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A coal chemical project with an investment of 67.3 billion yuan is in the process of environmental impact assessment; the main equipment for this long-term project has been determined. Author/Source: Huahua Network – Coal Chemicals. Date: March 9, 2021. Clicks: 7. On March 7, Baofeng Energy confirmed its intention to use its subsidiary, Inner Mongolia Baofeng Coal-based New Materials Co., Ltd., as the investment entity to build a 4×1000,000 tons/year olefins production facility in the Tuk Industrial Zone of the Sulihe Economic Development Zone in Wushen Banner, Ordos City, Inner Mongolia Autonomous Region. The total investment for this project is 67.3 billion yuan, of which 62.5 billion yuan is allocated to construction costs (including value-added tax). The funding for the project comes from 30% in the form of the company’s own funds, while 70% is provided through bank loans or other financing methods, ensuring the smooth progress of the project’s construction. During the reporting period, Bank of Communications Co., Ltd. and the Inner Mongolia Branch of Industrial and Commercial Bank of China entered into Comprehensive Strategic Cooperation Agreements with the company, agreeing to provide credit lines of 20 billion yuan and 30 billion yuan respectively for the company’s project construction, resulting in a total credit line of 50 billion yuan. The project aims to be completed by 2023. Image: Baofeng Energy currently has a production capacity of 1.2 million tons per year for polyolefins, 4 million tons per year for methanol, and 780,000 tons per year for fine chemical products. Currently, the third-phase olefin project at the Ningdong facility has officially commenced construction, with completion and operation expected by 2022. Once fully operational, it will add an annual olefin production capacity of 1 million tons, further expanding the company’s production scale and reducing production costs. In June 2020, with the approval of the people’s government of Ordos City, Baofeng Energy’s 4×1000,000 tons per year olefin project was included in the \"Overall Plan for Establishing a Modern Coal Chemical Industry Demonstration Zone in Ordos City\" (Ordos Government Document No. [2020] 35). The revised version of this master plan has been approved by the Development and Reform Commission and the Department of Industry and Information Technology of Inner Mongolia Autonomous Region; it stipulates that Baofeng Energy’s 4 million tons per year olefin production project should be completed by the end of 2023. Baofeng Energy’s 4×1 million tons per year olefin project is part of the 13th Five-Year Plan; the first phase, involving 2.6 million tons per year of olefins, has already been approved (Document No. Wu Fa Gai Fa [2020] 105). At present, the environmental impact assessment for Baofeng Energy’s 4×1000,000 tons/year olefin demonstration project in Inner Mongolia is under review in accordance with the established procedures, and it is expected that the progress will be faster than that of other projects in the past, with completion anticipated ahead of schedule. The preparatory work related to geological surveys, temporary structures, and the preparation of the site for construction is advancing in an orderly manner, and it is expected that construction will begin earlier than originally planned. The Baofeng 4×1 million tons/year coal-to-olefins demonstration project covers a total area of 640.3 hectares, with a total investment of 673,654.5 million yuan. The planned production capacity is 2.6 million tons per year in the first phase and 1.4 million tons per year in the second phase. The construction scope includes facilities for coal gasification, shift reaction, purification, methanol synthesis, methanol-to-olefins production (including olefin separation), sulfur recovery, conversion of C4 to 1-butene, steam cracking, as well as production units for polyethylene and polypropylene. It also includes supporting utility systems, auxiliary production facilities, and storage and transportation infrastructure. The main products are polyethylene and polypropylene, while by-products include sulfur, fuel oil, heavy C4, C5+, MTBE, etc. The main equipment for this project has been largely finalized; a patent license for the multi-nozzle opposed water-coal slurry gasification technology has been obtained. The project includes a methanol production facility with an annual capacity of 11 million tons. Twenty multi-nozzle opposed water-coal slurry gasifiers will be built, each capable of processing 4,000 tons of coal per day; 15 of these units will be in operation while 5 serve as backups. The total effective gas output of the installation (CO + H2) is 3.3 million Nm3/h. The methanol-to-olefins technology used in this project adopts the third-generation patented DMTO technology from the Dalian Institute of Chemical Physics, Chinese Academy of Sciences. Methanol production utilizes the Johnson Matthey (JM) methanol synthesis technology, including 5 sets of methanol synthesis units with a capacity of 7,200 tons per day each.