Coal news and updates

https://www.energyportal.eu/news/china-limits-expansion-of-coal-chemical-industry-prioritises-energy-security/98911/

China’s state planner, the National Development and Reform Commission (NDRC), has announced that it will “strictly control” the approval and size of new coal-to-chemical projects. This measure aims to prioritize the supply of coal to power plants.

Coal-chemical processing involves using coal as a raw material to produce various industrial chemicals, including synthetic ammonia and polyester. The previous plan to add 20 million metric tons of new coal-chemical capacity in demonstration zones will not be continued.

The NDRC emphasized that completing the task of ensuring coal supply for power generation and heating is a top priority, reaffirming the country’s commitment to using coal to strengthen its energy security. These restrictions apply specifically to coal to downstream, non-fuel petrochemical processing and do not affect the coal-to-oil or coal-to-gas sectors.

Several coal-to-chemical projects have already been established in provinces such as Shaanxi and Inner Mongolia, attracting major energy players like Sinopec. These projects aim to extend the coal value chain.

This move to tighten control on new coal-to-chemical projects is driven by concerns over coal supply to power plants, as well as China’s increasing petrochemical refining capacity. The country’s growing capacity in the petrochemical sector allows it to source products generated through coal-chemical processing from other regions.

According to the International Energy Agency, China is expected to contribute to over half of the global growth in petrochemical processing capacity between 2023 and 2030.

This measure from China’s state planner reflects the country’s strategy to balance coal utilization goals with environmental concerns and energy security objectives.