Compilation of a research report on the innovative demonstration plan for the China Coal Pingshu coal-based olefins new materials and downstream deep processing integration project

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On September 22, the announcement was made regarding the award of the technical services for preparing the research report on the innovative demonstration plan for the China Coal Pingshu coal-based olefins new materials and downstream deep processing integration project; the winner of this contract was the Petroleum and Chemical Industry Planning Institute. The coal-based olefins new materials and downstream deep processing integration project of China Coal Energy Group Co., Ltd. is an energy transition project in Shuozhou City, where the city and China Coal Group make full use of the integrated advantages of coal, electricity, chemicals, water, and new energy in the Pingshuo mining area. By utilizing high-sulfur, high-ash content coal as raw material, and by integrating approaches such as green electricity and green hydrogen to reduce carbon emissions, this project aims to produce high-end coal-based olefins new materials. It is reported that the investment in the China Coal Pingshuo Coal-based Olefins New Materials and Downstream Deep Processing Integration Project amounts to 29.78 billion yuan. Located in the Chaoyang New Materials Industrial Park of the Pinglu Economic and Technological Development Zone in Shuozhou City, Shanxi Province, this project makes use of green electricity and green hydrogen as means to reduce carbon emissions, thereby producing high-end coal-based olefins new materials. The main construction components include large-scale chemical production facilities such as 2.2 million tons per year of coal-to-methanol production, 800,000 tons per year of ethanol-to-fuel hydrocarbon production along with separation processes, 400,000 tons per year of polyethylene production, and 200,000 tons per year of polypropylene production, as well as the supporting utility systems and auxiliary facilities. The main equipment in the hydrogen production section includes 12 alkaline electrolyzers with a capacity of 1200 Nm3/h each and 1 electrolyzer with a capacity of 1500 Nm3/h. This is accompanied by 3 sets of gas-liquid separation units with a capacity of 4800 Nm3/h each and 1 set with a capacity of 1500 Nm3/h, as well as 3 sets of hydrogen drying units with a capacity of 4800 Nm3/h each and 1 set with a capacity of 1500 Nm3/h. The hydrogen that has been produced through electrolysis, gas-liquid separation, and drying processes is then transported via pipelines to the hydrogen storage area. 4 hydrogen gas cylinders are installed in the hydrogen gas tank area ； For hydrogen compression, 2 reciprocating compressors are installed, one in operation and one as a backup. The project progress is as follows: In May 2025, Saiding Engineering won the bid for the preliminary design of the first phase of the 600,000-kilowatt off-grid renewable energy hydrogen production project in the coal mining subsidence area of China Coal Pingshuo (the part related to green hydrogen integrated with coal chemical processing). In March 2025, the board of directors of China National Coal Energy Group Co., Ltd. approved the investment decision for the CMPSHU Olefins Project, marking a significant breakthrough in the process of getting this project approved according to relevant regulations. In February 2025, a tender was issued for the preliminary design of the first phase of a 600,000-kilowatt off-grid renewable energy hydrogen production project in the coal mining subsidence area of China Coal Pingshu (the part related to green hydrogen integrated with coal chemical processing). In February 2025, China Power Construction Group Beijing Survey and Design Institute Co., Ltd. won the bid for the preliminary design of the photovoltaic power generation part of the project. In September 2024, the environmental impact assessment for the green hydrogen-integrated coal chemical sector of the project was conducted. In June 2024, Saiding Engineering Co., Ltd. won the bid for the feasibility study related to green hydrogen integration in coal chemical manufacturing. In March 2024, the first phase of the 600,000-kilowatt off-grid renewable energy hydrogen production project in the coal mining subsidence area of China Coal Pingshu (the part related to green hydrogen integrated with coal chemical processing) was registered. The China Coal Pingshu Coal-based Olefins Project is located in the Chaoyang New Materials Industrial Park of the Pinglu Economic and Technological Development Zone. It will make full use of the integrated advantages of coal, electricity, chemicals, water, and new energy in the Pingshu mining area, using the high-sulfur coal from the Dong Open-pit Mine as raw material, and integrating carbon-reduction methods such as green electricity and green hydrogen to produce high-end coal-based olefin new materials. Grass planting in the reclamation area of the waste dump at the China Coal Pingshuo East Open-pit Mine. The implementation of this project is of great significance for the energy transition and industrial upgrading in Shanxi and across the country. It contributes to the comprehensive reforms associated with the energy revolution, promotes the clean and efficient use of coal through innovative technologies and processes, and helps Shanxi become a pilot area for such reforms as well as a model base for modern chemical industry development. It drives the development of related industries, creates a complete industrial chain, and promotes the diversified growth of the regional economy. To promote the transformation of the local economy, the completion of this project will inject new momentum into the economic growth of Shuozhou and accelerate the transformation process of resource-based cities. As an important coal and power production base in China, Shuozhou City continues to explore paths for industrial transformation while ensuring a stable supply of energy. The advancement of the China Coal Pingshu coal-based olefins project represents an important effort by Shuozhou in the area of energy revolution and industrial transformation. Project Overview: The coal-based olefins new materials and downstream deep processing integration project of China Coal Energy Group Co., Ltd. is an energy transition project based in Shuozhou City. In this project, Shuozhou City and China Coal Group make full use of the integrated advantages of coal, electricity, chemicals, water, and new energy in the Pingshuo mining area. By utilizing high-sulfur, high-ash content coal as raw material, and by integrating carbon reduction methods such as green electricity and green hydrogen, this project aims to produce high-end coal-based olefins new materials. The total investment in the project is 29.78 billion yuan, it covers an area of approximately 2,940 mu, and the construction period is 3 years. The project will be able to produce 2.2 million tons of methanol per year, as well as 1 million tons of new coal-based olefin materials. The project is located in the Chaoyang New Materials Industrial Park of the Pinglu Economic and Technological Development Zone, using high-sulfur coal from the Dong Open-pit Mine as fuel. The project consists of large-scale chemical production facilities such as a 2.2 million tons per year coal-to-methanol plant, an 800,000 tons per year methanol-to-olefins and olefin separation plant, a 400,000 tons per year polyethylene plant, a 200,000 tons per year polypropylene plant, a 200,000 tons per year hydrogen peroxide plant, a 300,000 tons per year HPPO plant, a 300,000 tons per year polyether polyol plant, and a 100,000 tons per year PPC plant, along with supporting utility systems and auxiliary facilities.