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Know about coal chemical industry? This article is a must-read! Author/Source: Date: 2016-06-08 Clicks: 15 Modern coal chemical engineering refers to the industry that uses coal as a raw material and employs various technical processes to produce alternatives to petrochemical products as well as clean fuels. The main products include olefins produced from coal (methanol), ethylene glycol made from coal, aromatics derived from coal (methanol), coal-to-oil conversion, coal-to-natural gas production, and the pyrolysis of low-rank coal. Through more than 30 years of scientific research and technological development, as well as through engineering demonstrations and promotions since the 11th Five-Year Plan period, China’s modern coal chemical industry has made breakthrough advances in areas such as the development of key industrial technologies, the independent creation of major equipment, as well as the expansion of product varieties and production scales. It has thus become one of the fastest-growing emerging industries within the petroleum and chemical sector during the 12th Five-Year Plan period. Affected by factors such as the sharp drop in international crude oil prices, the large-scale development of shale gas in the United States, and the slowdown in global economic growth, the pattern of energy supply and demand worldwide is undergoing subtle changes. The increasing abundance of oil and gas supplies has weakened the cost advantages of modern coal chemical industries, compounded by growing constraints related to resources and the environment. Faced with a new development environment, China’s modern coal chemical industry is encountering new challenges. To adapt to the new normal of domestic economic development, enhance the competitiveness of China’s modern coal chemical industry, and promote the healthy and orderly growth of this sector, the China Petroleum and Chemical Industry Federation has specifically organized the formulation of the \"13th Five-Year Development Guidelines for Modern Coal Chemistry\" (hereinafter referred to as the Guidelines). Page 1: Current Development Status of the Industry. During the 12th Five-Year Plan period, against the backdrop of rapidly rising oil demand and high oil prices, China’s modern coal chemical industry, which focuses on oil substitutes, entered the industrialization phase at a rapid pace thanks to the completion and operation of a number of pilot projects, resulting in swift growth in the industry’s scale. Significant breakthroughs were achieved in terms of technological innovation, with many technical challenges related to large-scale advanced coal gasification, coal liquefaction, as well as coal-based olefins and ethylene glycol being overcome, and a large number of advanced devices developed. A pattern of industrial parks and specialized production bases began to take shape. Both technological innovation and industrialization in this field were at the forefront worldwide, and modern coal chemistry has become one of the most notable highlights in the development of China’s oil and chemical industry during the 12th Five-Year Plan period. (1) Main characteristics of industrial development 1. The industry has reached a certain scale: Modern coal chemical projects focused on coal-to-oil, coal-to-olefins, coal-to-ethylene glycol, and coal-to-gas have all completed the development of their production processes, resulting in rapid growth in the scale of this industry. In 2015, China’s coal-to-oil production capacity reached 2.78 million tons, with an actual output of 1.32 million tons; the production capacity for coal (methanol)-to-olefins reached 7.92 million tons, with an output of 6.48 million tons; the production capacity for coal-to-ethylene glycol reached 2.12 million tons, with an output of 1.02 million tons; and the production capacity for coal-to-natural gas reached 3.1 billion cubic meters, with an actual output of 1.6 billion cubic meters. By the end of the 12th Five-Year Plan period, China had established 20 demonstration and industrialization projects for producing olefins from coal (methanol), 4 projects for producing oil from coal, 3 projects for producing natural gas from coal, and 12 projects for producing ethylene glycol from coal. 2. Overall breakthroughs in key technology implementation: In recent years, China has developed a range of advanced coal gasification technologies, including \"multi-nozzle opposed coal slurry gasification,\" \"aerospace-type pressurized coal gasification,\" \"Tsinghua water-cooled wall coal slurry gasification,\" \"SE coal gasification,\" and \"two-stage pressurized dry coal powder gasification.\" In light of the characteristics of different coal types, relevant enterprises and research institutions are developing new coal gasification technologies to provide technical support for the in-depth advancement of modern coal chemical industry upgrading initiatives. Our country has mastered technologies for direct coal liquefaction, indirect coal liquefaction, methanol-to-olefins, coal-to-ethylene glycol, methanol-to-aromatics, and kerosene co-processing, all of which involve independent intellectual property rights. Among these, the technologies for direct coal liquefaction, indirect coal liquefaction, methanol-to-olefins, and coal-to-ethylene glycol have all undergone pilot-scale demonstrations. Building on the success of these pilot demonstrations, the methanol-to-olefins and coal-to-ethylene glycol technologies have been scaled up for wider application; meanwhile, the technologies for methanol-to-aromatics and kerosene co-processing have completed industrial-scale tests. China’s modern coal chemical technology is generally at the world’s leading level. The continuous improvement in the level of technological innovation in coal chemical industry provides important technical support for the diversification of petrochemical raw materials. 