On February 17, CHN Energy officially begun construction on its Upgrade and Demonstration Project at the Baotou Coal Chemical Co., Ltd. facility. This project will modernize the world's first coal-to-olefins (CTO) demonstration plant, which has been in operation for over a decade, enhancing both production capacity and technological capabilities.
Approved by the Inner Mongolia Autonomous Region Development and Reform Commission and included in the 2017 Modern Coal Chemical Industry Innovation Development Layout Plan jointly issued by the National Development and Reform Commission and the Ministry of Industry and Information Technology, the project utilizes a coal gasification-methanol-methanol-to-olefins process. It incorporates advanced energy-efficient and environmentally friendly technologies, primarily using domestically manufactured equipment, and meets or exceeds industry benchmarks for energy and water efficiency.
The project includes 11 new production units, covering coal gasification, purification, sulfur recovery, methanol synthesis, methanol-to-olefins conversion, polyethylene, and polypropylene production, along with supporting utilities and auxiliary systems. These upgrades will increase Baotou Coal Chemical Co., Ltd.'s annual methanol production capacity from 1.8 million tons to 3.8 million tons and boost polyolefin output from 600,000 tons to 1.35 million tons, significantly improving economies of scale and operational resilience.
Upon completion, this project will showcase the large-scale application of domestically developed patented technologies, significantly increasing the use of locally sourced equipment and reducing reliance on foreign technology, thereby strengthening supply chain security. Furthermore, the project will integrate with renewable energy initiatives, combining coal chemical production with green electricity, green hydrogen and green oxygen. This integration is expected to drive the modernization of the coal chemical industry towards higher-value, diversified and low-carbon development.
