In 2007, China's coal chemical industry was steadily advancing. Under the background that international oil prices have once hit the 100-yuan mark and global demand for alternative chemical raw materials and alternative energy sources has become more pressing, China’s coal chemical industry has been leading its industrialization. Progress has become an important part of China's energy structure. The investment opportunities in the coal chemical industry are still highly regarded by international and domestic investors. Continuous breakthroughs have been made in the industrial amplification of coal chemical technology, the construction of large coal-to-oil and coal-to-olefin plants progressed smoothly, and related product standards such as dimethyl ether were successively introduced. . Below, the author will review the development of the coal chemical industry in China in 2007 from several aspects including policy, technology and market.
——Related policies still play a leading role in the development of coal chemical industry Under the guidance of the “Circular on Strengthening the Management of Coal Chemical Project Construction and Promoting the Healthy Development of the Industry†of the National Development and Reform Commission, China’s coal chemical industry has developed in an orderly manner, with coal-to-liquidity and MTO/MTP demonstrations. The device will be built and commissioned within a predetermined time. By the NDRC's ban on the impact of new projects on the use of natural gas for chemical purposes, coal-to-methanol will become the most important source of methanol in China. The highly-focused “Mid-term and long-term development plan for coal chemical industry†has not issued since the release of the draft for comment at the end of 2006.
——The construction of Shenhua coal-to-oil plant progressed smoothly The Shenhua Group's world's first coal-to-liquid liquefaction plant has progressed smoothly since it started construction in August 2004. By the end of 2007, 98% of the project's progress has been completed and achieved Major technological breakthroughs with milestone significance: The world's first commercial direct coal liquefaction technology; The world's first nano-coal direct liquefaction catalyst preparation technology; The world's largest and heaviest hydrogenation reactor manufacturing and lifting technology; Domestic first Boiling bed hydrogenation (T-STAR) application technology. According to sources from Shenhua, the Shenhua direct coal oil demonstration plant will be commissioned in early 2008.
—— Rapid development of alcohol ether fuels In 2007, China’s alcohol and ether fuels achieved significant development. The number of methanol and dimethyl ether plants built and put into operation in the year reached several million tons, respectively, and the total scale of installations under construction also reached tens of millions. The tonnage lays the foundation for the arrival of the era of alcohol ether fuels. The product standard of “Dimethyl Ether for Town Gas†issued by the Ministry of Construction in October cleared the way for the civilian use of DME fuel, and the New Austrian Group took the lead in the DME fuel industry with its strong civilian gas distribution channel advantages. Status, and the giants of Jiutai Energy, Lanzhou Kechuang and Hubei Tianmao followed. The use of dimethyl ether for automobiles has also made breakthrough progress. Under the impetus of a joint research and production team consisting of nine units including the Shanghai Jiaotong University Energy Research Institute, Shenhu Bus, Shanghai Shangai Group and Shanghai Huayi, dimethyl ether has been used in vehicles. The test was a complete success.
——The new technology of independent coal chemical industry began to take the lead In 2007, China’s coal chemical industry gradually got rid of the status of single imported technology, and the independent intellectual property technology developed vigorously and achieved global leading position. Among them, the Shenhua Coal Direct Oil Production Technology, which is about to realize industrial production, the DMTO Technology of the Dalian Institute of Materials, which starts the construction of a 2000-ton/year catalyst plant, the coal-slurry gasification technology of the East China University of Science and Technology, and the coal-to-gas slurry gasification technology of East China University of Science and Technology, and December in Yunnan Province. It is represented by methanol-based gasoline technology.
- Opportunities for coal chemical equipment industry ushered in the development of coal chemical industry led to the development of coal chemical equipment industry. The coal chemical equipment industry has been driven by market demand and has received the attention of the national authorities. The research and development of large-scale coal chemical complete sets of equipment has been listed as one of the 16 major technical and equipment tasks that the country will vigorously develop in the future. Localization of large-scale coal chemical complete sets of equipment is a key content. Against this background, coal chemical equipment industry ushered in a good opportunity for development in 2007.
