[Haichuan Chemical Salary News] The environmental impact assessment report for Shenhua Baotou’s 17.1-billion-yuan coal-to-olefins upgrading demonstration project has been approved

Shenhua Baotou Coal Chemical Co., Ltd.: We have received your company’s application letter titled \"Request for Approval of the Environmental Impact Assessment Report for the Shenhua Baotou Coal-to-Olefins Upgrade Demonstration Project\" (Shenbao Coal Letter [2019] No. 44). After examination, the approval is as follows: 1. The project is located in the Jiuyuan Industrial Park of Baotou City, Inner Mongolia Autonomous Region. It involves expanding an existing coal-to-olefins plant with a capacity of 600,000 tons per year to 700,000 tons per year, while also upgrading and modifying the existing facility. The proposed project will use the coal resources in western Inner Mongolia as raw material, and employ processes such as pressurized coal gasification, purification, methanol synthesis, and methanol-to-olefins conversion to produce 700,000 tons per year of polyolefin products. After the expansion, the production capacity of coal-based olefin products increased from the current 600,000 tons per year to 1.3 million tons per year. The main components of the project include units for pressurized coal gasification, shift reaction, low-temperature methanol washing, sulfur recovery, methanol synthesis, methanol to olefins (MTO), polyethylene production, polypropylene production, and air separation. Auxiliary engineering mainly includes tank farms, circulating water systems, flare systems, etc. Environmental protection projects mainly include sewage treatment systems, reclaimed water systems, evaporation crystallization units, waste gas treatment systems, oil and gas recovery units, as well as new off-site slag dumps. They also involve the renovation, expansion, or upgrading of certain auxiliary facilities and environmental protection systems in existing plants. The main products of the project are 400,000 tons per year of polyethylene and 350,000 tons per year of polypropylene, while the main by-products include sulfur, among others. The project construction meets the overall requirements of the \"Environmental Access Conditions for Modern Coal Chemical Industry Projects (Trial)\“. The project is located in the middle and upper reaches of the Yellow River. Baotou City, where it is situated, is a water-scarce area, and the current quality of the atmospheric environment shows excessive levels of inhalable particles and fine particles; therefore, there is significant pressure to improve the regional environmental quality. It is necessary to strictly implement various measures for pollution control and environmental risk prevention, establish and enforce strict environmental management systems and monitoring plans, and set up timely and effective emergency response and coordination mechanisms. After comprehensive consideration, our department agrees in principle to the nature, scale, process, location of the construction project, as well as the environmental protection measures outlined in your company’s environmental impact report.

II. The following tasks should be given priority in project construction and operation management: (1) Implement the relevant requirements for ecological protection and high-quality development in the Yellow River Basin, adopt the concepts of ecological protection and environmental quality improvement. During design, construction, and operation, in line with the goals of \"environmental protection first and green development\" as well as the principles of circular economy and clean production, process routes and design schemes should be further optimized. High-quality equipment and raw materials should be used, and measures to reduce energy consumption and water usage in various facilities should be strengthened, in order to minimize the generation and emission of pollutants at the source.

