Luan Group’s 1.8 million-ton coal-to-oil project plans to shift toward high-end fine chemicals

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Luan Group’s 1.8 million tons per year coal-to-oil project plans to shift toward high-end fine chemicals. Author/Source: Coal Tar Deep Processing and Hydrogenation Technology Collaboration Group. Date: November 29, 2021. Clicks: 24. According to reports from Luan Group in November 2021, the group’s 1.8 million tons per year demonstration project for the clean utilization of high-sulfur coal for oil, chemicals, and energy production (hereinafter referred to as the 180 Project) focuses on high-end fine chemicals and carbon-based new materials. During the 14th Five-Year Plan period, efforts will be made to revitalize existing assets, reduce oil consumption and increase chemical production, and leverage technological innovation; driven by market demands, the product structure of the 180 projects’ oil production lines will be transformed so that high-end fine chemicals account for around 80% of the total output. By attracting strategic investors, leveraging external resources, and strengthening industrial chains, efforts are being made to promote transformation and upgrading in a \"two-end with multiple intermediates\" model, turning the 180 project from a mere coal-to-oil enterprise into an integrated park for carbon-based new materials and high-end fine chemicals. Since the 180 project was restarted in May this year, its current maximum load has reached 109%. The Lu’an Coal-Based Clean Energy 180 project utilizes Shell’s powder coal gasification technology (4 gasifiers), Sinochem’s iron-based high-temperature slurry-bed F-T oil synthesis technology, as well as technologies for processing iron-based and cobalt-based oils, with an annual production capacity of 1.1769 million tons of oils. The entire process was completed in December 2017. According to Lu’an Chemical Group, the Lu’an 1.8 million tons per year integrated demonstration project for the clean utilization of high-sulfur coal for oil, chemical products, and heat production (referred to as the Lu’an 180 project), after a full-system shutdown last year and operation at reduced capacity in the first quarter of this year, has managed to produce qualified oil products through a series of optimizations such as adjustments to boiler ignition procedures and the reduction of Fischer-Tropsch catalysts. On May 9, 2021, the first gasifier was ignited, and on May 15, the main production process was operational. On June 5, with four furnaces operating in conjunction, the entire system entered a phase of high-load operation. After starting up the operation, the average load of the Fischer-Tropsch synthesis reached 105%, with the highest daily production in July amounting to 3,280 tons. During last year’s system-wide shutdown for maintenance, Lu’an Coal-based Clean Energy focused on the key issues and challenges that affected the system’s efficiency, and carried out 9 technical improvement projects, including the renovation of carbon dioxide compressors, the modification of heat exchange and separation units in the Fischer-Tropsch process, and the improvement of the sealing of vent valves used in gasification and purification processes. Taking the renovation of the heat exchange and separation unit in the Fischer-Tropsch cycle as an example, by using technical measures to improve separation and heat exchange efficiency, 150–180 tons more oil products can be produced per day. Since the beginning of this year, coal-based clean energy companies have changed their coal blending strategies for saving coal usage; instead of using a mixture of blast furnace coal and gangue, they rely primarily on domestic coal and have introduced cost-effective coal varieties from Shaanxi and Inner Mongolia, developing 8 different coal blending formulas. At the same time, the coal storage and distribution facilities are improved, taking into account factors such as coal prices and supply quotas; belt weighing is used to ensure precise mixing of different types of coal, thereby reducing coal consumption costs. In terms of water conservation, improvements are made to the sources of high-pressure heating water for boilers and the condensate system, as well as adjustments are made to the discharge processes for different types of water; this helps to reduce water consumption while ensuring the stable operation of the water system. In terms of power saving, measures such as modifying the carbon dioxide compressors and adding interlock systems for backup were taken to achieve the simultaneous shutdown of both nitrogen compressors. In terms of saving chemical auxiliary materials, the coal formulation is adjusted in real time based on the type of coal, and the optimal ratio of chemical auxiliary materials for different coal usage scenarios is determined, thereby significantly reducing their consumption. Coal-based clean energy is evaluated using the oil-equivalent consumption per ton as a key indicator, with strict control and assessment in place; this has led to improved performance compared to previous levels since its commissioning. It has achieved balance among the coal, gas, water, and electricity systems, ensuring the safe, stable, and long-term full-load operation of the entire system. Operational data show that the specific consumption metrics are at their lowest level since the plant began operations: the average coal consumption per ton of oil produced is 4.38 tons, while water consumption is 7.8 tons. Electricity consumption has decreased by 25.3% compared to 2019, and catalyst usage has been reduced by 4.3%. The Shanxi Lu’an Coal-Based Clean Energy 180 project utilizes Shell’s powder coal gasification technology (4 gasifiers), Sinochem’s iron-based high-temperature slurry-bed F-T oil synthesis technology, as well as technologies for processing iron-based and cobalt-based oils, with an annual production capacity of 1.1769 million tons of oils. The entire process was completed in December 2017. Project Overview: The Lu’an 1.8 million tons per year integrated demonstration project for the clean utilization of high-sulfur coal for oil, chemical, and heat production is a key project under the 12th Five-Year Plan, as well as a major transformation model project for Shanxi Province’s comprehensive reform pilot zone. The project is constructed in two phases: the first phase involves building a production line for coal indirect liquefaction to produce oil at an annual capacity of 1 million tons, while the second phase involves setting up a production line that uses cobalt-based wax oil as raw material to produce 800,000 tons of clean fuels and high-end fine chemicals per year. In total, this results in an annual output of 1.8 million tons of fuels and chemicals, which is why it is often referred to as the “180 Project”. Using Luan’s domestically produced high-sulfur coal as raw material, and by integrating advanced international technologies, the project achieves clean and efficient utilization of coal to produce 49 types of high-end fine chemicals across five categories, including premium waxes, aromatic-free solvents, special fuels, high-quality lubricants, and specialty chemicals, in addition to generating over 115 MW of power from waste heat. The project serves as a demonstration for large-scale gasification technologies of **\"high-carbon, high-sulfur, and high-ash\" coal, a demonstration for the production of high-value chemicals through coal-based Fischer-Tropsch synthesis, a demonstration for the upgrading of traditional coal chemical industries such as those producing methanol, and a demonstration of high environmental standards in modern coal chemical manufacturing. The Lu’an 180 project commenced in February 2013; construction was completed in October 2015. On March 4, 2016, it received approval from the **Ministry of Environmental Protection**, and in November 2016 it got approval from the **National Development and Reform Commission**. On December 4, 2017, the Fischer-Tropsch synthesis unit began producing products, while on December 29, the refining unit started yielding qualified products. Thus, the entire production process was operational, entering a phase of stable production and improved efficiency. On September 23, 2019, the 1.8 million-ton coal-to-oil project at Shanxi Lu’an completed its 72-hour performance calibration.