3. Significant achievements in project demonstrations: Project demonstrations related to the production of olefins from coal (methanol), coal-to-oil, coal-to-natural gas, and coal-to-ethylene glycol have achieved notable results, resolving a large number of challenges related to industrialization, engineering implementation, and the manufacturing of large-scale equipment. The Shenhua Baotou coal-to-olefins project has been operating stably for 5 consecutive years, with an average annual load factor of over 90%. Yitai’s 160,000 tons per year coal indirect liquefaction project has been operating stably for 6 years, with the plant load remaining at around 90%–110% throughout this period. The continuous operation time and production capacity of coal-to-gas projects such as Datang Keqi and Xinjiang Qinghua are also increasing continuously. Amid the significant decline in international oil prices, modern coal chemical demonstration projects are making efforts to explore new advantages over petrochemical industries from various aspects such as technology, management, and equipment, in an effort to improve their profitability. 4. A pattern of industrial parks and bases has taken initial shape. Modern coal chemical projects in China are mainly concentrated in provinces and regions such as Inner Mongolia, Shaanxi, Ningxia, Shanxi, and Xinjiang; thus, a pattern of industrial development centered around industrial parks and bases has begun to emerge. At present, the coal chemical industry bases that have already taken shape mainly include the Ordos Coal Chemical Industry Base, the Ningdong Energy and Chemical Industry Base, the Northern Shaanxi Coal Chemical Industry Base, as well as the coal chemical industry bases in Zhundong and Ili in Xinjiang. These modern coal chemical industrial bases are all located in areas rich in coal resources, with upstream and downstream industries developing further. In some cases, integrated production with industries such as petrochemicals and power generation is achieved, and these bases are moving toward a more park-based, centralized, and large-scale format. The advantages of industrial clustering are fully utilized, laying a solid foundation for development during the 13th Five-Year Plan period. (II) Main problems in industrial development While China’s modern coal chemical industry is developing rapidly and achieving significant results, it also faces some issues that cannot be ignored, which are mainly reflected in the following aspects: 1. Significant constraints due to water resources. In China, water resources and coal resources are distributed in opposite patterns – the coal-rich regions in the west account for more than two-thirds of the country’s coal production, while they only hold one-third of the country’s total water resources. In particular, regions such as Shanxi, Shaanxi, Inner Mongolia, Ningxia, Xinjiang, and Gansu account for only about 10% of the country’s total water resources; moreover, their vegetation coverage is low, resulting in fragile ecosystems. Modern coal chemical projects in regions such as Ningxia, Shaanxi, and Inner Mongolia rely primarily on the Yellow River for water supply. On one hand, the total volume of water in the Yellow River is limited, and on the other hand, it is decreasing year by year. At present, modern coal chemical projects in China have high water consumption per unit and large scale; on average, 5.8 tons of water are required per ton of coal for direct oil production, 6.0–7.0 tons for indirect coal liquefaction, 7.0–9.0 tons for coal-to-natural gas production, 25.0 tons for coal-to-ethylene glycol production, and 22.0–28.0 tons for coal-to-olefins production. These projects are mainly located in the central and western regions where water resources are scarce. The bottleneck of water resource shortages will hinder the healthy development of the modern coal chemical industry. 2. High pressure due to environmental emission requirements: Modern coal chemical industries are mainly located in western regions, where the ecological environment is fragile; the conflict between industrial development and regional ecological protection is becoming increasingly prominent. The disposal and emission of solid waste and exhaust gases in the coal chemical industry can be controlled. The main issues regarding pollution emissions are as follows: first, wastewater discharge. Treating wastewater is quite challenging, especially when it contains high concentrations of difficult-to-degrade organic substances such as tar, phenols, and polyphenols. Conventional biochemical treatment methods are hardly effective in dealing with such wastewater, and many problems arise as a result. Furthermore, the disposal of high-concentration saline wastewater is also challenging, with high treatment costs. Due to the lack of environmental emission standards for coal chemical industries, areas without the necessary infrastructure to handle such waste face the difficulty of achieving \"near-zero\" emissions. Second is the issue of controlling carbon dioxide emissions. At present, an effective way to deal with carbon dioxide emissions is by injecting it underground for storage. China National Petroleum Corporation and Shenhua Group have already carried out experimental projects related to carbon dioxide capture, oil displacement, and storage, but there is still a long way to go before this issue can be resolved fundamentally. How to effectively and fundamentally address the issue of carbon dioxide emissions remains a major practical challenge that the modern coal chemical industry urgently needs to solve. 