On September 16, a reporter learned from Yue Guo, deputy general manager of China Shenhua Coal-to-Oil Co., Ltd., that the introduction of the key technology for the world's first coal-to-olefins industrial project—methanol-to-olefins (MTO) technology—has drawn significant attention from industry experts. At the project’s final stage, technical teams from both partners, China Shenhua Group and UOP, expressed confidence in the project’s success. This marks that the preliminary work has been largely completed, and the project is now awaiting approval from the National Development and Reform Commission.
With global oil resources becoming increasingly scarce, the coal-to-olefins industry is often referred to as the "industry of the future." For China, which has abundant coal but limited oil reserves, developing coal-based chemical industries like coal-to-olefins is crucial for reducing reliance on imported oil and supporting long-term economic sustainability. However, no commercial-scale plants have been operational worldwide so far. China Shenhua’s initiative in this area has already captured global interest.
According to Deputy General Manager Yue Guo, the key to the project’s success lies in its technological foundation. Although coal-to-olefins has not yet been implemented in industrial settings, years of research and development have brought it closer to commercialization. The MTO process closely resembles the well-established catalytic cracking technology used in oil refining, with similar operating conditions and less severe requirements. This allows for easier engineering scaling based on existing experience in catalytic units, significantly reducing risks.
It is reported that the first coal-to-olefins project will be located in Baotou, approximately 90 kilometers from Shenhua Group’s Wanli Coal Mine. The construction will include a 1.8 million tons/year methanol plant, a 600,000 tons/year MTO plant, and two polyolefin plants producing 300,000 tons/year each of polyethylene and polypropylene. The project will consume 3.45 million tons of raw coal and 1.28 million tons of fuel coal annually, with a total investment of 11.7 billion yuan.
The project recently passed the environmental assessment by the State Environmental Protection Administration and successfully completed the final review before the National Development and Reform Commission’s approval. On May 19, Shenhua Group signed the design contract with the project agency. Yue Guo stated that the project is now fully prepared and only awaits official approval to begin construction.
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