On September 24, Zhongtian Hechuang Energy Co., Ltd. held a grand unveiling ceremony in Hohhot, Inner Mongolia, marking the official start of China's largest coal-based dimethyl ether (DME) project—the Ordos 3 million tons per year DME project. This milestone represents a significant step forward in China’s efforts to diversify its energy sources and reduce reliance on oil and gas.
The project is a joint venture under the guidance of the National Development and Reform Commission, involving major state-owned enterprises such as China National Coal Energy Corporation, Sinochem Group, Shenhua (Group) Co., Ltd., China Yintai Investment Co., Ltd., and Inner Mongolia Manshi Coal Group. The company plans to build a large-scale integrated project in Wushenqi, Ordos City, combining coal mining, chemical production, power generation, and long-distance transportation.
The project will feature coal mining at 25 million tons per year, with continuous coal gasification using an entrained bed technology to produce 4.2 million tons of methanol annually and 3 million tons of dimethyl ether. It will also include two 35,000-kilowatt thermal power plants and a long-distance pipeline from Jingdeang to Ordos. With a total investment of approximately 43 billion yuan, the project is expected to be completed and operational by 2010. Once online, it is projected to generate over 20 billion yuan in industrial output and contribute more than 2 billion yuan in tax revenue annually.
This initiative is considered the largest coal chemical project in China to date, reflecting the country’s growing emphasis on energy security, reduced dependence on imported oil and gas, and the development of a more diversified energy structure. By using coal as a raw material to produce alcohol and ether fuels, the project supports China’s strategy to substitute domestic coal for imported oil, easing the pressure on energy supply and demand. It is a key measure to promote sustainable economic and social development and to advance the growth of the coal-based alcohol and ether industry in the country.
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