On September 20, the Shanxi Provincial Economic Commission announced that the province is set to establish a coal chemical industry investment fund aimed at advancing key sectors such as large-scale coal mining, coal conversion, coal chemistry, coalbed methane, and coke oven gas utilization. This initiative marks a significant step in Shanxi's efforts to modernize its energy and chemical industries.
According to available information, the initial phase of the fund will have a scale of 10 billion yuan. The fund will be backed by institutional investors who have long-term equity investment capabilities and strong interest in the coal chemical sector. Its primary focus will be on large-scale projects related to coal processing, including the development of major coal mines, coal-to-liquid technologies, and the production of chemicals from coal.
Key projects under the plan include: First, enhancing national energy security by addressing oil shortages through the development of coal-based synthetic oil, aiming to achieve a one-million-ton annual production capacity by the end of the "11th Five-Year Plan." Second, utilizing coke oven gas to generate over 10 billion cubic meters of gas annually, with an output of 2 million tons each of methanol and dimethyl ether. Third, employing ash fusion gasification technology to process low-quality coal and produce 10 million tons of fertilizer per year.
Shanxi has already submitted this proposal to the State Council, urging increased state support for coal chemical projects during the "11th Five-Year Plan" period. The province is also seeking to have major projects located in resource-rich areas like Shanxi, integrating them into the national industrial development plan with corresponding policy and financial backing.
Historically, Shanxi was a central base for China’s energy and heavy chemical industries. However, due to weak infrastructure, outdated systems, and heavy economic burdens, the province's chemical industry has lagged behind national leaders in recent years. During the "Ninth Five-Year Plan," Shanxi ranked 17th, then dropped to 18th, and finally fell to 21st. Currently, the province's chemical output value is less than one-tenth of that of leading provinces such as Shandong and Jiangsu. This initiative aims to reverse that trend and restore Shanxi's position as a key player in China's energy and chemical landscape.
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