A series of coal chemical industry-related updates, including efforts to accelerate the commercialization of coalbed methane in various regions

Danhua Technology’s coal-based ethylene glycol production technology passed evaluation 2009-3-18 The key core technology used in Danhua Technology’s privately raised funds for investment projects – namely, the \"10,000-ton-per-year process for the gas-phase catalytic synthesis of oxalate esters and the catalytic hydrogenation of oxalate esters to produce ethylene glycol\" – was evaluated on March 18 in Danyang City, Jiangsu Province, under the auspices of the Chinese Academy of Sciences. This marks China’s leadership in the world in achieving a complete set of technologies for \"coal-to-ethylene glycol\" production as well as their industrial application, carrying significant scientific importance, outstanding technological innovation, and notable social and economic benefits. Major technological breakthroughs: Ethylene glycol is a very important basic chemical raw material. In recent years, the domestic demand for ethylene glycol has been growing rapidly; last year, its consumption amounted to 7.01 million tons, while production was only 1.8 million tons, resulting in an import dependence of over 70%. It is understood that currently, the industrial production of large-scale ethylene glycol both domestically and internationally relies mostly on the petroleum-ethylene route. Significant fluctuations in crude oil prices have a serious impact on the production costs of ethylene glycol, as well as on the overall competitiveness of China’s polyester industry and its downstream textile sector. Using coal instead of oil to produce ethylene glycol is in line with China’s energy development strategy; the development of related technologies and processes was included in the \"Eighth Five-Year Plan\" key scientific and technological projects back in the 1990s. Experts believe that the 10,000-ton per year ethylene glycol production technology developed by Danhua Technology, which has now passed the evaluation process, represents a significant breakthrough in technological innovation within China’s chemical industry. Its widespread adoption can replace the traditional petroleum-based methods for producing ethylene glycol. This ethylene glycol synthesis technology was jointly developed by the Fujian Institute of Research on the Structure of Matter, Chinese Academy of Sciences, together with Jiangsu Danhua Group Co., Ltd. and Shanghai Jinmei New Chemical Technology Co., Ltd. Through extensive basic research, applied research, and engineering research, this comprehensive set of technologies incorporates a range of innovative solutions; it has yielded numerous patents and proprietary intellectual properties. This has led to the development of a complete process technology for the gas-phase catalytic synthesis of oxalate esters on a 10,000-ton scale, as well as for the catalytic hydrogenation of oxalate esters to produce ethylene glycol, and the world’s first industrial-scale pilot plant for such processes has been built. The first phase of the project will come online this year. According to Wang Bin, president of Danhua Technology, the company’s application for private issuance of A-share stocks was conditionally approved by the Securities Regulatory Commission’s review panel on February 18. This ethylene glycol technology is the key core technology utilized in the projects funded by this private offering. All related intellectual property rights include the patent rights and patent application rights held by the Fujian Institute of Research on the Structure of Matter under the Chinese Academy of Sciences, as well as the proprietary techniques related to catalysts, plus 51% of the proprietary techniques related to ethylene glycol production; the total value of these rights is 49,021,000 yuan ； 49% of the share of the industrial testing technology secrets related to ethylene glycol held by Shanghai Jinmei Chemical New Technology Co., Ltd. was valued at 19.9463 million yuan. The relevant parties have contributed all the aforementioned intellectual property rights to the project company established for the fundraising efforts, namely Tongliao Jinmei Chemical Co., Ltd., in the form of investments in intangible assets. On March 9, Tongliao Jinmei completed the industrial and commercial registration changes related to the capital contribution for this intangible asset. At present, the construction of the 200,000-ton ethylene glycol plant in the first phase of Tongliao Jinmei, which utilizes this technology, has entered a critical stage, with completion and commissioning expected by August or September this year. This is the world’s first set of industrial facilities for \"coal-to-ethylene glycol\" production, featuring independent intellectual property rights of our country. The funds raised from this planned private issuance of A-share stocks will be used to increase the capital of Tongliao Jinmei, with all of that capital being invested in the construction of the ethylene glycol production facility. Experts predict that once the first phase of the project with a capacity of 200,000 tons is completed and operational, Tongliao Jinmei will become one of the top five suppliers of ethylene glycol in the country; once all phases of the project with a total capacity of 1.2 million tons are completed, it is expected to become the largest supplier of ethylene glycol in China. Thanks to its outstanding advantages such as a short production process, high product purity, low material consumption, and reduced environmental impact, this technology will bring significant cost advantages to the projects funded by Danhua Technology as a result of technological innovation, thereby helping to greatly enhance the listed company’s sustainable operational capabilities and core competitiveness.

