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22 billion yuan! “The 700,000-ton/year coal-to-olefins new material demonstration project of Shensha is being established in Ningxia. Author/Source: People’s Daily Date: April 23, 2020 Clicks: 45 With the arrival of spring, the “Shensha Project”, which has been in preparation for two years, finally began construction on a site within the Shenhua Ningxia Coal Chemical Industry Park in Yinchuan, Ningxia. “\"Shensha\" is a demonstration project for new coal-to-olefins materials with an annual production capacity of 700,000 tons, jointly developed by **Energy Group Ningxia Coal Industry Group Co., Ltd. and Saudi Basic Industries Corporation. Through repeated coordination and discussions by the Ningxia Department of Ecology and Environment, the environmental impact assessment approval for this project was finally granted. “This means that the biggest challenge of the ‘Shensha Project’ has been successfully resolved. ”Yu Xin, deputy director of the Environmental Impact Assessment and Emission Management Division at the Ningxia Department of Ecology and Environment, said. The Ningxia Hui Autonomous Region boasts abundant coal resources, with reserves amounting to over 40 billion tons; the Ningdong area alone has reserves of 33.1 billion tons. The “Shensha Project”, designated by the State Council as a key demonstration project under the 13th Five-Year Plan for the development of the western region, uses coal resources from Ningdong as raw material to produce polyolefin products through processes such as pressurized coal gasification, purification, and synthesis. “It offers good economic benefits and makes use of advanced technology, playing a significant role in promoting high-speed and high-quality development in the autonomous region. ”Sun Huashan, deputy director of the Coal-based New Materials Department at Guoneng Ningmei, said that the project is planned to require an investment of 22 billion yuan; upon completion, it is expected to generate sales revenue of 6.8 billion yuan, profits of 2 billion yuan, and additional tax revenues of 450 million yuan. Although the project was promising, it encountered difficulties right from the start. In May 2018, the Ningxia Department of Ecology and Environment reported on the \"Shensha Project\" to the Environmental Impact Assessment Division of the Ministry of Ecology and Environment. That division concluded that Ningdong’s environmental capacity was limited, with little potential for improvement; therefore, it would be difficult to achieve the goals set for improving environmental quality through the construction of this project. Since it was not possible to ensure a fundamental improvement in the regional environmental quality, the project’s environmental impact assessment could not be approved. “\"Environmental impact assessment is the first and also the most challenging hurdle in project implementation,\" said Sun Huashan. To pass the environmental impact assessment successfully, with the coordination of the Ningxia Department of Ecology and Environment, Guoneng Ningmei carried out upgrades to 14 boilers to enable ultra-low emission levels, and shut down 67 smaller boilers at its various mines. The Ningxia Department of Ecology and Environment also established a dedicated team to provide follow-up support for the \"Shensha Project\". In collaboration with relevant departments, it worked to address key issues such as finding alternatives to coal consumption and reducing pollutant emissions. A systematic assessment was carried out regarding the elimination of outdated production capacities in the Yinchuan urban area, the rectification of \"unregulated, scattered, and polluting\" enterprises, as well as the shutdown of coal-fired boilers and the transition from coal to gas or electricity. As a result, 4.63 million tons of coal consumption were reduced. By working diligently and making use of every available moment, the necessary steps were taken over the past two years to overcome various challenges, and the environmental impact assessment was successfully completed, laying a solid foundation for the implementation of the project. “Ningxia experiences high levels of coal resource exploitation and transformation, which puts significant pressure on improving the regional quality of the environment. The advancement of the environmental impact assessment for the ‘Shensha Project’ has forced Ningxia to phase out outdated production capacities, resolving the environmental challenges associated with this project and creating favorable conditions for subsequent development efforts. ”Sun Huashan said that the project is of great significance for enhancing the added value of coal in Ningxia through local conversion, for developing large-scale \"green\" coal-fired power generation as a clean energy source, as well as \"green\" coal chemical industries and comprehensive deep processing of coal; it also helps to increase the added value of resources and end products, thereby paving the way for high-quality development. Adhering to an ecosystem-first and green development approach, tailoring measures to local conditions and adopting differentiated strategies to promote high-quality development in the Yellow River Basin is the goal of the Ningxia Department of Ecology and Environment. Yu Xin said, “Next, in accordance with the requirements set forth by the Ministry of Ecology and Environment, we will carry out environmental management work diligently. We will ensure that the environmental protection facilities for the project are designed, constructed, and put into use simultaneously with the main project itself, so as to achieve economic and social benefits as soon as possible.” ”