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On July 14th, the National Development and Reform Commission issued a “Notice on Strengthening the Construction and Management of Coal Chemical Projects and Promoting the Healthy Development of Industries†for the purpose of overall planning, rational distribution, and scientifically guiding and regulating the development of the coal chemical industry. Before the preparation of the plan was completed and confirmed by the National Development and Reform Department, the NDRC suspended the approval or filing of the coal chemical project.
The "Notice" pointed out that in addition to serious excess production capacity of traditional coal chemical products such as calcium carbide and coke, some places have ignored the bearing capacity of resources, ecology, and the environment, and there have been signs of blindly planning and competing to build coal chemical projects. Due to rising oil prices and high levels of operation, the blind development of coal-to-methanol, dimethyl ether, and other petroleum substitute products has gradually emerged. In 2005, China produced 5.36 million tons of methanol. According to incomplete statistics, the scale of methanol under construction is currently close to 9 million tons, and there are more than 10 million tons of planned and planned capacity.
The "Notice" pointed out that before the preparation of the plan is completed and confirmed by the National Development and Reform Department, the approval or filing of the coal chemical project shall be suspended. For the coal liquefaction project, before the national coal liquefaction development plan is completed, investment authorities at all levels shall suspend the approval of the coal liquefaction project. Encourage coal resources to continue the development of the coal chemical industry, appropriately arrange the construction of coal chemical projects in the coal supply area, and limit the development of the coal chemical industry in the district. Encourage the development of coal-based fertilizers and other products; steadily develop coal-oil products, methanol, dimethyl ether, olefins and other petroleum substitute products, of which coal liquefaction is still in the demonstration stage, and it should be promoted after success. According to the requirements of Document No. 11 issued by Guofa [2006], provinces, autonomous regions, and municipalities that have not completed the rectification work in the coke and calcium carbide industries have been suspended, and projects for coke and calcium carbide have been stopped for approval or filed. Coking coal (including gas coal, fat coal, coking coal, and lean coal) is preferentially used in the coking industry, and lignite and bituminous coal with a low degree of coalification are preferentially used in the coal liquefaction industry. High quality and clean coal resources are preferred for power generation, civil and industrial use. Furnace fuel, high-sulfur coal and other inferior coals are mainly used in the coal gasification industry. Anthracite coal is preferred for the fertilizer industry. The development of coal chemical industry should be “water quality†and it is strictly prohibited to squeeze domestic water and agricultural water to develop the coal chemical industry. Strictly control the construction of coal gasification and coal liquefaction projects in water-scarce areas. The application of high water-consuming processes and equipment is restricted, water-saving technologies are encouraged, and coal chemical technologies such as wastewater, reclaimed water, and mine water reuse are strongly promoted. Encourage enterprises to adopt advanced technologies with independent intellectual property rights. In general, coal-based oil projects with an annual output of below 3 million tons, methanol and dimethyl ethers below 1 million tons, and coal-to-olefins below 600,000 tons should not be approved.
The "Notice" pointed out that in addition to serious excess production capacity of traditional coal chemical products such as calcium carbide and coke, some places have ignored the bearing capacity of resources, ecology, and the environment, and there have been signs of blindly planning and competing to build coal chemical projects. Due to rising oil prices and high levels of operation, the blind development of coal-to-methanol, dimethyl ether, and other petroleum substitute products has gradually emerged. In 2005, China produced 5.36 million tons of methanol. According to incomplete statistics, the scale of methanol under construction is currently close to 9 million tons, and there are more than 10 million tons of planned and planned capacity.
The "Notice" pointed out that before the preparation of the plan is completed and confirmed by the National Development and Reform Department, the approval or filing of the coal chemical project shall be suspended. For the coal liquefaction project, before the national coal liquefaction development plan is completed, investment authorities at all levels shall suspend the approval of the coal liquefaction project. Encourage coal resources to continue the development of the coal chemical industry, appropriately arrange the construction of coal chemical projects in the coal supply area, and limit the development of the coal chemical industry in the district. Encourage the development of coal-based fertilizers and other products; steadily develop coal-oil products, methanol, dimethyl ether, olefins and other petroleum substitute products, of which coal liquefaction is still in the demonstration stage, and it should be promoted after success. According to the requirements of Document No. 11 issued by Guofa [2006], provinces, autonomous regions, and municipalities that have not completed the rectification work in the coke and calcium carbide industries have been suspended, and projects for coke and calcium carbide have been stopped for approval or filed. Coking coal (including gas coal, fat coal, coking coal, and lean coal) is preferentially used in the coking industry, and lignite and bituminous coal with a low degree of coalification are preferentially used in the coal liquefaction industry. High quality and clean coal resources are preferred for power generation, civil and industrial use. Furnace fuel, high-sulfur coal and other inferior coals are mainly used in the coal gasification industry. Anthracite coal is preferred for the fertilizer industry. The development of coal chemical industry should be “water quality†and it is strictly prohibited to squeeze domestic water and agricultural water to develop the coal chemical industry. Strictly control the construction of coal gasification and coal liquefaction projects in water-scarce areas. The application of high water-consuming processes and equipment is restricted, water-saving technologies are encouraged, and coal chemical technologies such as wastewater, reclaimed water, and mine water reuse are strongly promoted. Encourage enterprises to adopt advanced technologies with independent intellectual property rights. In general, coal-based oil projects with an annual output of below 3 million tons, methanol and dimethyl ethers below 1 million tons, and coal-to-olefins below 600,000 tons should not be approved.
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