Greening Coal Chemistry: Kaixin Energy’s 11.8B RMB Pilot Project Sparks Public Consultation

May 26, 2025 – Ningxia Kaixin Energy Unveils Public Consultation for Advanced Coal-to-Chemicals Pilot Project

Ningxia Kaixin Energy Technology Co., Ltd., a newly established chemical manufacturing enterprise based in Yinchuan, Ningxia Hui Autonomous Region, has initiated public engagement for the Environmental Impact Assessment (EIA) of its flagship “Advanced Coal-Based Chemicals Demonstration Project.” The venture, slated for construction in the Ningdong Energy and Chemical Industry Base’s New Materials Park, aims to pioneer high-value coal conversion technologies in northwest China.

Project Highlights

  • Capacity & Scope: The 11.88 billion RMB project will produce 400,000 tons/year of ultra-high-molecular-weight polyethylene (UHMWPE), 300,000 tons/year of polyolefin elastomers (POE), and 232,900 tons/year of n-butanol. Core facilities include air separation units, gasification plants, methanol synthesis reactors, and olefin separation systems, supported by utilities for water treatment, storage, safety, and environmental protection.
  • Strategic Location: Situated on a 518-acre site, the project leverages Ningxia’s abundant coal reserves and proximity to industrial clusters, minimizing logistical costs for raw materials and product distribution.

Corporate Backbone
Founded in early 2025 with a registered capital of 100 million RMB, Ningxia Kaixin operates as a wholly-owned subsidiary of Ningxia Runfeng Group Co., Ltd., a regional conglomerate with diversified interests in petrochemicals and hydrogen energy. Notably, Runfeng’s Ningxia Runfeng New Materials Technology subsidiary already operates a 2 billion RMB light hydrocarbon processing complex in Linhe Industrial Park, Ningdong Town, producing 300,000 tons/year of propane dehydrogenation (PDH)-derived propylene, 400,000 tons/year of feedstock pre-treatment capacity, and 100,000 tons/year of synthetic ammonia—all fully operational.

Industry Impact
The Kaixin project underscores China’s pivot toward cleaner coal utilization, integrating carbon capture-ready designs and water recycling systems to reduce ecological footprints. Analysts project the facility’s UHMWPE output could meet 15% of domestic demand for high-performance polymers by 2027, while POE production may break import reliance for solar encapsulants and automotive plastics.

Public Engagement
Stakeholders are invited to review EIA drafts and submit feedback via Ningxia Kaixin’s official website or regional environmental authorities until [insert deadline]. The company has committed to addressing community concerns related to air quality, wastewater management, and noise control during the 60-day consultation period.

As AsiaMB continues to monitor advancements in specialty chemicals and materials, this project signals emerging synergies between traditional coal chemistry and cutting-edge polymer engineering in China’s energy transition narrative.

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