Total, Inner Mongolia coal chemical bet
Investment 1 million tons / year of coal to olefins project into production in 2015
Luo Yi from Beijing reporter
TOTAL layout of coal chemical industry in China will take a substantive step.
The afternoon of August 25, 2010, China Coal Chemical Industry Exhibition space, Total Petrochemicals Fan Kang, senior vice president of polyolefin (Carl Van CAMP) said, “Total planned investment in Inner Mongolia, a world-class coal-to-olefins project , production capacity is 100 tons / year. At present, Total, already partners with Chinese coal chemical project completed this pre-feasibility study report. If all goes well, the project will be put into operation in around 2015. ”
Currently, Total Petrochemicals has decided to a large state-owned enterprises in China to work together to maximize the complementary strengths to play to, but he did not disclose the name of the company.
Total Petrochemicals China’s vice president of strategy and project development Ji Yong (GuillauME LESAGE) said, “As partners in China specializes in coal mining and coal gasification [17.22 1.89%], Total Petrochemicals is mastered the production of polyolefins technology, will coal-based end products to better meet the needs of the market provide an important safeguard. ”
For this project, Total has already started preparing.
A year ago, Total Petrochemicals in Belgium in its Feluy cost 45 million euros in the MTO-OCP demonstration unit to test the integration of technology. It is the world’s first set of MTO, OCP and aggregation devices in the same production line of semi-industrial installations. The line out from about 60% of olefin propylene, other ethylene, which is the global polypropylene (PP) of current strong demand for fit.
Fan Kang said, “the pilot plant will be in 6 months to achieve preset goals for laying a good foundation for large-scale business promotion, can be used to enlarge an annual output of 1 million tons of olefins MTO world-class project.”
This reporter learned that Total Petrochemicals’s business model is built on used in the inland areas, subject to bottlenecks in coal transportation resources in Inner Mongolia to become the preferred address of the project.
Total, that the use of these in the economic or technological development of limited use of other energy is Total Petrochemicals one of the main features of the project. In this way, coal polyolefins project to better control costs, and will not affect China’s strong demand for energy.
Fan Kang also said that the new project will focus on high-end market, providing dedicated, specific polyolefin products, rather than the generic model.
But in recent years the Middle East, the impact of cheap alcohol, so that the outside world to local coal as raw material, coal chemical project in doubt earnings outlook.
“Although the price of cheap imported alcohol, but the fluctuations are frequent. If the future situation of excessive price increases occur, the cost of the project impact will be increased. And according to estimates, as long as the oil price at 80 U.S. dollars / barrel or more, our project on can be profitable. “Fan Kang said.
On the other hand, due to higher carbon dioxide emissions, including new projects, including Total, the coal chemical industry in general is facing pressure to reduce emissions, the domestic has emerged after 2012, calls for the introduction of a carbon tax. If in the future carbon tax, coal chemical industry will bring some costs.
In this regard, Fan Kang said that TOTAL’s project will be launched supporting carbon capture and storage (CCS) devices.
Asia-based consulting analysts believe that economic efficiency point of view how to reduce carbon dioxide emissions, will be China’s coal chemical industry, common problems.
