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Shanxi Gas Turbine Power plans to invest in a 100,000 Nm3/h air separation project to support Shaanxi Coal and Chemical Group Yulin Chemical’s coal conversion project. Author/Source: Gas Separation. Date: April 22, 2021. Clicks: 47. On April 21, Shanxi Gas Turbine Power announced that it intends to form a joint venture with Shaanxi Coal and Chemical Group Yulin Chemical Co., Ltd. (referred to as “Shaanxi Coal and Chemical Group Yulin Chemical”) in order to invest in a 15 million tons per year coal conversion project aimed at achieving clean and efficient processing of coal, including the production of olefins, aromatics, and other products (referred to as the “coal conversion project”). This investment will also cover the construction of an air separation plant with a capacity of 100,000 Nm3/h (referred to as the “100,000 Nm3/h air separation project”). Company establishment: Shaanxi Gas Turbine Power and Yulin Chemical of Shaanxi Coal Group jointly established a joint venture to be fully responsible for the investment, construction, and operation of the gas supply project. The company’s registered capital is 180 million yuan (subject to the actual investment amount); among this, Shaanxi Gear Power contributes 144 million yuan from its own funds, accounting for 80% of the registered capital. The basic information of the company is as follows: Company name: Yulin Shaanxi Gas Co., Ltd. (provisional) Registered address: Dabaochang Town, Shenmu City, Yulin City, Shaanxi Province Business scope: Production and sales of oxygen, nitrogen, argon, and rare gases ； Research and development of industrial gas application technologies and related consulting services (provisional). Specific investment project: Project name – The 100,000 Nm³/h air separation unit supporting the coal conversion project of Shaanxi Coal and Chemical Industry Group in Yulin. Cooperation model: BOO. Total investment: 480 million yuan. Cooperation period: 15 years. Market prospects: The coal conversion project of Shaanxi Coal and Chemical Industry Group in Yulin centers around coal pyrolysis. The resulting char is used as raw material for gasification units and as fuel for boilers; the by-produced tar serves as feedstock for downstream facilities such as coal tar hydrogenation units; and the pyrolysis gas acts as raw material for LNG production. This process enables the efficient and differentiated utilization of coal. It falls under the category of “encouraged projects” for the differentiated utilization of coal. The project has been included in the “13th Five-Year Plan for Demonstration Projects in the Deep Processing of Coal Industry” issued by the National Energy Administration (Document No. NEA Tech [2017] 43). The construction site is located within the Yulin National-Level Energy and Chemical Industry Base, which is the only national-level energy and heavy chemical industry base in China. Shanxi Blower Power stated that the investment in this project will increase its operational capacity to 100,000 Nm3/h, which is in line with the company’s strategy to expand its gas business. At the same time, it can also boost the company’s businesses such as “equipment sales, project general contracting, and industrial services,” resulting in significant investment returns and synergistic effects. The investment in this project has significantly enhanced Shaanxi Blower Group’s influence in the power gas industry, serving as a significant model for the company’s entry into the large-scale air separation sector.