China’s largest coal-to-dimethyl ether project launched in Inner Mongolia

Congratulations! Happy to see the progress of this industry; it’s likely the largest dimethyl ether project currently in operation

Recently, Zhongtian Hechuang Energy Co., Ltd., a company established with joint investment from China National Coal Energy Group Co., Ltd., Sinopec Corporation, Shanghai Sheneng (Group) Co., Ltd., and Inner Mongolia Manshi Coal Group Co., Ltd., was inaugurated in Hohhot, Inner Mongolia. This marks the entry of China’s largest coal-to-dimethyl ether project – the Ordos 3 million tons per year dimethyl ether project – into an accelerated phase of development. 　　It is understood that this project is the largest dimethyl ether project in China to date, integrating coal, electricity, and coal chemical product production as well as pipeline transportation; it is also the world’s largest project for producing alcohols and ethers from coal. The total investment in the project is 43 billion yuan. Its main components include a coal mine with an annual production capacity of 25 million tons, a methanol plant with an annual output of 4.2 million tons, a dimethyl ether plant with an annual capacity of 3 million tons, as well as supporting facilities such as a combined heat and power plant, pipelines for transporting products from Ordos to Jing Tang Port in Tangshan, and dedicated railway lines for the mining area. 　　It is reported that the initial registered capital of Zhongtian Hechuang is 500 million yuan, with China Coal Group and Sinopec each holding 38.75% of the shares, Sheneng Group holding 12.5%, and Manshi Group holding 10%. This project is a demonstration project included in the medium- to long-term development plan for the coal chemical industry; it will use the most advanced process technologies available today to produce the clean energy source dimethyl ether. Please discuss what significant impact this move will have on China’s chemical industry and other sectors

This will have a significant impact on China’s coal chemical industry. The main uses of dimethyl ether are essentially two. One is to serve as a substitute for household liquefied gas for residential use ； The second is to replace diesel as a new type of fuel. Currently, the global production of dimethyl ether does not exceed 500,000 tons. The implementation of this project will significantly change the global dimethyl ether supply landscape. At the same time, if a proper market outlet cannot be found for such an amount of dimethyl ether, the overall risk level of the project will be very high.

Obviously, the sales have already been taken care of!

The data on the second floor is outdated; currently, China’s production capacity exceeds 500,000 tons per year.

Has anyone calculated how much capacity is already in operation? How many are under construction, and how many are about to start construction or plan to enter this industry? I have always felt that the coal chemical industry in China is currently overdeveloped, and it is very likely that coal prices will follow the same path as oil prices. The later you enter now, the greater the risk. However, the feasibility reports for almost all projects state that there is a current shortage of production capacity, with little serious analysis of possible and potential new entrants. Furthermore, there are currently many different types of coal-based technologies in the coal chemical industry, but it is difficult to say which of these technologies is better or more suitable for China’s development in the next one or two years, or even over a longer period of time. The expansion of this experimental field should be curbed.

There’s nothing much to say – keep an eye on this project. It’s not entirely clear yet, but it’s estimated that adjusting supply and demand domestically will solve the issue of sales

Amazing! This should be the trend for projects in China from now on!

Inner Mongolia in China is set to become a coal chemical industry hub in the country, and it is already the largest coal production area in China

Your opinion makes sense. How to transport such a large amount of dimethyl ether? Will pipes work? Liquid transport or gas transport? With no successful experiments to guide us, what should be done with tens of millions of tons of dimethyl ether that have been produced?

Coal mine – thermal power plant – coal-to-methanol – dimethyl ether: the process is perfect, but when will such a large-scale facility be able to operate at full capacity? It is estimated that it will be released in batches. It will be many years before all the supporting facilities are in place. There are too many projects involving methanol and dimethyl ether at the moment; some design firms aren’t even able to prepare the necessary drawings for them. However, most of these projects involve capacities of 50,000 to 200,000 tons, and every enterprise that produces methanol has plans to do this. Dimethyl ether must be liquefied for storage and transportation. It’s more convenient to use pipes when it’s in gaseous form, but this isn’t possible over long distances; in any case, both storage and transportation incur high costs

Transportation is a big problem! ! ! ! !

Damn it, they’re trying to seize control of the energy sector again. The chemical industry claims it needs an investment of 43 billion – when in this lifetime will such a large amount of money be available? The main goal is actually to take control of coal deposits that can produce 25 million tons of coal per year

Inner Mongolia is transitioning from skies filled with blue clouds to darkness. As this transition destroys the environment, who has thought about whether there will still be a pure land left for future generations in Inner Mongolia after the resources have been exploited? Future people will be able to only imagine what that once-pristine land was like through verses describing grasses swaying in the wind with cattle and sheep visible in the distance. How much benefit has industry actually brought to the local people? Who knows?:L

This project is now in full operation; the gas pipeline from Ordos to Qinhuangdao has already started construction.

Long-distance transportation of DME via pipelines should be the approach of the future. Since construction work may progress ahead of pipeline development, transport will take place using tanks and containers until the pipelines are built. DME is seen as a potential substitute for LPG in the future, but it’s not yet easily accepted by the general public. The use of coal as an alternative is also forced upon us, actually forced by the Americans, who have driven up the price of crude oil so much that we are forced to look for cheaper alternative energy sources. From an economic perspective, it’s still worthwhile to engage in coal-based chemical manufacturing at present, unless coal prices soar to the point where the cost of producing products exceeds that of corresponding petroleum products, or if international oil prices drop to such an extent that coal-based chemical manufacturing becomes unprofitable. In the long run, however, this has a significant negative impact on China’s resource reserves. In my opinion, it’s more urgent and practical to manage coal resources properly and prevent these resources from becoming private property of a few coal owners, rather than shutting down certain coal-based chemical projects. This post was last edited by 51425572 on 2008-3-4 at 16:12

Note that capacity does not necessarily correlate with output! Hehe!