A total investment of 67.3 billion yuan! Baofeng's 4 million tons coal-to-olefin project in Inner Mongolia will start soon!

On March 31, listed company Baofeng Energy (600989.SH) said in the investor interactive platform that the enterprise invested in the construction of 4×1 million tons/year coal-to-olefin demonstration project of Inner Mongolia Baofeng Coal-based New Materials Co.Inner Mongolia Baofeng Coal-based New Materials Co., Ltd.

4×1 million tons/year coal-to-olefin demonstration project is located in the Tuk Industrial Project Area of Surig Economic Development Zone, Uttar Pradesh City, Inner Mongolia, with a total plant area of 640.3 hectares.

The project belongs to the demonstration project of clean and efficient transformation of coal resources. The construction of the project can promote the development of coal-to-olefin industry cluster, further promote the development of downstream fine chemical industry and promote the comprehensive utilization of coal co-associated resources such as mine water, which is of great significance to accelerate the construction of Erdos National Modern Coal Chemical Industry Demonstration Zone and promote the industrial transformation and upgrading and economic and social development of the region.

The total investment of the project is 673,654,500,000 Yuan, and the construction includes: air separation unit, gasification unit, purification unit, methanol synthesis unit, MTO unit, olefin separation unit, polyethylene unit, polypropylene unit, sulfur recovery unit, power station, plant-wide water supply and drainage works (including water fire-fighting system), sewage treatment, water reuse unit, evaporation crystallization, plant-wide power supply and distribution, plant-wide telecommunication, plant-wide external pipe, intermediate product tank area (included in the plant), flare system, underground pipe network, air pressure station, heat exchange station, etc.

Auxiliary works: plant-wide general transport, central laboratory (environmental monitoring station), central control room, hazardous chemical storage, hazardous waste storage room, plant-wide information management system, comprehensive office building, PP and PE finished products warehouse, etc. Construction time: 48 months.

Baofeng Energy 2021 Annual Report

On March 10, Baofeng Energy announced its 2021 annual report, in which the Company achieved operating revenue of RMB23.299 billion, an increase of 46.29% year-on-year, and net profit attributable to the mother company of RMB7.070 billion, an increase of 52.95% year-on-year.

Strengthened process technology innovation and management to continuously reduce product energy and material unit consumption.

The Company's Olefin Plant No. 2 continued to optimise its operating parameters and achieved a methanol unit consumption (equivalent to refined methanol) of 2.852 tonnes per tonne, 0.033 tonnes per tonne lower than that of the same period last year, which was again the best level in the industry; it completed the renovation of the tail gas recovery of the demethanation tower and increased the propane yield from 0.29% to 0.53%.

The raw material coal consumption (equivalent to 5,400 calories of coal) for methanol production at Methanol Plant 1 was 1.41 tonnes per tonne and that at Methanol Plant 2 was 1.37 tonnes per tonne, a reduction of 0.07 tonnes per tonne compared to the previous year, continuing to maintain the industry's low level.

In the list of "2020 Energy Efficiency Leader Benchmark Enterprises for Key Energy Consumption Products in the Petroleum and Chemical Industry" published by the China Petroleum and Chemical Federation, the Company ranked first in the coal-to-olefin industry, with the lowest energy consumption level in the industry.

Optimised equipment management and production operation management to continuously improve production efficiency. Production of polyethylene and polypropylene was 1,365,600 tonnes, an increase of 30,100 tonnes or 2.26% year-on-year, while direct sales of propylene were 101,800 tonnes, an increase of 60,200 tonnes or 145.13% year-on-year, the best level in the Company's history.

At the same time, methanol production also reached a record high, with MTO-grade methanol production of 4.574 million tonnes, an increase of 1.207 million tonnes or 35.85% year-on-year, reducing the amount of methanol purchased and saving a lot of raw material procurement costs.

We stepped up investment in technology, steadily developed high-end products and formed a product hierarchy. During the reporting period, investment in research and development increased by 32.48% over the same period of the previous year, and we successfully developed new grades of polypropylene high-melt finger, thin-wall injection and high-end polyethylene products, such as medium-melt copolymer K8009, high-melt copolymer K7726H, open-end linear 7042H and thin-wall injection M600E.

The construction of the EVA project has progressed by half, and a graded structure of general-purpose material products, special-purpose material products, metallocene products and EVA products has been initially formed.

On 9 February 2021, the first electrolytic cell was commissioned, and the first batch of 30 1,000 standard cubic meters per hour hydrogen production plants were built, with a capacity of 240 million standard cubic meters per year (21,400 tons). The hydrogen produced from the project will be fed into the chemical plant.

From 2022 onwards, it is planned to increase the green hydrogen production capacity by 300 million standard cubic metres per year, and to reduce 5% of the total carbon emissions of chemical plants annually, with the aim of achieving 50% carbon emission reduction in 10 years and taking the lead in achieving carbon neutrality in 20 years.