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Release on the Technical and Equipment Requirements for the Coal Chemicals Project of Inner Mongolia Yitai Group / Author/Source: Huahua Network – Coal Chemicals / Date: 2019-06-13 / Clicks: 7 I. Inner Mongolia Yitai Group Co., Ltd. 1. Company Overview Inner Mongolia Yitai Group Co., Ltd. is a large-scale clean energy company listed on both B-share and H-share markets. Its main business activities cover five areas: coal, railways, real estate development, coal chemicals, and ecological agriculture. The company’s total assets amount to over 110 billion yuan, with more than 7,000 employees. At present, the company operates 11 production mines with an annual coal production capacity of over 50 million tons ； There are 563 kilometers of railways under direct operation, with a designed transport capacity of over 200 million tons per year; the coal transportation capacity exceeds 100 million tons per year. 2. Current Status and Development Plans of Yitai Group’s Coal Chemicals Sector 2.1 Current Status of the Coal Chemicals Sector In order to further extend the industrial chain for the clean processing of coal and increase its added value, Yitai Group entered the field of coal chemicals starting from the 11th Five-Year Plan period. It invested 40.4% of the capital to gain control over Zhongke Synthetic Oil Technology Co., Ltd., thereby acquiring core technologies for coal-based Fischer-Tropsch synthesis for indirect liquefaction. In March 2009, Yitai Group built China’s first 160,000 tons per year coal indirect liquefaction demonstration project, which has been operating steadily for 10 years to date, with an average load of nearly 120% over the past six years. On the basis of the stable operation of the demonstration projects, Yitai Group subsequently launched four more million-ton-scale coal-to-oil projects. Among them, the 1.2 million tons per year fine chemicals project of Inner Mongolia Yitai Chemical Co., Ltd. was successfully commissioned with a single batch of feed at the end of 2017, and has since been operating at full capacity ； The remaining 3 million-ton-scale coal-to-oil projects are affected by **policies and the oil product market; they are currently in the stage of preliminary approval and planning. 2.2 Development Plan for the Coal Chemicals Sector To improve the economic viability of coal chemicals projects, Yitai Group actively seeks strategic partners in addition to relying on its own research and development efforts, and continues to move forward toward the production of high-value chemicals and new materials derived from coal chemicals. This approach enables the company to achieve a transformation in its industrial structure, moving from basic raw material coal to clean fuels, and then to coal-based fine chemicals and advanced new materials. Yitai Group is actively advancing the development of downstream products in the coal chemical industry; it has currently built a facility with an annual production capacity of 300,000 tons of light hydrocarbons ； The 540,000 tons/year fine separation project for FTO alkanes is under construction, with commissioning expected in August this year ； In addition, projects such as a 200,000 tons per year food-grade carbon dioxide plant, a 20,000 tons per year high-carbon alcohol plant, and a 250,000 tons per year lubricant base oil plant are currently in the stages of preparation and approval. 3. Requirements for technical equipment: In July and August 2019, the technical equipment procurement needs of Yitai Group’s coal chemical division focused on water treatment chemicals, anti-corrosion and insulation materials, anti-surge systems for propylene centrifugal compressors, the construction of smart factories, and technological upgrades to existing facilities. Suppliers can keep an eye on the latest tender information online in a timely manner and submit bids. Shi Yongsheng, Deputy Chief Engineer of Inner Mongolia Yitai Group Co., Ltd., will lead a delegation to attend the 5th China (Yulin) International Symposium on New Coal Chemical Industry in 2019. He will also participate in the meeting on matching supply and demand for technical equipment in coal chemical projects (parks) on the afternoon of the 21st; everyone is welcome to engage in exchanges there! II. Xinjiang Guanghui New Energy Co., Ltd. 1. Company introduction: Xinjiang Guanghui New Energy Co., Ltd. currently has projects with an annual production capacity of 1.2 million tons of methanol/800,000 tons of dimethyl ether, as well as 550 million cubic meters of natural gas ； The project has been included in the list of demonstration projects for large-scale coal-based methanol/dimethyl ether plants that are encouraged under the **Petroleum and Chemical Industry Adjustment and Revitalization Plan**, as well as among the key projects of the autonomous region. The project covers an area of 104.655 hectares. Construction began in 2008, it was completed in September 2013, trial operations started in 2014, and full production capacity was achieved in 2016. The actual investment in the project amounted to 11 billion yuan. The main unit of the project utilizes two domestic technologies: Lurgi pressurized coal gasification and the 9-tower low-temperature methanol washing technology. Five process technologies were introduced: methanol synthesis utilizes technology from the Swiss company Cassali ； The synthesis of dimethyl ether and sulfur recovery utilize technology from the Danish company Topsoe ； The air separation unit utilizes cryogenic technology from German company Linde ； Deep cryogenic methane separation utilizes American BV/Contess technology. 2. Main products: methanol, LNG ； By-products: heavy phenol, light phenol, high-quality light phenol. 3. Requirements for technical equipment: Wastewater treatment technology, circulating water management, energy-saving and consumption-reduction technologies, intelligent control technologies, new types of equipment, new catalysts, adsorbents. 4. Description of the current situation: Increasing the recovery rate of wastewater. The temperature difference of the return water in the circulating water system is small, resulting in water savings. Product yield, consumption of raw materials and auxiliary materials. Dechlorinating agents, desulfurizing agents, shift catalysts. Equipment renewal, equipment issue analysis. In recent years, there have been certain technological innovations in areas such as wastewater treatment, VOC control, and energy-saving upgrades. The chairman of Xinjiang Guanghui New Energy Co., Ltd. will lead a delegation to attend the 5th China (Yulin) International Symposium on New Coal Chemical Industry in 2019, and will engage in business discussions at the meeting on the supply and demand of technical equipment for coal chemical projects (parks) on the afternoon of the 21st. All are welcome to participate in these exchanges! III. Yiwu Jiangna New Materials Co., Ltd. 1. Company Introduction: Yiwu Jiangna New Materials Co., Ltd. was established in 2018, with Shandong Xingsheng Group being its largest shareholder and investor. Xingsheng Group has established its wholly-owned subsidiary, Xinjiang Jiangan Mining Co., Ltd., in Naomaohu Town, Yiwu County, Hami Region. The company plans to operate a mine with an annual production capacity of 5 million tons; the first phase of construction will involve an open-pit mine with an annual capacity of 3 million tons. This is part of the overall plan for the Naomaohu mining area, whose designed recoverable reserves amount to 394 million tons. Yiwu Jiangna New Materials Co., Ltd. is now planning to build facilities for the pyrolysis upgrading of low-grade coal at a capacity of 5 million tons per year, the production of clean coal at 1 million tons per year, the hydrogenation of coal tar at 500,000 tons per year, and naphtha reforming at 200,000 tons per year. 2. Requirements for technical equipment: Phenol-ammonia wastewater treatment processes; Key issues and challenges in the development of coal chemistry; Selection of process routes for coal tar hydrogenation; Environmental and energy-saving aspects of vertical pyrolysis furnaces. 3. Current situation: Yiwu Jiangna New Materials Co., Ltd.’s project for the integrated, clean, efficient, and comprehensive processing of low-grade coal at a capacity of 5.5 million tons per year has been registered and is currently in the stage of completing preliminary procedures.