China's Largest Dimethyl Ether Company Founded in Inner Mongolia

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Researched by Industrial Info Resources (Sugar Land, Texas)--The ceremony to celebrate the inception of Zhongtian Hechuang Energy Company Limited, China's largest dimethyl ether (DME) producer, was held by its four equity holders renowned in China's energy industry. The owners are China National Coal Group Corporation (Chinacoal) (38.75%), China Petroleum and Chemical Company (Sinopec) (38.75%), Shanghai Shenergy Group Limited (Shenergy) (12.5%) and Inner Mongolia Manshi Coal Group Corporation (Manshi) (10%).

The company will be in Ordos City in Inner Mongolia, with an investment value amounting to $5.7 billion. After the project's completion, it will have the capacity to produce 25 million tons of coal, 4.2 million tons of methanol and 3 million tons of DME. The company will build other projects, such as a 600-kilowatt power and heat cogeneration plant, a 900-kilometer pipeline from Ordos to Tangshang Port and a 50-kilometer special mine railway.

In recent years, high oil prices and the tantalizing profit of alternative fuels have made many Chinese companies enter the coal-chemical business. Considering the risk brought by nationwide over-heated investments, 'the National Development and Reform Commission (NDRC) notified local governments a new policy prohibiting the approval of DME projects that have annual production capacities of less than 1 million tons. Consequently, the government turned down many projects at the application stage.

However, the NDRC supported the Zhongtian Hechuang project. NDRC Vice Director Zhang Guobao said: "The project is listed as a model in China's coal-chemical mid- and long-term development plan. It will use world's most advanced technology to produce the clean energy DME."

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