“Research in Ordos, part of the \"Golden Triangle,\" concludes: Vast landscapes underscore the abundance of coal-based energy and chemical industries there”

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“Research in Ordos, the “Golden Triangle” of energy and chemicals: Vast landscapes reflect the abundance of coal-based energy and chemical industries. Author/Source: Sinochem New Network Date: 10-09-2019 Clicks: 46 The “Golden Triangle” of energy and chemicals, with its extensive resources, is represented by Ordos in Inner Mongolia. From September 24 to 28, the third field research mission on the coordinated development of the energy and chemical industry in the \"Golden Triangle\" region was conducted in Ordos, marking the successful conclusion of the nearly 2-month-long expedition there. The research team visited the **Shenhua Ordos Coal-to-Oil Branch of the Energy Group located in Yijinholo Banner, as well as Inner Mongolia Rongxin Chemical Company, NeoEnergy Co., Ltd., and Inner Mongolia Ely Chemical Industry Company in the Dalat Economic Development Zone of Dalat Banner. They also went to Ordos Power Metallurgy Group Co., Ltd. and Jianyuan Coal Chemical Technology Company in the Qipanjing Industrial Zone of Otogon Banner. Moving from traditional coal chemical processes such as coal-to-ammonia production and coal coking, to modern ones like coal-to-oil and coal-to-olefins, and further to emerging industries related to coal-based new materials and services in the coal chemical sector, the team undertook a comprehensive exploration of the coal-based energy and chemical industry across Ordos, traveling from south to north and then from east to west. 　　**The Shenhua Ordos Coal-to-Oil Branch of the Energy Group is located in Ulanmulun Town, a nationally recognized civilized village and town, on the banks of the Ulanmulun River. It is a company renowned worldwide for its large-scale direct conversion of coal into oil. Chen Maoshan, the company’s chief engineer, told the inspection team that the 1.08 million tons per year coal-to-oil conversion plant built by the company is the only commercially operational plant of this scale in the world for converting coal directly into oil. In addition, there are also a 180,000 tons per year plant for converting coal indirectly into oil, as well as a 100,000 tons per year CCS (carbon capture and storage) facility; thus, the site integrates facilities for direct coal-to-oil conversion, indirect coal-to-oil conversion, and carbon emission reduction. 　　Since entering commercial operation in 2011, the million-ton coal-to-oil project has achieved significant technological progress and numerous successful demonstration results. Firstly, its energy conversion efficiency is close to 60%, the highest among all modern coal chemical processing routes, thus opening up a new realm for the efficient and clean conversion of coal. Secondly, the special oils rich in naphthenic oil produced are unique to the direct process, and they have broad application markets and prospects in fields such as aviation, aerospace, and military use. Thirdly, water consumption continues to decline, dropping from nearly 10 tons of water per ton of oil initially to below 6 tons. **The Energy Bureau’s latest figure is 5.82 tons, and it is possible to use water from coal mines as a source, resulting in zero wastewater discharge during the production process. Fourthly, its economic efficiency and competitiveness have continued to improve; in 2018, even after bearing a refined oil consumption tax of over 2,000 yuan per ton, the project still achieved a net profit of more than 170 million yuan. 　　As **model projects for energy security, initiatives such as the million-ton per year direct coal liquefaction project have won numerous awards for innovation, including the First Prize for Scientific and Technological Progress. They have also become key energy demonstration projects that are frequently inspected by Party and **leaders, serving as a symbol of the energy revolution and energy security. “Although large-scale direct coal-to-oil conversion is currently limited in scale, its technical maturity is no less than that of the indirect methods, and it offers significant advantages in terms of product diversity, uniqueness, and differentiation; therefore, it holds great potential for development, and we have great confidence in it. ”Chen Maoshan said. He suggested **implementing a flexible consumption tax system on refined oil products for the emerging coal-to-oil industry, whereby higher taxes are imposed when oil prices are high and appropriate reductions are granted when prices are low, thereby helping to ensure the stable and sustainable development of this industry. 　　The Dalaat Economic Development Zone is located in the bend of the Yellow River shaped like the character “ several” It is one of the top 10 industrial parks in Inner Mongolia, bringing together well-known enterprises such as Yankuang, Ely, SNOW, Inner Mongolia Junzheng, and Dongfang Hope. It has seen rapid development in recent years; just last month, it was selected, along with the Ordos Dalu Industrial Park, as part of Inner Mongolia’s first batch of “**Industrial Transformation and Upgrading Model Parks**”. According to Fu Zhong, deputy director of the park management committee, the Dalaat Economic Development Zone boasts significant geographical advantages – it is only 25 kilometers away from Baotou, Inner Mongolia’s second-largest city – and has convenient transportation. High-standard highways have been built throughout the zone following advanced planning concepts. Three railways pass through the area, and a modern logistics industrial park of high standard has also been established there. Water supply is secure, with an annual capacity of 50 million cubic meters at present. 　　