Kailuan Group to Invest in Formaldehyde Projects in Ordos 2009-3-18 Recently, reporters learned from relevant authorities that ** in Ordos city and ** in Zhungeer Banner have reached agreements with Kailuan Group, which will invest 3.17 billion yuan in the development of coal chemical projects. 　　It is understood that in 2009, Kailuan Group will commence construction of a project to produce 400,000 tons of formaldehyde per year and a project to produce 40,000 tons of polyformaldehyde per year in the Eastern Industrial Zone of Dalu New Area in Zhungeer Banner. In 2010, another project to produce 400,000 tons of acetic acid per year will be started there, with investment amounts of 242.13 million yuan, 863.43 million yuan, and 2,065.29 million yuan respectively. 　　Accelerating the implementation of a strategy for the on-site conversion of coal resources, relying on projects for producing methanol and oil from coal, and vigorously developing the coal chemical industry are key aspects of Zhungeer Banner’s 11th Five-Year Plan. This approach aims to extend the industrial chain through processing and conversion, enabling multiple stages of value addition to coal resources, so that the coal chemical industry can quickly become a new pillar industry. Once the coal chemical projects are brought online, Ordos City **will provide strong support in terms of railway capacity. 　　It is understood that, in accordance with the regulations, the proportion of labor force from Zhungeer Banner employed by Kailuan Group must be no less than 70%; once the project is completed, it will effectively help to provide employment opportunities for some of the local workforce in Zhungeer Banner.

Kaixiang Tianyuan’s 200,000-ton dimethyl ether project kicks off 2009-3-18 Recently, the 200,000-ton per year dimethyl ether production project of Henan Kaixiang Tianyuan Chemical Co., Ltd. was inaugurated in the Maling Industrial Park in Yima City, marking another coal chemical project being established in Yima. Zhao Zhongsheng, Secretary of the Municipal Party Committee, and Li Lin, Vice Mayor, attended the foundation-laying ceremony. 　　As an alternative fuel for civilian and automotive use, dimethyl ether boasts advantages such as ease of use, complete combustion, non-toxic emissions, and safety and hygiene, making it regarded as the most ideal clean and high-quality fuel as well as a new energy source for the 21st century. The project is planned to require an investment of 110 million yuan, with a designed annual production capacity of 200,000 tons of dimethyl ether, and the construction period is expected to be 8 months. Once the project is completed and put into operation, it will be able to generate annual sales revenue of 940 million yuan, as well as profits and taxes amounting to 45 million yuan. 　　At the ceremony, Li Lin said that in order to actively respond to the international financial crisis, since the beginning of this year, the municipal party committee and the municipal government have launched initiatives for a Year of Project Construction and a Year of Enterprise Services. As an important energy and coal chemical industry hub in our province, Yima City has, in recent years, seen the completion and operation of a large number of significant coal chemical projects that play a crucial role and possess strong driving capabilities. The coal chemical industry cluster in this city has been classified as a first-class industrial cluster in the province, and 15 new and ongoing projects are included in the city’s “8155” investment promotion plan. The groundbreaking and construction of Kaixiang Tianyuan Chemical Co., Ltd.’s 200,000-ton dimethyl ether project will undoubtedly inject new momentum and vitality into project development as well as economic and social progress in Yima and the entire city. It is hoped that the relevant departments in Yima City will provide full cooperation and excellent service to create a favorable environment for the smooth implementation of the project ； It is hoped that Kaixiang Tianyuan Chemical Co., Ltd. will organize the work meticulously and carry out the construction in a scientific manner, striving to turn this project into a high-quality and excellent one ； It is hoped that Yima City will, during the years dedicated to project construction and enterprise services, continue to exert pressure and build on its successes by introducing, launching, and completing a number of large-scale and high-return industrial projects. This will help maintain steady and rapid economic growth, thereby making new and greater contributions to rebuilding Sanmenxia and striving to rank among the leading cities in the Central Plains region. 　　Following the foundation-laying ceremony, Zhao Zhongsheng and Li Lin also visited companies such as Henan Coal Chemical Group, Dongfang Hope, and Yixiang Aluminum Industry to inspect on-site the progress of the newly launched projects.

