Asian Chemical News published an article that China's coal-to-olefins are competitive

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Asian Chemical News recently published an article pointing out that China's chemical industry has returned to the era of coal-based coal-rich Inner Mongolia and Shaanxi provinces as investment hot spots for coal chemical projects. Due to the low price of coal, projects near coal mines in China are highly competitive with coal-to-olefins. This interest in using coal as a chemical feedstock may extend to coal-rich countries such as the United States, Asia, and Western Europe.
The article pointed out that the production of chemical products from coal began in the early 20th century, but when producers turned to cheaper oil and gas as raw materials, coal chemical was forced to withdraw in the 1940s. In recent years, with the increasingly tight supply of oil and prices soaring, manufacturers have once again turned their attention to coal. Especially in China, a series of methanol, polyvinyl chloride and even olefin production projects using coal as raw materials are under construction.
Shenhua Group, China's largest coal producer, has two coal-to-olefins projects, one of which is a joint venture between Baotou, Inner Mongolia, Hong Kong Kerry Group and Baotou Tomorrow Technology. The project plans three sets of devices—the coal gasification unit converts coal into syngas, and then provides the methanol plant with raw materials. The methanol produced is sent to the methanol-to-olefin plant through pipelines. This $1 billion project will likely become China's first coal-to-olefin plant. Another project in Yulin, Shaanxi Province, has begun feasibility studies with Dow Chemical. In addition, in Yulin, Hong Kong Benefit Sales Corporation and China Chemical Engineering Corporation (CNCEC) have established a joint venture company for the coal to olefins project.
The article said that the above-mentioned project is considering the use of foreign technology. The Shaanxi Provincial Investment Group will use the technology of the Dalian Institute of Chemicals of the Chinese Academy of Sciences to establish a test device for coal to olefins. In addition, a petrochemical company in Ningxia plans to use coal as raw material to first produce methanol and then produce olefins, expand the coal-to-methanol Expansion from 600,000 tons/year to 2.6 million tons/year, and produce 500,000 tons/year of olefins.
Although coal prices have risen by 40% last year, people's interest in producing chemical products from coal as raw materials remains high, because if the project is close to coal mines, coal prices are still very cheap. The article quoted sources close to the project as saying that if there is a coal mine, only 100 yuan (12 US dollars) per ton of coal.
The article quoted analysts from Nexant Chemical Systems as saying that Chinese coal-to-olefins will be highly competitive. The analysis concluded that it is economically competitive when producing olefins from low-priced raw materials such as natural gas in the Middle East. This analysis assumes that the methanol/MTP/propylene complex is located in the Middle East and ships the propylene to the United States and Western Europe.
The analyst pointed out that the interest in using coal as a raw material for chemical products will extend to other countries and regions, such as the coal-rich United States, Asia, and Western Europe. The US Department of Energy has begun to pay attention to the development of synthetic oil technology using coal as raw material. With the advancement of coal gasification technologies that produce electricity and fuel, the competitiveness of coal-based chemicals will naturally increase.
He said that it is not unreasonable to use coal as a raw material for energy and chemical products. Coal resources can cope with the threat of crude oil supply. The use of coal as raw material to produce chemical products can be free from fluctuations in the prices of crude oil and natural gas. Although people have a high degree of enthusiasm for the development of coal chemical industry, it is still unknown how many projects will be completed in China.
It is also pointed out by industry insiders that although coal gasification and methanol technologies have been developed, it is unclear whether it is economically feasible to produce olefins from methanol.
The article said that so far, ExxonMobil, Lurgi and UOP/NorskHydro have developed this technology. Lurgi has built a demonstration plant for methanol to propylene in Norway, but it has not yet been commercialized. However, according to Chinese sources, these technologies are ready for commercial production.

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