3. Technical equipment remains a bottleneck. Although China’s modern coal chemical industry has made significant advances in key technology research and development as well as in engineering applications, the lack of technical equipment or its low level continues to be a major obstacle to the development of this industry. The main issues are as follows: First, many key process technologies have not yet been overcome, resulting in a short industrial chain in modern coal chemical industry, a limited variety of products with low quality, and a pronounced trend toward homogenization. Second, the competitiveness of domestic core technologies and equipment needs to be improved; for some core technologies such as methanation, key equipment and materials still rely on imports, which has an adverse effect on reducing project costs and shortening construction timelines. Third, the process flows and technical integrations require further optimization and upgrading, and the scale of the facilities is not adequate, meaning that the demonstration projects in operation still have significant room for improvement in terms of technical and economic indicators such as energy conversion efficiency, coal consumption, and water usage. Fourth, domestic equipment still lags behind international advanced levels in terms of scale and process control. 4. Lack of standards; an urgent need to establish a standard system. Overall, there are few standards in modern coal chemical industry, and the structure of the standard system is limited in scope. There is a significant shortage of important guiding and regulatory basic standards such as those related to clean production, technical safety guidelines, classification, and naming conventions. Specifically: first, there is a lack of standards for coal-based products, which affects the market positioning and sales of such products; second, due to the absence of appropriate standard specifications in the phases of project design, construction, and operation management, multiple industry standards are applied to the same project, which impacts the quality of construction and hinders overall project optimization; third, there are no modern safety and environmental protection standards for coal chemical industries, resulting in inadequate standards for project design, operation, and management, and increasing the difficulties associated with ensuring safety and environmental protection; fourth, the standardization efforts in modern coal chemistry are managed by different standard-setting committees, lacking a coordinating body that would help establish an effective standard management system. Page 2: Analysis of the development environment. Currently, the global economic recovery is proceeding slowly and with difficulty; overall global market demand remains weak. International crude oil and bulk raw material prices are low, and energy development is exhibiting new characteristics. China's economic development has entered a new normal; the in-depth adjustment of the industrial economy will continue, and the pressure to reduce energy consumption and emissions is becoming increasingly severe. Although China’s economic growth rate has slowed compared to previous levels, its development potential remains enormous and its prospects are bright. “During the 13th Five-Year Plan period, the development of modern coal chemical industry in China faced a severe and complex environmental landscape, with favorable conditions and restrictive factors intermingling, as well as growth potential coexisting with development pressures. (1) From a **strategic perspective**, developing modern coal chemical industry is an inevitable choice. “The resource profile of \"lack of oil, limited natural gas, and relatively abundant coal resources\" has determined China’s energy structure, which is dominated by coal, resulting in a low capacity for ensuring oil and gas supply. Firstly, the modern coal chemical industry can partially replace China’s consumption of oil and natural gas, promote diversification of raw materials in the petrochemical industry, provide strategic support for energy security, and offer emergency safeguards for oil security. Secondly, it is an important measure to implement the strategy of energy consumption revolution, protect the environment, promote the clean and efficient use of coal, and drive the transformation and upgrading of the coal industry. Thirdly, it can effectively boost regional economic development and facilitate the optimization and upgrading of industries related to coal, petrochemicals, and equipment. Furthermore, the implementation of the Belt and Road Initiative requires fully leveraging China’s advantages in modern coal chemical technologies, equipment, engineering, and talent, so as to accelerate