Joint Venture to Oversee 3 Million-Ton-Per-Year Dimethyl Ether Project in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--Zhongtian Hechuang Energy Company Limited, a joint venture of four state-owned chemical and energy enterprises, was formed in late September in Erdos, Hohhot, in northern China's Inner Mongolia Autonomous Region. The new company will oversee a $5.7 billion, 3 million-ton-per-year dimethyl ether (DME) project.

The project is one of the largest of its kind in China, as well as one of the largest clean-coal projects in the world.

Construction will include a 25 million-ton-per-year coal mine, a 4.2 million-ton-per-year methanol plant, a 3 million-ton-per-year DME plant, related energy and power plants, long-distance pipelines from Erdos to Jingtang Seaport in Tangshan northern China's Hebei Province, and a railway between the mine area and neighboring cities.

The four investors of Zhongtian Hechuang are China Coal Energy Company Limited (38.75%), Sinopec (38.75%), Shenergy Group (12.5%) and Inner Mongolia Manshi Group (10%).

The preliminary registered capital of Zhongtian Hechuang is $66.8 million. Approved by the National Development and Reform Commission in April, the project is part of the country's long-term development plans for its coal-chemical industry.

The project will utilize advanced technologies, such as entrained flow coal gasification, to produce an environment-friendly and clean substitute for gasoline and other fuels.

The DME project will be a major step for the country toward developing cleaner energy industries.

As set by the top leaders of the nation, China's goal to build an environment-friendly and energy-saving society serves as the guideline for the development of the nation's energy industry.

China has specified in its long-term renewable-energy development plan that it is restricting its ethanol and coal-liquefaction industries to address pollution and realize sustainable development.

The country is also opening up more opportunities for the development of substitutive auto fuels of gasoline and diesel, as well as civil-use fuels in the country.

Sinopec will give management support and technology for the project.

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