Indirect coal-to-oil production at Yitai Coal in Inner Mongolia began producing oil at around 4 a.m. today!

What exactly is the situation? Are there any specific figures available? What is the quality of the oil/?

How is the oil production? Has it reached the designed level?

Du Zi visits Yitai Coal-to-Oil Co., Ltd. for an inspection – Ma Yanping, Ordos Culture, Sports and Transportation Station, March 18, 2009. On March 15, the first coal indirect liquefaction production line in China operated by Yitai Coal-to-Oil Co., Ltd. began to have additives added to it, entering a crucial stage in the production of synthetic oil. Du Zi, Secretary of the Municipal Party Committee, went to the company specifically to conduct an inspection, accompanied by members of the Municipal Party Committee**, Vice Mayor Wang Fengshan, and Vice Mayor Bai Yuling. During the research, Du Zi pointed out that coal chemical industry represents an advantage for the future development of our city. In line with the strategic goals of \"structural transformation and strengthening the city through innovation,\" we should vigorously promote the development of this industry in order to turn our city into a world-class base for coal chemical production. 　　The Yitai coal indirect liquefaction project is located in the Dalu New Area of Zhungeer Banner. It was approved in 2005 and construction began in 2006; it represents the first production line in China for the industrial application of fully domestically developed technology for coal indirect liquefaction. The production line began operations in May 2005. The project was designed to have an annual production capacity of 480,000 tons, with a total investment of 4.975 billion yuan. The designed production capacity for the first phase is 160,000 tons per year, with an investment of 2.176 billion yuan. All equipment is currently operating normally. 　　On behalf of the municipal Party committee, Du Zi extended warm congratulations on the successful progress of the production line. He said that the indirect coal liquefaction production line at Yitai Coal has entered the synthetic oil stage, marking a crucial step forward for the coal-to-oil projects carried out by local enterprises in our city. This development brings honor and pride to Ordos City as well as to the autonomous region. I am very encouraged to hear that Itai Group will continue to pursue independent innovation in its future development, increase investment, and expand its production scale. 　　Du Zi pointed out that, in the face of the current severe international and domestic economic conditions, the city’s economy continues to develop in a healthy and rapid manner. In January and February of this year, the city’s fiscal revenue reached 7.51 billion yuan, an increase of 120%, placing it at the forefront among cities at the prefecture level across the country. We must focus on ensuring growth in the short term, while also planning for development in the long run. The strategy of \"structural transformation and strengthening the city through innovation\" put forward by the municipal party committee at its sixth plenary session of the second term represents a new strategic decision made on the basis of a scientific assessment of the current international and domestic economic situation. It constitutes a new framework and set of requirements for the city’s industrial structure and development model, and is crucial for the sustainable development of the region. Implementing the strategy of \"structural transformation and strengthening the city through innovation\" represents the municipal party committee’s rational understanding of the laws governing Ordos’ development. It is an in-depth exploration of a path for scientific development in Ordos, reflecting the objective demands of progress in the times. This strategy is in line with both the directives of the central government and the actual conditions of Ordos. At present, there is a consensus across the city, and efforts are being made to carry it out fully. 　　Du Zi pointed out that Ordos possesses abundant coal resources, and the industry with the greatest potential for development in Ordos is the coal chemical industry. Within the overall industrial structure of market economies at home and abroad, new competitiveness lies in the expansion, concentration, and intensification of key competitive industries; by increasing their overall scale and creating economies of scale, it becomes possible to develop market aggregation capabilities and absolute competitiveness. We must thoroughly implement the Scientific Outlook on Development, fully recognize our own advantages, build on them, and make the most of them. We should focus on the development of direct coal liquefaction, indirect coal liquefaction, coal-to-methanol production, coal-to-dimethyl ether production, as well as other downstream products, in order to extend the industrial chain. This will enable economic growth to shift from one based on raw material export to one focused on value addition, and will help raise the level of the industry from low-end to high-end, thus creating conditions for the sound and rapid development of our city’s economy. 　　Du Zi pointed out that the introduction of the strategy of \"structural transformation and building a city through innovation\" reflects the wisdom of a group of outstanding enterprises and entrepreneurs in Ordos, and it also stems from the practices of these enterprises and entrepreneurs. Party committees at all levels **must fully recognize the important role that enterprises and entrepreneurs play in implementing the strategy of \"structural transformation and strengthening the city through innovation,\" and provide full support for the development of these enterprises. They should help overcome any difficulties that arise, go to the sites where these enterprises are located, and be available to serve them at any time. At present, **technological innovation is encouraged, as is the extension of the industrial value chain. We must vigorously promote industrial innovation and independent innovation, make greater efforts to secure funding for projects and attract technical talent, and focus on developing skilled teams. This will enable large local enterprises to truly serve as hubs for industrial and independent innovation, as well as places where talented individuals can gather. We must persist in using advantageous resources to attract leading enterprises, and use these leading enterprises to develop prominent industries. For key enterprises as well as major advanced manufacturing projects in the fields of high technology, high investment, and high efficiency, it is particularly necessary to increase policy support, create a first-class cultural environment for enterprises’ independent innovation, and provide a first-class living environment for talent teams. We will strive to attract more advanced manufacturing enterprises to establish their headquarters, production bases, procurement centers, and R&D centers in the park, pursuing a development path focused on large-scale industries, large groups, and large-scale parks. This will help enhance the independent innovation capabilities and core competitiveness of our key industries, enabling us to turn our city into a world-class coal chemical industry hub and achieving longer-term, higher-level, and higher-quality economic and social development for our city.

Has the cost been calculated? With an annual oil production of 150,000 tons, and the current price of refined oil at only 4,000 yuan per ton, the annual revenue does not exceed 600 million yuan. After deducting the costs of raw materials, labor, value-added tax on products, as well as local and national taxes, how much profit is left? When will the initial investment be recovered?

Good news – just hope it won’t turn out to be another failure. I expect high-quality products to be produced, thereby paving the way for the development of the coal chemical industry.

Congratulations! I don’t know what the load factor is? How long it can run continuously is also an issue worth paying attention to. Furthermore, compared with Lu’an’s Lurgi furnace, the proportion of hydrogen in the syngas is higher, which should simplify the syngas reforming stage prior to the Fischer-Tropsch synthesis. The purification process should also be relatively simple. It would be great if someone could provide a comparison of the processes used by Lu’an and Yitai.

First of all, congratulations on the successful production of oil from the coal-to-oil project! ! ! ! It should be the first one in the country, right? Shanxi Lu’an has not yet started production. Born at the wrong time!

There is definitely no issue with the quality of the oil, because: 1) The FTO synthesis catalysts used for oil production have very strict requirements regarding the sulfur content in the syngas； 2) Mechanistically, Fischer-Tropsch synthesis products consist mainly of long-chain hydrocarbons, with very low levels of aromatics ； Therefore, the oil produced by the F-T synthesis is sulfur-free, has extremely low levels of aromatics, and contains a high amount of long-chain hydrocarbons.

Weren’t they saying that projects below the million-ton level can no longer be approved? There are so many regulations – which one takes precedence? None of them might hold true.

The wording is novel and easy to mislead:)

Congratulations! Indirect coal liquefaction has achieved partial success in China, but 160,000 tons is indeed a bit too small. To make a profit, at least 3 million tons are needed; Itai still has a long way to go. But it is necessary to acknowledge the achievements; this year, Shenhua’s 180,000-ton unit is also about to undergo trial operations, and we will wait and see.