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Li Shousheng: Striving to Create a New Landscape for the Advanced, Diversified, and Low-Carbon Development of China’s Coal Chemical Industry. Author/Source: Sinochem News Network. Date: October 22, 2021. Clicks: 12. On September 13, ****, during an inspection of Yulin Chemical Co., Ltd. belonging to the **Energy Group**, emphasized that coal remains the primary energy source in China; it is necessary to pursue a green and low-carbon development path, strive to achieve the goals of carbon peak and carbon neutrality, take into account national conditions, control the total amount of coal used, maintain a minimum standard, gradually reduce coal consumption through substitution, and promote the transformation and upgrading of coal-based industries. The coal chemical industry holds great potential and a bright future. It is necessary to improve the comprehensive utilization efficiency of coal as a raw material for chemical production, and to promote the high-end, diversified, and low-carbon development of this industry. Strengthening technological innovation should be regarded as the top priority, with efforts focused on overcoming key technical challenges. At the same time, there should be active development of coal-based specialty fuels and coal-based biodegradable materials. ****The speech was insightful and rich in content; from the perspective of energy security and modernization, it shed light on the development patterns of China’s coal chemical industry and outlined its future direction, holding great significance for guiding the high-quality development of this industry in China. To ensure **energy security, it is essential to leverage coal’s role as the primary energy source.** Abundant coal reserves, along with a shortage of oil and gas, are prominent characteristics of China’s energy resources. Currently, coal accounts for around 57% of total primary energy consumption, while the country’s dependence on oil and gas abroad reaches 73% and 43%, respectively. In our country, oil and gas are used not only as fuel but also as raw materials in the chemical industry to produce basic chemical products. In 2020, China’s crude oil processing volume was 670 million tons, of which 330 million tons were used to produce refined oil products; over 40% of the crude oil was utilized in the production of petrochemical products. In recent years, significant breakthroughs have been achieved in China’s coal chemical technology, and notable progress has been made in modern coal chemical demonstration projects. Coal can be used to replace crude oil in the production of refined oils, natural gas, as well as various chemical raw materials such as \"three alkenes\" and \"three phenols.\" Through advanced processing, coal can thus serve as a substitute for crude oil, becoming an important part of the trend toward diversification of chemical raw materials worldwide. Developing the coal chemical industry has become an important way and means to leverage China’s advantages in energy and resource endowments, promote the transformation and upgrading of coal consumption, ensure **energy and resource security, and support** modernization. Technological innovation and green, low-carbon practices have become the two key drivers for the sustainable development of the coal chemical industry. Since the 13th Five-Year Plan period, China’s coal chemical industry has actively addressed adverse factors such as sharp fluctuations in global oil prices, a slowdown in economic growth, and the impact of the COVID-19 pandemic. It has also taken an active role in global efforts to combat climate change and achieve the \"dual carbon\" goals, making significant progress in areas such as technological innovation, low-carbon environmental protection, and structural transformation. In particular, the modern coal chemical industry, centered on coal-to-oil, coal-to-natural gas, coal-to-olefins, and coal-to-ethylene glycol, has reached world-leading levels, with significant phased achievements in industrialization demonstrations. First, technological innovation has achieved breakthroughs in multiple areas, resulting in a number of world-class scientific and technological achievements. In the field of coal gasification, advanced coal gasification technologies such as multi-nozzle opposed water-coal slurry gasification technology and aerospace pulverized coal pressurized gasification technology have entered the stage of large-scale operation over long periods of time. In the field of coal-to-oil conversion, advanced manufacturing technologies have been developed for ultra-clean gasoline and diesel, as well as special fuels such as military diesel, high-density aviation kerosene, and rocket fuel; tests of aircraft using oil produced through direct coal liquefaction and tests of rocket engines have also been carried out ； Technologies for producing mesophase pitch from coal tar pitch and for the continuous polymerization of mesophase pitch were developed, and the first 100-ton-scale continuous polymerization plant for mesophase