Reply to Proposal No. 0370 of the First Session of the 13th CPPCC Autonomous Region

Distinguished members of the Proposal Committee of the Federation of Industry and Commerce:

The "Proposal on Encouraging and Supporting the High-quality Development of Inner Mongolia's Coal Chemical Industry" has been received, and after careful study, the reply is as follows:

1. Suggestions on increasing support for coking in Wuhai and surrounding areas

On May 22, 2020, General Secretary Xi Jinping emphasized the need to "focus on the comprehensive management of the ecological environment in key areas such as Wuhai and surrounding areas" when participating in the deliberations of the Inner Mongolia delegation at the third session of the 13th National People's Congress, and in order to implement the spirit of General Secretary Xi Jinping's important instructions, the autonomous region has formulated the "Implementation Plan for the Comprehensive Management of the Ecological Environment in Wuhai and Surrounding Areas" (Nei Zheng Fa [2020] No. 26) to strictly control the new coking capacity in Wuhai and surrounding areas, and the overall scale is controlled at the level of the "13th Five-Year Plan". For new coking projects that really need to be built, the production capacity index will be replaced by the same amount in the region.

The existing coking capacity of Wuhai and the surrounding areas is 35.91 million tons, accounting for 58% of the total production capacity of the whole region, based on the limitation of the regional ecological environment capacity and environmental carrying capacity of Wuhai and the surrounding areas, it is not appropriate to continue to expand the coking capacity. The downstream extension of the industrial chain such as fine chemicals and the high-end of the value chain have been climbing, and the transformation and upgrading of the coking industry have been promoted by the progress of the chemical production level.

2. Suggestions on the construction of large-scale coal chemical projects in Ordos

Ordos is one of the four modern coal chemical industry demonstration zones in China, and is also the most complete and largest concentration area of modern coal chemical pilot demonstration projects in China, and has now formed a modern energy economic system integrating resource development, local transformation and comprehensive utilization. On December 22, 2022, the General Office of the People's Government of Inner Mongolia Autonomous Region issued the "Guiding Opinions on Supporting the Construction of a Modern Coal Chemical Industry Demonstration Zone in Ordos City" (Nei Zheng Ban Fa [2022] No. 91), focusing on the implementation of a number of demonstration projects, focusing on cultivating a number of 100 billion-level industrial clusters, promoting the high-end, diversified and low-carbon development of the modern coal chemical industry, and building Ordos City into a national modern coal chemical industry demonstration zone and a national coal-to-oil and gas strategic base. At the same time, it also provides policy support in terms of coal use, water use, energy consumption, land use, finance and taxation, and environmental protection.

Our department has successively issued the "Implementation Plan for the Transformation and Upgrading of the Chemical Industry in Inner Mongolia Autonomous Region (2021-2025)" and the "Work Plan for Promoting the High-quality Development of the New Chemical Industry in 2023" to support Ordos City to accelerate the construction of a modern coal chemical industry demonstration zone.

3. Carbon emissions in coal chemical industry

The carbon dioxide emissions of coal indirect liquefaction to liquid, coal direct liquefaction to liquid, coal to olefins and coal-to-ethylene glycol are 6.7 tons, 5.6 tons, 9.9 tons and 5.2 tons respectively, and the carbon emissions of modern coal chemical industry are mainly generated from the gasification and conversion unit and the electricity and steam required in the production process. Carbon emission reduction can start from process optimization, purchased electricity, gas drive for electric drive, etc., and how to use coal resources cleanly and efficiently is a major topic we are studying.

Thank you for your concern and support for the development of the coal chemical industry, and hope to continue to put forward valuable opinions and suggestions for our work.

May 6, 2023

Signed by: Wang Jinbao

Answer: Jiang Li

Contact number: 0471-4826469