the “going global” of the modern coal chemical industry. (II) From the perspective of market demand, there is a huge and steady demand in China for clean fuels, natural gas, and basic petrochemical raw materials. To achieve a balance between supply and demand in the refined oil market, there is still significant room for growth in gasoline production. To improve environmental quality, it is urgent to upgrade the quality of petroleum products; coal-to-oil technology is needed to provide clean and high-quality oils, thereby diversifying the sources of crude oil used in product production and alleviating the imbalance between supply and demand for crude oil. The natural gas market still has a shortage, requiring imports of pipeline natural gas and liquefied natural gas; developing coal-to-natural gas can serve as an effective supplement to it. There remains a significant gap in the equivalent consumption of ethylene and propylene; the absolute growth in domestic demand for polyethylene and polypropylene is still considerable. The market supply of aromatics, especially p-xylene, is severely insufficient; the market deficit of ethylene glycol may further widen. Coal-based chemicals can provide important support for the diversified development of petrochemical feedstocks. (III) From the perspective of the impact of fluctuations in international oil prices, the global oil market is characterized by an oversupply situation, and the factors affecting international crude oil prices are complex and variable. Multiple domestic and international institutions predict that international crude oil prices may remain low for some time. Due to differences in investment and cost structures, low oil prices have a greater impact on modern coal chemical industries than on petroleum-based chemical industries; this leads to operational difficulties for coal chemical projects and results in them losing their competitive advantage over those in the petroleum chemical sector. (IV) From the perspective of the impact of international energy trends, considering the potential effects of these trends on modern coal chemical industry, the production of shale oil and gas has become an important factor affecting the supply-demand balance in the international oil and gas market. Low-cost shale oil and gas, as well as the low-cost chemical products manufactured from it, could pose a challenge to China’s production of coal-based chemicals. The development of new energy-powered transportation vehicles, such as CNG vehicles and electric vehicles, could have a substitutive effect on conventional petroleum products. However, at present, the coal-to-oil production capacity accounts for only about 0.6% of the country’s apparent consumption of refined oil; therefore, the substitution of refined oil by new energy sources will have little impact on modern coal chemical industry for some time to come. (V) From the perspective of environmental protection requirements, with the introduction of new environmental protection laws and various regulations, modern coal chemical projects will have to comply with the strictest or higher environmental standards currently in force in the energy and chemical industries. To implement the Paris Agreement reached at the Paris Climate Conference, it is an inevitable trend for our country to introduce carbon trading or impose environmental protection taxes. This will affect the overall competitiveness of the modern coal chemical industry, and excessive taxes could deal a fatal blow to it. Page 3: Development Strategies and Objectives for the Industry (I) Development Strategies It is necessary to thoroughly implement the spirit of the Party’s *th, 18th Central Committee’s third, fourth, and fifth plenary sessions, as well as the outcomes of the sixth meeting of the Central Financial and Economic Leadership Group and the first meeting of the **Energy Commission. Guided by the Scientific Outlook on Development and in line with the “five major” development concepts, it is essential to plan carefully and coordinate effectively between current and long-term needs, as well as between local and overall interests. Scientific planning, optimized layout, reasonable control of industry scale, strict adherence to ecological safeguards, enhanced efforts in independent innovation, and active promotion of demonstrations for the upgrading of the modern coal chemical industry are all crucial in order to achieve intensive, clean, low-carbon, safe, and sustainable development of this industry. (II) Basic Principles 1. Act in accordance with water availability to promote sustainable development. Demonstration projects shall be carried out in areas where water resources permits are available; based on analyses and assessments of the potential water resources available, the scale of development for the modern coal chemical industry shall be planned reasonably to foster its sustainable development. 