China's Hualu Secures EPC Contract for Core Units of the World's Largest Coal Chemical Project

Recently, Hualu Engineering & Technology Co., Ltd. has formally signed an Engineering, Procurement, and Construction (EPC) turnkey contract for a significant segment of a major coal conversion initiative in China.

The agreement, signed with Yulin Chemical Company, a subsidiary of Shaanxi Coal and Chemical Industry Group, covers the air separation unit, methanol distillation unit, and polypropylene unit. These form part of Phase I of the second stage of the 15 million tonnes per annum Coal Graded Clean and Efficient Conversion Demonstration Project.

Company officials stated that the contract reflects the client's 'high recognition' of Hualu's technical capabilities in coal chemical engineering, its expertise in complex system integration, and its comprehensive lifecycle value creation system. They added that it signifies the industry's 'deep endorsement' of a business philosophy that is 'technology-led, value-first, quality-driven'.

The Shaanxi Coal Yulin Chemical Project is a priority modern coal chemical demonstration project under China's 14th Five-Year Plan. It is recognised as one of the world's largest single-site investments with the highest level of technological integration. The project is strategically tasked with advancing the transformation of coal from a fuel into a raw material and industrial feedstock.

Upon completion, Phase I of the project's second stage will establish a fully integrated industrial chain covering air separation, methanol synthesis, methanol-to-olefins, and polyolefins.

The air separation unit, described as the 'lifeline' for the olefins, aromatics, and deep processing chains, will be responsible for providing a continuous and stable gas supply to downstream operations.

The methanol distillation unit will serve as a core component for the project's 5.6 million tonnes per annum methanol synthesis plant, acting as the 'quality control station' for the coal-based new materials industrial chain.

Meanwhile, the polypropylene unit represents the final core segment of the olefin deep processing chain. Its implementation is expected to significantly enhance China's self-sufficiency in high-performance synthetic materials, thereby supporting the development of strategic emerging industries, including new energy, automotive, and healthcare.

Hualu has stated that it will leverage its strengths in technological integration and engineering management to advance the EPC construction of these units to the highest standards. The company says it aims to create a modern benchmark project characterised by 'inherent safety, green and low-carbon operations, and intelligent efficiency', and through these actions, help propel China's modern coal chemical industry towards more high-end, intelligent, and green development.