In 2014, Yulin circular economy coal comprehensive utilization project conducted by Shenhua and The Dow Chemical Industry, the biggest individual coal chemical project back then, was approved by the Ministry of Environmental Protection to produce 39 different chemical products and its investment totaled 125.86 billion yuan ($18.98 billion).
The Ministry of Environmental Protection also gave environmental approval for State Power Investment and Total's coal-to-polyolefin (CTP) project in Ordos, Inner Mongolia in 2016, to produce 800,000 tonnes per annum of CTP products like polyethylene and polypropylene in using local coal resources.
In the same year, Shenhua Ningxia Coal Industry established joint venture with Saudi Arabic Basic Industry Corporation to produce 700,000 tonnes of CTO new materials per year, and investment totaled 27 billion yuan.
Currently, there are nearly 30 CTO/MTO (methanol-to-olefin) projects under construction or under planning, 15 of which are located in western China and most of them are integrated projects.
By end-September, China finished construction of 21 CTO/MTO devices with capacity over 12 Mtpa, 8.18 Mtpa of which are concentrated in western China, showed data from Asiachem, a leading research institute on emerging fields of energy and chemical industry in Shanghai.
Over 2017-2021, China is expected to increase 13 Mtpa of CTO/MTO capacity with total investment of 400 billion yuan, which is to bring total CTO/MTO capacity to 25 Mtpa by 2021. Of that, 15 Mtpa of capacity will be produced in West China, meaning that coal chemical industry is developing fast around western China.
(Writing by William Gao Editing by Jessie Jia)
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