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Modern coal chemical industry enters a crucial period of transformation Author/Source: Sinochem News Network Date: 2019-09-09 Clicks: 36 “From now until the ‘14th Five-Year Plan’ period, it will be a critical time for China to transition from a major country in the oil and chemical sector to a powerhouse, as well as an important period for the transformation, upgrading, and high-quality development of the modern coal chemical industry.” We must take technological innovation as a driving force and structural adjustment as a goal, to seize new heights and write a new legend for the advanced development of modern coal chemical industry in our country. ”At the 2019 China International Coal Chemicals Development Forum held in Xi’an on September 5, Li Shousheng, president of the China Petroleum and Chemical Industry Federation, called on the modern coal chemicals industry to seize opportunities and set off anew. In his keynote speech, Li Shousheng noted that in the first half of the year, both the scale of the modern coal chemical industry and its product output continued to grow steadily. The production capacity for coal-to-oil products was 9.21 million tons, with actual output of 3.52 million tons, representing a year-on-year increase of 14.1%. The production capacity for coal-to-natural gas was 5.105 billion cubic meters, and the actual output was 1.97 billion cubic meters, showing a year-on-year increase of 25.5%. The production capacity for coal-to-olefins was 9.32 million tons, with actual output of 4.317 million tons, an increase of 10% on a year-on-year basis. The production capacity for coal-to-ethylene glycol was 4.38 million tons, and the actual output was 1.663 million tons, representing a year-on-year increase of 56.4%. However, today’s modern coal chemical industry not only faces prominent contradictions in its industrial structure but also numerous severe challenges, such as low international oil prices on a sustained basis, rapid growth in the scale of domestic refining and chemical integration projects, a serious situation regarding safety and environmental protection, and limitations imposed by technological innovation on the development of this industry. Li Shousheng pointed out that to address these challenges, the modern coal chemical industry must carry out four key tasks. First, achieve breakthroughs by gaining an advantage in technological innovation. For example, overcoming a range of key common technologies such as high-performance catalysis, developing modern engineering technologies like large-scale gasification and methanol synthesis, and advancing cutting-edge technologies such as the use of syngas to produce fully biodegradable materials. Second, achieve high-end expansion in the industrial structure. Vigorously develop new chemical materials and high-end fine chemicals, while controlling the large-scale development of coal-to-oil and gas projects. Third, focus on green chemistry in terms of development approaches. Fourth, create new legends by fostering model enterprises and bases. Xie Kechang, an academician of the Chinese Academy of Engineering, particularly emphasized the impact of an unclear strategic orientation on the modern coal chemical industry. He said that due to a lack of understanding regarding coal’s role as the main source of energy self-sufficiency in China, and the fact that modern coal chemical industry can serve as a clean and efficient alternative to petrochemical industries, there has been a tendency to move away from coal use, which has led to an unclear strategic direction for China’s modern coal chemical industry. This in turn results in frequent policy changes, giving companies the feeling of being on a rollercoaster. He believes that clarifying the strategic role of modern coal chemical industry and making the green and efficient development of coal the foundation and top priority for energy transition is an urgent task for industrial development. “We must proudly claim to be producers of clean energy. ”Xie Kechang said. Li Zhijian, deputy director of the Petroleum and Chemical Industry Planning Institute, outlined the overall orientation and development strategies for the high-quality development of modern coal chemical industry during the 14th Five-Year Plan period. He believes that modern coal chemical industry should be based on enhancing industrial competitiveness, with targeted measures taken and development carried out in a moderate manner. Among these, coal-to-oil production should rely on technical and capacity reserves, with a cautious approach to its development; coal-to-gas production requires both technical reserves and partial market integration, with LNG being the main product and pipeline transportation serving as a supplementary method; the utilization of low-grade coal should be planned in a manner that takes into account the characteristics of the resources, with pilot tests and industrial demonstrations of new technologies carried out; coal-to-olefins production should be organized on a centralized basis with a market-oriented approach, along with high-level industrial demonstrations; coal-to-ethylene glycol production should be planned considering both the resource locations and consumption areas, following a market-oriented strategy; as for coal-to-methanol, dimethyl ether, ethylene glycol, and ethanol production, a balanced and moderate development approach is necessary. This forum was hosted by the China Petroleum and Chemical Industry Federation, and attracted over 600 representatives from domestic and international coal chemical industry entities involved in production, research and development, engineering design, as well as news media.