In general, in 2007, China's coal chemical industry was guided by the National Development and Reform Commission and steadily developed under the joint promotion of relevant enterprises and local governments at all levels. High-input and high-yield projects such as coal-to-oil and coal-to-olefins are about to be put into production; alcohol ether fuels have benefited from the prosperous development of product standards; proprietary intellectual property technologies have begun to gain leading edge and export. China's coal chemical industry has provided new options for alternative energy and chemical raw materials under high oil price environment, which has ensured China's energy security and economical harmonious development.
——Related policies still play a leading role in the development of coal chemical industry Under the guidance of the “Circular on Strengthening the Management of Coal Chemical Project Construction and Promoting the Healthy Development of the Industry†of the National Development and Reform Commission, China’s coal chemical industry has developed in an orderly manner, with coal-to-liquidity and MTO/MTP demonstrations. The device will be built and commissioned within a predetermined time. By the NDRC's ban on the impact of new projects on the use of natural gas for chemical purposes, coal-to-methanol will become the most important source of methanol in China. The highly-focused “Mid-term and long-term development plan for coal chemical industry†has not issued since the release of the draft for comment at the end of 2006.
——The construction of Shenhua coal-to-oil plant progressed smoothly The Shenhua Group's world's first coal-to-liquid liquefaction plant has progressed smoothly since it started construction in August 2004. By the end of 2007, 98% of the project's progress has been completed and achieved Major technological breakthroughs with milestone significance: The world's first commercial direct coal liquefaction technology; The world's first nano-coal direct liquefaction catalyst preparation technology; The world's largest and heaviest hydrogenation reactor manufacturing and lifting technology; Domestic first Boiling bed hydrogenation (T-STAR) application technology. According to sources from Shenhua, the Shenhua direct coal oil demonstration plant will be commissioned in early 2008.
—— Rapid development of alcohol ether fuels In 2007, China’s alcohol and ether fuels achieved significant development. The number of methanol and dimethyl ether plants built and put into operation in the year reached several million tons, respectively, and the total scale of installations under construction also reached tens of millions. The tonnage lays the foundation for the arrival of the era of alcohol ether fuels. The product standard of “Dimethyl Ether for Town Gas†issued by the Ministry of Construction in October cleared the way for the civilian use of DME fuel, and the New Austrian Group took the lead in the DME fuel industry with its strong civilian gas distribution channel advantages. Status, and the giants of Jiutai Energy, Lanzhou Kechuang and Hubei Tianmao followed. The use of dimethyl ether for automobiles has also made breakthrough progress. Under the impetus of a joint research and production team consisting of nine units including the Shanghai Jiaotong University Energy Research Institute, Shenhu Bus, Shanghai Shangai Group and Shanghai Huayi, dimethyl ether has been used in vehicles. The test was a complete success.
——The new technology of independent coal chemical industry began to take the lead In 2007, China’s coal chemical industry gradually got rid of the status of single imported technology, and the independent intellectual property technology developed vigorously and achieved global leading position. Among them, the Shenhua Coal Direct Oil Production Technology, which is about to realize industrial production, the DMTO Technology of the Dalian Institute of Materials, which starts the construction of a 2000-ton/year catalyst plant, the coal-slurry gasification technology of the East China University of Science and Technology, and the coal-to-gas slurry gasification technology of East China University of Science and Technology, and December in Yunnan Province. It is represented by methanol-based gasoline technology.
- Opportunities for coal chemical equipment industry ushered in the development of coal chemical industry led to the development of coal chemical equipment industry. The coal chemical equipment industry has been driven by market demand and has received the attention of the national authorities. The research and development of large-scale coal chemical complete sets of equipment has been listed as one of the 16 major technical and equipment tasks that the country will vigorously develop in the future. Localization of large-scale coal chemical complete sets of equipment is a key content. Against this background, coal chemical equipment industry ushered in a good opportunity for development in 2007.
In general, in 2007, China's coal chemical industry was guided by the National Development and Reform Commission and steadily developed under the joint promotion of relevant enterprises and local governments at all levels. High-input and high-yield projects such as coal-to-oil and coal-to-olefins are about to be put into production; alcohol ether fuels have benefited from the prosperous development of product standards; proprietary intellectual property technologies have begun to gain leading edge and export. China's coal chemical industry has provided new options for alternative energy and chemical raw materials under high oil price environment, which has ensured China's energy security and economical harmonious development.
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