A coal-to-olefins upgrade demonstration project pursued by Great Wall Energy Chemical, a subsidiary of China Petroleum & Chemical Corporation (Sinopec), in the Dalu Industrial Park of Jungar Banner, Ordos, Inner Mongolia, is reportedly set to break ground in August 2026. The project, a coal chemical facility integrated with wind- and solar-based green hydrogen and green power, is cited as a flagship project reflecting the Chinese government’s energy security and carbon-reduction policies.
The project is based on a coal-to-olefins process that produces methanol from coal and then converts it into olefins (such as polyethylene and polypropylene), with the distinguishing feature being the coupling of green hydrogen and green power generated from wind and solar power to lower the process’s carbon emissions. According to Chinese local media, a full-scale construction kickoff event was held on March 15, moving the project into full construction, with groundbreaking in August and completion targeted for August 2029. The original report does not specify an overseas licensor for the olefin conversion process, so detailed technology and licensor information is undisclosed.