Baofeng’s new coal chemical project in Ordos, Inner Mongolia, with a total investment of 47.8 billion yuan, is under approval process

Inner Mongolia Baofeng Coal-based New Materials Co., Ltd. – Innovative Demonstration Project for Carbon Emission Reduction through the Integration of Green Hydrogen and Coal Chemical Industry. Location: Tuk Industrial Zone, Sulihe Economic Development Zone, Wushen Banner, Ordos City, Inner Mongolia Autonomous Region; it is situated in the reserved area in the northern part of the zone, between Wei 7 Road and Wei 9 Road, as well as Jing 3 Road and Jing 8 Road. Construction unit: Inner Mongolia Baofeng Coal-based New Materials Co., Ltd. (abbreviated as “Inner Mongolia Baofeng”). Land area: 594.43 hectares. Total workforce: 3,500 people. Total project investment: The approved total investment amounts to 4,781,137 million yuan, of which the construction cost (including value-added tax) is 4,431,109 million yuan, interest during the construction period is 315,296 million yuan, and working capital for startup purposes is 347,320 million yuan (the above figures are based on normal operating conditions).

Construction scale: The main facilities to be built include 3 × 2.2 million tons/year methanol plants (including an oxygen separation unit capable of producing 7 × 110,000 Nm3/h of oxygen, units for gasification, shift reaction, and heat recovery as well as low-temperature methanol washing, capable of handling 3 × 562,000 Nm3/h of effective gas (CO + H2), and 3 × 100,000 tons/year sulfur recovery units); 3 × 1 million tons/year methanol-to-olefins plants (including olefin separation units); 3 × 500,000 tons/year polypropylene plants; 3 × 550,000 tons/year polyethylene plants; a 200,000 tons/year plant for producing 1-butene from C4 compounds; and a 200,000 tons/year steam cracking plant. In addition to producing polypropylene and polyethylene, it also produces by-products such as sulfur, heavy naphtha, C5+, ethylene tar, and MTBE.

This project is based on a coal-to-olefins production capacity of 2.6 million tons per year; it relies on a separately constructed integrated demonstration project for hydrogen production from wind and solar energy to supply green hydrogen and green oxygen on an annual basis. The hydrogen supplied 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 subsequent methanol synthesis reactions – and thus reducing the CO2 emissions from the process system； The additional oxygen is used as oxygen for gasification, reducing the load on the air separation unit and thereby decreasing the amount of coal fuel required. With the coal consumption remaining constant, the production of domestically produced methanol is increased by adding hydrogen and oxygen year by year; by the fifth year of hydrogen addition, the output of such methanol is sufficient to meet the demands of downstream methanol-to-olefins processes, 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 the integrated demonstration project for hydrogen production from wind and solar energy, 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. Polyethylene and polypropylene products are obtained by polymerizing polymeric-grade ethylene and propylene respectively. To make rational use of various by-products, steam cracking technology is employed for the saturated light hydrocarbons produced as by-products of ethane, propane, and C4 obtained from olefin separation, in order to increase the production of ethylene and propylene ； 1-butene is obtained by separating the mixed C4 produced as a by-product of the olefin separation process, to be used as a raw material in polyethylene production.

For the gasification phase of this project, the 6.5MPa multi-nozzle opposed water-coal slurry pressurized gasification technology developed by East China University of Science and Technology is to be employed; for purification, the low-temperature methanol washing technology provided by German company Linde will be used. Methanol synthesis will be carried out using the low-pressure methanol synthesis technology from British company Davy. Hydrogen recovery from methanol off-gases will be achieved through membrane separation and pressure swing adsorption processes. Sulfur recovery will be accomplished using the technology provided by Shandong Sanwei Company. The conversion of methanol into olefins will utilize the latest DMTO-III generation technology developed by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences. For olefin separation and the utilization of light hydrocarbons, the pre-propanation process technology as well as the SCORETM steam cracking technology from American company KBR will be applied. Polyethylene production will employ Unipol vapor fluidized bed technology from Univation Company, while polypropylene production will use the Spheripol technology, which combines liquid and gas phases, from Basell Company – all of these being advanced process technologies and equipment in the fields of coal chemistry and petrochemicals.

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