The methanol production unit at Tianjin Alkali Plant is expected to come online in October. 2009-3-18 The relocation project of Tianjin Alkali Plant is a key relocation initiative in Tianjin. Construction of this relocation and renovation project started on December 18, 2005, and progress was smooth throughout 2008. The first phase of the project is expected to be basically completed in 2009. During the interview, officials from Tianjin Alkali Plant said that on January 20, 2009, the installation of the large-scale equipment for the gasification (B) series – a key project in the plant’s relocation and renovation effort – was completed successfully, marking the beginning of the crucial phase in 2009. The main products of the project include: alkali union and related series products, polyoxymethylene, methanol, acetic acid, butyl octyl alcohol, syngas, and its related by-products. The construction of the first phase mainly includes: 2 coal gasification units with a daily processing capacity of 2,000 tons of coal each, 2 air separation units capable of producing 60,000 Nm3/h of oxygen, an ammonia synthesis plant with an annual capacity of 300,000 tons, a caustic soda and related product production plant with an annual capacity of 800,000 tons, a methanol plant with an annual capacity of 500,000 tons, a polyoxymethylene plant with an annual capacity of 40,000 tons, an acetic acid plant with an annual capacity of 200,000 tons, and a butyl octyl alcohol plant with an annual capacity of 225,000 tons. In addition, ten other facilities are to be built, including heat supply systems, main pressure reduction stations, and water treatment systems. The total investment for the first phase of the project is 11.8 billion yuan, and upon completion, the annual sales volume will be 9.92 billion yuan. At present, the planning for the second-phase project is under active research and evaluation, following the principles of advanced technical standards, good market growth potential, and seamless integration with the first-phase project. During the interview, a responsible official from Tianjin Alkali Plant said that the first phase of the project is expected to be basically completed by 2009, and our goal is to ensure that the relocation and renovation work begins operations as planned by that date. Among them, the 40,000 tons per year polyoxymethylene plant will come online on June 30, while the 500,000 tons per year methanol plant is progressing well in its construction, with an initial target date for commissioning in October.

Sinochem’s expert team conducts research on Baiyin’s coal chemical industry 2009-3-16 On March 10, an expert team from Sinochem International Consulting Company, accompanied by Wu Yangdong, the deputy secretary of the municipal party committee and mayor, visited Baiyin to assess the conditions necessary for the development of its coal chemical industry. They also held discussions with officials from various counties, industrial parks, departments, and enterprises in Baiyin. Yuan Chongjun, member of the Municipal Party Committee and executive vice mayor, attended the symposium and delivered a speech; Ma Qin, a member of the Party Leadership Group of the city, also attended the symposium. The provincial Party committee and the provincial government attach great importance to the development of the coal chemical industry; they have initiated the process of formulating a development plan for this industry across the province. The Provincial Development and Reform Commission has entrusted Sinochem International Consulting Company with conducting research to assess the underlying conditions necessary for the development of the coal chemical industry in the province, so as to provide relevant data and a basis for making decisions regarding the formulation of a development plan for this industry. The expert team from Sinochem International Consulting Company listened to presentations on the city’s economic and social development, resource availability, infrastructure development, industrial support, potential sites for coal chemical projects, as well as relevant plans and statistical data. They gained a detailed understanding of the underlying conditions and advantages for developing the coal chemical industry in Baiyin, and were briefed on the current status and prospects of this industry nationwide. They held discussions on various issues with officials from Jingyuan County, Jingtai County, as well as representatives from relevant municipal departments, industrial parks, and enterprises. Additionally, they conducted on-site inspections of the Baiyin High-Tech Industrial Park affiliated with the Chinese Academy of Sciences, Juyin Chemical Co., Ltd., and the LiuChuan Industrial Zone in Jingyuan. During the symposium, Wu Yangdong emphasized that Baiyin City has a strong industrial foundation and well-developed industrial infrastructure. Through nearly 50 years of development and construction, it has seen the emergence of industrial clusters in areas such as non-ferrous metals, coal, chemicals, power, and building materials. The city is home to more than 10 large and medium-sized enterprises in these sectors, including Yinguang Chemical Group Co., Ltd., Juyin Chemical Co., Ltd., and Jingyuan Coal Industry Group Co., Ltd. Baiyin possesses the advantageous conditions and infrastructure for developing the coal chemical industry, including