-based ethylene glycol plant will be constructed, along with the necessary utility systems and auxiliary facilities (excluding on-site power plants). The Yulin Development and Reform Commission has completed the approval process for the first phase of the demonstration project on the use of coal in various ways to produce new chemical materials, specifically an ethylene glycol production facility with an annual capacity of 1.8 million tons, operated by Shaanxi Coal Group Yulin Chemical Co., Ltd. (Document No.: Yuzheng Fa Gai Fa [2018] 76). **In the \"13th Five-Year Plan for Demonstrating Advanced Coal Processing Industries\" issued by the Energy Bureau on February 8, 2017, the demonstration project for producing chemical new materials through the differentiated utilization of coal carried out by Shaanxi Coal Group Yulin Chemical Co., Ltd. was classified as a new project for the differentiated utilization of low-grade coal. This project is tasked with carrying out industrial demonstrations related to pyrolysis on a million-ton scale, integrated pyrolysis-gasification technologies, and the hydrogenation of tar to produce aromatics. The project combines coal pyrolysis with semi-coke gasification processes, using three main production routes: coal pyrolysis – coal tar – aromatics, semi-coke gasification – methanol – olefins, and semi-coke gasification – ethylene glycol. Basic chemical raw materials such as \"triolefins\" and \"triphenyls\" serve as intermediate products, which are then used to produce high-value chemical materials such as polyolefins, polyesters, polycarbonates, polystyrene, and acrylates. The project is capable of processing approximately 20 million tons of raw coal per year, resulting in a total annual output of 5.9 million tons of various products, including 1.94 million tons of high-end synthetic resins, 970,000 tons of basic chemicals, and 2.99 million tons of synthetic fiber monomers. This integration of coal chemistry and petrochemical industries enhances the overall competitiveness of the project. The project is planned to be constructed in three phases: Phase 1 will involve the production of 1.8 million tons per year of ethylene glycol, with an investment of 21.946 billion yuan; completion and commissioning are scheduled for 2021 ； Phase 2 includes a medium- and low-temperature pyrolysis plant with a capacity of 15 million tons per year, as well as facilities for coal tar hydrogenation (2.4 million tons per year), methanol production (5.6 million tons per year), and MTO production (2 million tons per year). The investment required for this phase is 44.8 billion yuan, with completion and operation planned for 2023 ； Phase three focuses on new chemical materials, with an investment of 35.3 billion yuan; completion and operation are scheduled for 2025. The project will include 27 processing units, such as 15 million tons per year of medium- and low-temperature pyrolysis, 5.6 million tons per year of methanol, 1.8 million tons per year of ethylene glycol, 2 million tons per year of MTO, 970,000 tons per year of polyethylene, 300,000 tons per year of polystyrene, 600,000 tons per year of polypropylene, 200,000 tons per year of butadiene, 270,000 tons per year of acrylic acid and esters, 2.4 million tons per year of coal tar hydrogenation, 1.16 million tons per year of aromatic compounds production, 2.1 million tons per year of polyester production, and 200,000 tons per year of polycarbonates production. Additionally, there will be supporting utility systems and auxiliary facilities. The total investment in the project will amount to 102.2 billion, with the project covering an area of around 10 square kilometers. Shaanxi Coal Group Yulin Chemical Co., Ltd. was established in December 2017, with a registered capital of 1 billion RMB; its registered address is in Yulin City, Shaanxi Province. It is a wholly-owned subsidiary of Shaanxi Coal and Chemical Industry Group Co., Ltd., and is designated as the platform company for the construction and operation of the group’s \"Demonstration Project for the Utilization of Coal at Different Grades to Produce New Chemical Materials.\" It is responsible for advancing the planning, construction, and operation of this project.