March 26, 2025 – A major project has made the headlines in Shanxi Province, as the provincial government’s official website recently unveiled a list of ten key engineering projects directly supervised by the government. Among them, the China Coal Pingshuo Coal-based Olefins New Materials and Downstream Deep Processing Integration Project, with a total investment of RMB 29.78 billion and an annual planned investment of RMB 850 million, stands out and is poised to enter the construction phase.
Recently, the investment decision for the China Coal Pingshuo Olefins Project was smoothly approved by the board of China Coal Group, marking a crucial step forward in the project’s inclusion in the planning process and laying a solid foundation for its early implementation. According to AsiaMB’s understanding, this project is a significant initiative under Shanxi’s comprehensive reform pilot for energy revolution and a key move for Shuozhou’s transformation and development.
The China Coal Energy Group Co., Ltd. Coal-based Olefins New Materials and Downstream Deep Processing Integration Project leverages the integrated advantages of coal, electricity, chemicals, water, and new energy in the Pingshuo mining area. It utilizes high-sulfur, high-ash fusion point raw coal from Pingshuo, incorporating green electricity and green hydrogen as carbon reduction pathways, to produce high-end coal-based olefins new material products. The project covers an area of approximately 2,940 acres, with a construction period of three years. Upon completion, it will have an annual production capacity of 2.2 million tons of methanol, which will be converted into 1 million tons of coal-based olefins new materials.
Located in the Chaoyang New Material Industrial Park of Pinglu Economic and Technological Development Zone in Shuozhou City, Shanxi Province, the project uses high-sulfur coal from the East Open-pit Mine. It encompasses large-scale chemical production facilities, including a 2.2 million tons/year coal-to-methanol plant, an 800,000 tons/year methanol-to-olefins and olefin separation plant, a 400,000 tons/year polyethylene plant, a 200,000 tons/year polypropylene plant, a 200,000 tons/year hydrogen peroxide plant, a 300,000 tons/year HPPO plant, a 300,000 tons/year polyether polyol plant, and a 100,000 tons/year PPC plant, among others. Supporting utilities and auxiliary facilities are also included. When the project is completed, it is expected to generate significant demand for lifting and hoisting equipment, which may be of interest to industry peers.