As an important alternative energy source, the development of coal-to-dimethyl ether (DME) projects is accelerating across China. In response to growing interest in the coal chemical industry and the DME sector, a recent interview was conducted with Li Yongwu, President of the China National Petroleum and Chemical Industry Association. He shared his insights on the current trends and future direction of this rapidly evolving field.
Reporter: With oil prices surpassing $100 per barrel this year, some experts believe we are entering the post-oil era, which presents new opportunities for the coal chemical industry. What are the key advantages of developing this sector?
Li Yongwu: As China's economy continues to grow, the demand for oil and natural gas has surged, leading to a severe energy shortage. Despite various measures taken, the fundamental issue of crude oil scarcity remains unsolved. Every year, nearly half of the crude oil is imported, while international prices have climbed above $102 per barrel—far exceeding the cost increase of coal. This makes coal a more attractive substitute for oil. China has abundant coal resources, and advances in coal chemical technology have reached world-class levels. The national strategy for sustainable development ensures that the coal chemical industry will play an increasingly vital role in the future energy landscape. Therefore, solving the oil shortage will largely depend on coal-based technologies like methanol, DME, coal-to-olefins, and other coal-derived products.
Reporter: Some people talk about a "green coal chemical industry." Could you explain what this concept means?
Li Yongwu: Developing the coal chemical industry must be done with high standards and advanced technology. We need to promote "green coal chemical industry" by focusing on scientific innovation, eliminating outdated methods, and limiting high-water-consumption processes. We should actively adopt energy-saving and emission-reduction technologies. Additionally, we must develop a circular economy, extend the industrial chain, and achieve comprehensive utilization of waste water, waste gas, and solid waste. Most importantly, we must ensure that industrial growth and environmental protection go hand in hand, allowing the coal chemical industry to develop sustainably and harmoniously with nature.
Reporter: The coal-to-methanol and DME industry represents a major industrial chain. With DME now being recognized as a civilian fuel standard, coal is becoming a raw material for clean fuels. What is the current status of China’s DME industry? What advanced technologies are worth promoting, and what investment opportunities exist?
Li Yongwu: The future of the coal chemical industry includes alcohol-ether fuels, coal-to-olefins (MTO, MTP), and coal-to-oil. Among these, DME produced from methanol is currently the most popular alternative fuel in China. As a clean energy source, DME has been designated as a state initiative for petroleum replacement, and national standards for DME as a fuel have been implemented. DME can be used as both automotive fuel and a substitute for liquefied petroleum gas. In recent years, the DME industry has seen rapid growth, with large-scale projects underway in Zhangjiagang, Inner Mongolia, Shanxi, and Tianjin. Production capacity has surpassed 1 million tons, with over 10 million tons under planning or construction.
A new "liquid-phase dehydration process for complex acid in DME production," developed by Jiutai Energy Group, has gained attention. This technology reduces costs, eliminates media corrosion, simplifies post-treatment, and improves product purity. Additionally, the use of "turbine-driven reciprocating compressors" in methanol production has significantly reduced power consumption, from over 1,000 kWh per ton to less than 400 kWh. Looking ahead, with ongoing energy shortages and supportive government policies, the DME industry is booming, offering promising investment opportunities.
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