February 22, 2025

"High cost" coal-to-olefins or spring

The Secretary of State Energy Administration is optimistic about coal to olefins, in the future of China's energy development layout, indeed "the prospect is bright."
Yesterday, China National Chemical Information Center signed a global strategic cooperation agreement with Tycoon Global Chemical Co., Ltd. In his speech, Roger Li, Executive Director of Tycoon, said that the "future of the future" of relying on methanol-to-olefins from coal chemical industry in China.
Zhang Guobao, director of the National Energy Administration, recently stated that coal chemical industry is the direction of coal clean-up and utilization. The application of coal in this area will certainly increase in the future. "In particular, coal-to-olefins, I am optimistic."
At present, there are approximately 70 million tons of petroleum-based olefins production capacity in China. However, as a resource product, oil prices will generally increase in shock, and coal-to-olefins are more competitive in terms of cost than crude oil.
Roger Lee also said that with the continuous rise of international oil and gas prices in recent years, the use of coal as a raw material for manufacturing chemical products is becoming increasingly economical.
In addition, in China, coal production sites are usually located in remote areas, and the cost of transporting coal out of these areas is high. If these coals are first converted into methanol and then transported, the cost will be even lower.
The first step in using coal as a raw material to obtain chemical products is usually to convert it to syngas, which can be converted to ammonia or methanol. Ammonia is used to produce fertilizers, while methanol can be used as a raw material for the production of other chemical products including olefins.
China, which is enjoying an excess of refining capacity, currently has a surplus of methanol production. However, ethylene and propylene products, the mother of the petrochemical industry, are still in a shortage in China. How to use coal to make olefins such as ethylene is one of China's possible future industrial directions.
Wu Hao, the deputy director of the National Energy Administration, once stated in public that from the perspective of various primary energy sources, renewable energy sources such as hydropower, nuclear power, and wind power could solve the source of the important secondary energy product such as “electricity”, but A large number of secondary energy products such as “liquid fuels” and “chemical products” can still only be provided by traditional fossil fuels such as coal, oil, and natural gas.
“In the future, we need to vigorously develop renewable energy and allow it to assume greater power generation responsibilities, and use more traditional fossil energy for the production of liquid fuels and chemical products that are 'powerless' for renewable energy.” Say.
"In the field of using coal as a chemical raw material, China is on a unique path of development," said Roger Lee.
He believes that with the success of China's coal to olefins, it is likely to set off a trend of "following" chemical industry in the world. "This will not only involve countries with rich coal reserves such as Australia, Indonesia and India, but also countries with abundant natural gas resources such as the United States."
Steadily moving forward may be a current portrayal of coal chemical industry.
Fu Xu, director of the China National Chemical Information Center, believes that the Chinese government currently allows a few coal chemical projects to be piloted first, and it is intended to seek technical possibilities for coal chemical industry through pilot projects. If coal chemical technology proves to be safe and reliable and environmentally friendly, it is likely to be open to the entire society.
Regarding the development of coal-based natural gas in coal chemical industry, Zhang Guobao once pointed out that at present, various localities have asked for coal-to-gas projects, but he stated that there is only one company that truly realizes the industrialization of coal-based natural gas, and the coal-based natural gas production process It also produces a lot of carbon dioxide.
“Each unit contending for coal-based natural gas should treat this industry objectively, calmly and realistically. I'm in favor of properly pursuing supplements and vacancies. However, it is not appropriate for every place to develop coal-based natural gas.” National treasure said.

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