Ningdong Base Pursues Scale and High-End Development; Baofeng Energy Launches New “Twin” Olefin Project

Thread Content

Ningdong Base Pursues Scale and High-End Development; Baofeng Energy Launches New “Twin” Olefin Project Author/Source: Sinochem News Network Date: 2020-09-30 Clicks: 19 On September 23, as the first major project to begin construction following Ningxia’s first meeting to advance the development of an ecological protection and high-quality development zone in the Yellow River basin, Baofeng Energy’s 500,000-ton-per-year olefin project at the Ningdong Base started work, with a 500,000-ton-per-year C2-C5 comprehensive utilization olefin production project also being planned simultaneously. With the commencement of this new project, every effort will be made to promote the development of 9 key industries in Ningxia, including those related to new materials. Moreover, once completed, this project will serve as a model for achieving high-quality development in Baofeng Energy as well as in China’s modern coal chemical industry. It is reported that once the 500,000 tons per year coal-based olefins project and the 500,000 tons per year C2-C5 comprehensive utilization olefins project are completed, an additional 1 million tons of polyolefin production capacity will be added each year. The company’s annual polyolefin production capacity will rise to 2.2 million tons, while its annual methanol production capacity will increase to 6.4 million tons. The advantages of integration and scale will become even more pronounced, enhancing profitability further. Baofeng Energy’s position as a leader in high-end coal-based new materials will become even stronger, with its polyolefin production capacity nearly doubling, thus solidifying its leadership role in the industry. Within Baofeng Energy’s modern coal chemical industry cluster, the various production units are interconnected, with close links between upstream and downstream processes. The 500,000 tons per year C2-C5 comprehensive utilization project for olefin production uses C2-C5 compounds, methane, and other products generated as by-products from the company’s first, second, and third phases of coal-based olefin production as raw materials. These materials are subjected to recovery and cracking processes to produce high-quality polyolefin products, thereby optimizing resource utilization, increasing the value and price of the products, and further improving environmental emission standards. It is understood that the 500,000 tons per year olefins project includes a high-capacity production facility for 250,000 tons per year of EVA; this product is widely used in fields such as foam materials, wires and cables, functional greenhouse films, and photovoltaic encapsulation films. Currently, the domestic reliance on imported EVA products is as high as 60%. Once the project is put into operation, the 250,000 tons per year production facility will also set a new record for the scale of a single EVA production unit in the western region. Dang Yanbao, chairman of Baofeng Energy, said that in the first half of the year, Baofeng Energy’s second-phase methanol production project with a capacity of 2.2 million tons was put into operation as scheduled, while the newly built 3 million-ton coal coking integrated production project and the solar-powered hydrogen production project also commenced operations successfully. Construction will also begin this time on a project to produce 500,000 tons of coal-based olefins per year, as well as a project for the comprehensive utilization of C2-C5 compounds to produce olefins in quantities of 500,000 tons per year. In terms of project development, the company will continue to follow a development strategy focused on \"industrial scale-up, integrated facilities, advanced technology, cleaner production methods, and product differentiation.\" It will utilize more mature and sophisticated processes, technologies, and equipment available both domestically and internationally, striving to create a new high ground for the development of the olefin industry and thereby enhancing the company’s core competitiveness. It is reported that the project is scheduled to be fully completed and put into operation by 2022. By then, Baofeng Energy’s methanol production capacity will increase to 6.4 million tons, while its polyolefin production capacity will rise to 2.2 million tons. The company will also be able to produce all types of polyolefin products, thereby further strengthening its leading position in the industry. Among them, the newly added 250,000 tons of EVA high-end polyethylene production capacity will also set a new record for the scale of such facilities in the western region, helping to fill the gap in imports of high-end, differentiated chemical products.