pitch was built ； The key technologies for high-temperature fluidized-bed Fischer-Tropsch synthesis have achieved a pilot-scale production of 100,000 tons per year. In the field of coal-to-natural gas, the methanation technology for coal-to-natural gas has met the conditions for industrialization. In the fields of coal-based olefins and aromatics, the next-generation methanol-to-olefins technology offers significant advantages in terms of methanol conversion rate, selectivity for ethylene and propylene, and methanol consumption per ton of olefins. The technology for producing low-carbon olefins directly from syngas represents a milestone-like innovative breakthrough. In addition, technological innovations in the classified and quality-based utilization of low-rank coal have also made positive progress, providing important support for the effective, clean, and efficient use of coal. Secondly, green and low-carbon development has become a consensus, with significant improvements in energy conservation and emission reduction. Coal chemical enterprises generally recognize that green and low-carbon development is essential for achieving sustainability; they actively adopt new energy-saving and emission-reduction technologies and strengthen the management of energy use and emissions within their operations, resulting in a significant reduction in the energy consumption per unit of coal chemical products as well as the intensity of pollutant emissions. In the operating million-ton-scale coal indirect liquefaction projects, the comprehensive energy consumption, coal consumption, and water consumption per unit of product have decreased to approximately 2 tons of standard coal per ton, 3.5 tons of standard coal per ton, and 5.7 tons of standard coal per ton, respectively ； The energy conversion efficiency of coal-to-natural gas projects is approximately 55%. The coal consumption per unit product is 1.84 tons of standard coal per thousand standard cubic meters, while water consumption amounts to 5.77 tons per thousand standard cubic meters. Both the product quality and consumption indicators are close to or better than the **control targets ； In coal-based olefin projects, the comprehensive energy consumption per ton of ethylene and propylene has been reduced to below 2.4 tons of standard coal, while the energy consumption per ton of methanol has been brought down to around 2.8 tons ； The steam consumption per ton of ethylene glycol produced in coal-based plants can be reduced to less than 6 tons. Compared to thermal power generation, coal chemical industry emits carbon dioxide at a high concentration; this CO2 is easy to recover and at low cost. Approximately 70% of it can be recovered for use in carbon capture, utilization, and storage (CCUS) as well as other industrial applications. Third, the industrial structure continues to improve, with a significant increase in industrial concentration. “Since the 13th Five-Year Plan period, China’s coal chemical industry has focused on optimizing its layout by developing various modern coal chemical industrial clusters, such as the Ningdong Energy and Chemical Industry Base, the Ordos Energy and Chemical Industry Base, and the Yulin high-level Energy and Chemical Industry Base. Emphasis has been placed on the development of coal-to-oil, coal-to-gas, coal-to-methanol, coal-to-olefins, coal-to-ethylene glycol processes, as well as related downstream fine chemical industries, resulting in the formation of a modern coal chemical industry cluster with a comprehensive range of products. In 2020, China’s annual production capacities for coal-to-oil, coal-to-natural gas, coal (methanol)-to-olefins, and coal-to-ethylene glycol were 8.23 million tons, 5.105 billion cubic meters, 16.72 million tons, and 5.97 million tons respectively. Among them, the capacity for producing olefins from coal (methanol) accounts for 31.8% of the country’s total polyolefin production capacity, while the capacity for producing ethylene glycol from coal accounts for 36.9% of the country’s total ethylene glycol production capacity. Coal-based chemicals have become an important part of China’s petrochemical industry, providing significant support for the diversification of raw materials used in this sector. To improve the comprehensive utilization efficiency of coal resources, it is essential to accelerate continuous breakthroughs in key core technologies. At present, the world is undergoing changes on a scale not seen in a century; the international environment has become more complex and severe. The global pandemic continues to evolve, with increased instability and uncertainty. There are more factors affecting energy security, and international competition is fiercer. Ecological and environmental protection requirements, particularly those related to achieving carbon peak and carbon neutrality, impose increasingly strict constraints on the coal industry, with higher and higher demands being placed on it. The coal chemical projects that have been built or are under construction in our country are mainly located in the