On December 28, 2007, China's first large-scale coal-to-methanol plant with an annual capacity of 500,000 tons was officially commissioned at Shandong Yankuang Guohong Chemical Co., Ltd. This marked a significant milestone in the country's coal chemical industry, setting a new benchmark for domestic coal-to-methanol projects.
The project, which cost 2.217 billion yuan and began construction in late October 2005, introduced advanced U.S. technology. It utilized high-sulfur coal as its primary raw material and employed cutting-edge processes such as coal slurry gasification, multi-generation systems, and low-temperature methanol washing. The facility can process 6 million cubic meters of synthesis gas annually, producing 500,000 tons of methanol. In addition to methanol, it also generates by-products like sulfur, argon, liquid oxygen, and liquid nitrogen, making it the largest and most efficient coal-to-methanol project in China.
Li Yongwu, president of the China Petroleum and Chemical Industry Association, attended the launch ceremony and praised the project as a breakthrough in China’s efforts to develop and utilize high-sulfur coal efficiently. He noted that this project has brought China’s coal-based alcohol and ether fuel development to world-class standards and into the mass production phase.
One of the key advantages of the project is its use of high-sulfur coal, which was previously difficult to manage due to environmental and technical challenges. By employing advanced technology, the methanol produced reaches a purity level of 99.99%, making it suitable for high-value chemical applications. The plant consumes 1 million tons of high-sulfur coal annually, reducing sulfur dioxide emissions by over 40,000 tons and extracting more than 20,000 tons of sulfur, generating over 70 million yuan in additional revenue each year.
Currently, coal-to-methanol projects across China are under construction or planned, with total annual production capacity exceeding 5 million tons. Most of these are large-scale facilities with capacities of 500,000 tons or more. As these projects come online, they are expected to bring substantial economic benefits to the coal chemical sector and further enhance China’s energy security and environmental sustainability.
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