Methanol can play a greater role
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Author/Source: China Chemical Industry News Date: 2009-3-20 -------------------------------------------------------------------------------- **Wang Jiacheng, researcher at the Macroeconomic Research Institute of the National Development and Reform Commission: China’s energy security concerns are not merely related to the security of oil supply; what is more important is the stability of the entire energy supply system.** In China’s energy consumption structure, the share of oil has dropped to around 22% in recent years; coal accounts for the largest portion of energy consumption, at about 70%. Therefore, ensuring the security of energy sources other than oil, particularly coal supply, is also an important aspect of energy security. Starting from China’s national conditions and adhering to the laws of nature and economics, pursuing a development path of \"coal and power integration\" should be regarded as an important strategy to ensure China’s energy security. Coal is China’s basic energy source, and in the future efforts should be made to enhance its competitiveness, driving the coal industry toward greater efficiency, safety, cleanliness, and quality. At the same time, it is necessary to adopt a comprehensive perspective on coal, establish a coal-based industrial chain, and create an efficient energy and chemical industry system that integrates coal gasification, liquefaction, and chemical processing. By fully leveraging the advantages of integrated development, a new model for the development of the coal industry can be established. Hu Qianlin, Director of the Science and Technology Department of the China Petroleum and Chemical Industry Association: I think the proposal put forward by the academicians of the Chinese Academy of Engineering is excellent, and I support it. Currently, there is a surplus of methanol, so storing it would provide greater flexibility. With so many methanol plants existing now, it is of great strategic significance to store methanol when downstream products are unable to utilize it effectively. There are many things that can be made from methanol downstream, such as olefins from methanol and alcohol-ether fuels. In the short term, there is an overcapacity of methanol production in the domestic market, but in the long term, the industry still holds certain potential for development. The Plan for the Adjustment and Revitalization of the petrochemical industry places emphasis on coal-to-olefins projects; once this technology proves successful and is widely adopted, demand for methanol will increase significantly. In addition, standards for methanol-blended gasoline and similar products are also being developed; once market access is obtained through their use, it will boost the domestic methanol industry. To ensure the healthy development of the methanol industry, **certain preferential treatment will be provided in terms of credit, to help enterprises overcome difficulties in their operations. On the corporate side, efforts should be made to expand downstream applications, secure approval for R&D projects in these areas, and strive to obtain financial support from **. Wang Xiaofeng, deputy director of the Industry Development Department of the China Petroleum and Chemical Industry Association: Currently, international crude oil prices are low, which reduces the competitiveness of the coal chemical industry. However, in the long term, coal still accounts for a significant proportion in China’s energy structure. From the perspective of ensuring **energy security, it is still necessary to continue promoting the upgrading of the coal chemical industry and technological progress. Specifically, coal-to-olefins technology is a key focus of progress in coal chemical technology, while coal-to-oil technology falls under the category of strategic reserve technologies. In addition, the research and development and application of some high-value-added oil substitutes will also receive **support**.
To develop the coal chemical industry, it is necessary to be guided by the scientific development concept, make use of resource advantages, and focus on promoting structural adjustments within the coal chemical industry as well as a shift in its mode of growth. In line with the principles of scale expansion, establishment of industrial parks, development of specialized bases, and a circular economy, as well as the requirements of sustainable development, emphasis should be placed on the development of the methanol conversion industry. Efforts should be made to advance the development of modern coal chemical products such as methanol produced from coal, olefins derived from coal, and alcohol-ether fuels. Downstream products based on methanol should also be developed, while the production of commercial methanol should be carried out in a moderate manner, so as to transform resource advantages into product advantages. It is essential to strengthen infrastructure development related to water resources and other aspects, as well as environmental protection measures, in order to promote sustainable development in terms of resources, economy, and the environment.
To develop the methanol industry, it is necessary to adhere to an industrial development model based on scale expansion, establishment of industrial parks, and creation of specialized production bases. In terms of industrial structure development, the focus should be on converting coal into olefins and alcohol-ether fuels; this should be done by taking advantage of available resources such as coal and water, as well as relevant technical capabilities. The approach should be market-oriented, with progress in coal chemical technology serving as a driving force behind the implementation of a strategy to replace petroleum； In the development of a circular economy, efforts should be made to promote the rational recycling and hierarchical utilization of resources, to vigorously advance circular economic practices, and to continuously improve the efficiency of resource use. Encouragement should be given to the production of methanol using materials such as coke oven gas, calcium carbide off-gases, and coke baking flue gases, in order to increase the overall utilization rate; meanwhile, the simultaneous production of methanol and synthetic ammonia should be developed in a moderate manner ； In terms of project management, the **development policies for the coal chemical industry must be strictly followed; in principle, methanol should not be considered as a final product. The methanol production units and the conversion units of such projects should be constructed simultaneously and brought online at the same time ； In terms of extending the industrial chain, efforts should be intensified to develop new technologies for methanol downstream applications; while advancing vertical and horizontal integration, an open industrial chain should be actively established. In addition, the promotion and application of advanced production technologies and equipment with independent intellectual property rights are encouraged.