technology, talent, resources, location, and environmental factors. At the same time, the construction of the dedicated coal transport railway line from Xinjiang to Gansu will provide an unparalleled opportunity for our city to develop the coal chemical industry. It is hoped that the expert group will give full consideration to the industrial foundation and advantages of our city, designate Baiyin as a priority location for the development of coal chemical industry projects across the province, and support Baiyin in accelerating its transformation into a resource-based city, thereby achieving comprehensive, coordinated, and sustainable economic and social development in the entire city. In his speech, Yuan Chongjun noted that in line with the major strategic decision of the provincial Party committee and the province to accelerate the development of the coal chemical industry across the province, we have planned a fine chemicals park in the Chinese Academy of Sciences Baiyin High-Tech Industrial Park, and invested 46 million yuan in infrastructure construction. At present, the planning scheme for coal chemical products and the preliminary feasibility study report for the project have been prepared. The province has pledged to China North Industries Group Corporation to supply 2 million tons of coal per year for use as fuel and raw material in the city’s coal chemical projects. We are confident and determined, with the strong support of ** and the provincial authorities, to mobilize the enthusiasm of enterprises, integrate resources from all sectors, and make every effort to promote the development of the coal chemical industry. We aim to build a new type of chemical industry base in the western region, thereby making new and greater contributions to the implementation of Gansu’s strategy of building a strong industrial province.

Introducing water from the Yellow River to Shanxi to address the water shortage issue in the region’s coal chemical industry 2009-3-16 　There are 4.5 million people in Datong and Shuozhou, with an average water supply per person of only 322 cubic meters, which is less than 15% of the national average. Due to water shortages, Datong City experiences severe over-extraction of groundwater, with an annual extraction amount of around 100 million cubic meters ； Due to water shortages in Shuozhou City, some highly promising industrial projects are unable to get started… This was the suggestion and proposal submitted jointly by 9 representatives from Shanxi Province and 23 members of the National Committee of the Chinese People’s Political Consultative Conference to the relevant authorities last year; they hoped that approval would be given as soon as possible for the Wanjiazhai project, which aims to divert water from the Yellow River to northern Shanxi. Just one year later, on February 27th, on the eve of this year’s event, the much-anticipated North Main Line of the Wanjiazhai Yellow River Diversion Project officially broke ground in Datong City, Shanxi Province. The proposal was approved promptly, bringing joy not only to the 32 representatives and committee members from Shanxi but also to those in the chemical industry there. It is reported that the project to divert water from the Yellow River to Shanxi is the largest water conservancy project in Shanxi’s history; it has promoted the sustainable economic, social, and environmental development of the province. It is also a large-scale inter-basin water diversion project that facilitates the development of new energy and coal chemical industries in the region. The total length of the water diversion pipeline is approximately 443 kilometers, with a designed annual water diversion volume of 1.2 billion cubic meters. To date, the main trunk line for the first phase, the southern trunk line, and the connecting sections have been constructed. It is estimated that once the entire North Main Line of Phase II of the Yellow River water diversion project is completed, making full use of its annual water supply capacity of 560 million cubic meters will enable an effective solution to the water shortage in the Tongshuo area. This capacity will meet the needs of coal power plants, industrial applications, and the domestic needs of 4.5 million people, as well as covering the demand for an additional industrial output worth nearly 40 billion yuan. Speaking of the project to divert water from the Yellow River to Shanxi, Bai Yuxiang, an expert in the chemical industry from Shanxi, said with emotion that Shanxi is a place full of contradictions: it is extremely rich in mineral resources such as coal, yet it suffers from a severe water shortage. From the perspective of resource advantages, Shanxi should most appropriately be developed into an energy and heavy chemical industry hub; yet, given its water shortage, it is precisely the least suitable place for such development. The development of the chemical industry in Shanxi has been severely hindered by water shortages, and many new coal-based chemical projects have struggled to get approval due to this issue. It is reported that Jincheng City is an important coal chemical industry hub in Shanxi, and due to water shortages, the economic efficiency and long-term development of some enterprises have been severely affected. Water shortages not only hinder the normal operation of enterprises’ production and business activities, severely affecting their economic