(II) Strictly implement various measures for air pollution prevention and control. Depending on the properties of the pollutants in various process exhaust gases, treatment methods such as washing, incineration, filtration, and recycling are employed. The processing capacity and efficiency of these treatment facilities must meet the required standards to ensure that emissions of various air pollutants comply with ** and relevant local standards. Dusty waste gas generated from coal silos, transfer stations, etc. is treated using a bag filter dust removal process, and is discharged after meeting the secondary standards of the \"Integrated Emission Standards for Air Pollutants\" (GB16297-1996). The waste gas from coal drying in the gasification unit is treated with bag filtration, and after meeting the specific emission limits specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015), it is released into the atmosphere. The waste gas from low-temperature methanol washing is treated using a water washing process; it is discharged only after meeting the emission limits specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015) as well as the requirements of Grade 2 standards set out in the \"Emission Standards for Odorous Pollutants\" (GB14554-93) ； The exhaust gas scrubber of the existing low-temperature methanol washing unit was modified, and as a result, the exhaust gas from this unit meets the emission limit requirements specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015). The regenerated waste gas from the MTO unit is treated to meet the special emission limits specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015) before being released. The sulfur recovery unit employs a process of \"hydrogen reduction + selective oxidation + flue gas combustion + alkaline washing\"; the exhaust gases meet the special emission limits specified in the \"Emission Standards for Pollutants in Petroleum Refining Industry\" (GB31570-2015) as well as the secondary standards set out in the \"Emission Standards for Odorous Pollutants\" (GB14554-93), before being released into the atmosphere ； Desulfurization upgrades are carried out on the existing sulfur recovery units in the plant; after the upgrades, the exhaust gases meet the special emission limits specified in the \"Emission Standards for Pollutants in the Petroleum Refining Industry\" (GB31570-2015). The regenerated waste gas from the C4/C5+ comprehensive utilization unit is sent to the waste heat boiler of the MTO unit for treatment. In the polyethylene and polypropylene plants, hydrocarbon-containing gases and dust-containing waste gases are treated respectively by catalytic combustion and bag filtration; the exhaust gases are discharged only after meeting the special emission limits specified in the \"Emission Standards for Pollutants in the Synthetic Resin Industry\" (GB31572-2015). Dust removal upgrades were carried out on the existing incinerators for industrial waste alkali solutions; after the upgrades, the exhaust gases met the \"Pollution Control Standards for Incineration of Hazardous Wastes\" (GB18484-2001) ； Implement ultra-low emission upgrades on the boilers in existing plant power stations. The project will not install any new coal-fired boilers; heating and steam supply will rely on the existing power stations of the facility. Compressors located in areas that are not classified as explosion-hazardous, such as those in the air separation unit, will be powered by electric drives. Strengthen control measures for volatile organic compounds (VOCs), malodors, and toxic and harmful gases to effectively curb unorganized emissions. Establish a leakage detection and repair system to regularly inspect the static and dynamic sealing points of equipment and facilities. Improvement measures such as the addition of oil and vapor recovery devices are taken respectively for the existing internal floating roof methanol storage tanks and MTBE loading platforms in the plant. The sewage treatment plants are equipped with covers to ensure sealing; the existing sewage treatment plants are modified by installing such covers. The collected waste gas is treated using a process of \"biological deodorization + activated carbon adsorption\", and it is released only after meeting the relevant standards specified in the \"Emission Standards for Odorous Pollutants\" (GB14554-93) and the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015). Earnestly implement waste gas pollution control measures for coal storage bins and similar facilities. A 1,200-meter atmospheric environmental protection zone is established within the factory area, while a 250-meter atmospheric environmental protection zone is set up at the slag dump. The total annual emissions of sulfur dioxide, nitrogen oxides, soot and dust, and VOCs for this project shall not exceed 31.04 tons/year, 342.14 tons/year, 101.41 tons/year, and 282.52 tons/year, respectively. Drawing on existing engineering experience, research and implement carbon dioxide emission control measures and explore ways to comprehensively utilize carbon dioxide, in order to minimize the project’s carbon dioxide emissions as much as possible.

(III) Strictly implement various water pollution prevention and control measures. The water supply and drainage system is constructed in accordance with the principles of separating rainwater from wastewater, separating clean water from polluted water, treating water according to its quality, and reusing water. Further optimize the water usage plan, increase the rate of water reuse, and reduce the consumption of fresh water as well as the generation of wastewater. Further optimize the wastewater treatment and reuse plans, and upgrade the existing industrial wastewater treatment systems to ensure that production wastewater is treated and reused in a manner appropriate to its specific characteristics under normal operating conditions. Construct a wastewater holding system with sufficient capacity to ensure that sewage does not enter the external environment under abnormal operating conditions. The gasification wastewater, shift wastewater, wastewater from the methanol-water separation tower in the low-temperature methanol washing unit, stripping wastewater from the methanol-to-olefins unit, pelletizing wastewater from the polyolefins unit, as well as domestic sewage, are all sent to a wastewater treatment plant for treatment. This plant uses a treatment process consisting of \"two-stage A/O + denitrifying biological filter + BAF\" ； The wastewater from the water output and circulation systems, as well as the wastewater from the chemical water treatment station, is sent back to the water utilization system; after being treated through the processes of \"lime/sodium carbonate softening + high-efficiency sedimentation + ultrafiltration + reverse osmosis\", most of it is reused ； The concentrated water from the existing process wastewater recycling system is sent to a membrane concentration system; after being treated through a series of processes including buffer adjustment, chemical softening, precipitation, filtration, ion exchange, decarburization, and high-efficiency reverse osmosis, most of it is reused. The concentrated water is then fed into a salt separation evaporation crystallization unit, where the processes of nanofiltration, evaporation, and membrane separation are used to gradually crystallize sodium chloride and sodium sulfate that meet relevant product standards, which are sold as by-products.