2. Prioritize environmental protection and promote green development. Adhere to strict environmental standards. Regarding wastewater discharge, regional environmental management standards should be established. In areas where there are no water bodies suitable for receiving wastewater, or where such water bodies cannot tolerate wastewater discharge, the requirements related to setting limits on pollutant discharge in specific water areas must be strictly enforced, ensuring that all process wastewater is recycled. In areas where there are water bodies available for receiving wastewater, the standards for discharging wastewater up to specified quality levels must be strictly complied with. 3. Adhere to a scientific layout to promote intensive development. Take into account factors such as resource conditions, environmental capacity, ecological security, transportation, and product markets to arrange demonstration projects in a scientific and rational manner. The pace of development should be determined based on resource carrying capacity and environmental limits; the scale of resource development and industrial layout should be planned according to energy security, transportation, and processing capabilities. Efforts should be made to promote a sustainable development model featuring industrial parks and bases. 4. Adhere to innovation-driven development to foster independent growth. Increase investment in science and technology, actively pursue original innovation, integrated innovation, and innovation through the adoption and adaptation of external technologies. Focus on key areas and critical links, strengthen research and development of common technologies as well as the transformation of research results. By relying on coal chemical demonstration projects and industrialization bases, accelerate the industrialization of core technologies, improve technical equipment and standard systems, and enhance the industry’s capacity for independent and innovative development. 5. Adhere to industrial integration to promote efficient development. Resolutely break down the barriers of sectoral and regional fragmentation in industrial development; innovate development models; optimize the allocation of factor resources across industries and regions; actively research, develop, and promote coal-based polygeneration technologies; foster the integrated development of the coal chemical industry with industries such as power generation, petrochemicals, metallurgy, and building materials; build circular economic industrial chains and clusters; and enhance the efficiency of resource and energy utilization. (III) Development Goals 1. Scale goals: It is expected that by 2020, the production capacity for coal-to-oil will reach 12 million tons per year, coal-to-natural gas at 20 billion cubic meters per year, coal-to-olefins at 16 million tons per year, coal-to-aromatics at 1 million tons per year, and coal-to-ethylene glycol at 6–8 million tons per year. 2. Technical objectives: Overcome 10 major key common technologies, industrialize 5 to 8 major technological achievements, and establish a number of demonstration projects; set up a number of high-level collaborative innovation platforms. Within 3 years of the commissioning of large-scale modern coal chemical demonstration projects, these projects should basically meet the design specifications and operate in a safe, stable, long-term, efficient, and high-quality manner. The domestic equipment utilization rate (calculated based on the value of equipment) for demonstration projects and industrialization projects shall be no less than 85%. Indicators such as energy efficiency, coal consumption, water consumption, and emissions. 3. Energy conservation and emission reduction goals: By 2020, compared to 2015, the modern coal chemical industry should achieve a 10% reduction in water consumption per unit of industrial output, a 5% improvement in energy efficiency, and a 5% reduction in carbon dioxide emissions. Main tasks of Page 4: (1) Optimizing industrial layout. During the 13th Five-Year Plan period, it is necessary to adhere to the basic principles of being close to raw materials, close to markets, and located within chemical industrial parks. In line with the requirements of acting in accordance with one’s capabilities, environmental constraints, and the carrying capacity of the environment, an approach that emphasizes industrial park development, larger-scale facilities, flexible production methods, and diversified products should be adopted. This will help to ensure reasonable control over the overall scale of modern coal chemical industry development, improve its layout, and enhance its technical advantages. Efforts should be made to establish a number of modern coal chemical parks and bases that meet international standards, featuring large-scale operations, integration of upstream and downstream processes, better environmental protection measures, and higher management efficiency. Improve the layout of the modern coal chemical industry by taking into account factors such as regional resource availability, environmental capacity, ecological safety, transportation, and industrial infrastructure. In conjunction with the development of large-scale coal bases, with an emphasis on the creation of petroleum substitutes and the enhancement of emergency response capabilities for petroleum security, large-scale coal chemical industry bases will be established in regions such as Yimin in eastern Mongolia, Dalu in western Mongolia, Zhundong in Xinjiang, Ili in Xinjiang, northern Shaanxi, Ningdong-Shanghaimiao, Yunnan-Guizhou, and the Anhui region of Lianghuai. This will help to create an industrial structure that complements the petrochemical industry in the east. Table 1: Key Modern Coal Chemical Industry Bases for Development http://img.yf116.cn/image/img/20160608/1727426286219.jpg (II) Conduct in-depth upgrading demonstrations: Thoroughly evaluate and summarize the experiences