central and western regions with abundant coal resources. This has a significant impact on reducing coal logistics costs, alleviating pressure on coal transportation routes, promoting local economic growth, and facilitating structural transformation. However, these regions generally face issues such as being far away from the end markets for their products, water scarcity, insufficient environmental capacity, and a lack of suitable areas for wastewater disposal. At the same time, constrained by the dual-control targets for energy consumption, modern coal chemical projects currently find it difficult to obtain the corresponding additional quotas. An irrational industrial structure, with a high proportion of basic products and severe homogenization, is one of the key issues that have long constrained the development of the coal chemical industry. The product types of coal-derived oil products are largely similar, and the surge in homogeneous products has increased the survival pressures on coal-to-oil projects. Coal-based olefin products are mainly of mid-to-low grade, while ethylene and propylene products are concentrated in a few general-purpose or mid-to-low grade specialty grades; there are virtually no high-end specialty grade products available. The product structure of ethylene glycol produced from coal is limited; the existing projects mainly produce ethylene glycol as their primary product, and its use in high-end applications such as polyesters remains at a low level. Without addressing the issue of homogenization through high-end development and differentiation, modern coal chemical projects will inevitably lead to overcapacity and cutthroat competition. The main reason for the problems faced in the development of coal chemical industry is that technological innovation has yet to keep up with the needs of industrial development. Many key process technologies have yet to see breakthroughs, the coal chemical industry chain is too short, and the proportion of high-end products is low – these are prominent challenges in the current development of the coal chemical industry. Although research and development of new coal chemical technologies are active at present, most of them are still in the laboratory or pilot stage and require industrial-scale demonstration and verification. In particular, there is an urgent need to develop technologies for the recycling of carbon dioxide in order to reduce the environmental impact of greenhouse gas emissions. Strengthening innovation in coal chemical technology, breaking through the key core technologies that hinder green and low-carbon development, improving the comprehensive utilization efficiency of coal resources, and promoting the development of high-end, diversified, and low-carbon products are urgent tasks for achieving high-quality development in the coal chemical industry during the 14th Five-Year Plan period. Strive to create a new landscape for the coal chemical industry characterized by higher standards, greater diversity, and lower carbon emissions. The 14th Five-Year Plan period represents a crucial time for China’s petroleum and chemical industry to evolve from a large-scale sector to a more advanced one. The coal chemical industry must earnestly study and implement the guiding principles set forth by ****, focusing on improving the comprehensive utilization of coal, optimizing industrial layouts, and strengthening existing supply chains while developing new ones. In this way, it can pursue a path of development that relies on technological progress and improved management practices, thereby achieving higher standards, greater diversity, and lower carbon emissions. First, control the total volume and optimize the industrial layout. It is necessary to distinguish between the raw coal used in coal chemical industries and the fuel coal used for power generation and heating, conduct thorough statistical analysis to understand the current situation, and formulate appropriate plans for controlling the use of coal as raw material for coal chemical industries while strictly regulating consumption of fuel coal. This approach helps avoid one-size-fits-all measures in restricting coal use in various regions, ensuring both improvements in air quality and protection of enterprises from unnecessary harm. Take into account factors such as resource conditions, environmental carrying capacity, ecological security, transportation, and product markets to scientifically and rationally plan the layout of demonstration projects. The pace of development is determined based on resource carrying capacity and environmental limits, while the scale of resource exploitation and industrial layout are planned in accordance with energy supply security, transportation, and processing capabilities, thereby promoting a sustainable development model characterized by larger scales, centralized industrial parks, and specialized bases. Second, optimize the structure to promote high-end and diversified development. The completed demonstration projects should achieve stable, reliable, long-term, full-capacity, and