Yankuang Lunan Chemical Co., Ltd. Methanol Old Plant Upgrade and Capacity Integration Project

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On June 12, a public announcement was made regarding the status of acceptance of the environmental impact assessment documents for the project aimed at upgrading and integrating the production capacity of the old methanol plants at Yankuang Lunan Chemical Co., Ltd. Project Overview: Project Name: Capacity Integration Project for the Renovation and Modernization of Old Methanol Production Units at Yankuang Lunan Chemical Co., Ltd.; Nature of Construction: Renovation and expansion; Location of Construction: Within the existing plant site of Yankuang Lunan Chemical Co., Ltd. in the Lunan High-Tech Chemical Park; Scope of Construction: An investment of 1,152,466,000 yuan is planned for this project, which involves phasing out the two existing small and outdated methanol production units. A new methanol synthesis and distillation unit with an annual capacity of 1 million tons will be built, along with a heat recovery unit. Additionally, new facilities such as a circulating water station, desalinated water station, power distribution room, and cabinet room will be constructed. The raw gas will come from the purified synthetic gas produced by the existing gasification units, shift reactors, heat recovery systems, and low-temperature methanol washing units in the plant. All other auxiliary facilities will be reused or upgraded using the existing ones in the plant. Chongkuang Lunan Chemical Co., Ltd. currently has two methanol production units with a combined capacity of 560,000 tons per year; the methanol produced is used as raw material for various high-end chemical manufacturing processes within the plant, including those for polyoxymethylene, acetic acid, acetic anhydride, and methyl acetate. The Methanol I plant began construction in July 1999, and qualified methanol products were produced in June 2000; it has been in operation for 24 years to date. The Methanol II plant started up in August 2003, with qualified methanol products being produced in September 2005; it has been in operation for nearly 20 years. These are respectively the first and second single-methanol plants in China to utilize domestic patented technology. In response to the \"Implementation Plan for Special Rectification of Safety Risk Prevention and Control for Old Facilities in Hazardous Chemicals Production and Use Enterprises in Shandong Province (2024)\) issued by the Emergency Management Department of Shandong Province, as well as the \"Benchmark and Base Levels of Energy Efficiency in Key Industrial Sectors (2023 Edition)\) issued by departments such as the Development and Reform Commission, Lunan Chemical has actively carried out renovation efforts. By adopting green and low-carbon process technologies, it has shut down its two existing old methanol production units and suspended operations at its 240,000-ton/year ammonia synthesis plant. The syngas produced is directed toward the newly built 1 million tons/year methanol production facility (the former abandoned urea production unit and urea warehouses within the site have been demolished). This approach enables the upgrading and integration of the two methanol production units’ capacity. By making full use of its own technical capabilities and the advantages of its upstream and downstream product chains, it is possible to reduce production costs, which is beneficial for a low-carbon economy and sustainable development. It also generates favorable economic benefits for the company, promotes its further growth, enhances its competitiveness, and holds great significance for the long-term development of the enterprise. Yankuang Lunan Chemical Co., Ltd. is a subsidiary of Shandong Energy Group, one of the world’s top 500 companies. The company currently has a range of key products, with a total production capacity of 3 million tons. There is a high degree of interconnection between the various stages of production for these products, resulting in established product chains such as ammonia – caprolactam – nylon 6 chips, methanol – formaldehyde – polyoxymethylene, and acetic acid – acetic anhydride – acetates – cellulose acetate. Acetic acid, methanol, and polyoxymethylene are well-known brand products in Shandong Province. The acetic acid production capacity exceeds 1 million tons, ranking among the highest in the country, and multiple indicators have been recognized as **standards**.