(IV) Strengthen various environmental risk prevention measures to effectively avert environmental risks. Strengthen the management of storage, transportation, and use of chemical materials and hazardous substances. Install automatic monitoring, alarm, emergency shutdown, and emergency stop systems in accordance with relevant standards, as well as monitoring and alarm systems for flammable and toxic gases and online analysis systems. Additionally, implement accident response systems for fire, explosion, and poisoning incidents. In the event of an accident, the process exhaust gases from various units are sent to the flare system for treatment. The setup includes an accident water pollution control system comprising cofferdams for the equipment area and fire dikes for the tank area, as well as initial rainwater collection tanks in the equipment area and accident water collection tanks for the entire plant, to ensure the effective containment of untreated wastewater and accident water. Optimize the pathways for collecting and transporting accident water, with the two accident water collection tanks in the plant serving as backups for each other ； Strictly manage the construction of rainwater and sewage pipelines, implement separation of the two, and prevent accident-related sewage from contaminating the rainwater system. Facilities for controlling water pollution caused by accidents and facilities for temporarily storing wastewater should be designed and constructed separately, and shall not be used interchangeably in non-accident situations. In emergency situations, rely on the park’s accident pond. The collected accident water is sent to the wastewater treatment plant for proper disposal. Your company should take effective measures to ensure that accident wastewater does not enter the Yellow River in the event of any accidents. Improve the emergency response plans for sudden environmental incidents, the special emergency response plans for groundwater pollution incidents, and the special emergency response plans for hazardous substance leaks, and refine the emergency evacuation plans. In accordance with the principles of \"classified management, hierarchical response, and regional coordination\", an emergency response mechanism is established between the project and Jiuyuan Industrial Park, local authorities, as well as relevant departments. Regular emergency drills for sudden environmental incidents are carried out to effectively prevent and control environmental risks.

(5) Effectively implement measures to prevent and control pollution of groundwater and soil. Groundwater pollution prevention and control is carried out in accordance with the principles of \"source control, zonal prevention and control, pollution monitoring, and emergency response\". In strict accordance with the requirements of the \"Technical Specifications for Seepage Control in Petrochemical Projects\" (GB/T50934-2013), seepage control measures are implemented in designated areas for pollution control, such as key pollution control zones and general pollution control zones, further strengthening the seepage control requirements for sewage and accident water collection tanks (channels). Carry out pipeline modifications on existing projects, as well as anti-seepage repairs for key facilities such as gasification and sewage treatment. Strengthen the routine maintenance of the leak-proof facilities; any damaged ones should be repaired and reinforced promptly to ensure their stability and safety. Strengthen the detection of leaks in concealed works; once a leak is detected, immediate remedial actions should be taken to prevent contamination of groundwater and soil. Establish a comprehensive monitoring system for groundwater and soil. Taking into account existing and proposed projects, and based on the layout of key pollution control areas, the flow direction of groundwater, and environmental protection objectives, groundwater and soil monitoring sites are reasonably designated, with strict implementation of the groundwater and soil monitoring plans. Once groundwater pollution occurs, immediate emergency measures should be taken to minimize the adverse environmental impact on water bodies and soil.

(VI) Improve operational management levels, intensify staff training, and strengthen environmental protection measures in abnormal operating conditions. Formulate comprehensive inspection, maintenance, and operation procedures from an environmental protection perspective; further optimize process routes and design schemes; take necessary coal blending measures to ensure stable quality of coal used in the project; reduce the frequency of abnormal operating conditions such as startups and shutdowns as well as pollutant emissions; strengthen the design and operational management of the flare system; and strictly prohibit the emission of pollutants in excess of specified limits during prolonged abnormal operating conditions. During abnormal operating conditions such as startup, shutdown, maintenance, and repair of the production units, the waste gas is sent to the flare system for treatment. Enhanced operation management of the sulfur recovery unit is implemented to prevent equipment failures from resulting in large amounts of acidic gas being sent to the flares for combustion. Strengthen the management and monitoring of low-temperature methanol washing exhaust gas from purification units to effectively control hydrogen sulfide emissions. The wastewater treatment system should be commissioned ahead of the main production equipment. Under abnormal operating conditions, wastewater should be temporarily stored in wastewater holding tanks of sufficient capacity, depending on its quality; the wastewater in these tanks is then sent back to the wastewater treatment plant for further processing. Further optimize the design of the temporary storage pool system by installing high liquid level alarm devices and plant-wide shutdown interlock devices to prevent operation at high liquid levels. Establish a comprehensive management and scheduling system for water systems to achieve refined management of these systems; if necessary, take measures such as reducing the production load of the main equipment or shutting down operations to ensure that wastewater is not discharged outside.