high-quality operation. Efforts should be focused on producing high-end, differentiated products with high added value; improving energy efficiency; reducing resource consumption per unit; cutting pollution emissions; and promoting the development of water conservation and environmental protection technologies as well as the localization of related equipment, thereby serving as models for further upgrades. Priority should be given to the development of ultra-clean oil products and specialty oils derived from coal. At the same time, efforts should be made to promote the downstream chemical products toward greater refinement and higher added value; in particular, the development of coal-based specialty fuels and coal-based biodegradable materials should be accelerated. Continue to develop methanation technology and catalysts, and advance the industrial demonstration at a capacity of 1 billion cubic meters per year. Develop differentiated and high-end polyolefin grades, and enhance the comprehensive utilization of C4 resources. Continuously improve the quality of ethylene glycol products, reduce resource consumption, and produce high-value-added products as by-products. Advance the industrial demonstration of coal-based aromatics steadily. Third is chain extension and coupling to promote green and low-carbon development. Efforts should be made to break the current development model in which various industries remain isolated from one another based on technology and processes. Instead, we should actively explore new models of coupled development among different industries, with the comprehensive utilization of resources as the link, so as to achieve mutual coexistence, interconnection, and coordinated development. It is necessary to adopt a multi-product integrated production approach to achieve the integrated construction and operation of upstream and downstream sectors in the coal-power-chemical industry. Efforts should be made to promote the integrated development of modern coal chemical industry with industries such as petrochemicals, chemical fibers, salt chemistry, metallurgy, power generation, and building materials, thereby extending the industrial chain, strengthening industrial clusters, and facilitating the clean and efficient conversion of coal. Develop energy-saving, water-saving, and environmental protection technologies such as efficient utilization of reaction heat in synthesis processes, effective use of low-grade energy, closed-loop cooling systems, treatment of highly saline concentrated wastewater, and treatment of various exhaust gas pollutants. In cases where there are no water bodies available for wastewater discharge, or such water bodies cannot accept wastewater, the requirements regarding setting limits on wastewater discharge in specific water function zones must be strictly enforced, ensuring that all process wastewater is recycled ； In areas with wastewater reception facilities, strict compliance with the standards for wastewater discharge is required. Efforts are made to develop technologies for the large-scale, low-energy consumption separation and capture of carbon dioxide, as well as engineering solutions for the safe and efficient transport of carbon dioxide. Technologies for the low-energy, low-cost utilization of carbon dioxide on a large scale are also being developed, along with safe and reliable methods for its storage. Research is actively carried out on using carbon dioxide as a raw material to produce high-value and bulk chemicals, in order to reduce the environmental impact of greenhouse gas emissions. Fourth, innovation-led development to enhance sustainable development capabilities. Carry out collaborative research and development involving industry, academia, and application sectors to further develop large-scale advanced coal gasification technologies; develop short-process technologies such as the one-step production of olefins, low-carbon alcohols and ethers, and paraxylene from syngas, the one-step synthesis of paraxylene from methanol, the direct production of higher alcohols from syngas, and the direct extraction of high-value pharmaceutical intermediates and fine chemicals from coal ； Develop ultra-clean coal-derived oil products and specialty oils, while accelerating the production of specialty chemicals by extending operations into downstream chemical products ； Develop differentiated, high-end polyolefin grades and enhance the comprehensive utilization of C4 resources ； Continuously improve the quality of ethylene glycol products, reduce resource consumption, and produce high-value-added products as by-products ； By overcoming engineering challenges related to the pyrolysis of pulverized coal and the separation of gas, liquid, and solid components, we have developed key technologies for the clean, efficient, and graded utilization of low-rank coal on a scale of millions of tons through large-scale integrated pyrolysis processes. Through technological innovation, we are ushering in a new future for the coal chemical industry—one full of immense potential and promise.