【Everyone, vote】Why is the development of coal chemical industry hindered? Whose fault is it?

Stalled development is not the fault of low oil prices; to address these challenges, appropriate measures must be taken to resolve them. Many delegates believed that in the short term, it was the sharp drop in international oil prices that led to reduced profits and losses on projects, but this actually exposed the long-standing issue of insufficient competitiveness within the industry. “Taking the coal-based ethylene glycol projects, which have experienced significant price drops, as an example, the underlying reason lies not in low oil prices but in the fact that the technology itself is not advanced enough. ”Liu Zhongmin said that due to the limitations of current technological approaches and the limited range of project options, once a new technology becomes available or profits can be generated at a certain stage, it is easy for investments to concentrate on those projects. “A large number of projects were launched in a rush, ignoring the room for technological advancement. It may generate profits in the short term, but it cannot support long-term development and may even lead to a risk of overproduction. ” Yang Yue also said that coal chemical industry projects require large investments, consume substantial amounts of coal resources and water, and present challenges in terms of the emission and treatment of \"three wastes\", which are prominent issues faced by the concentration of this industry. In this regard, technology is a key influencing factor. “At present, the primary conversion efficiency of coal needs to be improved, and the energy utilization rate remains unsatisfactory. For example, during the conversion process, challenges arise in terms of the generation, capture, storage, and utilization of carbon dioxide; due to the limitations imposed by the basic processes of coal chemical industry, it is very difficult to achieve further emission reductions. Furthermore, technologies such as coal pyrolysis and the comprehensive utilization of low-rank coal have not yet been scaled up for industrial application; aside from gasification technology, which is relatively mature, other methods for converting coal into useful products still need further improvement. ” Behind the technology lie deeper factors such as talent and standards. Yang Yue admitted that, as a highly systematic innovation project, every stage of the coal chemical industry – from basic research and applied research to engineering design and industrial-scale demonstration and promotion – requires a large number of specialized talents. “After years of development, the industry has gathered a group of high-level talents. However, in terms of technological innovation, particularly in the areas of fundamental research and practical application, the shortage of talent remains the core bottleneck restricting the development of modern coal chemical industry. Furthermore, the lag in industry standard setting results in some high-quality products not commanding premium prices, which in turn limits further technological advancement. ”

Relying on mature and reliable technologies is key. Reporters have learned that some regions and enterprises have already taken proactive measures to cope with the impact of low oil prices. “From another perspective, low oil prices force the industry to accelerate its transformation and upgrading. ”Yang Yue said that Yanchang Petroleum has introduced 35 measures in six areas to comprehensively address the challenges posed by low oil prices and promote high-quality development. Next, efforts will focus on market demands by shifting production to high-value products, continuously increasing investment in technology and fostering cooperation among industry, academia, and research institutions. The pace of transforming scientific and technological achievements will be accelerated, with the aim of shortening the coal conversion chain, extending the industrial chain, innovating the value chain, and improving efficiency – so as to create new drivers for development as soon as possible. Bao Xinhe pointed out that for enterprises to survive, it is necessary to address the current difficulties ； For the industry to develop, relying on mature and reliable technology is key. “No matter how international oil prices change, one thing is clear: technology must stay ahead. We cannot wait until there is demand in the market to develop technology; improving efficiency and reducing emissions are at the core of high-quality industrial development. ” In addition to focusing on coal chemical technology itself, Yang Yue said that developing it in conjunction with industries such as coal mining, petrochemicals, coal power generation, and heating facilitates the hierarchical utilization of energy resources and improves conversion efficiency. “The Jingbian and Yan’an coal, oil, and gas comprehensive utilization projects of Yanchang Petroleum apply the concept of hydrocarbon complementarity to achieve organic integration and comprehensive conversion of coal, oil, and natural gas. The yield of olefins in these projects is among the highest in the country; they save 75% more water and reduce carbon dioxide emissions by 51% compared to processes that rely solely on coal chemistry. ‘During the 14th and 15th Five-Year Plans, further exploration will be conducted on the integration of modern coal chemical technologies. ” Leveraging technological upgrades, Li Chunlin also has new ideas for development. “Yulin is a **designated energy and heavy chemical industry base; although it has made significant progress to date, there is still a large gap between its current status and the goal of becoming a world-class high-end energy and chemical industry hub. The biggest weakness among them is the chemical industry: there is insufficient capacity for on-site conversion of coal, and the high added value that can be obtained from resource conversion has not been realized. To this end, Yulin will follow the new strategy of advancing the coal chemical industry toward higher levels of development, cultivate competitive advantages across the entire coal chemical value chain, achieve a shift from raw materials to finished products, move from bulk chemicals to end-use items, and advance from the mid- to low-end of the industrial chain to the mid- to high-end, thereby creating a national model zone for modern coal chemical industry that makes full use of coal from start to finish. ”

No matter the storms, I will move forward with determination

Indeed, despite various problems, the coal chemical industry still has its advantages

Technologies need to be accumulated; as for industries, well… haha~

It seems that the industry is thriving once again these days; gasification systems for aerospace furnaces, Jinhua furnaces, East China furnaces, and Jinhang furnaces can be found everywhere. There are also several large-scale methanol and ethylene glycol projects

An analysis report from 2017 ======================== Regarding water resource constraints, it should be noted that the coal industry in the northwestern region is expanding at a rapid pace, with new production capacity amounting to 650 million tons per year, accounting for 87% of the country’s total. Six of the 14 large-scale coal bases with an annual production capacity of 100 million tons that are being given priority for development are located in the western region; by 2020, Xinjiang’s coal production is set to account for over 20% of the country’s total coal output. However, water resources are generally scarce in the western regions, and coal development and utilization have further exacerbated the water shortage. Especially in regions such as Shanxi, Shaanxi, Inner Mongolia, Ningxia, and Gansu, the contradiction between water supply and demand is particularly severe. The coal production in these areas accounts for over 60% of the country’s total coal production, while their share of available water resources is only 4.8% of the national total. The total amount of water used for coal consumption at the Ningdong facility has now exceeded the threshold set for 2015. Compared to the red-line target, there is some surplus in the total water consumption for coal production in Xinjiang, but the coal-producing areas still face severe water shortages. In 2020, the constraints on water resources were quite strict: water consumption could not exceed 74.7 billion cubic meters, and coal consumption must not exceed 3.8 billion tons. After 2030, water use quotas will become even stricter in order to maintain a balance in water resources. The red-line constraints imposed by climate change require that China’s aggressive efforts to reduce carbon dioxide emissions aim to reach a peak around 2025, with emissions then falling back to their levels before 2005 by 2050 ； Correspondingly, coal consumption should be kept below 4 billion tons by 2020, and reduced to below 3.5 billion tons by 2030. Regionally, carbon emission pilot areas began to decline after reaching a peak by 2020 ； In the developed regions of the east and central areas, carbon emissions ceased to increase after 2020, and basically reached their peak by 2025. In the moderately developed regions of the central and western areas, emissions growth slowed down after 2020, and carbon emissions began to decline after reaching a plateau by 2025. In the less developed regions of the west, where development is relatively lagging, carbon dioxide levels will reach a peak by 2030 and then decline.

For the water issue, we need to find another solution

It is not possible to make breakthroughs in terms of resource expansion, as resources are limited; moreover, the resources available in the northwest region are already scarce. Breakthroughs must therefore come from technological aspects – specifically, advancements in manufacturing processes and in wastewater treatment methods. @ZhizheMing