Approval application submitted for Ordos Inner Mongolia Baofeng’s 3 million tons/year olefins project
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Inner Mongolia Baofeng Coal-based New Materials Co., Ltd. is a subsidiary established in Inner Mongolia by Ningxia Baofeng Energy Group Co., Ltd., using its own funds of RMB 950 million, in partnership with its wholly-owned subsidiary, Ningxia Baofeng Energy Group Olefin Plant Co., Ltd. It is planned to use Inner Mongolia Baofeng Coal-based New Materials Co., Ltd. as the main entity, and to combine this with the construction of an integrated new energy demonstration project that incorporates wind, solar, hydrogen, and storage technologies. This approach will enable carbon emission reductions through the use of green electricity, green oxygen, and green hydrogen, while also reducing the need to purchase methanol and thus maintaining a stable output of olefins. An investment of approximately 47.815 billion yuan is intended for the development of an innovative demonstration project aimed at reducing carbon emissions through the integration of green hydrogen and coal chemical technologies, to be carried out in the Tuk Industrial Zone of the Sulihe Economic Development Zone in Wushen Banner, Ordos City, Inner Mongolia Autonomous Region (hereinafter referred to as this project). This project will produce 3 million tons per year of olefins. The core unit, DMTO, utilizes the III technology developed by the Dalian Institute of Physical Chemistry; the engineering scale for a single unit under this technology is 1 million tons per year. This technology enables the conversion of 2.65 tons of pure methanol into 1 ton of olefins. In this project, the amount of crude methanol is 7.8053 million tons per year, which corresponds to 7.4150 million tons of pure methanol per year. The resulting olefin production volume is 2.7946 million tons per year (including C4 recovered through olefin separation).
Inner Mongolia Baofeng Coal-based New Materials Co., Ltd.’s Innovative Demonstration Project on Carbon Emission Reduction through the Integration of Green Hydrogen and Coal Chemical Industry. Project category: According to the \"Classification Catalogue for Environmental Impact Assessment of Construction Projects (2021 Edition)\", this project falls under \"22. Petroleum, coal, and other fuel processing industries 25\" – specifically \"42. Coal processing 252\" – as well as under \"23. Chemical raw materials and chemical products manufacturing industry 26\" – specifically \"44. Synthetic material manufacturing 265\". Nature of construction: New construction. Location: Tuk Industrial Project Area, Sulihe Economic Development Zone, Wushen Banner, Ordos City, Inner Mongolia Autonomous Region; it is located in the reserved area in the northern part of the park, between Weiqi Road and Weiji Road, as well as between Jing San Road and Jing Ba Road.
Construction unit: Inner Mongolia Baofeng Coal-based New Materials Co., Ltd. Land area: 594.4 hectares. Total workforce for the plant: 3,500 people. Total project investment: The approved total investment amounts to 478,146.1 million yuan, of which 443,129.8 million yuan is allocated to construction costs (including value-added tax), 31,531.8 million yuan to interest during the construction period, and 34,845 million yuan to working capital (the figures above are based on normal operating conditions). Operating hours: 8,000 hours per year. Scale of construction: The project will mainly include 3 methanol plants with a capacity of 2.2 million tons per year each (including oxygen production units with a capacity of 7×110,000 Nm3/h, units for gasification, shift reaction, heat recovery, and purification with an effective gas capacity of 3×562,000 Nm3/h for CO+H2, and sulfur recovery units with a capacity of 3×65,000 tons per year); 3 methanol-to-olefins plants with a capacity of 1 million tons per year each (including olefin separation units); 3 polypropylene plants with a capacity of 500,000 tons per year each; 3 polyethylene plants with a capacity of 550,000 tons per year each; a plant for producing 1-butene from C4 with a capacity of 250,000 tons per year; and a steam cracking unit with a capacity of 290,000 tons per year. In addition to producing polypropylene and polyethylene, it also produces by-products such as sulfur, heavy naphtha, C5+, pyrolysis fuel oil, and MTBE. The project is based on 2.6 million tons per year of coal-to-olefins production, and a complementary hydrogen production via water electrolysis facility (which is constructed as a separate project) is used to supply hydrogen and oxygen over time. The hydrogen produced is directly fed into the methanol synthesis unit, thereby reducing the load on the conversion and heat recovery units – conversion being the process by which CO reacts with H2O to produce H2 and CO2 in order to achieve the desired H2/CO ratio for the subsequent methanol synthesis reaction – and thus reducing the CO2 emissions from the process system ； The additional oxygen is used as oxygen for gasification. While keeping the raw coal consumption constant, the production of domestically produced methanol is increased by adding hydrogen and oxygen year by year; by the tenth year of hydrogen supplementation, the output of domestically produced methanol is sufficient to meet the demand for methanol in olefin production, while simultaneously achieving a year-by-year reduction in CO2 emissions. The main process of this project involves pressurized gasification of raw coal using water-coal slurry (in a quenching process), followed by shift reaction and purification to produce purified gas. This purified gas is mixed with hydrogen generated by electrolysis of water, to serve as the feed gas for methanol synthesis. MTO-grade methanol is produced through low-pressure methanol synthesis technology, and then polymeric-grade ethylene and propylene are produced via methanol-to-olefins technology. Polymeric-grade ethylene and propylene are further polymerized to yield polyethylene and polypropylene products, respectively. To make rational use of various by-products, the ethane, propane, and saturated light hydrocarbons produced as by-products of olefin separation, as well as those generated from the conversion of C4 compounds into 1-butene, are subjected to steam cracking to increase the production of ethylene and propylene ； 1-Butene is obtained by separating the mixed C4 produced as a byproduct of the olefin separation process, to be used as a raw material for polypropylene production.
Project composition: The construction project includes a total of 12 production units, namely an air separation unit, a gasification unit, a shift and heat recovery unit, a low-temperature methanol washing unit, a sulfur recovery unit, a methanol synthesis unit, a DMTO unit, an olefin separation unit, an SCU unit, a C4 unit for producing 1-butene, a polyethylene plant, and a polypropylene plant； Utilities include power stations, water supply and drainage systems, sewage treatment plants, reclaimed water facilities, main substations, as well as distribution substations ； Auxiliary production facilities include the central control room, central laboratory, heat exchange station, flare system, hazardous chemicals storage area, hazardous waste temporary storage area, plant fire protection system, and comprehensive office building ； The storage and transportation system includes the coal transportation and storage system as well as tank farms, etc. The disposal of general solid waste is carried out through the General Industrial Solid Waste Disposal and Resource Recovery Storage Site project in the Sulihe Economic Development Zone (referred to as the industrial zone waste dump), while hazardous solid waste is sent to qualified entities for disposal.