Methanol-from-coal production and olefin conversion

Project: Methanol-from-coal production and olefin conversion 

Location:Coal Electrochemical Industrial Park in the township of Fa'er in Shuicheng county, Southwest China's Guizhou province 

Construction and capacity: To build necessary facilities capable of producing 1.8 million tons of methanol from coal a year and converting it into olefin.

Total investment: 14 billion yuan (roughly $2 billion) 

Modes of cooperation and management: Sole proprietorship, joint-venture, cooperation 

Favorable policies: Covered by national preferential policies on the development of western China and local supporting policies on the development of the real economy 

Development advantages and importance:

In view of China's energy conditions in which there is abundant coal but insufficient oil and natural gas, the development of coal chemical industries is crucial to speeding up the implementation of national petroleum replacing strategies, guaranteeing the safety of energy supply, achieving diversification of energy supply, and promoting sustainable growth of chemical industries in the post-petroleum era. 

The project, which has completed its planning and design, mainly targets production of methanol from coal and ensuing conversion into olefin. It will increase the added value of coal-oriented products and promote ecological construction. 

Shuicheng boasts rich resources in coal. The amount of local and exploitable verified coal reserves reaches 5.2 billion tons, while coal reserves stand at 4.3 billion tons. 

The county enjoys a full-fledged coal industry and has sufficient construction materials and labor resources, relatively lower priced usable water and electricity and sound infrastructure suitable for project construction. 

The Coal Electrochemical Industrial Park covers an area of 16.6 square kilometers in the township of Fa'er and boasts well-functioning infrastructure. It is one of 100 provincial demonstration industrial parks under development and aims to become a recyclable industrial park. 

More specifically, it will concentrate on the industrial development of coal chemicals, electricity and new construction materials and also be involved in the production of agricultural by-products and logistics.

Domestic production of methanol is now mainly from coal, coke oven gas, and natural gas. About 71 percent of methanol in China is produced from coal, which is still the mainstream technique.

As producing methanol and olefin from coal in 2018 was a lucrative business, there is a bright future for its future development.