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Kailuan Group’s Transformation from a Traditional Resource-Based Enterprise to a Green, Innovative One – How Coal Turns “White” Author/Source: Date: 2022-11-10 Clicks: 27 When talking about Kailuan Group in the past, coal was an inevitable topic； When talking about Kailuan Group these days, one cannot focus only on coal. In the product exhibition hall of the coal chemical industry park owned by Kailuan (Group) Co., Ltd. (hereinafter referred to as “Kailuan Group”), amidst the snow-white polyoxymethylene and adipic acid, pieces of dark coal stand out sharply. “Coal is the raw material for these chemical products; through advanced processing techniques, Wujin can undergo ‘72 transformations’. ”Zheng Qingxue, the chief engineer of Kailuan Group, said. A piece of coal going from black to white reflects the transformation of coal enterprises from traditional resource-based companies into green, innovative firms. From coal mining to the development of modern coal chemical industries, and further on to the development of modern chemical industries, Kailuan Group has grown into a large-scale energy and chemical enterprise with a long industrial chain and advanced technological capabilities. In 2021, the total coal chemical production capacity of Kailuan Group reached 8.6 million tons, generating revenue of 20.2 billion yuan. Shifting towards the development of coal chemical industry: In front of the Kailuan Museum, the \"Century’s Dreams\" monument records the history of the Kailuan Group. In 1878, with the exploitation of the Tangshan coal mines, this area became the birthplace of machine-based mining and railway transportation in modern China, and is known as the \"origin of China’s coal industry\" and the \"cradle of modern Chinese industry.\" For coal mines that have been in operation for over a hundred years, resource depletion is an unavoidable reality. Moreover, with the spread of green and low-carbon production and lifestyle patterns, reducing the total coal consumption and carbon emission intensity has become an inevitable choice. “During the 13th Five-Year Plan period, Kailuan Group phased out a total of 20.16 million tons of coal production capacity, reducing the number of coal mines in the Tangshan area from 11 to 6. Transformation is the only way forward. “Although China’s coal production has ranked first in the world for many consecutive years, it relies heavily on imports for chemical products such as ethylene, propylene, and ethylene glycol. Developing advanced processing of coal can not only improve corporate efficiency but also increase the self-sufficiency rate of chemical products in our country. ”Zheng Qingxue said that Kailuan Group proactively adapted to the evolving circumstances and established development strategies for the coal industry, coal chemical industry, modern service industries, as well as strategic emerging industries. Developing the coal chemical industry presents considerable challenges for a traditional coal mining company. Following the development strategy of \"park-based organization, establishment of specialized bases, integration of upstream and downstream industries, and comprehensive support for auxiliary facilities,\" Kailuan Group is committed to creating a green coal chemical park characterized by industrial clustering, efficient use of land, optimized layout, and complete functional infrastructure. For coal chemical enterprises, technological innovation is particularly important. Since the development of its coal chemical industry, Kailuan Group has always regarded technological innovation as a key driver for its growth in this sector. It selects production processes, technologies, and equipment to high standards; all its existing projects utilize leading technologies from both domestic and international sources. The group also continuously explores new technologies, processes, and projects in the field of coal chemistry. “Since the establishment of the Kailuan Group Coal Chemicals R&D Center in 2009 through a partnership with Beijing University of Chemical Technology, by combining independent research and development with external support, Kailuan Coal Chemicals has achieved comprehensive progress in technologies related to new materials, clean energy, fine chemicals, as well as energy conservation and environmental protection. ”Zheng Qingxue said that Kailuan Group also adheres to a mechanism for bringing in talent through market-based approaches as well as through internal training; it recruits technical experts according to the needs of project development, and simultaneously cultivates talent as it advances the hierarchical utilization of energy resources, expands the industrial chain further, and focuses on high-end areas of the industry. To date, the coal chemical industry of Kailuan Group has seen a total investment of around 16 billion yuan; 9 coal chemical subsidiaries have been established, and five major coal chemical industrial parks, along with three product categories comprising new energy, new materials, and fine chemicals, have taken initial shape. “Eating up all the by-products to the last bit: Tangshan Zhonghao Chemical Co., Ltd. is a wholly-owned subsidiary of Kailuan Energy Chemical Co., Ltd., which is part of the Kailuan Group. In the office of Li Ning, the party secretary of the polyoxymethylene production plant at this company, a stack of unopened socks and T-shirts caught the reporter’s attention. “Is this also a coal chemical product? ” “It is made from polyoxymethylene fiber developed independently by the Kailuan Group. ”Li Ning said that polyoxymethylene fibers with a diameter of less than one-fifth that of a human hair resemble white fluff; due to their properties such as high strength, wear resistance, antibacterial