China's first large-scale coal-to-polypropylene demonstration project, the MTP plant of Shenhua Ningxia Coal Group, is progressing steadily. The first phase of the project has an annual methanol production capacity of 250,000 tons, while a 10,000-ton dimethyl ether plant has already been completed and is now in the testing stage.
According to Wang Huan, general manager of Shenhua Ningmei Coal Group, the MTP project began at the end of 2005 with a total investment of around RMB 17 billion. It is expected that the full facility will be operational by 2009. Once fully functional, the plant will produce 1.67 million tons of methanol, 500,000 tons of polypropylene, 188,800 tons of by-product gasoline, 41,200 tons of liquid fuel, and 13,800 tons of sulfur annually. The first set of equipment, which produces 250,000 tons of methanol to support the production of 210,000 tons of dimethyl ether, has already been completed and is undergoing trial operations.
MTP technology involves converting methanol and dimethyl ether into propylene using coal as the primary feedstock. It is currently the most mature and cost-effective method for producing propylene from non-petroleum sources. Given the market demand for MTP intermediate products, the Shenhua Ningmei project follows a "build, operate, and profit" model to maximize returns for the company.
Ningxia’s coal chemical industry benefits not only from its rich coal reserves but also from abundant water resources, particularly from the Yellow River. The Ningdong coal chemical base is designed to have a total annual water supply capacity of 360 million cubic meters, ensuring sustainable development for future projects. This strategic advantage plays a crucial role in supporting the region's growing energy and chemical industries.
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