(7) Strictly implement measures to prevent and control solid waste pollution. In accordance with relevant national and local regulations, and following the principles of \"reduction, resource utilization, and harmlessness,\" solid waste is collected, processed, and disposed of in a manner that prevents secondary pollution. Recyclable waste catalysts and similar materials are collected by the manufacturers. The waste alkaline solutions from olefin separation units are sent to incinerators designed for treating such waste alkaline solutions. The waste alkaline solutions and biochemical sludge from C4/C5+ utilization units are processed using existing gasification facilities. Waste mineral oils, crystalline impurities, as well as waste catalysts and ceramic balls that cannot be recycled are all disposed of safely through hazardous waste treatment projects that are available for this purpose. The landfills used for such disposal must meet the requirements specified in the \"Standards for Pollution Control of Hazardous Waste Landfills\" (GB18598-2019). General solid wastes such as gasification ash and slag are given priority for comprehensive utilization; those that cannot be utilized in this way are sent to project landfills for disposal. This project shall not be put into operation until the slag yard and the associated hazardous waste disposal facility are completed.

(8) Implement sound pollution protection measures. Priority should be given to the use of low-noise equipment, and noise reduction measures such as sound insulation, vibration damping, and noise elimination should be employed to ensure that the noise level at the factory boundary meets the corresponding standard limits specified in the \"Emission Standards for Environmental Noise at the Boundaries of Industrial Enterprises\" (GB12348-2008). (IX) Strictly implement various monitoring plans for pollution sources and the ecological environment during the construction period and operation period. Improve the environmental monitoring plan in accordance with relevant standards and regulatory requirements. Establish a registry system for pollution sources, carry out long-term monitoring, retain original monitoring records, and regularly publish the results of pollutant emission monitoring to the public. Install an online continuous monitoring system for pollutant emissions as required, and connect it to the environmental protection authorities. If pollutant emissions exceed the allowed levels, the cause must be identified immediately and measures taken. (10) Establish an environmental management team suited to the project’s environmental protection efforts, improve various corporate environmental management systems, and strengthen environmental management. During the project construction and operation phases, the company proactively discloses information on environmental protection and voluntarily accepts societal oversight. Establish smooth channels for public participation, strengthen publicity and communication efforts, promptly address environmental issues raised by the public, and meet their legitimate demands for environmental protection.

(11) Project construction must strictly implement the \"three simultaneities\" system, which requires that environmental protection facilities be designed, constructed, and put into use simultaneously with the main project. The construction tender documents and construction contract should specify environmental protection provisions and responsibilities, and ensure the implementation of environmental protection measures during the construction period. Conduct the environmental protection acceptance upon completion in accordance with the prescribed procedures. Once the environmental impact assessment report is approved, if there are significant changes in the nature, scale, location, production processes, or environmental protection measures of the project that could lead to substantial changes in the environmental impact (particularly an increase in adverse environmental impacts), the environmental impact assessment report for the project must be submitted for approval again. (12) Before any actual pollution discharge occurs in the project, all environmental protection measures shall be carefully outlined and implemented in accordance with the approved environmental impact assessment documents. The list of pollutants to be discharged and other relevant information shall be included in the pollution discharge permit; this ensures a seamless connection between the environmental impact assessment and the application for or modification of the pollution discharge permit, with pollution discharge taking place in compliance with the permit requirements. In accordance with the \"Administrative Measures for Post-Evaluation of Environmental Impact of Construction Projects (Trial)\\", a post-evaluation of the environmental impact of the entire plant shall be conducted within 3 to 5 years after the project goes into operation, and the compliance with the emission permit requirements shall serve as an important basis for such post-evaluation.