The current industrial focus of the park includes coal power and aluminum production, the chemical industry (with an emphasis on coal-based chemicals, chlor-alkali chemicals, biochemicals, etc.), building materials (with a focus on ceramics, cement, PVC profiles, etc.), and new materials (with an emphasis on sapphires, silicon carbide crystal materials, polyphenylene sulfide and other polymer materials). Looking to the future, the park will leverage its strong comprehensive advantages to enter the market at a high level and pursue construction to high standards. It will focus on expanding and strengthening the key industries as well as promoting their development in high-end and high-value directions, with the goal of achieving an output value of over 60 billion yuan by the end of the 14th Five-Year Plan period. 　　Inner Mongolia Rongxin Chemical is a coal deep-processing enterprise established solely by Yankuang Group in the Dalat Economic Development Zone. Zhu Min, the company’s deputy general manager, explained that the first phase of the enterprise was completed and put into operation in 2014, with main products including coal-based methanol as well as liquid nitrogen, liquid oxygen, steam, and vent gas. The second-phase project, a circular economy demonstration project with an annual production capacity of 400,000 tons of coal-based ethylene glycol and 300,000 tons of DMMn (polymethoxydimethyl ether), began construction in 2017 with an investment of 7.68 billion yuan. Construction is now in its final stages, and trial production is set to begin soon. 　　As a demonstration base for the multi-nozzle coal-water slurry gasification technology independently developed by Yankuang Group, Rongxin Chemical has taken on the task of demonstrating the use of multi-nozzle gasifiers with capacities of 3,000 tons per day and 4,000 tons per day. This includes two projects under the **\"863 Program\"** as well as one major scientific and technological project, which is of great significance. Zhu Min told the research team that as a pioneer in autonomous large-scale gasification technology, the multi-nozzle gasification technology has been under development for over 20 years; it boasts a long history of development and extensive experience, and its technology is now mature. It exhibits unique advantages in terms of improving the stability of the equipment, reducing capital costs, and minimizing the amount of wastewater and waste residue that needs to be treated. According to the company’s plans, Rongxin Chemical will subsequently build facilities for producing 800,000 tons of olefins per year, 1 million tons of coal-based ethanol, 200,000 tons of polycarbonate, and 600,000 tons of aromatics. Ultimately, this will enable the company to achieve an annual production capacity of 5 million tons of various fine chemical products, resulting in annual sales revenue of over 10 billion yuan. This will position the company at the forefront of the transformation and development in China’s coal-based fine chemicals industry. 　　Newao New Energy Co., Ltd. is a key energy and chemical project developed by the Newao Group; its total investment amounts to nearly 8 billion yuan. The project is constructed in two phases: the first phase involved a methanol production facility with an annual capacity of 600,000 tons (with actual production reaching 750,000 tons), which came online in 2011; the second phase entailed a stable light hydrocarbons production facility with an annual capacity of 200,000 tons, which was completed and put into operation in June 2018. 　　Wang Lei, deputy general manager of the new energy company, explained that the company is distinguished by its innovative concepts, advanced technologies, and new business models. Following the principle of \"integrated park development,\" several key industrial sectors have been established: first, the expansion of the methanol industry chain, with efforts to develop dimethyl ether, silicone products, and other related items; second, a focus on technology development, through partnerships with universities and research institutions to advance technologies such as low-carbon alcohols, with the goal of becoming a leader in the creation and supply of specialized technologies for coal-based energy chemistry; third, an emphasis on environmentally friendly applications, including the production of food-grade carbon dioxide, the use of waste residues for brick manufacturing, efficient water utilization, and ammonia recovery – all part of green technology initiatives. In terms of innovation, Xinneng Energy has undertaken two **\"863 Program\" projects: one is catalytic gasification of coal, and the other is hydrogenation gasification of coal; both are now in the stage of engineering demonstration. 　　Zhang Guojie, the chief engineer of Ely Chemical Company, explained that Ely Chemical is an important enterprise under Ely Resources Group, a global leader in desert ecosystem restoration. It is part of Ely Clean Energy Company, which focuses on the development of clean energy and environmental protection industries. Ely Chemical also serves as a key company in the Ely Dalaat Banner industrial park, as well as a pilot platform for creating new models of desert ecological circular economy. The company was established with joint investment from Inner Mongolia Yili Clean Energy Co., Ltd., Shanghai Huayi Group, and **Energy Group. The initial phase of construction involved setting up a facility capable of producing 400,000 tons of PVC per year, as well as 400,000 tons of ion-exchange membrane caustic soda, along with a dedicated thermal power plant. When it came online in 2007, it was the largest PVC production facility in the world that used the acetylene process at that time, as well as the largest PVC production facility in China to be put into operation all at once. Following an expansion and renovation in 2011, the company’s annual PVC production capacity reached 500,000 tons. 　　