China's first large-scale coal-to-polypropylene demonstration project, the MTP plant of Shenhua Ningxia Coal Group, is progressing smoothly. The first set of equipment has an annual methanol production capacity of 250,000 tons, while a 10,000-ton dimethyl ether plant has already been completed and is undergoing testing.
According to Wang Huan, general manager of Shenhua Ningmei Coal Group, the MTP project officially began at the end of 2005 with a total investment of approximately RMB 17 billion. The full-scale operation is expected to be completed by 2009. Once operational, 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 phase, which includes 250,000 tons of methanol production to support 210,000 tons of dimethyl ether, has already been completed and is in trial operation.
MTP technology involves producing propylene through the dehydration of methanol and dimethyl ether derived from coal. It is currently the most mature and cost-effective method for producing propylene from non-petroleum sources. Since the intermediate products of the MTP process are already in high demand, the project adopts a "build, operate, and generate 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 water supply capacity of up to 360 million cubic meters per year, ensuring sustainable development for future projects. This strategic combination of coal and water resources positions Ningxia as a key player in China’s emerging coal chemical sector.
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