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Shanxi: A new hub for the coal chemical industry is taking shape

2026-03-05View Original

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  Coal chemical industry is an important pathway for the coal industry to achieve a green and low-carbon transformation; it is a key component of the energy revolution as well as an effective means to ensure **energy security. As a province rich in coal resources, Shanxi has seen further expansion of its chemical industry since the 14th Five-Year Plan period. Its capacity for independent innovation has continued to grow, and the level of its technical equipment has improved significantly. A industrial framework has been established that is based on traditional coal chemical industries, features deep processing of coking by-products, focuses on the development of modern coal chemical industries, and is supplemented by salt chemicals and fine chemicals – thus laying the foundations for a new hub for China’s coal chemical industry.   “Since the 14th Five-Year Plan period, Shanxi has leveraged four key advantages to drive continuous expansion of the coal chemical industry, laying a solid foundation for high-quality development during the 15th Five-Year Plan period. First, it has abundant coal resources. The proven coal reserves in the province amount to 272.3 billion tons, accounting for about 15.2% of the national total. Of this amount, 140.1 billion tons are coking coal, representing 51.5% of the total ; Anthracite: 59.3 billion tons, accounting for 21.8% ; Poor-quality coal: 43.7 billion tons, accounting for 16% ; Low-grade coal amounts to 29.2 billion tons, accounting for 10.7%; the country has excellent resource endowments for developing the modern coal chemical industry. Second, it has a significant geographical advantage. As an important link between the eastern coastal areas and the central and western regions, transporting urea and coal-derived oil products to the East China region is 100 yuan/ton cheaper in Shanxi compared to Inner Mongolia, and 280 yuan/ton cheaper. Third, the industrial foundation is solid. Shanxi Province has the highest coke production capacity in the country, accounting for about 20% of the national total. Each year, it generates approximately 21 billion standard cubic meters of coke oven gas, 3.5 million tons of coal tar, and 1 million tons of crude benzene. Using these materials to produce chemical products offers a significant cost advantage compared to using coal or oil. For example, the cost of producing methanol from coke oven gas is about 500 yuan per ton lower than that of producing methanol from coal, while the cost of producing olefins from coke oven gas is 1,500 yuan per ton lower than that of producing olefins from coal. Fourth, it has strong R&D capabilities. Shanxi Province is home to numerous **-level research institutions in the field of coal chemistry, including the Shanxi Institute of Coal Chemistry affiliated with the Chinese Academy of Sciences, the Shanxi Research Institute of Huairou Laboratory, and the Shanxi Institute of Clean Energy at Tsinghua University. These institutions provide technical support for the transformation and upgrading of the coal chemistry industry in the province.   “During the 14th Five-Year Plan period, the scale of coal chemical production in Shanxi Province continued to expand, resulting in an annual production capacity of 7 million tons of synthetic ammonia, 9 million tons of urea, 8.13 million tons of methanol, 1.76 million tons of coal-based oil, 1.2 million tons of ethylene glycol, 440,000 tons of caprolactam, and 1.5 million tons of carbon black. The annual production capacity of ethylene glycol derived from coal has increased from 400,000 tons at the end of the 13th Five-Year Plan period to 1.2 million tons currently. The production capacity of methanol from coal increased from 6.6 million tons at the end of the 13th Five-Year Plan period to 8.13 million tons currently. The annual production capacity for converting coke oven gas into natural gas has increased from 905 million standard cubic meters in 2019 to 2.941 billion standard cubic meters at present. Downstream, a variety of products are manufactured using coke oven gas as raw material, while an industrial chain for carbon-based new materials is developed using coal tar and crude benzene as raw materials; as a result, the level of deep processing of by-products from coking has improved significantly.   In terms of policy support, Shanxi Province has formulated the \"Opinions on Promoting the Green and Low-Carbon Development of the Coal Chemical Industry,\" the \"Trial Opinions on the Gradual and Tiered Utilization of Coal Based on Its Quality,\" and the \"Implementation Plan for Reaching Carbon Peak in the Chemical Industry of Shanxi Province.\" It has also issued the \"Shanxi Province’s 14th Five-Year Plan for the Development of the Chemical Industry (2021–2025).\" ; Around the chemical industrial parks, Shanxi Province has formulated the \"Provisional Measures for the Recognition and Management of Chemical Industrial Parks\", the \"Construction Standards and Recognition Management Measures for Chemical Industrial Parks in Shanxi Province\", and the \"Measures for the Identification of Key Monitoring Sites in Shanxi’s Chemical Industry\"; as a result, 24 chemical industrial parks have been recognized in 5 batches.   Looking ahead to the 15th Five-Year Plan period, Shanxi Province will build on its own development advantages, driven by technological innovation and aiming for high-end, diversified, and low-carbon development. It will implement the \"333\" project for the coal chemical industry, striving to create three distinctive industrial clusters in northern, central, and southeastern Shanxi. Special emphasis will be placed on developing three differentiated technical approaches: advanced coking processes, conversion of low-grade coal, and fine chemical production using olefins. By making use of professional investment promotion, technology transfer, and low-carbon development strategies, the province aims to become a new hub for the development of the coal chemical industry in China.

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