On September 16, a reporter learned from Yue Guo, the deputy general manager of China Shenhua Coal-to-Oil Co., Ltd., that the introduction of the key technology for the world's first industrial-scale coal-to-olefins project—methanol-to-olefins (MTO) technology—has drawn significant industry attention. As the project nears completion, technical experts from both partners, China Shenhua Group and UOP, expressed confidence in its success. This signals that the preliminary work is largely finished, and the project is now awaiting final 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 tomorrow." For China, which has abundant coal but limited oil reserves, developing coal-based chemical industries—including coal-to-olefins—is essential to reducing reliance on imported oil and ensuring long-term economic sustainability. Currently, no commercial-scale coal-to-olefins plants are operational worldwide, making China Shenhua’s initiative a groundbreaking move that has captured international interest.
According to Deputy General Manager Yue Guo, the success of the project hinges on advanced technology. Although coal-to-olefins has not yet been implemented in industrial settings, years of research and development have brought it close to commercialization. The MTO process closely resembles the well-established catalytic cracking technology used in petroleum refining, with milder operating conditions and lower risks. Engineering scaling can benefit significantly from existing experience in catalytic cracking units, further reducing uncertainties.
Recently, the U.S.-based Global Oil Company signed patent agreements with several countries to transfer two commercial MTO units capable of processing 2.4 million tons of methanol annually, producing 400,000 tons each of ethylene and propylene. This demonstrates growing global confidence in the technology.
The first coal-to-olefins plant will be located in Baotou, just 90 kilometers from Shenhua Group’s Wanli Coal Mine. The project includes a 1.8 million-ton-per-year methanol plant, a 600,000-ton MTO plant, and two polymer plants producing 300,000 tons each of polyethylene and polypropylene annually. It will consume 3.45 million tons of raw coal and 1.28 million tons of fuel coal. With a total investment of 11.7 billion yuan, the project has already passed environmental assessments by the State Environmental Protection Administration and received final review before National Development and Reform Commission approval.
On May 19, Shenhua Group signed a design contract with the project’s design agency. Yue Guo stated that all preparations are complete, and the project is ready to begin once approved.
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