Total investment of 13.3 billion yuan: An overview of the first phase of Jinxin Chemical’s green and innovative coal chemical project

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The 25th National \"Safety Production Month\" in 2026: Everyone talks about safety, and everyone knows how to handle emergencies; identifying and addressing potential risks and hazards. -------------------------------------------------- I. Basic information on the project: The developer is Hulunbuir Jinxin Chemical Co., Ltd. (a Sino-foreign joint venture controlled by Yuntianhua); the project is located in the coal chemical industrial park in Chenbarhu Banner, Hulunbuir, Inner Mongolia, and it takes advantage of the local Baorixile lignite resources for its operation. Investment and Cycle: The total investment amounts to 13.3 billion yuan. As of May 2026, formal approval/registration as well as environmental impact assessment consent have not yet been obtained; the project aims to start construction in 2026 with completion and operation scheduled for 2029 ； The second phase is being planned in tandem (with a total investment of 11.3 billion yuan); in the long term, it aims to develop a large-scale green coal chemical industry cluster. Product and process orientation: It is a low-carbon, modern coal chemical project that abandons traditional, extensive coal chemical production methods. It employs clean lignite gasification combined with green hydrogen, as well as processes for the capture and utilization of CO₂. The project focuses on producing high-quality fine chemical raw materials, green methanol, synthetic ammonia, and various new materials derived from these substances. It also includes facilities for combined heat and power generation, recycled water use, and comprehensive recycling of solid waste ； The project focuses on wind and solar new energy, promoting carbon reduction through the integration of coal chemistry and green hydrogen. Current progress at the initial stage: The project is in the phase of feasibility study preparation and approval procedures, with emphasis placed on advancing four key preparatory tasks: ensuring a stable supply of raw material lignite, adjusting the land use within the park and its boundaries with those of the town, replacing capacity quotas, and registering the new industries to be established in the park ； Submit applications for energy consumption, carbon emissions, and total pollutant discharge indicators simultaneously, align with the relevant plans for key industries during the 15th Five-Year Plan period in ** and Inner Mongolia, and coordinate the optimization of the Baorixile mining area’s plan. II. Bidding Situation (I) Investigation and Design Bidding: The project has not yet reached the stage of public bidding for the EPC of the main construction work or for investigation and design services. At this stage, only preliminary bidding for feasibility studies and specialized evaluations is being carried out. Third-party technical firms are selected in batches for tasks such as environmental impact assessments, safety assessments, water resource evaluations, pre-approval of land use, and consultation services related to adjustments in mining area planning. The bidding process is organized jointly by Jinxin Chemical itself and agencies such as Sinochem Business; the funding comes from the company’s own resources as well as bank loans provided for the project. For the existing older facilities (500,000 tons of synthetic ammonia/800,000 tons of urea), tenders for energy-saving renovation designs are being conducted on a regular basis. (The tender for the energy-saving technical renovation design of the urea plant in 2025 has already been completed.) (II) Construction and equipment bidding: For the main project, bids for civil works, installation, and the procurement of equipment for large-scale gasification units have not yet been issued. The bidding process will be initiated after the feasibility study is approved, the environmental impact assessment is approved, and all land-related procedures are completed (it is expected that bidding will take place in batches before the project starts in 2026, for services such as EPC contracting for gasification, purification, and synthesis units, civil works for site preparation, utility systems, and environmental protection facilities). Minor procurement for supporting facilities: At this stage, only temporary water and electricity supply for the park, small-scale tests for geological surveys, and minor procurement tasks related to preliminary site surveys are carried out through solicitation of bids ； The company’s existing manufacturing sites regularly issue tenders for the procurement of auxiliary materials, as well as for maintenance, repair, and anti-corrosion/insulation work; in 2026, tenders will continue to be issued for environmental protection upgrades and the comprehensive utilization of slag. III. Construction Status: The main production facility: Civil construction work has not yet begun officially; there are no activities related to pile foundations, civil construction, or equipment installation for this main facility. Preliminary preparation work for construction: Only topographic surveying of the site selected for the project, preliminary geological investigation, and minor preparatory tasks such as clearing the site surface are carried out ； Temporary construction works such as temporary access roads and temporary water supply and drainage systems within the park are constructed in small sections as needed. Existing supporting industrial park: Construction work is ongoing for environmental protection upgrades and energy-saving renovations of the existing coal chemical processing facilities (including advanced wastewater treatment, ultra-low emission modifications for flue gas, and the reconstruction and expansion of a solid waste comprehensive utilization workshop). This ensures that interfaces for utility services are reserved for future projects. Node plan: After all administrative approvals are completed in 2026, site leveling and basic civil works will commence; the peak period for the civil work of the main facilities and equipment installation will be from 2027 to 2028; operation will start following joint commissioning in 2029. IV. Significance of the Project: At the industrial level, by leveraging Hulunbuir’s abundant lignite resources, this project aims to shift the local coal industry from exporting raw coal to carrying out advanced, green processing processes on-site. It seeks to phase out energy-intensive, low-end coal chemical industries, improve the modern green coal chemical industry chain in eastern Inner Mongolia, address the shortage of high-quality chemical raw materials locally in the Northeast, and contribute to the transformation and upgrading of Inner Mongolia’s modern coal chemical industry. In terms of low-carbon and environmental protection: By utilizing coal conversion combined with green hydrogen and carbon capture and utilization technologies, carbon emissions per unit of product are significantly reduced. Solid waste and wastewater are recycled in full, thereby supporting the achievement of the \"dual carbon\" goals. This approach creates a model for ultra-low emission coal chemical production in cold grassland regions, helping to address the environmental protection challenges associated with coal chemical industries in such ecological areas. At the regional economic level: Investments in the hundreds of billions will drive the development of local infrastructure, equipment manufacturing, and logistics support industries. Once implemented, they will steadily create jobs and continuously generate fiscal revenue. This will facilitate the industrial transformation of Hulunbuir as a resource-based city, while promoting the coordinated development of its grassland agriculture and animal husbandry sectors. At the enterprise and industry levels: It helps Yun Tianhua to optimize its green coal chemical industry layout in the northern region. Leveraging the technological expertise accumulated by its existing **-level green factories, it facilitates the implementation of a new-generation industrial demonstration project for clean coal chemistry, thereby providing a replicable model for the green and efficient utilization of lignite in China.