Shenhua Group and U.S. Global Oil Products Technology Negotiations Enter the End of the World's First Coal to Olefins Project

On September 16, the reporter learned from Yue Guo, deputy general manager of China Shenhua Coal-to-oil Co., Ltd., that the introduction of the key technology for the first global coal-to-olefins industrialization project, the methanol-to-olefins (MTO) technology, has attracted the attention of the industry. At the end of the project, technical experts from both technical partners, China Shenhua Group and UOP, expressed good expectations for the success of the project. This indicates that the preliminary work of the project has been basically completed and will only be approved by the National Development and Reform Commission.
Due to the limited nature of global oil resources, the coal-to-olefins industry is known as "Tomorrow's Industry." For China's "rich coal and less oil," the national conditions, and vigorously develop the coal chemical industry including coal to olefins in order to reduce the dependence on oil imports, is to solve China's economic sustainable development of the necessary road. However, at present, there is no industrialized plant operation in the world. China Shenhua Group has taken the lead in this project and will succeed in attracting global attention.
According to Deputy General Manager Yue Guo, the key to the success of this project is technology. Although coal-to-olefins have not yet been operated in industrial installations, after many years of development and research, they have become industrialized. In addition to the different heat transfer in the reaction zone, the MTO process is very similar to the mature catalytic cracking technology in the oil refining industry, and its operating conditions are less severe. Its engineering amplification can fully draw lessons from the design and operation experience of the catalytic cracking unit. The risk is small. It is understood that the U.S. Global Oil Company has recently signed patent contracts with other countries for the transfer of two sets of MTO commercial devices with 2.4 million tons/year of methanol feed, 400,000 tons of ethylene and 400,000 tons of propylene per year.
It is understood that the first set of coal-to-olefins construction site is located in Baotou, only about 90 kilometers away from Shenhua Group Wanli Coal Mine. The construction content includes 1.8 million tons/year methanol plant, 600,000 tons/year MTO plant, 300,000 tons/year polyethylene plant, and 300,000 tons/year polypropylene plant. The entire project consumes 3.45 million tons of raw coal and 1.28 million tons of fuel coal. The total investment of the project is 11.7 billion yuan. At the end of last year, the project passed the environmental assessment of the State Environmental Protection Administration. In May this year, it passed the final assessment before the approval of the National Development and Reform Commission. On May 19th, Shenhua Group signed a project design contract with the design agency. Yue Guo stated that this project can be said to be ready for everything. It can be started only when it is approved by the National Development and Reform Commission.

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