China’s methanol-to-olefins technology leads the industrialization of coal-based olefins

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Reporters learned from the Dalian Institute of Chemical Physics, Chinese Academy of Sciences (abbreviated as Dalian ICPP) that the world’s first industrial facility for producing olefins from methanol, utilizing the institute’s self-developed DMTO technology (with an annual output of 600,000 tons of olefins), successfully carried out its industrial trial run in Baotou in August this year. 　 Industry experts say that using coal to produce olefins through methanol is an important approach for China to develop a modern coal chemistry industry and achieve its strategy of replacing petroleum. This move marks a milestone achievement for China’s emerging coal-based olefin industry; it not only establishes China’s leading position in the industrialization of coal-based olefins worldwide but also holds great significance for ensuring **energy security. 　　China is at the forefront of the world in terms of DMTO technology research and development as well as industrialization. Liu Zhongmin, deputy director of the Dalian Institute of Chemical Physics and the overall project leader for DMTO, explained that the production of low-carbon olefins from methanol involves technologies for producing mixed olefins (MTO) and propylene (MTP), and these represent key elements in the coal-based olefin production approach. Over the past 20 years, amid numerous fluctuations in oil prices, only two or three companies in the world, namely those in the United States and Germany, have continued to conduct research in this area. China’s research achievements, represented by the DMTO technology developed by the Dalian Institute of Chemical Physics, are among the best in the world; this is one of the few technologies in China that exceeds international standards. 　The research and development of MTO technology in China began in the 1970s, when the oil crisis spurred research into technologies for producing low-carbon olefins from non-petroleum resources. Over the years, the Dalian Institute of Chemical Physics has been continuously developing new generation technologies for the production of olefins from methanol, and has actively promoted industrial trials as well as the commercialization of these technologies. 　As early as during the Sixth Five-Year Plan period, the development of catalysts for methanol-to-olefins conversion was designated as a major project by the Chinese Academy of Sciences; the fixed-bed catalysts developed were successfully tested on a laboratory scale and at pilot scale in 1985 and 1993 respectively ； In the early 1990s, the Dalian Institute of Chemical Physics was again the first in the world to develop a new process for producing low-carbon olefins from syngas via dimethyl ether” ； In 2004, the Dalian Institute of Chemical Physics collaborated with relevant enterprises to build the world’s first industrial-scale test facility for producing olefins from methanol, with a capacity of 10,000 tons. The industrial trials were completed in 2006, and both the scale of this facility and its technical specifications were at the international leading level ； In 2007, the Dalian Institute of Chemical Physics signed a technology licensing agreement with relevant enterprises for the production of low-carbon olefins from methanol at a capacity of 600,000 tons per year; this was also the world’s first technology licensing agreement for olefin production from coal. 　　Chinese scientists of the fourth generation have established a complete technological chain for producing olefins from methanol. It is reported that before China took the lead in the industrialization of coal-based olefins worldwide, both the conversion of coal into syngas and the production of methanol from syngas were already mature technologies. Meanwhile, the downstream processes for converting olefins into ethylene and propylene using traditional petrochemical methods were also highly developed. The conversion of methanol into olefins represents the most critical link in the industrialization chain for coal-based olefins. 　　For over 30 years, four generations of Chinese scientists have worked tirelessly on this task, overcoming a series of key technologies centered around catalysts, and finally establishing the technological chain for producing olefins from methanol. Speaking of the role of core catalyst technology in the process of converting methanol into olefins, Researcher Zhang Tao, director of the Dalian Institute of Chemical Physics, used an apt analogy: if there is a towering mountain standing in the way from methanol to olefins, then the catalyst acts as something that helps to create a tunnel through that mountain, one that requires less effort and cost. 　　Ethylene and propylene are both extremely important chemical raw materials, and currently their production relies mainly on petrochemical routes. However, China faces a shortage of oil resources, and its dependence on oil imports is increasing year by year: the external dependence rate was 46.06% in 2007, 48% in 2008, and exceeded 50% in 2009. Based on the current level of crude oil consumption and the growth rate of domestic production, China’s external dependence on oil is expected to reach 52% by 2010 and 60% by 2015. To a certain extent, this limits the development of ethylene and propylene production via the petrochemical route, posing a serious threat to China’s energy development strategy. 　　According to statistics from the China Petroleum and Chemical Industry Association, in 2008, China’s ethylene production was 10.25 million tons, while imports amounted to nearly 10 million tons, resulting in an external dependence rate of around 50%. According to projections by relevant authorities, in 2010, China’s demand for ethylene was estimated to be around 14.84 million tons, while production was around 7.84 million tons, resulting in a supply-demand gap of about 7 million tons ； The demand for propylene is around 19.05 million tons, while the production volume is about 13.15 million tons; thus, there is a supply-demand gap of around 5.9 million tons. 　The above data indicate that there is a significant gap in China’s ethylene and propylene markets, offering great prospects for these sectors. However, the continuous rise in oil prices hinders the development of olefin production through petrochemical routes; as methanol-to-olefins technology uses China’s relatively abundant coal resources as raw material, its advantages become even more evident. 　　China has developed a new generation of methanol-to-olefins technology. In May 2010, the Dalian Institute of Chemical Physics succeeded in developing another version of this technology, DMTO-II, and completed industrial-scale tests; this improved the economic efficiency of the methanol-to-olefins process and helped maintain China’s leadership in DMTO technology on the international stage. Liu Zhongmin revealed that DMTO-II technology was developed on the basis of DMTO technology. Compared to the latter, DMTO-II technology makes more efficient use of heat, results in a higher yield of olefins, reduces methanol consumption by over 10% per ton of olefins produced, and also lowers the costs associated with the raw materials used in olefin production. 　　The emergence of the next-generation methanol-to-olefins DMTO-II technology will further enhance technical and economic competitiveness as well as resource utilization efficiency. This holds great practical and strategic significance for leveraging China’s advantages in coal resources, alleviating the shortage of petroleum resources in the country, and developing a new type of coal chemical industry based on coal-to-olefins production. 　 In September 2010, a clean energy enterprise in Shaanxi signed a contract regarding the proprietary technology for the design of the Methanol to Olefins (DMTO-II) project and its associated processes. Under this contract, the enterprise would use DMTO-II technology to build a facility in Pucheng County, Weinan City, Shaanxi Province, capable of producing 1.8 million tons of methanol per year and 670,000 tons of olefins per year. This was not only the first time that DMTO-II technology was licensed to an external party but also the world’s first commercial demonstration project using this technology. The Dalian Institute of Chemical Physics has established an engineering laboratory for methanol-to-olefins production, which is dedicated to the technical development and industrialization of this process, providing technical support for the construction and operation of large-scale industrial facilities. Liu Zhongmin said that the **engineering laboratory for methanol-to-olefins will continue to pool its strengths, focus on breaking through key technical barriers, drive continuous innovation, and actively advance the development of methanol-to-olefins projects, thereby maintaining China’s leading position in coal-based olefins technology.