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Currently, Xinjiang's comprehensive coal utilization industry mainly focuses on producing semi-coke through coal carbonization, with tar and raw coal gas as by-products.

The excess raw coal gas is mostly used only for its heat value as fuel or burned off in ground flares, resulting in resource waste and environmental pollution, while the by-products of coke breeze and coal powder are being utilized as low-value fuel for power generation.

Coal-to-Methanol project 

• Project Name: Upgrading Demonstration Project of Resourceful Comprehensive Utilization of Methanol from Xinjiang Zhongtai New Materials Co.
• Construction Location: Concentric Industrial Park, Alehui Town, Torkun County, Turpan. The project is adjacent to the Company's shareholding company, Xinjiang Shengxiong Energy Company Limited ("Mahatma Energy").
• Construction content and scale: construction of 1 million tons/year of methanol, 18,900 tons/year of sulfuric acid, construction of air separation unit, gasification unit, low temperature methanol wash syngas purification unit, methanol synthesis unit and ancillary equipment.
• Scale of investment: total planned investment of 5,990,530,000 RMB (finalized based on actual investment in project construction).
• Project construction period: expected to be completed and put into operation by the end of 2024.

Relying on the company's existing coal chemical industry foundation and advantages, this project takes the screen residue (coal powder and coke foam) by-produced by the subordinate company Xinjiang Tianyu Coal Chemical Group Co., Ltd. and Shengxiong Energy's coal plant as raw materials, and realizes the hydrocarbon complementation through the optimal coupling of various raw materials, effectively reduces the production cost and carbon emission, realizes the resourceful and comprehensive utilization of the low-value materials, and improves the company's modern coal chemical industry development level.

Source: Xinjiang Zhongtai Chemical Co. | Bulletin No. 2023-063 | 17^th Oct 2023 | Announcement on Xinjiang Zhongtai New Materials Co., Ltd.'s Investment in the Construction of Upgrading Demonstration Project of Methanol from Comprehensive Utilization of Resources.