【HaiChuan Chemical Project Updates】The first phase of Ningxia’s 3 million-ton CCUS demonstration project has been approved

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On May 4, the first phase of carbon source capture for the 3 million tons per year CCUS demonstration project in Ningxia’s Ningdong area was approved for implementation. This project is jointly pursued by Changqing Oilfield, the Management Committee of Ningdong Energy and Chemical Industry Base in Ningxia Hui Autonomous Region, and Ningxia Coal Industry Co., Ltd.; industrial applications are carried out in Yanchi area at both the old and new zones, with 1 million tons of gas injected annually. Ningmei is responsible for carbon source capture, while Changqing Oilfield is responsible for oil displacement and sequestration. The project will be constructed in two phases: Phase 1 will achieve a production capacity of 400,000 tons by 2024, while Phase 2 will reach 1 million tons by 2025. Modern coal chemical production processes generate large amounts of carbon emissions. In the long term, in addition to optimizing technical processes and increasing the integration of coal chemistry with new energy sources, it is also necessary to launch large-scale carbon dioxide capture, utilization, and storage (CCUS) projects in order to turn waste into assets. The Ningdong facility has high levels of carbon dioxide emissions from its coal chemical operations, and it is located near the Ordos Basin owned by CNPC; therefore, it provides an excellent setting for the development of million-ton-scale CCUS demonstration projects in this sector. According to **Energy Group Ningxia Coal Industry Company**, the carbon dioxide recovery and purification facility developed in collaboration with this company is capable of recovering 200,000 tons of carbon dioxide per year, which is mainly used for food preservation and underground protection. In addition, in collaboration with CNPC’s Changqing Oilfield, a million-ton-scale CCUS demonstration project for coal chemical processing is planned to be established at the Ningdong site. This project will capture carbon dioxide from coal-to-oil production processes, and transport it via pipelines to various oil extraction wells at CNPC’s Changqing Oilfield for use in oil displacement. “We regard carbon dioxide capture, storage, and utilization as an important means of reducing carbon emissions. Through systematic planning and phased implementation, we will build coal chemical CCUS demonstration projects with a capacity of millions of tons. In the first phase, a CCUS capacity of 1 million tons per year will be established by the end of the 14th Five-Year Plan period, while in the second phase, another 1.5 million tons per year of CCUS capacity will be added by the end of the 15th Five-Year Plan period, bringing the total CCUS capacity to 2.5 million tons per year. ”Tao Shaohua said that the first phase of the project is ready for construction, and it is expected that a capacity of 400,000 tons per year for CCUS will be established by the first half of 2023. By establishing a million-ton-scale CCUS demonstration project for coal chemical industry, completing DeDa Gas’ 400,000-ton capacity project for food-grade liquid carbon dioxide, and introducing DunHua’s 100,000-ton capacity project for carbon dioxide capture and liquefaction, efforts are being made to explore technical approaches for producing methanol through the hydrogenation of carbon dioxide. The Ningdong facility aims to develop a unique approach to achieving carbon neutrality, with the goal of reducing energy consumption per unit of GDP by more than 15% by 2025.