effects, and coolness, they can be used to manufacture core-wound ropes and high-quality clothing fabrics ； Polyoxymethylene particles are as white as snow, and due to their excellent wear resistance and self-lubricating properties, they can be used to manufacture zippers, gears, and other products. It may be hard for ordinary people to believe that all of this comes from coal. “While producing coke as the main product, by-products such as crude benzene, coke oven gas, and tar are generated. ”Li Ning explained that the traditional method of incinerating by-products not only wastes energy but also pollutes the environment. Through technological innovation, it is now possible to make full use of by-products and turn waste into valuable resources; coke oven gas is further processed to produce methanol, which is then oxidized, concentrated, and polymerized to yield polyoxymethylene. Polyoxymethylene fibers represent an even higher-end product. In Li Ning’s office, there is a diagram showing the main industrial chain of coal chemical industry. It outlines three main coal chemical industry chains that stem from the traditional coking industry – the \"coking crude benzene–refined benzene–adipic acid–nylon 66\" chain. Adipic acid is produced using an advanced process of partial hydrogenation of benzene, and the products are sold to 33 countries and regions ； “The \"coal tar – primary processing – advanced processing\" industrial chain is used to further produce carbon materials, dyes, and pharmaceutical intermediates, thereby expanding into the fields of fine chemicals and synthetic materials ； “The industrial chain of “coker gas–methanol–polyoxymethylene, methanol fuel”, in which the polyoxymethylene production technology is at an advanced level. Coal and terms like “white” and “silken thread” had no connection originally, but thanks to advancements in coal chemical technology, coal has been transformed from black to white – a reflection of Kailuan Group’s shift from traditional coal mining to the deeper processing and utilization of resources. “Through technological innovation, coal can now be processed into 67 types of chemical products, and all coal chemical by-products can be utilized to the fullest extent. ”Zheng Qingxue said. Building a circular industrial chain: Tangshan Zhongrun Coal Chemical Co., Ltd. is not far from Tangshan Zhonghao Chemical Co., Ltd. The two companies are located at different stages of the industry chain. Coal is converted into dozens of products at Tangshan Zhongrun Coal Chemical Co., Ltd., and some of these products are transported via pipelines to Tangshan Zhonghao Chemical Co., Ltd., where they serve as raw materials for producing chemicals such as polyoxymethylene and adipic acid. The coal chemical industry of Kailuan Group has practiced the concept of green development since its inception. “Our coal chemical enterprises are not scattered; instead, they are arranged in industrial parks, which is key to establishing a circular economy development model. ”Li Jianhua, deputy chief engineer of Kailuan Energy & Chemical Co., Ltd. and head of the Coal Chemical Technology Department, said that Kailuan Group is actively building a coupled and symbiotic industrial system as well as a resource recycling system. It has established five coal chemical industry parks, with raw materials and resources coming from within these parks or from enterprises in their vicinity; the direct supply of auxiliary facilities helps to reduce costs. The circular economy is also reflected in all aspects of the industrial chain. In the coal chemical industry park of Kailuan Group, the products from upstream projects are used as raw materials for downstream projects, while the by-products generated are fed into the system for reuse and reproduction. Six closed-loop utilization systems have been established for coking waste heat, nitrogen, vent gas, products, water, and waste residues. “In recent years, Kailuan Group has integrated the concept of green development throughout the entire design, construction, production, and recycling process of its coal chemical industry, striving to create green factories that generate less waste, make efficient use of resources, and enable circular sharing of resources between enterprises and society. ”Li Jianhua said. In addition, other plants within the coal chemical division of Kailuan Group also earnestly practice the principles of a circular economy, aiming to build low-carbon, green, and circular industrial chains. Qianan Sinochem Coal Chemical Co., Ltd. and Chengde Zhongluan Coal Chemical Co., Ltd. make full use of the functions of their coking bases: coke is supplied primarily to steel companies, while coke oven gas is used as a heating medium in steelmaking blast furnaces. Crude benzene and tar are processed intensively in the Jingtan Port Chemical Industrial Park, which not only enables economies of scale but also promotes the expansion of the industrial chain. Behind the circular economy lies an economic and environmental win-win scenario. According to calculations, the 5 dry quenching units at Jing Tang Port and Qian’an Industrial Park can recover approximately 200,000 tons of energy equivalent to standard coal per year. The waste heat generated can be used to produce 3 million tons of steam or 625 million kWh of electricity, resulting in a reduction of 625,000 tons of carbon dioxide and 3,750 tons of sulfur dioxide emitted each year. “From relying heavily on coal to developing a variety of coal chemical products, and from being a traditional resource-based enterprise to a new type of chemical company, Kailuan Group has embarked on a path of green transformation. The Party’s *report calls for promoting green development and fostering harmonious coexistence between humanity and nature.