From 2025 to 2026, China's coal chemical industry will usher in a new round of investment boom, with over 600 billion yuan of key projects landing intensively. The industry is showing a trend of shifting production capacity to the west, upgrading low-carbon processes, and extending products to high-end new materials. The four major bases in Zhundong, Xinjiang, Ordos, Inner Mongolia, Yulin, Shaanxi, and Ningdong, Ningxia are at the core of the layout, with projects of tens of millions of tons and billions of tons starting construction in clusters, driving the release of supporting business opportunities throughout the entire industry chain.

Low carbon demonstration benchmark gathering place

As the core carrier area of coal chemical industry, Inner Mongolia focuses on green electricity and green hydrogen coupling, low-grade coal quality utilization, and the intensive landing of billion dollar projects. The China Energy Baotou 2 million tons/year MTO upgrade demonstration project is the world's first DMTO-III industrial demonstration, empowering low-carbon operation with green electricity and green hydrogen; The domestication rate of the first phase of Baofeng Energy's Ordos project is 98%, replacing fossil fuels with green hydrogen; The Rongsheng Ordos project is planned as a global large-scale single plant coal to olefin base, with an annual conversion of 35 million tons of raw coal and an extension of the high-end new materials industry chain.

Cluster of projects with a capacity of tens of millions of tons

Relying on the advantages of coal resources, the Zhundong Base in Xinjiang has become a core production capacity carrier for coal based methanol, coal to natural gas, and coal to olefin. The two major 6 million tons/year coal based methanol projects are both world-class monomer units; TBEA provides 2 billion cubic meters/year of coal to natural gas and 500000 tons/year of CCUS to achieve multi energy coupling; Shandong Energy's 800000 tons/year coal to olefin is a key demonstration project for 2026, aiming to improve the local olefin industry chain.

Core of high-end transformation

Relying on the foundation of coal deep processing, Yulin, Shaanxi is transforming into high-end new materials such as EVA photovoltaic materials and aromatic hydrocarbons. Middling coal Yulin Base Phase II is the first approved large-scale coal chemical project after the "double carbon" project, including 250000 tons/year EVA photovoltaic material capacity; The first phase of Shaanxi Coal Yulin Chemical Quality Conversion Phase II is a benchmark of tens of millions of tons, and will enter the construction peak in 2026 with the layout of olefin/aromatic hydrocarbon units; Extend the Petroleum Xinghua Relocation Project to create a demonstration project for hazardous chemical relocation in Shaanxi.

Green hydrogen and high-end olefin dual wheel drive

Ningxia Ningdong Base focuses on the deep coupling of green hydrogen and coal chemical industry, and focuses on the high-end polyolefin track. Baofeng Energy Phase IV coal to olefin technology is increasing its application of green hydrogen, focusing on high-end polyolefin new materials; Guoneng Ningxia Coal Industry's 700000 tons/year project focuses on the research and development of high-end polyolefins and elastomers, filling the gap in the domestic market.

Featured layout completes the industrial map

Other provinces rely on their own advantages and characteristics to layout and complete the industrial map. Gansu Zhihui Green 10 million tons/year project achieves the integration of low-grade coal quality utilization and wind solar power; Guizhou Sinopec takes the lead in laying out a 1 million tons/year methanol project, reserving interfaces for extending the industrial chain; The Oasis Project in Guxian County, Shanxi Province has achieved the resource utilization of coke oven gas and improved industrial efficiency.

In addition, the supporting projects of Yitai Group's Ordos low-grade coal to oil upgrading, Sinochem New Materials Yulin coal based degradable materials, and Ningxia Baofeng green hydrogen to ammonia integration are all key projects in 2026, enriching the high-end product matrix and driving the development of coal based new materials and fine chemical industries. This round of 600 billion yuan investment is not simply about expanding production capacity, but rather the key to the transformation of coal chemical industry from scale driven to technology and value driven. Leading enterprises are abandoning low-end production capacity and extending towards high-end new materials, combining technologies such as green hydrogen and CCUS to solve high carbon pain points and promote industrial upgrading. Keywords: coal chemical industry, low-carbon, industrial transformation

The intensive projects of the four major bases bring full chain business opportunities, and high-end equipment, core catalysts and other fields are the core incremental markets for the next two years. Keeping up with top enterprises, focusing on high-end supporting and low-carbon technologies, is the key to grasping the industry dividends.Editor/Gong Ziwei