As an emerging alternative energy source, the construction of coal-to-dimethyl ether (DME) projects is rapidly expanding across China. In response to growing industry interest in coal chemical technologies and the development of DME, 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 state and future of the sector.
Reporter: With oil prices consistently surpassing $100 per barrel this year, some experts believe we are entering a post-oil era. This presents a significant opportunity for the coal chemical industry. What are the key advantages of developing this sector?
Li Yongwu: China's rapid economic growth has led to a sharp increase in demand for oil and natural gas. Despite various measures, the issue of crude oil shortage remains critical. Nearly half of our crude oil is imported, and with oil prices hitting over $102 per barrel, it’s clear that coal is becoming a more attractive alternative. China has abundant coal resources, and advancements in coal chemical technology have reached international standards. The national strategy for sustainable development ensures that the coal chemical industry will play an increasingly vital role in the future energy landscape. Therefore, addressing the oil shortage will largely depend on coal-based technologies such as coal-to-methanol, DME, and coal-to-olefins.
Reporter: Some people have introduced the concept of "green coal chemical industry." Could you explain what this means?
Li Yongwu: Developing the coal chemical industry must be done with high standards and environmental responsibility. We need to focus on technological innovation, phase out outdated methods, and promote energy-efficient and low-emission technologies. Additionally, we should develop a circular economy by extending the industrial chain to maximize resource utilization of waste water, gas, and residue. Most importantly, we must integrate industrial growth with environmental protection, ensuring that the coal chemical industry and the environment can coexist sustainably.
Reporter: The coal-to-methanol and DME industry is one of the most prominent in the coal chemical sector. With the national standard for DME as a civilian fuel now in place, coal is being used to produce clean fuels like DME. How is the DME industry developing in China? What advanced technologies are worth promoting, and what investment opportunities exist?
Li Yongwu: The future of the coal chemical industry lies in 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 option, DME has been designated as a key project for oil substitution, and the national standard for DME as a fuel has been implemented. It can be used as both automotive fuel and a replacement 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 exceeded 1 million tons, with over 10 million tons under planning or construction.
In the field of coal-to-DME, 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 increases product purity. Moreover, the use of "turbine-driven reciprocating compressors" in methanol production lowers electricity consumption to under 400 kWh per ton, significantly improving energy efficiency. Looking ahead, with ongoing energy shortages and strong policy support, the DME industry is set for continued growth, offering promising investment opportunities.
The iron pipes used for gas, greenhouse, and heating are also galvanized pipes
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