efficiency, but also prevent some planned projects from being launched for a long time. In the past, when Jincheng City’s Bagong Fertilizer Factory wanted to get approved for construction, it failed to do so for over 20 years due to a lack of guaranteed water supply. Shanxi Jinfeng Coal Chemical Co., Ltd. is a key project in the development of Shanxi’s new energy and industrial bases; it is mainly engaged in the production of fertilizers such as urea, synthetic ammonia, and methanol, as well as other chemical products. After the first phase of this enterprise’s project came online at the end of 2005, its annual water demand was 2.04 million cubic meters, yet its annual water supply capacity was only 1.35 million cubic meters. For Shanxi, the lack of water resources is the biggest concern for the development of coal chemical industry. The per capita water resource volume in Shanxi is less than 20% of the national average, and the areas most affected by water shortages are cities such as Taiyuan, Datong, and Shuozhou, where large energy and heavy chemical enterprises are concentrated; these enterprises are forced to rely on over-extraction of groundwater as a temporary solution. Taohua Group consumes approximately 17 million tons of water per year, and the water level in its own water sources is declining year by year, which has a negative impact on the company’s operations and its ability to expand production further. With the implementation of the first phases of the ‘Diverting Yellow River Water to Shanxi’ and ‘Diverting Yellow River Water to Shanxi Province’ projects, the water supply conditions for these chemical enterprises have been substantially improved. Wang Jianhua, deputy director of the Chemical Industry Management Office of Shanxi Province, believes that the implementation of the northern branch of the project to divert water from the Yellow River to Shanxi undoubtedly ensures a supply of water for the methanol and value-added coal chemical industries in northern Shanxi (Shuozhou, Datong, Xinzhou), which are part of the ‘12th Five-Year’ plan for the development of Shanxi’s chemical industry. This in turn creates opportunities for the implementation of large-scale projects. General Manager Li Guohong of Shanxi Tiantzen County Tongle Chemical Co., Ltd. was particularly excited upon learning that the construction of the northern main line of the Yellow River Diversion Project had officially begun. Currently, the company’s water for production and daily use comes from its own wells. For a long time, due to water shortages, the company has been able to produce about 15 tons less synthetic ammonia per day and over 60 tons less ammonium carbonate. As a result, water constraints cost the company more than 1.4 million yuan in revenue each year, an amount equivalent to the total revenue generated by the entire company in one quarter. He said, ‘This project is very important for chemical companies; it is something that we, as enterprises located in areas suffering from severe water shortages, have been hoping for for many years.’ If water resources are secured, the company will rely on its existing products and manufacturing processes to develop downstream products and further increase their added value. ' China Blue Star Shanxi Synthetic Rubber Group Co., Ltd. is a major water user in Datong. According to Director Pan of the Datong Water Conservation Office, over the past few years, in order to address the issue of water scarcity, the group has invested heavily in wastewater treatment by adopting a two-pronged approach that focuses on both the source of water and centralized control systems, in an effort to minimize the use of fresh water. Recycled water is now being gradually utilized in various production processes. Currently, 7,000 tons of recycled water are utilized per day. Director Pan said, ’For industries that consume large amounts of water, such as synthetic rubber, it is only by managing water usage effectively that the needs for better corporate development can be met.’ The construction of the northern main line of the Wanjiazhai project to divert water from the Yellow River into Shanxi has undoubtedly provided a water supply guarantee for the development of local enterprises. ' Experts analyze that, from the perspective of the country’s overall energy layout, both the central government and local authorities have clearly chosen to focus on energy development as the key factor in defining Shanxi Province’s economic role – aiming to turn Shanxi into an important base for energy and chemical industries in China. Once such development begins, water becomes an issue of critical importance for Shanxi’s survival. It is undeniable that the Yellow River water diversion project is a significant strategic decision to address Shanxi’s water shortage problem. However, achieving a proper balance in water resources and planning chemical industry projects properly, by following the principle of acting in accordance with available water supplies, strictly controlling the construction of coal chemical plants in water-scarce areas, restricting the use of water-intensive processes and equipment, and actively promoting the use of wastewater, recycled water, and mine water in coal chemical technologies – all these are essential for implementing the scientific development concept and ensuring the sustainable development of the coal chemical industry.

