China's Dalian Institute of Chemical Physics, Shaanxi Xinxing Coal Chemical Technology Development Co., Ltd., and Sinopec Group Luoyang Petrochemical Engineering Co., Ltd. have achieved remarkable progress in the "Methanol to Olefins (DMTO) Technology Development" industrial pilot project. A 100% methanol conversion rate was successfully attained in an industrial-scale test unit processing 50 tons of methanol, with low-carbon olefins—such as ethylene, propylene, and butylene—showing selectivity exceeding 90%. On August 24, a press conference was held at the Great Hall of the People in Beijing to announce these technical breakthroughs. The project had previously passed national evaluation on August 23.
Led by Academician Yuan Qinglian, an expert panel praised the Dalian Institute of Chemical Physics for pioneering the use of SAPO-34 catalytic material in the methanol-to-olefins process. They also highlighted the development of corresponding catalysts and circulating fluidized bed technologies, which enabled the construction of the world’s first 10,000-ton-scale methanol-to-olefins industrial facility. This technology is a groundbreaking innovation with independent intellectual property rights, featuring leading-edge equipment scale and technical performance globally.
The successful operation of the test device marks a major milestone, with plans underway for the construction of a large-scale DMTO industrial plant. This advancement holds significant economic and strategic value for China, particularly in enhancing energy utilization efficiency and diversifying feedstock sources for low-carbon olefins.
Government officials and leaders from various sectors, including Vice Chairman Gu Xiulian of the National People's Congress, President Lu Yongxiang of the Chinese Academy of Sciences, and other high-ranking officials, attended the press conference, underscoring the national importance of the project.
Experts emphasize that low-carbon olefins like ethylene and propylene are essential building blocks for plastics, synthetic fibers, and other chemical products. Traditionally, naphtha derived from petroleum has been the main feedstock. However, with China’s growing oil demand and heavy reliance on imports—nearly 40% of crude oil is imported—the need for alternative raw materials has become critical for energy security.
With advancements in natural gas and coal-to-syngas technologies, producing methanol from these sources and converting it into low-carbon olefins has emerged as a key production route. The MTO process is central to this approach. Given China’s limited domestic oil supply and increasing import dependency, the government has prioritized developing alternatives such as methanol, ethanol, and dimethyl ether to reduce reliance on petroleum.
Methanol-based MTO technology is now seen as a vital pathway for advancing coal chemistry and implementing the national strategy of "replacing oil with coal." The resulting ethylene and propylene have broad market potential, along with downstream products like ethylene glycol, acrylic acid, polyethylene, and polypropylene.
Since the "Sixth Five-Year Plan," the Chinese government and the Chinese Academy of Sciences have supported non-oil routes for low-carbon olefin production. The Dalian Institute of Chemical Physics has been conducting research since the early 1980s, achieving breakthroughs in catalyst development, reactor design, and pilot testing. In the mid-1990s, the institute collaborated with UOP of the U.S. on a pilot test, although commercialization did not occur due to low oil prices and immature methanol technology at the time.
In August 2004, Dalian Xinxue Coal Chemical Technology Development Co., Ltd. partnered with Sinopec Luoyang Petrochemical Engineering Co., Ltd. to conduct industrial tests using proprietary catalysts and fluidized bed technologies developed by the Dalian Institute. After two years of effort, the 50-ton-per-day test unit was successfully operated, meeting all project goals and providing critical data for large-scale industrial deployment.
Today, the Dalian Institute of Chemical Physics has formed an industrialization leadership group, while the National Development and Reform Commission and the Chinese Academy of Sciences are actively pushing forward with the project. Their goal is to rapidly commercialize this key scientific innovation, ensuring it contributes meaningfully to China’s long-term energy and industrial strategies.
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