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Latest Progress on the 2 million-ton coal-to-oil project in Daliu and the 1 million-ton coal-to-oil project in Ili / Author/Source: Coal Chemical Industry 114 Forum / Date: 11-18-2021 / Views: 15. On November 16, Yitai’s B-share stock (900948.SH) stated on the investor interaction platform that the company is working on coal chemical projects including the 2 million-ton coal-to-oil project in Daliu and the 1 million-ton coal-to-oil project in Ili; currently, efforts are underway to conduct product research and development as well as to apply for project loans. As of June 2021, four downstream product projects in Ili Energy, including high-carbon alcohols, had obtained approval documents for water resource assessment, soil and water conservation plans, and social stability risk assessment. The preliminary evaluation of occupational disease hazards had been approved and filed with the local health commission. The 2-million-ton indirect coal liquefaction demonstration project on Dalu was designated as a key project to be promoted in Inner Mongolia in 2020. Currently, efforts are being focused on evaluating product schemes, conducting research on major process technologies and equipment, and controlling investment costs. Meanwhile, efforts are underway to revise the overall design and procure long-cycle equipment. Construction activities such as site leveling, dynamic compaction, construction of access roads for heavy equipment transport, reactor pile foundations, groundwork, and lifting operations are all progressing as scheduled. Yitai Coal-to-Oil 2 million tons per year coal indirect liquefaction demonstration project: This project is located in the southern industrial zone of Dali Industrial Park, Zhungeer Banner, Ordos City, Inner Mongolia Autonomous Region, with a planned production capacity of 2 million tons of oil products and other by-products per year. The total investment amounts to 29.342 billion RMB. Using the coal resources owned by Yitai Group as raw materials, this project produces oil products such as diesel and naphtha by employing the technical solutions provided by Beijing Zhongke Synthetic Oil Technology Co., Ltd. The annual production capacity of the main products is 2.1535 million tons, of which 1.3891 million tons are diesel, 480,400 tons are naphtha, 176,300 tons are LPG, and 107,700 tons are LNG. In addition, 157,700 tons of by-products such as mixed alcohols, sulfur, and ammonium sulfate are produced each year. Itai Yili Energy’s 1 million tons per year coal-to-oil demonstration project is located in the Itai Yili Industrial Park in Chabuchar Xibe Autonomous County, Ili Kazakh Autonomous Prefecture, Xinjiang Uygur Autonomous Region. The scale of this project is such that it can produce a total of 1.0152 million tons per year of products such as diesel, naphtha, and liquefied petroleum gas; meanwhile, by-products such as mixed alcohols and sulfur are also generated. The total investment for the project is 16.27 billion yuan, of which the capital contribution amounts to 4.85 billion yuan, accounting for 30% of the total investment. This project is a **coal-to-oil demonstration project** that focuses on carrying out demonstration tasks such as the industrialization of the 3,000-ton-class multi-nozzle opposed water-coal slurry gasification technology, the industrial application of improved Fischer-Tropsch synthesis reactors and new-generation catalysts, as well as the mechanical evaporation and crystallization treatment of concentrated brine. Itai Yili Energy Co., Ltd.’s 200,000 tons per year production project for the upgrading of stable light hydrocarbons and liquefied gas: This project uses the hydrocracking unit of the oil processing facility from the coal-to-oil demonstration project, as well as the low-temperature washing unit, to process LPG and methanol as raw materials. The main products produced are 100,800 tons per year of high-quality light hydrocarbons, 36,400 tons per year of LPG, 22,500 tons per year of propylene, and 2,800 tons per year of dry gas. Main construction contents: one set each for the light hydrocarbon reforming unit and the gas separation unit ； 4 propylene storage tanks will be constructed in the intermediate tank area of the coal-to-oil demonstration project, while the storage tanks for the remaining raw materials and products will make use of the intermediate tank area of this same project ； Construct new system ductwork and furnace systems ； The facilities for water supply, drainage, power supply, steam, heating, nitrogen, fuel gas, as well as those for managing environmental waste gases, wastewater, noise, solid waste and preventing environmental risks, are all integrated into Yitai Yili Energy Co., Ltd.’s 1 million tons per year coal-to-oil demonstration project. Itai Yili Energy Co., Ltd.’s 100,000 tons per year FTO wax project utilizes the vacuum distillate from the hydrogenation refining unit of the oil processing facility in the coal-to-oil demonstration project as raw material to produce high-melting-point waxes of various grades. The production volumes are 16,600 tons per year of 85# FTO synthetic wax, 19,900 tons per year of 90# FTO synthetic wax, 15,000 tons per year of 95# FTO synthetic wax, 19,900 tons per year of 100# FTO synthetic wax, and 8,300 tons per year of 105# FTO synthetic wax. The main construction contents are as follows: 1. The main project includes the FTO wax unit area, the decolorization and refining unit, and the granulation process. 2. The utility systems, including water supply, drainage, power supply, steam, heating, and flare systems, will be based on Itai Yili Energy Co., Ltd.’s 1 million tons per year coal-to-oil demonstration project, with a new heater to be constructed. 3. The storage and transportation project includes the construction of a new product tank farm; the raw material storage tanks will utilize the intermediate tank farm of the coal-to-oil demonstration project ； Build 1 new warehouse. 4. Environmental protection measures include oil and gas recovery from storage tanks, treatment of wastewater and solid waste, as well as risk mitigation for environmental hazards; all these are based on the coal-to-oil demonstration project. Measures for treating exhaust gases and noise generated by heating furnaces and granulation processes are new additions. The total investment for this project is 238.77 million yuan, of which 1.88 million yuan is allocated to environmental protection, accounting for 0.7% of the total investment. Yitai Yili Energy Co., Ltd.’s 100,000-ton/year higher alcohol project utilizes oil-washed naphtha produced by the coal-to-liquid demonstration project, light oil rich in alpha-olefins, and crude light hydrocarbons—byproducts of the alkylbenzene project—as main raw materials for the production of higher alcohols. The main products are straight-chain alcohols at 50,000 tons per year and Gilbert alcohols at 50,000 tons per year; meanwhile, the by-products include polycarbon alcohols at 2,700 tons per year, alkanes at 21,600 tons per year, and high-carbon alcohol naphtha at 50,800 tons per year. Itai Yili Energy Co., Ltd.’s 260,000 tons per year alkylbenzene project uses the Fischer-Tropsch heavy oil produced by the hydrorefining unit of the coal-to-oil demonstration project, along with purchased aromatics (benzene), as primary raw materials to produce surfactants. The main product is linear surfactants, with an annual production volume of 120,100 tons. Additionally, it produces 56,100 tons/year of heavy-duty surfactants, 43,300 tons/year of light alkanes, 68,900 tons/year of heavy alkanes, and 16,700 tons/year of crude light hydrocarbons as by-products.