Coordination meeting on the approval process for the Rongsheng Group’s coal-to-natural gas and coal-to-olefins projects with a total investment of 160 billion yuan, as well as the gasification island project

Thread Content

On July 23, a meeting was held in the Zhungeer Economic Development Zone to discuss the regulatory approval processes for Rongsheng Group’s coal-to-natural gas and coal-to-olefins projects, as well as the approval procedures for the gasification island project. Wu Xudong, a member of the Party Committee Standing Committee and deputy head of the government, attended and presided over the meeting. Yang Bao, deputy director of the Management Committee of the Zhungeer Economic Development Zone, representatives from Zhejiang Rongsheng Holding Group Co., Ltd. and Manshi Group, as well as officials from relevant departments in the county and the development zone, also participated in the meeting. At the meeting, relevant officials from Rongsheng Group introduced the project details, and engaged in discussions with attendees regarding the procedures for incorporating coal-to-natural gas and coal-to-olefins projects into planning, as well as matters related to land use, water supply, environmental impact assessments, and energy consumption for the Gasification Island project. The meeting required that relevant departments should emancipate their minds, enhance their sense of responsibility, strengthen communication with enterprises, and go all out to provide excellent project support. We must take proactive actions, be adept at thinking creatively and broadening our perspectives, and dare to take on responsibilities. We should continuously improve our ability to facilitate project development and resolve practical problems, striving to make positive contributions to the high-quality economic and social development of the entire banner. Project Overview: In March 2024, two large-scale coal chemical projects owned by Zhejiang Rongsheng Holding Group Co., Ltd. were approved for implementation in the Inner Mongolia Autonomous Region, marking the official launch of these projects. The registration information shows that the contractor for both projects is Rongsheng Energy Technology (Inner Mongolia) Co., Ltd., a wholly-owned subsidiary of Zhejiang Rongsheng Holding Group. The projects in question are the “Chemical New Materials Project” and the “Coal-based Butyl Octanol and Acetate Project”; both projects were approved for registration on March 1, 2024. In October 2024, Wang Guoquan, Secretary of the Party Committee and Head of the government of the region, presided over a meeting to advance the Rongsheng Green Coal Chemical Integration Project. Ultimately, the three companies agreed that the coal-based butyl octanol and acetate project, with an initial investment of 31.4 billion yuan, is scheduled to begin construction by May 2025 ； According to the design plan and construction schedule, the Rongsheng Green Coal Chemical Integration Project is set to break ground in 2026. The Rongsheng (Ordos) Green Coal Chemical Integration Project explores new pathways for the integrated development of new energy and coal chemical industries, aiming to accelerate the transition of coal chemistry toward a \"low-carbon\" and \"zero-carbon\" model. With a total investment of 160 billion yuan and a planned land area of around 28 square kilometers, the project aims to develop a complete industrial chain for coal-based new materials with an annual production capacity of 6.5 million tons. While developing the entire coal chemical industry chain, corresponding facilities such as 2000MW of wind and solar power generation capacity, 100,000 m3/h of green hydrogen production capacity, and 450,000 tons/year of green ammonia production capacity will be built; upon completion, the annual industrial output value is expected to exceed 150 billion yuan. This includes coal-based methanol and olefins, as well as downstream processing; the final products are more than 20 types of new chemical materials such as polyolefins, specialty rubbers, and carbon fibers. It is expected to process 35 million tons of raw coal annually. At the same time, the project includes the construction of coal mines to supply raw materials, as well as facilities for producing 4 billion cubic meters of coal-based natural gas; in addition, plans are in place for projects such as ultra-high-voltage power grids for transporting electricity and pipelines for transporting natural gas. Rongsheng Group’s coal-to-natural gas and coal-to-olefins projects, which are part of its strategic layout in the coal chemical industry, have attracted considerable attention. With their ambitious plans, these projects hold great significance for promoting local economic development and the efficient utilization of coal resources. The project is located in Zhungeer Banner, Ordos City, Inner Mongolia, an area rich in coal resources – with approximately 60 billion tons of proven reserves. It also possesses resources such as kaolin, limestone, and natural gas, providing a solid resource foundation for the implementation of this project. Rongsheng Group plans to invest in a coal chemical new materials project in the Dalu Industrial Park of Zhungeer Banner, with a total planned land area of around 28 square kilometers; the total investment for this project amounts to 160 billion yuan. In the field of coal-to-natural gas production, the project includes the construction of a facility capable of producing 4 billion cubic meters of coal-to-natural gas per year. At the same time, plans are in place to develop projects for transporting this natural gas, with the aim of creating a complete industrial chain that goes from coal to clean fuel. This approach enables coal resources to be transformed into more efficient and cleaner energy products, satisfying the market’s demand for natural gas while also increasing the added value of coal resources. The coal-to-olefins sector is also of considerable scale. The project uses coal as the starting material; syngas is produced through gasification units, which is then used to manufacture methanol. Methanol is further utilized to produce olefins, thereby creating a full-industry-chain project for coal-based new materials with an annual production capacity of 6.5 million tons. From a process perspective, coal is first converted into syngas, which is the key step in the entire project. The syngas is then subjected to a series of reactions to produce methanol, which is subsequently converted into olefins under specific processes. In this process, gasification units, air separation units, methanol synthesis units, methanol-to-olefins units, as well as various supporting purification and separation devices are involved. The downstream industries have expanded to the production of more than 20 types of new chemical materials, including polyolefins, specialty rubbers, and carbon fibers. Each year, it can process 35 million tons of raw coal locally, thereby greatly facilitating the in-depth utilization of coal resources, extending the coal chemical industry chain, and increasing the added value of products. In terms of the project progress, the chemical new materials project of Rongsheng Energy Technology (Inner Mongolia) Co., Ltd., as well as the projects for producing butyl octanol and acetates from coal, have already been approved for implementation. The total investment in these projects exceeds 20 billion yuan. The construction scope includes the establishment of new gasification units, air separation units, a butyl octanol production facility with an annual capacity of 400,000 tons, an acetate production facility with an annual capacity of 500,000 tons, a vinyl acetate production facility with an annual capacity of 350,000 tons, 3 sets of EVA/LDPE production facilities, each with an annual capacity of 350,000 tons, an acrylic acid and esters production facility with an annual capacity of 3.02 million tons, as well as facilities for sulfur recovery and various supporting utilities, sewage treatment, storage and transportation, and warehouses. The planned construction period for this project is from July 1, 2025, to June 30, 2029, which indicates that Rongsheng Group’s coal chemical project is steadily moving from the planning stage to actual implementation. As the various construction phases progress, it will contribute significantly to the economic development of Zhungeer Banner and the entire Inner Mongolia region, helping to advance the coal chemical industry in the direction of higher sophistication, greater diversity, and lower carbon emissions.