A demonstration upgrade project for the coal-to-olefins (CTO) facility operated by Shenhua Baotou Coal Chemical, a subsidiary of China National Energy Group, has reportedly entered its final stage, targeting completion by the end of August 2026.
The project reportedly upgrades existing coal chemical facilities to expand production capacity for methanol and polyolefins (PE/PP). The applied technology is reported to include a pressurized pulverized-coal gasification process (2,000 tonnes per day class) jointly developed by Kelin Energy and China Shenhua Coal to Liquid and Chemical, along with a co-treatment patented technology for wastewater/liquid effluent.
Total investment is reported at RMB 17.15 billion. Methanol production capacity is being expanded to 3.8 million tonnes per year, and polyolefin (PE/PP) capacity to 1.35 million tonnes per year. Annual coal conversion volume is around 7.8 million tonnes, with completion targeted for August 30, 2026.
China is reportedly continuing to pursue the upgrading and scaling-up of coal-to-olefins facilities to achieve self-sufficiency in chemical feedstock based on domestic coal resources, and this project is regarded as a demonstration case within that effort.
The completion of coal chemical upgrade projects such as this is viewed as a case that could further expand China’s domestic polyolefin supply capacity.
The actual completion and commercial start-up timing, and the initial utilization rate trend, are worth watching.