and issues encountered in existing demonstration projects, with a focus on improving project energy efficiency, reducing resource consumption and pollution emissions, enhancing the performance and added value of end products, strengthening system optimization and integration, and lowering investment costs, thereby carrying out upgrading demonstrations in a steady manner. The content of the upgrade demonstration mainly includes: production of high-end, high-value-added products, optimized system configuration, new processes and technologies, upgrades to environmental protection facilities and water-saving measures, enlargement and localization of equipment, as well as carbon dioxide emission reduction. Table 2: Key Areas for the Upgrading of Modern Coal Chemical Industry http://img.yf116.cn/image/img/20160608/1728446292429.jpg (III) Strengthening technological and equipment innovation: Increase investment in science and technology, enhance collaborative innovation among industry, academia, research institutions, and end-users, and actively pursue scientific and technical advancements in relation to the key common technologies and major equipment that hinder the development of the modern coal chemical industry. Develop advanced large-scale coal gasification technologies; research and develop new coal-based chemicals and specialty oils with high added value, in order to extend the modern coal chemical industry chain and broaden the range of products available; study key technologies for the clean and efficient classification and utilization of low-grade coal, in order to address the challenges related to their practical application; optimize the production conditions and process designs for key processes in modern coal chemistry, thereby improving the level of system integration and comprehensive utilization based on different quality levels of coal products; develop advanced treatment and resource recovery technologies suitable for the characteristics of the \"three wastes\" generated in coal chemical processes. (IV) Promote integrated development with related industries: In line with the principles of a circular economy, by adopting integrated coal-to-energy and heat production methods as well as multi-product production approaches, efforts should be made to foster integrated development between modern coal chemical industry and sectors such as coal mining, the traditional coke industry, salt lake resource exploitation, chemical fibers, metallurgy and building materials, and petrochemicals. This will help extend the industrial chain, expand industrial clusters, reduce the negative environmental impact of coal utilization, and improve the efficiency of resource conversion as well as the competitiveness of these industries. (V) Establish a standardized technical system. In response to the urgent need for standards in the development of the modern coal chemical industry, and in line with industry trends, a technical standards system for the modern coal chemical industry shall be developed by categorizing standards into basic and general ones, product-related standards, methodological standards, and management standards. This system should highlight key areas, define clear levels, exhibit appropriate foresight, and ensure overall coordination. Emphasis should be placed on formulating standards for main and by-products, comprehensive energy consumption, water consumption, and work safety regulations in modern coal chemical demonstration projects such as coal-to-olefins, coal-to-oil, coal-to-natural gas, coal-to-ethylene glycol, and coal-to-aromatics. Establish a coordinated mechanism for standardization work; in conjunction with reforms to the standardization system, improve standardization efforts such as those related to group standards, enhance industrial competitiveness, and promote the healthy, orderly, and sustainable development of the industry. (VI) Advance international industrial cooperation steadily. In line with the implementation of the Belt and Road Initiative, we should make full use of China’s advantages in modern coal chemical technology, equipment, engineering expertise, and talent. By taking advantage of overseas coal resources and environmental capacity, we can adopt approaches such as integrated coal mining and processing abroad, integration of upstream and downstream operations at home and abroad, and general contracting for major engineering technologies and equipment overseas. This will help deepen practical cooperation with countries possessing coal resources along the routes. Through overseas project collaborations, we can alleviate domestic pressure on resources and the environment, promote the export of coal chemical technology, equipment, and engineering services, and facilitate modern coal chemical enterprises to enter the international energy and chemical markets. Page 5: Safeguards and Recommendations (I) **Formulate development plans as soon as possible** It is necessary to establish a development plan for the modern coal chemical industry at the earliest possible time, to align perspectives, enhance top-level planning, leverage the guiding role of such plans, simplify approval procedures, and promote the scientific and orderly development of this industry. Establish industrial regulatory requirements and standard systems in terms of project level, resource consumption, environmental protection, safe production, and industrial layout, in order to