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Meeting Held to Launch Shanxi China Coal Pingshuo Coal-to-Ethylene Glycol Project Author/Source: Chemical Industry Network – Coal Chemicals Date: February 25, 2019 Clicks: 17 On February 21, a meeting was held to launch the China Coal Pingshuo Coal-to-Ethylene Glycol Project, marking the official start of this project. Xu Zhengang, Director of the Coal Chemical Engineering Research Institute of China National Coal Group ； Wang Xiangsheng, Secretary of the Party Committee and Executive Director of Pingshuo Group Company; Xu Jin and Yang Jingyi, Deputy General Managers ； Wang YuKui, Director of the Shuozhou Development and Reform Commission, and Gao RiPing, Deputy District Head of Pinglu District, attended the launch meeting. The China Coal Pingshuo coal-to-ethylene glycol project is part of China Coal Group’s 13th Five-Year Plan. In light of market changes, China National Coal Group Corporation plans to launch a 600,000-ton coal-to-ethylene glycol project in 2019. The implementation of this project will further facilitate the on-site conversion and value enhancement of high-sulfur coal in the Pingshuo mining area. The resulting products possess strong market competitiveness, are in line with the development trends of modern coal chemical industry, and can help enterprises accelerate their transformation and upgrading process as well as boost regional economic development. The meeting heard a presentation by the preparatory team for the coal-based ethylene glycol project on the basic situation of the Pingshuo coal chemical industry, as well as the background and future prospects for the implementation of this project ； Donghua Engineering Technology Co., Ltd. provides an overview of the development trends of domestic coal-based ethylene glycol projects, as well as the associated requirements for the Pingshuo ethylene glycol project. Xu Zhengang, director of the Coal Chemical Engineering Research Institute of China National Coal Group, said that leaders at all levels of the group attach great importance to this project, demanding that its construction be carried out in a careful and orderly manner in strict accordance with established procedures, to ensure compliance with relevant regulations. He emphasized that the coal chemical industry is one characterized by high investment levels and high risks; investments in the order of billions do not tolerate any mistakes. Therefore, it is essential to carry out thorough preliminary feasibility studies and detailed research work before proceeding with such projects. At the same time, a high standard should be set; considerations regarding the discharge of wastewater, exhaust gases, etc. should be made in advance, and it is essential to meet **the relevant regulatory requirements. Materials and equipment selection should be of a medium to high standard to ensure that the project maintains market competitiveness and can develop over the long term. Xu Zhengang pointed out that although the coal chemical sector of China National Coal Group started late, it began at a high level and has developed rapidly; it has now become the core business of the group. Developing coal chemistry and striving to expand, optimize, and strengthen this industry holds significant strategic importance for the development of China National Coal Group ； Pingshuo has large coal reserves but of poor quality; it is only by purchasing additional coal to blend with it that profitability can be achieved. Therefore, Pingshuo must pursue a transformation towards developing coal chemical industries and processing high-sulfur coal on-site, which holds great practical significance for the region. Xu Zhengang requested that all parties involved in the project’s design, construction, and management adhere to the following principles during the construction process: First, every step taken must comply with regulations, and support from local authorities must be obtained ； Secondly, the supporting conditions for starting work must be established first; active communication and coordination with local authorities are necessary to ensure that subsequent work progresses safely, efficiently, and in an orderly manner ； Third, the supporting technologies must be mature and reliable; the principle of reliability first followed by advancement should be adhered to, and reliable technologies should be selected based on the operating performance of existing devices in the market ； Fourth, the project must be profitable; it is necessary to take into account the realities of the market as well as the strengths and weaknesses of the company itself, conduct thorough preliminary feasibility studies, and only projects that are expected to be profitable should be invested in ； Fifthly, a comprehensive evaluation and economic analysis should be conducted regarding the configuration of the equipment series; before signing a contract with the design institute, it is essential to take care of all the details and key aspects thoroughly to avoid complications later on. In the early days, China National Coal Group was mainly involved in traditional coal chemical industries, including the methanol project of China National Coal Group Longhua Harbin Coal Chemical Co., Ltd., as well as the ammonia/sulfuric acid projects of Lingshi China National Coal Chemical Co., Ltd./China National Coal Group Ordos Energy Chemical Co., Ltd./Shanxi China National Coal Group Pingshuo Energy Chemical Co., Ltd. In recent years, with the development of modern coal chemical industry, China National Coal Group has made significant efforts to get involved in coal-to-olefins projects. By the end of 2018, China Coal Group, including its subsidiaries and joint ventures, had 5 olefin companies that were in operation, under construction, or planned, with 7 projects in total, resulting in an overall olefin production capacity of 5.75 million tons. These include China Coal Yulin Energy & Chemical Co., Ltd. (Phases I and II), Inner Mongolia China Coal Mengda New Energy & Chemical Co., Ltd., Shaanxi Yanchang China Coal Yulin Energy & Chemical Co., Ltd. (Phases I and II), Zhongtian Hechuang Energy Co., Ltd., and China Coal Pingshuo Group Co., Ltd. The projects included in China National Coal Group’s 13th Five-Year Plan are the 1 million-ton per year methanol production project for the second phase of the Ordos Tuk Industrial Zone ； The 600,000-ton olefin project of Shaanxi Yanchang China Coal Yulin Energy Chemical Co., Ltd. (Phase II), the 600,000-ton olefin project of China Coal Shaanxi Yulin Energy Chemical Co., Ltd. (Phase II), and the 600,000-ton coal-to-ethylene glycol project of China Coal Pingshuo, among others.