[Repost] Liyuan Group: Extending the industrial chain and transitioning toward new-type coal chemical industry

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http://www.mhg114.com/forum.php?mod=viewthread&tid=105417 Due to unfavorable economic conditions at home and abroad, the domestic steel industry suffers from overcapacity, which has led to a gradual reduction in its purchases of coke. Additionally, as coal and coke production enterprises continue to grow, there is also overcapacity in this sector, making it difficult for such enterprises to develop. Henan Liyuan Coal and Coke Group Co., Ltd. (hereinafter referred to as Henan Liyuan Group), one of the three major coal chemical industry bases in Henan Province, is also facing unprecedented severe challenges: falling product prices, increasingly fierce market competition, rising production costs, and a significant decline in the company’s profitability. Faced with challenges, where is the way out? The answer provided by Henan Liyuan Group is to vigorously develop a circular economy, upgrade from traditional coal chemical industries to new types of coal chemical industries, and pursue a path that combines industry with capital. As a result, the company accelerated its pace of transformation and upgrading. The coke oven gas-based LNG production project is a major initiative by Henan Liyuan Group to make full use of its own resources, actively develop new products, and create new sources of economic growth and profit. It falls under the category of **clean energy development projects that are encouraged**. At the project site, what the reporter saw were brand-new production equipment and a clean, tidy environment. Yu Gaishun, the manager of the company’s natural gas plant, told reporters: “The LNG project is an ideal option for traditional coking enterprises to carry out transformation and upgrading.” It turns out that part of the coke oven gas generated during the coking process is burned directly, while another part is used to generate electricity. But the coke industry has been shrinking nowadays. To promote the transformation and upgrading of enterprises, extend the industrial chain, and enhance their competitive strength, we launched this LNG project. ” As a substitute for diesel fuel in vehicles, LNG has broad market prospects and good economic benefits. The overall process design makes use of domestically leading patented technologies, as well as core equipment and catalysts for coke oven gas purification and methanation. It involves a series of processes such as pretreatment, compression, advanced purification, methanation, and cryogenic liquefaction to treat the coke oven gas generated during coke production, ultimately yielding the clean energy product LNG, namely liquefied natural gas. The project was successfully put into operation last September. It is capable of processing 264 million cubic meters of coke oven gas per year, producing 76,800 tons of LNG products annually, with an annual output value of around 500 million yuan. At the same time, it helps to reduce the emission of pollutants such as tar, naphthalene, sulfur, and ammonia, offering significant economic, environmental, and social benefits. Coke oven gas is a major by-product of coke manufacturing plants; each million-ton coke plant can produce over 400 million cubic meters of coke oven gas per year. Due to the high costs associated with its recovery, half of this gas is burned back in the furnace, while the other half is released into the atmosphere, resulting in waste. How to turn waste into treasure and achieve the resource utilization of coke oven gas has become a goal pursued by many coking enterprises. Henan Liyuan Group took the lead in conducting trials; last July, the coal tar hydrogenation project with an annual production capacity of 300,000 tons, for which the company invested 480 million yuan, began operations. This project involves the advanced processing of excess coke oven gas generated during the production process at high temperatures to extract 99.99% pure hydrogen. Asphalt is then distilled using a hydrogenation reactor, while the remaining material is treated through fixed-bed hydrogenation technology; as a result, clean refined oils and asphalt are produced, namely diesel, gasoline, naphtha, and asphalt. Once the project is put into operation, it will be able to produce 165,000 tons of asphalt each year, as well as 135,000 tons of fuel oil and blended oils. This will generate an output value of 1.25 billion yuan and profits and taxes of 250 million yuan, representing a new highlight and breakthrough for Henan Liyuan Group’s transformation and upgrading. “After the project was put into operation, the equipment ran smoothly. The product quality is good, meeting the National V standard. ”Feng Xiaofeng, the project manager at Henan Liyuan Chemical Technology Co., Ltd., said that the products have received full recognition from customers; currently, the company is operating at full capacity with strong sales and production performance. Niu Xiangrong, the office director of the company, explained that the price of coal tar on the market is 1,400 yuan per ton. The product obtained through hydrogenation of coal tar contains 45% fuel oil and blended oil, and its price is around 4,100 yuan per ton. 55% of the products are asphalt, with a price of around 1,300 yuan per ton; the coal tar hydrogenation process can increase the added value of these products by approximately 40%. While developing its economy, Henan Liyuan Group places greater emphasis on safety, environmental protection, and ecological civilization, as well as on energy conservation, emission reduction, and the efficient use of resources. The company’s desulfurization and salt recovery project, for which 50 million yuan was invested, is now in operation. This project uses desulfurization and salt recovery equipment to remove sulfur from coke oven gas, reducing hydrogen sulfide emissions to below 50 milligrams per cubic meter, which is well below the standard of 100 milligrams per cubic meter. Furthermore, the desulfurization waste liquid generated during the desulfurization process is sent to the salt extraction unit, where ammonium thiocyanate with a purity of 98% and sulfuric acid can be produced for sale. The water obtained from this process can also be reused in the desulfurization system, thus turning waste into a resource and achieving energy savings and environmental protection, with significant overall benefits as a result. Through transformation and upgrading as well as the extension of its industrial chain, Henan Liyuan Group has integrated various businesses such as coal washing, coking, chemicals, power generation, logistics, ferroalloys, and new energy sources into one cohesive operation, and the results of this transformation have already begun to show. At present, Henan Liyuan Group, in collaboration with the Shanxi Coal Chemistry Research Institute of the Chinese Academy of Sciences, has developed a 10-year development plan for a circular economy. By working together with various research institutions, well-known enterprises, and universities, it is accelerating its adaptation to the new normal of the market economy, striving to create new points of growth and generate additional benefits.