Progress of the first phase of Baofeng’s coal-based new materials project: 2.6 million tons per year of coal-derived olefins, along with a complementary facility for producing olefins through the use of green hydrogen in amounts of 400,000 tons per year

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Progress of the first phase of Inner Mongolia Baofeng Coal-based New Materials Project: 2.6 million tons per year of coal-derived olefins, along with a complementary facility for producing olefins using green hydrogen in a combined process. Author/Source: Coal Chemical Industry Information Network. Date: March 27, 2023. Clicks: 27. On March 23, the first underground pipe for the utility systems in Section 13 of this project was successfully installed, with construction carried out by the Northwest Branch of China National Chemical Engineering Group Co., Ltd. The ground pipe is 36 meters long and weighs 9 tons; it was lifted using a 70-ton crane. 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 II Co., Ltd. The project plans 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 demonstration project for hydrogen production from wind and solar energy. This approach aims to reduce the amount of methanol that needs to be purchased, thereby stabilizing the production capacity of olefins, all while achieving carbon emission reductions through the use of green electricity, green oxygen, and green hydrogen. The first phase of Inner Mongolia Baofeng Coal-based New Materials Co., Ltd., which involves a production capacity of 2.6 million tons per year of coal-derived olefins along with an associated facility for producing olefins using green hydrogen at a capacity of 400,000 tons per year, requires an investment of 47.8 billion yuan. By integrating green hydrogen with modern coal chemical processing technologies, this facility will become the largest \"green hydrogen+\" coal-derived olefins production complex of its kind in China. On March 6, the groundbreaking ceremony for the first phase of Inner Mongolia Baofeng Coal-based New Materials Co., Ltd.’s project, which involves 2.6 million tons per year of coal-derived olefins and a complementary facility for producing olefins through the use of green hydrogen in amounts of 400,000 tons per year, was held at the construction site. This project is being carried out by Shaanxi Huajian Engineering Co., Ltd. On March 1, the construction work for the methanol installation project as part of the first phase of Inner Mongolia Baofeng Coal-based New Materials Co., Ltd., which has a capacity of 2.6 million tons per year for coal-to-olefins production along with an accompanying facility for producing olefins using green hydrogen in a capacity of 400,000 tons per year, began officially. This project is being carried out by China National Chemical Engineering Corporation Sixth Construction Co., Ltd. The project is scheduled to complete all preparatory construction work by March 2023, after which full-scale construction will begin; it is intended to be completed and put into operation within 18 months, thereby enabling the replacement of coal with hydrogen and achieving carbon reduction along with improved efficiency. On November 23, 2022, the Ministry of Ecology and Environment issued the \"Approval on the Environmental Impact Report for the First Phase of Inner Mongolia Baofeng Coal-Based New Materials Co., Ltd.’s 2.6 million tons per year coal-to-olefins production facility, along with the accompanying 400,000 tons per year olefins production facility that utilizes green hydrogen in its manufacturing process\" (Document No. Huan Shen [2022] 183). This approval granted permission to Inner Mongolia Baofeng Coal-Based New Materials Co., Ltd., a subsidiary of Ningxia Baofeng Energy Group Co., Ltd., to construct a new 2.6 million tons per year coal-to-olefins production facility and a 400,000 tons per year olefins production facility that makes use of green hydrogen, in the Tuk Industrial Zone of Sugri Economic Development Zone, Wushen Banner, Ordos City, Inner Mongolia. The project employs a synergistic production process that combines green hydrogen with modern coal chemical technology. Its total olefin production capacity is 3 million tons per year, making it the largest coal-based olefin plant in the world to date. It is also the only project globally that uses green hydrogen on a large scale to replace fossil fuels in the production of olefins. Project Overview: 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 capital of 950 million yuan, in partnership with its wholly-owned subsidiary, Ningxia Baofeng Energy Group Olefin Plant Co., Ltd. The project plans 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 demonstration project for hydrogen production from wind and solar energy. This approach aims to reduce the amount of methanol that needs to be purchased, thereby stabilizing the production capacity of olefins, all while achieving carbon emission reductions through the use of green electricity, green oxygen, and green hydrogen. Project Name: Innovative Demonstration Project on Carbon Emission Reduction through the Coupling of Green Hydrogen and Coal Chemical Industry by Inner Mongolia Baofeng Coal-based New Materials Co., Ltd.
Project Category: According to the “Classification Catalogue for Environmental Impact Assessment of Construction Projects (2021 Edition)”, this project falls under “25. Processing of Coal” within “22. Petroleum, Coal, and Other Fuel Processing Industries”; it also falls under “261. Production of Basic Chemical Raw Materials” and “265. Production of Synthetic Materials” within “23. Chemical Raw Materials and Chemical Products Manufacturing Industry”.
Nature of Construction: New construction
Location: Tuk Industrial Project Area, Sulihe Economic Development Zone, Wushen Banner, Ordos City, Inner Mongolia Autonomous Region
Constructor: Inner Mongolia Baofeng Coal-based New Materials Co., Ltd.
Land Area: 594.43 hectares
Total Number of Employees: 3,500
Total Project Investment: The approved total investment amount is 478,113.7 million yuan, of which 443,110.9 million yuan is allocated to construction costs (including value-added tax), 315,296 million yuan to interest during the construction period, and 34,732 million yuan to working capital. Construction scale: The main facilities to be built include 3 × 2.2 million tons/year methanol plants (including an air separation unit producing 7 × 110,000 Nm3/h of oxygen, units for gasification, shift reaction and heat recovery, as well as low-temperature methanol washing, producing 3 × 562,000 Nm3/h of useful gases (CO + H2), and sulfur recovery units with a capacity of 3 × 65,000 tons/year); 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 plant for producing 1-butene from C4 with a capacity of 200,000 tons/year; and a steam cracking plant with a capacity of 200,000 tons/year. In addition to producing polypropylene and polyethylene, it also produces by-products such as sulfur, heavy naphtha, C5+, ethylene tar, and MTBE. Operating time: 8,000 hours/year