Fukang in Xinjiang to build a coking and methanol production complex 2009-3-16 On March 12, Fukang City in Xinjiang signed a contract with Huadong Coal Chemical Company in Guxian County, Linfen, Shanxi, for a project that involves 900,000 tons of coking capacity as well as the production of methanol from coke oven gas; the total investment for this project is 540 million yuan. It is understood that the project is located within the Jinshang Industrial Park in the Fukang Heavy Chemical Industry Park, covering an area of 800 mu, and will be constructed in three phases. An initial investment of 130 million yuan is required to build a coking plant with a capacity of 450,000 tons ； The second phase involves an investment of 130 million yuan to build a coking plant with a capacity of 450,000 tons ； Phase 3 involves an investment of 280 million yuan to build a facility for the low-pressure synthesis of methanol from 100,000 tons of coke oven gas. Construction of this project began in April 2009, and it was completed and put into operation at the end of December 2012, with a construction period of 4 years. Upon completion of this project, it will provide employment for over 400 people and generate profits and taxes amounting to 120 million yuan.

Shanxi’s coal chemical industry seeks transformation and a new direction for development 2009-3-16 The recently released plan for the adjustment and revitalization of the petrochemical industry states clearly: ‘Approval should be stopped for coal chemical projects such as those aimed at simply expanding production capacity, such as coke and calcium carbide production, in order to curb the uncontrolled growth of this industry.’ 'Coal chemical industry has always been a key pillar industry for development in Shanxi Province. Against this backdrop, it is crucial to figure out how Shanxi’s coal chemical industry, which relies heavily on resource-based industries, can undergo transformation. Wang Jianhua, deputy director of the Chemical Industry Management Office of Shanxi Province, said that Shanxi’s economy has a low degree of openness to the outside world. The economic disruptions caused by the international financial crisis had little direct impact on Shanxi’s coal chemical industry; however, the indirect effects resulting from the slowdown in the domestic economy and the resulting decline in demand cannot be ignored. The coal chemical industry in Shanxi Province should take advantage of the current slowdown in China’s coal chemical industry to actively promote the optimization and upgrading of its modern structure. This should be achieved by innovating traditional competitive industries, strengthening the advantages of existing coal chemical industries, and increasing the share of emerging coal chemical industries. Such efforts will enable scale-based development, development focused on quality, sustainable development, safe development, and diversified development, thereby creating new drivers of economic growth and fostering a progressive structure within the industry. This is a breakthrough for optimizing the internal structure of the industry, and it is also the only way to address the limited growth potential of Shanxi Province’s key industries and to achieve transformational development. Harmonious optimization of the development pattern: It is stated that, taking into account Shanxi’s energy advantages and current infrastructure, the development of coal chemical industry in Shanxi will be guided by the scientific development concept. While continuing to improve the five traditional production lines related to fertilizers, alcohols, alkynes, benzene, and oils, this industry will build on its existing infrastructure, be market-oriented, and make comprehensive plans for optimal layout. The goal is to develop the coal chemical industry in such a way that it features high energy efficiency, low water consumption, zero emissions, and increased production without an increase in pollution. By taking into account the supporting conditions of local infrastructure such as water resources, environmental protection, transportation, and coal, as well as the development needs of various regions, the new coal chemical industry will rely on the three major coal production areas in eastern, central, and northern Shanxi. With large-scale enterprises playing a leading role and park development as a key focus, three distinct coal chemical industry hubs will be established in these areas, thereby gradually forming an optimized and harmoniously organized structure for the development of this industry. First, build a characteristic coal chemical industry base for fertilizers and clean energy in eastern Shanxi. The Jindong coal field includes areas such as Yangquan, Changzhi, and Jincheng, and is primarily composed of anthracite. It is planned to focus on the development of projects such as urea, methanol, and coal-based synthetic oils. Secondly, build a characteristic coal chemical industry base for Jinzhong coking and acetylene chemicals. The Jinzhong coal field covers areas such as Lüliang, Jinzhong, Linfen, and Yuncheng. Based on coking enterprises and key acetylene chemical industries, it focuses on planning and developing downstream coking-related projects such as crude benzene processing, coal tar processing, and methanol production from coke oven gas, as well as acetylene chemical projects. Finally, build a characteristic