The Ministry of Ecology and Environment officially approved the Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project, a massive coal chemical project requiring an investment of 79.836 billion yuan, in Shaanxi Province

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! The Ministry of Ecology and Environment officially approved the Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project, a major coal chemical project in Shaanxi with a total investment of 79.836 billion yuan. Author: Hua Xiaobei; Source: Coal Chemical Industry Information Network; Views: 578; Update date: May 15, 2025. On May 8, the Ministry of Ecology and Environment announced that it had recently approved the revised environmental impact assessment report for this project carried out by China Shenhua Coal-to-Oil Chemicals Co., Ltd., marking significant progress in the advancement of this project. The total investment in the project is 79.836 billion yuan, and it is located in the Northern Area of Qingshui Industrial Park, Yushen Industrial Zone, Yulin City, Shaanxi Province. During the implementation of the project, the company modified the content of the subsequent construction phases; using coal as a raw material, it produces synthetic oils, polyolefins, biodegradable plastics and other products through processes such as direct coal liquefaction, coal gasification, methanol-to-olefins conversion, and naphtha-methanol coupled cracking. After the project changes, the required amount of raw coal for production is 10.4325 million tons per year, while the amount of fresh water needed is 22.7979 million cubic meters per year. The main projects include 38 production units such as direct coal liquefaction, coal gasification, methanol synthesis, methanol to olefins (MTO), and naphtha-methanol coupled cracking ； Auxiliary engineering includes water supply and drainage systems, flare systems, etc ； Storage and transportation engineering includes tank farms, product warehouses, etc ； Environmental protection engineering mainly includes waste gas treatment facilities, wastewater treatment facilities, and solid waste treatment facilities. Coal liquefaction is a new addition, which involves the establishment of a new coal direct liquefaction production line with a capacity of 2.16 million tons per year. This includes a coal liquefaction unit with a capacity of 4.8 million tons per year (based on the amount of raw coking coal processed), a hydrogenation and stabilization unit with a capacity of 8 million tons per year (based on the amount of raw material processed), and a hydrogenation and upgrading unit with a capacity of 2 million tons per year (also based on the amount of raw material processed). The MTO and downstream processing capacities are reduced by half based on the original MTO production scale, and the downstream production capacities as well as the product portfolio are adjusted accordingly. This includes reducing the capacity of the MTO unit from 1.5 million tons per year to 750,000 tons per year; increasing the capacity of the polypropylene unit from 200,000 tons per year to 360,000 tons per year; changing the focus of the polyethylene unit from low-density polyethylene (350,000 tons per year) to high-density polyethylene (340,000 tons per year); adding production of ethylene propylene diene monomer and ultra-high molecular weight polyethylene; and discontinuing the production of alcohol ether derivatives from ethylene and propylene. The coal-based biodegradable materials section represents new content; that is, processing and production facilities for coal-based biodegradable materials have been added, utilizing methane and n-butane produced as by-products in the plant, including facilities for producing 50,000 t/a of polycarbonatobutylene glycol and 160,000 t/a of polybutenedioic acid butylene glycol. The approval states that the project is located in a **strategic base for coal-based oil and gas production, and meets the requirements set out in the \"Principles for the Approval of Environmental Impact Assessment Documents for Modern Coal Chemical Industry Projects\". The project carries out large-scale industrial demonstrations of next-generation technologies for direct coal liquefaction and naphtha-methanol coupled cracking technologies, which is of positive significance for ensuring **energy security and promoting the advanced, diversified, and low-carbon development of modern coal chemical industry. The Ministry of Ecology and Environment approves in principle the scale, technology, location of the construction project, as well as the environmental protection measures outlined in the environmental impact report.