The Kaoyue Coal Chemicals project, with a total investment of 6.8 billion yuan, for the production of 500,000 tons of ethanol from methanol along with related downstream products, is now taking shape on site

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According to Yulin Coal Chemical of Yanchang Petroleum, in 2023, the 500,000 tons per year methanol-to-ethanol project received approval for the construction approach proposed by the group company. The review of the project’s process package and basic design has been completed, and long-cycle equipment is being procured one after another. The downstream product project related to ethanol and acetic acid has completed its project registration process; it has received approval for the preliminary site selection, as well as 11 other approval documents including those related to soil and water conservation plans and preliminary assessments of occupational health risks. The remaining procedures are being processed at full speed. On April 12, 2023, the design work for the foundation of Kaiyue Coal Chemical’s 500,000 tons per year methanol-to-ethanol project commenced. On May 26, the production of 500,000 tons of ethanol began on site. At present, the site preparation work for the 500,000 tons per year methanol-to-ethanol project has been completed; 40% of the demolition work has been finished, and the main construction of the warehouses and sulfur granulation plant buildings has also been completed. The project site is now taking shape. The Kaiyue Coal Chemical Utilization plant makes use of the excess syngas and methanol from the conversion and purification unit of its existing methanol facility, and employs dimethyl ether technology owned by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences; through etherification and hydrogenation reactions, methanol is used to produce 500,000 tons per year of ethanol. It is reported that this project is a key initiative aimed at implementing Yanchang Petroleum Group’s strategy of \"stabilizing oil production and expanding chemical production,\" further extending the industrial chain of Kaiyue Coal Chemical Company, and achieving product upgrades. It is also a key project in Yulin City, Shaanxi Province. In line with the industry policies that restrict the use of grain for ethanol production, it helps to overcome the challenge of competing with food production for grain resources, thereby enabling the achievement of both economic and social benefits ； At the same time, as a project aimed at strengthening and optimizing Kaoyue Coal Chemical’s operations for sustainable development, it has enriched the company’s product portfolio, increased the added value of its products, and enhanced the company’s economic performance; it holds great significance for promoting high-quality economic development in the region. The project is located in Plot C17 of the Southern Area of the Coal Chemistry Industry Zone in Yuheng Industrial Park, and it is a new construction project. The project consists of four sections: a new factory complex, a vinyl acetate plant area, a circulating water pool area, and a reserved area. The total land area of the project is 53.9626 hectares, all of which are permanent land uses. The total investment amounts to 6.868 billion yuan, of which the estimated cost for soil and water conservation measures is around 107 million yuan. Construction contents: include a 200,000-ton/year ethyl acetate plant, a 250,000-ton/year ethanol-to-ethylene plant, a 250,000-ton/year vinyl acetate plant, and a 200,000-ton/year EVA plant, among others. The 250,000 tons/year vinyl acetate plant and associated auxiliary facilities were constructed in advance and put into operation. It will be constructed simultaneously with the Kaiyue Coal Chemical 500,000 tons/year methanol-to-ethanol project.