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China to unveil 2016-2020 plan upgrading demonstrative deep coal processing

2016-09-27 14:32

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China has completed planning-making for upgrading demonstrative deep coal processing in 2016-2020, and is going to unveil it soon, according to a report by the Xinhua-run Economic Information Daily, quoting Li Ye, head of the Supervision Department of the National Energy Administration, as saying on the 2016 China International Coal Chemical Development Forum.

According to Li, the plan includes 14 demonstrative coal chemical projects that would start construction during 2016-2020 and 25 other reserve projects. The plan covers coal-to-liquid, coal-to-gas, low-rank coal utilization, coal chemicals, and comprehensive coal and oil utilization. This has been the first special plan for upgrading demonstrative deep coal processing projects, which will put up specific requirements in technology and emission for demonstrative projects, said Li.

During the 2016-2020 period, China would adhere to the guideline of maintaining national energy security and diverse raw energy supply, and focus on upgrading development on the basis of current demonstrative projects, said Pan Aihua, former deputy head of Raw Material Department of the Ministry of Industry and Information Technology.

Meanwhile, China would promote innovation and gradually launch upgrading projects, prioritize industrial layout when controlling total output, push forward clustering development of modern coal chemical projects, and help related enterprises to go abroad under the Belt and Road Initiative, noted Pan.

Currently, China's modern coal chemical industry is facing bland development with redundant plan for similar projects, and feels great pressure in water resources restraint and environmental protection, noted Pan.

There have been many modern coal chemical projects that are being planning or going through preliminary work, including 53 coal-to-olefin projects with combined capacity of 33 million tonnes, seven coal-to-liquid projects with total capacity of 13.9 million tonnes, 18 coal-to-gas projects with total capacity of 74 billion cubic meters, and dozens of coal-to-ethylene glycol projects with total capacity of 4.7 million tonnes.

Slashed by the low oil price, coal chemical projects felt great pressure in making profit, said Gua Zongqin, head of China Petroleum and Chemical Industry Planning Institute.

By May of 2016, China had 5.9 million tonnes of operational capacity for coal-to-olefin, 4 million tonnes for methanol-to-olefin, 2.58 million tonnes of coal-to-liquid, 3.1 billion cubic meters for coal-to-gas, and 2.55 million tonnes for coal-to-ethylene glycol.

Li Shousheng, head of China Petroleum and Chemical Industry Association, believes that China should not ease control on modern coal chemical development in 2016-2020, and it's necessary to make major breakthrough in high-end technology. Meanwhile, China should set up standard for emission of waste water, gas, and solid.

It is forecast that China would have production capacity of 8-10 million tonnes in coal-to-liquid capacity, 20 billion cubic meters in coal-to-gas, 16 million tonnes in coal-to-olefin, 1 million tonnes in coal-to-arene, and 6 million tonnes in coal-to-ethylene glycol by 2020.

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