coal chemical industry base for methanol and its advanced processing in northern Shanxi. The coal fields in northern Shanxi include Shuozhou, Datong, Xinzhou and other areas; the local coal is used as the main raw material, with a focus on developing coal chemical projects featuring methanol, dimethyl ether, and advanced processing of methanol. Two main focus areas for industrial development: In terms of industrial selection, Shanxi’s coal chemical industry will, in line with the policies governing the development of this sector, as well as the domestic and international market conditions and technological advancements related to key coal chemical products, focus on coking and gasification as its two main areas of development. It will pursue transformations toward value-added processing of coking by-products, large-scale production of carbon-based chemicals, development of clean energy sources, and the production of olefins from methanol. The development of the coking and chemical products industry focuses on the processing chain of coking by-products: all coke oven gas is utilized, with efforts directed toward producing chemical products; tar processing moves toward large-scale and advanced processing methods, while crude benzene refining is geared toward the production of fine chemicals. Coal gasification is one of the key development directions in the coal chemical industry. Methanol and synthetic ammonia, the main products of gasification, are important basic chemical raw materials. Downstream, various industrial chains such as C1 chemicals, clean energy (dimethyl ether), and olefins can be developed, offering a large market potential and good prospects for growth. ——The C1 chemical industry chain includes a variety of C1 chemical products such as methanol, as well as acetic acid, formaldehyde and their derivatives, all of which are manufactured using methanol as a raw material. The technology and product market for C1 chemicals are relatively mature, offering good prospects for development. ——Clean energy industry chain: Dimethyl ether, a clean energy product derived from coal, represents a sector with great potential for development within the coal chemical industry, and it should be one of the key areas for the development of Shanxi’s coal chemical industry. 'During the 11th Five-Year Plan period, Shanxi launched demonstration projects for the indirect liquefaction of coal by Lu’an Group to produce diesel, as well as the production of methanol from coal by Jincheng Coal Industry Group for subsequent conversion into gasoline. With the advancement of coal gasification technology, the time is ripe for the industrialization of coal-to-natural gas, and it is set to experience significant development opportunities during the 12th Five-Year Plan period. ——Methanol to olefins industry chain: Methanol to olefins is the field with the greatest potential for development in coal chemical industry. The satisfaction rate for olefins in our country is only around 50%; following the success of the methanol-to-olefins demonstration projects during the 11th Five-Year Plan period, the development of methanol-to-olefins technology in Shanxi Province is set to see significant growth. The entry standards have been raised. It is understood that in the future, the construction of coal chemical projects in Shanxi will need to adhere to advanced technical standards and scale requirements as entry criteria, in order to elevate the industry’s level and enhance its competitiveness. The recommended entry criteria for project scale are as follows: 300,000 tons of synthetic ammonia (annual production capacity, the same below), 300,000 tons of polyvinyl chloride, 300,000 tons of tar processing (no new facilities should be established in this area), 200,000 tons of crude benzene refining (using hydrogenation processes), 1 million tons of methanol (produced from coal, with each production line having a capacity of at least 500,000 tons), 200,000 tons of methanol (produced from coke oven gas), 1 million tons of dimethyl ether (with each production line having a capacity of at least 100,000 tons), 3 million tons of coal-to-diesel (F-T process), 1 million tons of methanol-to-gasoline (MTG), 600,000 tons of methanol-to-olefins, and 200,000 tons of acetic acid. Projects to be phased out by 2010: tar processing (single continuous unit with a capacity of less than 150,000 tons using batch distillation), crude benzene refining (refining process using acid washing), calcium carbide furnaces with a capacity of 12,500 kVA or less (25,000 tons), as well as other small-scale oil refining, sulfuric acid production, and carbon disulfide production facilities. It is reported that Shanxi Province **will focus on breaking through existing advanced and cutting-edge technologies in the coal chemical industry, as well as on guiding and supporting the expansion of the industrial chain, in order to drive the upgrading of the entire coal chemical industry. This year, four major transformation projects will be carried out, including the project to extend the coal chemical industry chain, the project to upgrade coal gasification facilities, the project to promote technological upgrades in large fertilizer manufacturers, and the project focused on the development and utilization of coalbed methane as well as coal-based synthetic oils.

Where is the project information for coalbed methane?