Shenhua Baotou invests 17.15 billion yuan in a project to produce 2 million tons of coal-based methanol and 750,000 tons of olefins; construction has begun

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Investment of 17.15 billion yuan! 20 million tons of coal-to-methanol and 750,000 tons of olefins production projects commenced 2025-08-14 On August 12, the commissioning ceremony for the MTO unit and the olefins separation unit of Shenhua Baotou’s coal-to-olefins upgrade demonstration project, along with the launch of a labor competition themed “Massive Civil Engineering Drive,” was held on site. **A total of 70 people attended the event, including Hu Yaoyu, Secretary of the Discipline Inspection Committee of Guoneng Baotou Coal Chemical Co., Ltd., the owner of the MTO unit and the olefin separation unit in WSAREER Shenhua Baotou Coal-to-Olefins Upgrade Demonstration Project of Liankuan Group; Yang Hongbin, Deputy Secretary of the Party Committee of Sinopec Guangzhou Engineering Company; Xu Jinguo, Deputy Secretary of the Party Committee of Sinopec Fourth Construction Company; as well as leaders from supervision and construction companies such as Shandong Wuhua, Tianjin Chenda, Shandong Shenghua, and Yanhua Tianzheng, along with staff from various participating units. The project was constructed under EPC general contracting by Guangzhou Engineering Company, and includes various units such as a new 2 million tons per year MTO unit, a 750,000 tons per year olefin separation unit, cabinet rooms, substations, and a fourth circulating water plant. Among them, the MTO unit utilizes a process package jointly developed by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, and Guangzhou Engineering Company, as well as one independently developed by Guangzhou Engineering Company. It is reported that in order to address challenges such as the short project construction period and the difficulties associated with construction in winter, the project team will carry out a 100-day labor competition titled a \"major civil engineering campaign\" in collaboration with all participating units. The goal is to essentially complete all civil engineering work by the start of winter construction, thereby creating favorable conditions for the subsequent installation of steel structures and equipment, and laying a solid foundation for the successful completion of the project by the end of November 2026. The Shenhua Baotou Coal-to-Olefins Upgrade Demonstration Project has a total investment of 17.15 billion yuan; it uses a mixture of coal from Burtai, Cuncauta No. 2 Mine, and Shangwan as raw material to produce 2 million tons per year of methanol (on an equivalent pure basis), which is then further processed to yield 750,000 tons per year of polyolefin products. ▶The production facilities include: air separation units, gasification units, shift and heat recovery units, low-temperature methanol washing units, refrigeration plants, sulfur recovery units, methanol synthesis units, methanol-to-olefins units, olefin separation units, polyethylene production units, polypropylene production units, etc. ▶Public utilities and auxiliary systems include: thermal power plants, circulating water stations, chemical water treatment plants, sewage treatment and reuse systems, accident water tanks, heat exchange stations, coal unloading and storage facilities, plant-wide flares, central control rooms, central laboratories, the main transformer station and substation areas throughout the plant, the plant’s water supply and drainage networks, olefin storage areas, loading and unloading platforms for liquid materials, the plant’s process and heating pipelines, the external power supply lines and lighting systems, as well as the plant’s telecommunications and general transportation systems.