prevent and mitigate potential risks related to overcapacity as well as safety and environmental issues. (II) Strengthen supervision and management: Implement comprehensive and multi-level oversight of modern coal chemical demonstration projects, and define the scope of supervision, responsible parties, and working mechanisms at various stages of the project’s development. It is recommended to divide supervision into three phases: the approval phase for demonstration projects, the construction and commissioning phase, and the commercial operation phase. Especially after the project goes into operation, experts are organized to conduct inspections, audits, and on-site measurements of the installation’s construction and operation, in order to strictly supervise safe operation, pollution control, resource consumption, and product quality. This ensures that the project’s construction and operation comply with relevant standards, as well as with market entry requirements and industrial policies related to energy conservation and environmental protection. It is necessary to establish a standardized mechanism for evaluating and promoting the outcomes of demonstration projects as soon as possible. Authoritative and objective evaluations should be provided for those projects that are successful in terms of demonstration, thereby providing a basis for the dissemination of their results. At the same time, regular meetings should be organized to promote these demonstration results, creating a platform for exchange in this regard. (III) Establish and improve an innovation cooperation framework. It is recommended to **strengthen the organization and support for joint research and development efforts by industry, academia, and research institutions on key technologies and major equipment in modern coal chemical engineering; to mobilize societal resources; to focus on addressing the forward-looking challenges and difficulties that hinder the development of modern coal chemical engineering; and to strive to improve the level of technology and equipment used in this field. Accelerate the establishment of a technology innovation system centered on enterprises, driven by the market, and featuring close integration of industry, academia, research, and application. Continuously strengthen new product development, extend the industrial chain, and promote the advancement of modern coal chemical products toward higher-end levels. (IV) Strengthen policy support: Policy support should be provided for the upgraded demonstration projects that are included in the **support list, in areas such as land pre-examination, resource allocation, environmental impact assessment, water resource evaluation, approval of soil and water conservation plans, and project financing. In engineering construction, relying on modern coal chemical industry demonstration projects, the use of large-scale complete sets of domestic equipment is encouraged and promoted. For coal-to-liquid products that contain no polycyclic aromatic hydrocarbons, have low sulfur content, and meet advanced environmental protection standards, it is recommended to grant preferential consumption tax policies. For comprehensive utilization projects such as carbon dioxide emission reduction, tax incentives are recommended. (V) Establish and improve coordination mechanisms for development. Fully leverage the role of industry associations in connecting with relevant parties, serving enterprises, and promoting self-regulation within the industry, in order to establish effective coordination mechanisms to drive the development of the modern coal chemical industry. Through industry associations, promote and implement **industrial policies and industry development plans**, and promptly and accurately convey **macroeconomic control objectives and policy directions** to enterprises. Leverage the role of industry associations in areas such as information statistics, standardized management, technical exchanges, talent training, and protecting the rights of enterprises, to promote industry exchanges and cooperation. Establish and improve industry-based self-regulatory mechanisms to standardize corporate behavior, prevent vicious competition among peers, maintain market order, and promote the healthy development of the industry. (VI) Strengthen the development of talent in the coal chemical industry: By implementing demonstration projects, more efforts should be made to train outstanding young talents, thereby building a pipeline of professional and technical experts. We must do a good job in cultivating high-level backbone talents: nurture a group of industry leaders who are at the forefront of global science and technology and brave in innovation; develop science and technology management experts with macro-level strategic thinking capabilities, capable of organizing major scientific and technological research projects; and form excellent teams characterized by cross-industry, cross-departmental, and cross-organizational collaboration among top-tier professionals. Accelerate the formulation of incentive policies to encourage coal chemical industry professionals to work in remote areas, so as to achieve a scientific approach to their employment. Schools with the capability to train coal chemical industry professionals are encouraged to refine their coal chemical engineering programs in order to accelerate the development of a workforce that meets the needs of the market.