As an energy enterprise under Ely, Ely Chemical possesses a green mindset; it is committed to becoming an environment-friendly company and a forest-style ecological factory, aiming to become a benchmark in China’s chlor-alkali industry. To this end, the company has always been at the forefront of innovation: it was the first to explore the recovery of acetylene from water, the first to develop and apply a complete set of technologies for the recycling of calcium carbide powder. It undertook projects under the \"863 Program\" to study the production of calcium oxide from calcium carbide slag, and was the first to achieve zero wastewater discharge. By supplying solid wastes such as calcium carbide slag and fly ash to other companies under Yili Group, it helped them start producing cement. In Inner Mongolia, the company was the first to trial low-mercury catalysts and to develop mercury-free catalysts, which are now in the pilot testing stage. 　　The Ordos Power Metallurgy Group is another key industry of the Ordos Holding Group, which is committed to \"warming the world\", and it represents another major focus beyond the cashmere products industry; it comprises four business units focused on coal power, metallurgy, chemicals, and marketing. According to Ji Xiaochun, deputy general manager of the group’s chemical division, and Niu Qiang, director of the Ordos Industrial Technology Research Institute, the group has three chemical industry chains. The first involves using semi-coke and limestone to produce 1.3 million tons per year of calcium carbide; electrolyzing raw salt to produce 300,000 tons per year of caustic soda; and using the calcium carbide process to manufacture 400,000 tons per year of PVC, as well as using calcium carbide slag to produce desulfurization agents for power plants (200,000 tons per year) and cement (1 million tons per year). The second chain involves using natural gas to produce synthetic ammonia and urea, with an annual output of 540,000 tons of synthetic ammonia and 950,000 tons of urea – figures that rank first in China’s gas-based nitrogen fertilizer industry. The third chain involves using silicon powder, hydrogen, and chlorine to produce 8,000 tons per year of polysilicon. 　　In addition to the simultaneous development of these three key industrial chains, the group has established an innovation and R&D platform called Hanbo Technology Company, as well as an additive factory that serves more than a dozen chlor-alkali enterprises in China. This approach continues to deepen the scope and complexity of the energy and chemical industry, resulting in the formation of a distinct small chemical industry ecosystem in Qipanjing. “Creating a world-class clean circular economy industrial base and building happy enterprises with international competitiveness have become the beautiful visions that the group is committed to pursuing. 　　Jianyuan Coal Chemical Technology Company, also located in the Qipanjing Industrial Park, showed the research team the wisdom and ambition to transform the traditional coal coking industry. Ruan Jianfei, the company’s chief engineer, outlined the ambitious plans for its “new coking” initiative: a coking project with an annual capacity of 2.8 million tons, along with a project to produce ethylene glycol from coke oven gas at an annual rate of 260,000 tons. This is the first demonstration project of its kind in China for producing ethylene glycol from coke oven gas, and it represents a groundbreaking and innovative approach; trial production is set to begin soon. There are also plans to build a project for processing 250,000 tons of tar per year and producing 50,000 tons of needle coke per year, with completion and operation expected by 2020 – this will help address the issue of reliance on imports for needle coke. Additionally, there are plans to establish projects for producing 540,000 tons of ** per year and 600,000 tons of caprolactam per year, thereby creating a downstream industrial chain for the deeper processing of tar and crude benzene; completion and operation are also scheduled for 2020. Finally, there are plans to develop an upgraded version of the comprehensive utilization project for coke oven gas, aiming to make full use of all components present in coke oven gas through optimized treatment processes, resulting in multiple products such as LNG, synthetic ammonia, NPK compound fertilizers, and hydrogen; this project is expected to be completed by the end of 2020. “Once all the processes are integrated, we will establish a modern coking industry complex with a completely renewed appearance, thereby eliminating the dirty, dark, and smelly image associated with traditional coal coking industries. This will enable the full, clean, and high-value utilization of coal and coal tar resources. ”Ruan Jianfei said. The research team also learned that in the northern banners of Ordos, there is an abundance of thermal coal, but a shortage of raw coal. The raw coal needed for the development of the coal chemical industry, as well as materials such as brine and limestone required for the chlor-alkali industry, must be imported from other banners or cities. Along the roads, large heavy-duty trucks travel in large numbers, and many roads are covered with thick layers of coal ash. Local enterprises generally express the hope that various parties will work together to build a number of branch railways in order to overcome the bottlenecks in the transportation of bulk raw materials and products in the region.