On September 26, a groundbreaking ceremony was held in the Shibaozi Development Zone of Huating County for the Gansu Huating Zhongye Coal Chemical Co., Ltd. project, which includes a coal-to-methanol plant with an annual output of 600,000 tons. The project, backed by nearly RMB 2.7 billion in investment, is the largest coal chemical initiative in Gansu Province to date. This marks a major milestone in the region’s energy and chemical industry development.
Huating County, located in Gansu, is one of the top 100 coal-producing counties in China and a key coal base in the northwest. It holds 3.47 billion tons of proven coal reserves, making up 40.2% of the province’s total. It is also one of only five high-quality chemical coal bases in the country, providing a solid foundation for coal-to-methanol projects.
The 600,000-ton-per-year methanol project is not only the largest in Gansu's coal chemical history but also a strategic move to boost local economic growth. The project is expected to be completed and start operations before the end of June 2008. Once operational, it will consume approximately 1.62 million tons of coal annually and generate an average of 1.06 billion yuan in sales revenue each year, offering strong profitability and resilience against market fluctuations.
In the long term, the project aims to expand into methanol-to-olefins (MTO) technology, enabling the production of petrochemical products through a coal-based route. This will help diversify the local industrial structure and create a methanol-based fine chemical industry cluster.
The project is led by Huating Coal & Electricity Co., Ltd., with support from five other major shareholders, including Sichuan Xinfu Mining Group, Huating Coal & Electricity Transportation Co., Ltd., Huating Longzhu Material Co., Ltd., and the Huating County State-owned Assets Investment Management Company, as well as Huating County Huating Coal Mine. This collaborative effort underscores the importance of integrated development in the region.
This large-scale coal chemical project represents a significant step forward in the implementation of Huating Coal & Electricity’s strategy to integrate coal power generation with chemical production, marking a new chapter in Gansu’s energy sector.
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