June 23, 2025 – AsiaMB Exclusive: Inner Mongolia Baofeng Launches Pioneering C4-to-1-Butene Project
Inner Mongolia Baofeng Coal-Based New Material Co. has taken a significant step in coal chemical valorization with its newly proposed 250,000 t/y C4-to-1-butene facility. The environmental impact assessment for this innovative project was officially accepted on June 17, marking another milestone for China’s coal-to-olefins leader.
Strategic Expansion in Olefins Value Chain
The ¥350 million project, located in Ordos’ Tuke Industrial Park, will transform byproduct mixed C4 streams into high-purity 1-butene – a crucial comonomer for polyolefin production. This development complements Baofeng’s existing world-scale coal-to-olefins complex, which achieved full operational status earlier this year with three production lines totaling 3 million t/y olefins capacity.
“Rather than selling mixed C4 as LPG, we’re unlocking additional value through precision separation,” a company spokesperson told AsiaMB. The five-unit facility will employ selective hydrogenation, super-fractionation, and isomerization technologies to extract polymer-grade 1-butene from the C4 stream.
Green Hydrogen Integration Advances
Concurrently, Baofeng’s ¥478 billion Green Hydrogen & Coal Chemical Integration Project continues development at the same industrial park. This groundbreaking initiative will combine:
• 6.6 million t/y methanol synthesis
• 3 million t/y olefin production (40% decarbonized via green hydrogen)
• 1.65 million t/y polyolefin output
Technical highlights include:
- DMTO-III methanol-to-olefins technology
- 11×4,000t/d coal gasifiers
- Unipol and Spheripol polyolefin processes
Market Implications
The 1-butene project positions Baofeng to better serve China’s growing demand for specialty polyethylenes. Industry analysts note the development could reduce import dependence for high-end copolymer applications while demonstrating the economic viability of deep C4 processing in integrated coal chemical complexes.
With environmental approval underway, construction is expected to commence in Q4 2025, potentially setting new benchmarks for carbon utilization efficiency in China’s coal chemical sector.