The project aims to provide raw materials for industry Petrochemicals And to address a potential surplus of Coal. Although the plant will be powered by renewable energy, it will use coal, and the first phase is expected to start operating in 2027.
This project comes within a series of coal-to-oil projects in mining regions such as Xinjiang, Shanxi, Ningxia and Inner Mongolia, where huge sums of money are being invested.
Although China Still the world’s largest coal producer, the use of coal in electricity generation is declining, with increasing reliance on renewable energy sources such as solar and wind, according to Bloomberg.
President Xi Jinping announced that coal consumption must begin to decline from 2026 to achieve climate goals. This shift is prompting coal mining companies to explore alternative uses, including coal production Oil From coal.
However, China’s petrochemical industry is suffering, as profits from coal oil production fell by 53 percent last year due to falling demand and a glut of products.
The industry is also facing pressure from Beijing’s efforts to reduce… Carbon. Although CEIC’s size and advanced technology give the Hami plant a competitive advantage, it faces risks due to China’s slowing economy and increasing focus on reducing carbon emissions.
The new plant is expected to produce 4 million tons of petroleum products annually, but its success will depend on how the market and environmental policies develop in the coming years.
