First industrial plan for advanced coal processing released, focusing on 5 types of models

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First plan for deep coal processing industry released, focusing on 5 types of models. Author/Source: Date: 2017-03-06. Clicks: 9. First plan for deep coal processing industry released, emphasizing a cautious approach. Recently, the **Energy Bureau issued the ‘13th Five-Year Plan for Demonstrating Deep Coal Processing Industries’ (hereinafter referred to as the ‘Plan’). This is China’s first plan for deep coal processing; it outlines the development direction for this sector while also providing guidance for the clean and efficient use of coal in the future. Deep coal processing refers to the industry of converting coal, which serves as the main raw material, into various clean fuels and basic chemical raw materials. It includes areas such as coal-to-oil conversion, coal-to-natural gas production, selective utilization of low-grade coal, coal-based chemical production, and the co-production of multiple products; it does not encompass the traditional coal chemical industry. Coal is the main energy source and an important raw material in our country. The moderate development of the deep processing industry for coal is not only necessary for **energy strategic technology and capacity reserves**, but it is also an important measure to promote the clean and efficient use of coal and ensure **energy security**. The Plan specifies that the development goal for the industry of deep coal processing is to ensure that by 2020, the existing demonstration projects are operating safely, environmentally sustainably, and stably; that the reliability of domestic technologies and equipment has been proven; that coal-based clean fuels and chemical raw materials gain market acceptance and are put into use; and that the degree of self-sufficiency in equipment further increases. This will help to establish a comprehensive coal processing industry ecosystem with a full range of products, thereby laying a solid foundation for the long-term sustainable development of this industry. In terms of production targets, it is estimated that by 2020, the production capacity for coal-to-oil will be 13 million tons per year, the capacity for coal-to-natural gas will be 17 billion cubic meters per year, and the capacity for the selective utilization of low-grade coal will be 15 million tons per year (in terms of coal processing volume). In terms of technological upgrades, large-scale gasification (12.660, 0.45, 3.69%), hydroliquefaction, low-temperature Fischer-Tropsch synthesis, and methanol-to-olefins technologies have been further improved ； Industrial demonstration has been achieved for technologies such as million-ton-scale pyrolysis of low-rank coal, 500,000-ton-scale deep processing of medium- and low-temperature coal tar, 1 billion cubic meter-scale indigenous methanization, and million-ton-scale coal-to-aromatics production. Zhang Shaoqiang, president of the China Coal Processing and Utilization Association, believes that coal chemical industries generate high levels of carbon emissions and consume large amounts of water; in the past, there were doubts regarding the development of such industries involving deep coal processing. Now, a clear signal has been given that the deep processing industry of coal should develop in a moderate manner. To prevent the overheated development pattern of \"turning every coal resource into chemicals,\" stricter regulation and guidance will be applied to the industry of deep coal processing during the 13th Five-Year Plan period: new projects scheduled for implementation should proceed promptly, while planned reserve projects should first be transformed into new projects before applying for approval ； Those who voluntarily give up, fail to make sufficient efforts, experience slow progress, or delay without reason will have their eligibility for new projects or reserve projects revoked ； Add new model projects based on merit ； It is strictly prohibited to approve projects in violation of regulations or to start construction without prior approval. At the same time, the Plan indicates that the threshold for the deep processing industry of coal is to proceed according to available resources. The Plan emphasizes that resource and environmental carrying capacity should be regarded as prerequisites for industrial development, and that the “three red lines” for water resources management must be adhered to. It is estimated that by 2020, the total annual water consumption for coal deep-processing projects will be around 210 million tons. Coal deep-processing projects primarily rely on surface water from rivers such as the Yellow River and the Ili River. At the same time, there is an increasing use of unconventional water resources such as mine water and reclaimed water. In areas where the total amount of water available exceeds the designated limits, water use quotas are obtained through water rights exchanges. The wastewater from the vast majority of projects is not discharged outside, while the wastewater from a few projects is discharged after meeting the standards. Yu Zhufeng, deputy director of Shenhua Research Institute, told the media that the Plan sets stricter requirements for entering the field of deep coal processing, with green development being one of the key highlights. “During the 13th Five-Year Plan period, coal deep-processing projects will take into account the actual development conditions of various regions, strengthen accountability and supervision regarding energy-saving targets, thereby achieving control over the total amount and intensity of energy consumption. ” At present, China’s coal deep processing industry has taken initial shape. According to statistics, by the end of 2015, China’s production capacity for coal-to-oil, coal-to-natural gas, and coal-to-olefins (including methanol-to-olefins) was 2.54 million tons per year, 3.1 billion cubic meters per year, and 8.62 million tons per year respectively. The actual production volumes in 2015 were 1.15 million tons, 1.88 billion cubic meters, and 6.48 million tons respectively. At the same time, the operational level of the demonstration projects as well as the level of independent technical equipment have also seen significant improvements. To further take the initiative in development, it is necessary to promote comprehensive upgrades and demonstrations of achievements in independent innovation.