World's First Large-Scale Coal Chemical Project After China's Dual Carbon Goals
China Coal Group's China Coal Shaanxi Energy and Chemical Yulin Coal Deep Processing Base (Phase II) has achieved full mechanical completion of all 48 process units, officially entering integrated system commissioning. The project, with a total investment of RMB 23.888 billion (approximately US$3.3 billion), plans to build capacities of 2.2 million tonnes per year of methanol and 900,000 tonnes per year of polyolefins.
Technical Innovation
- Gasification technology: World's first set of 3,000-tonne-class coal-water slurry semi-waste boiler gasification technology
- MTO process: DMTO-III third-generation methanol-to-olefins process from the Chinese Academy of Sciences
- Polyolefin products: 350,000 t/y polyethylene and 550,000 t/y polypropylene, plus 250,000 t/y LDPE/EVA chain extension unit
- Construction speed: 754 days from start to intermediate handover — 36 days ahead of schedule, setting a record for coal chemical projects of this scale in China
- Safety record: Nearly 37 million safe man-hours with zero accidents during construction
Strategic Significance
Located in the Yuheng Industrial Park in Yulin, Shaanxi Province, this is the first large-scale coal chemical project approved by China's Ministry of Ecology and Environment following the implementation of the national dual carbon goals. The project integrates the coal-methanol-olefins-high-end polyolefins value chain, relying on direct raw material supply from China Coal's own mines for coordinated scheduling with existing Phase I units.
Commissioning Timeline
The project team is advancing punch list rectification and commissioning work, with the goal of producing qualified products by end of 2026. After full Phase II commissioning, China Coal Shaanxi's methanol and polyolefin production capacities will expand significantly, consolidating its position as the chain leader in the Northwest coal chemical industry cluster. The project implementation entity, China Coal Shaanxi Yulin Energy and Chemical Co., Ltd., has registered capital of RMB 11.077 billion and total assets of RMB 27.986 billion. During peak construction, the project drove employment for over 10,000 people.
