Coal Chemical Industry Development Needs Advanced Technology Guarantee

In response to concerns about excessive investment and redundant construction in China's coal chemical industry, Wei Gong, chairman of the Taiyuan Chemical Industry Group, emphasized that Shanxi's coal chemical development during the "11th Five-Year Plan" should focus not only on energy conservation but also on technological advancement. Wei pointed out that many current coal chemical projects are concentrated in areas such as coal-to-oil and coal-to-methanol, with little differentiation in product types. This has led to a serious trend of low-level duplication. Once these large-scale projects are completed, they will likely result in a sharp increase in similar products, leading to overcapacity, falling prices, and financial losses for companies—similar to past cycles of overbuilding in the domestic market. According to the national coal industry's "11th Five-Year Plan," total coal used for chemical purposes is expected to reach 100 million tons by 2010. For Shanxi, which relies heavily on traditional coal chemical industries, this presents an even greater challenge. To accelerate the province's chemical industry growth, it must transition toward an "energy-saving chemical industry." Moreover, the development strategy must be science and technology-driven, with targeted planning. For example, in the methanol sector, it is essential to promote centralized processing of coke oven gas for methanol production in key coke regions. New coal gasification technologies and low-pressure synthesis processes should be encouraged in areas with low-cost, low-quality coal. Large-scale methanol facilities should be built alongside downstream deep-processing projects. In the fertilizer industry, advanced coal gasification technology should be adopted, with guidance on urea production from coke oven gas. Cogeneration should be actively promoted, and waste heat recovery should be optimized. The development of new ammonia synthesis towers and large-scale low-pressure synthesis equipment should be prioritized, along with the use of modified urea technology to improve utilization rates and maintain competitive advantages. By focusing on innovation, efficiency, and sustainable development, the coal chemical industry can avoid the pitfalls of overcapacity and ensure long-term stability and growth.

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