[2026: Core Competence] The new materials sector derived from coal in Yulin is gaining momentum; a re-tendering process has been launched for a coal chemical giant project worth 79.8 billion yuan

This second tender focuses on supporting services related to copolymerized polyethylene elastomers. It encompasses core aspects such as the production of α-olefins, patent licensing for ethylene tetramerization technology, provision of process packages, and comprehensive technical support. Essentially, it serves to equip this “giant” project with a “core brain,” thereby laying a solid technical foundation for the implementation of high-end polyolefin production capacity.

This is not merely a milestone in the implementation of a single project; it also marks a pivotal moment for the Northern Shaanxi Energy Base as it moves away from the extensive “mining and selling coal” model and steps into an era of new materials characterized by “refined coal processing.” It provides a replicable benchmark model for central state-owned enterprises aiming to upgrade China’s coal chemical industry.

I. The project’s core strengths: A full industrial chain layout lays a solid foundation for transformation. The project is located in the northern area of Qingshui Industrial Park, Yushen Industrial Zone, Yulin. It serves as a key flagship project within the coal chemical sector of the **Energy Group since the 13th Five-Year Plan period. After a decade of development, it has evolved into a top-tier model featuring “self-sufficient resources, a closed-loop industrial chain, and high-end products.”

On the resource side, relying on its own affiliated coal mines and coal preparation plants, the company adopts a model of graded and quality-based utilization of coal. This approach helps to control raw material costs and ensure a stable supply at the source, thereby making full use of this “black gold” resource. This practice aligns with the policy guidelines for the clean and efficient utilization of coal. The industrial sector plans to construct 38 core process units, covering key areas such as coal liquefaction, coal gasification, methanol-to-olefins production, and coal-based biodegradable materials. A full suite of supporting facilities, including storage and transportation systems, environmental protection infrastructure, and combined heat and power generation units, will also be built. This will facilitate the establishment of an integrated industrial system comprising “coal refining and chemical processing + new materials + new energy”, thereby overcoming the bottleneck of homogeneous competition in the traditional coal chemical industry.

On the product side, efforts are made to ensure both energy supply security and green development. The company produces special energy products such as coal-based jet fuel and diesel, while also mass-producing fine chemical products like polycarbonate and mixed aromatics. Additionally, it is investing in the development of biodegradable new materials. Over 60% of its products fall into the category of high-end items that China currently relies on imports for, thus helping to fill gaps in the industry. This second tender focuses on the technology licensing, basic design, and technical services related to copolymerized polyethylene elastomers. It encompasses key aspects such as the production of α-olefins and the patent licensing for ethylene tetramerization technology. Essentially, it serves as the “core brain” for the project, effectively addressing the technological gaps hindering the implementation of high-end polyolefin production capacity.

II. Synergy among five major sectors: Unlocking the key to adding value by selling coal “from tons to grams”. The project is divided into five main engineering components. Each sector has clear responsibilities and works in coordination with others. Through technology integration and process optimization, these sectors facilitate a qualitative leap in the value of coal. Every single sector plays a crucial role in driving the high-end transformation of the coal chemical industry.

As the industrial cornerstone, the coal gasification segment retains a methanol production capacity of 2.1 million tons per year. In response to the hydrogen demand for coal liquefaction, the coal gasification and air separation units are expanded and optimized. Equipment such as hydrogen purification and methanol synthesis systems is also installed to provide a stable supply of raw materials for the entire project. This ensures the efficient and circular utilization of resources, thereby solidifying the industry’s cost competitiveness.

The coal liquefaction segment represents a new key growth driver. A newly constructed direct coal liquefaction production line with an annual capacity of 2.16 million tons has been put in place, along with key facilities such as large-scale coal liquefaction and hydrostabilization units. This significantly enhances the capacity for deep coal processing, facilitates the first-ever high-value conversion of coal, and strengthens the supply capabilities for specialty energy products.

In the downstream segment of methanol-to-olefins, efforts are focused on improving efficiency and quality. The existing production capacity is being optimized—the capacity of methanol-to-olefins plants has been halved, while the structure of downstream products is also being adjusted accordingly； The polyethylene plant is being upgraded to produce high-value-added products such as specialty rubbers and ultra-high molecular weight polyethylene. Meanwhile, production lines for low-efficiency alcohol ether derivatives are being phased out, enabling a targeted entry into the high-end polyolefins market.

In the oleyl alcohol co-processing segment, efforts are being made to fully exploit the value of by-products. A new naphtha-methanol coupled cracking unit with a capacity of 2 million tons per year is being constructed, aiming to maximize the high-value utilization of naphtha and optimize raw material conversion efficiency. This initiative seeks to turn waste into valuable resources, thereby further enhancing the economic benefits across the entire industrial chain.