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Coal-to-olefins giant plans 10-billion-yuan private placement to build world’s largest project Author/Source: Energy & Chemical Dynamics Date: April 23, 2023 Clicks: 6 On the evening of April 20, Baofeng Energy (600989), the leading domestic company in coal-to-olefins production, announced a plan for a private placement. The company intends to issue shares to specific investors in order to raise up to 10 billion yuan, which will be used by its wholly-owned subsidiary, Inner Mongolia Baofeng Investment, to construct the “2.6 million tons per year coal-to-olefins plant, along with a 400,000 tons per year facility for producing olefins using green hydrogen (Phase I)” (hereinafter referred to as the “coal-to-olefins project” or the project funded through this investment). Regarding the background and objectives of this issuance, Baofeng Energy stated that it plans to use the funds raised through this issuance to invest in the construction of coal-to-olefins projects, with the aim of \"replacing oil with coal to ensure energy security and promote the development of new material industry clusters in the region.\" By leveraging its regional and resource advantages, the company seeks to foster the intensive, concentrated, and clustered development of local industries. At the same time, in line with strategic goals such as \"carbon peak and carbon neutrality,\" it aims to innovate ways to utilize coal in a clean and efficient manner, setting a benchmark for the production of olefins using green hydrogen.