Construction has officially begun on Oriental Hope Group’s Zhundong Coal-Power-Chemical Integration Project in Xinjiang’s Zhundong Economic and Technological Development Zone.
Original By NLS
Construction has officially begun on Oriental Hope Group’s Zhundong Coal-Power-Chemical Integration Project in Xinjiang’s Zhundong Economic and Technological Development Zone. With a total investment of ¥19 billion (approximately $2.6 billion), the project is one of several major billion-yuan initiatives breaking ground in the region this quarter.
Designed to integrate modern coal chemical processing with renewable energy sources such as green electricity and green hydrogen, the project will use pressurized pulverized coal gasification, purification, and methanol-to-olefins technology. Once operational, it will convert approximately 6 million tons of raw coal annually into ethylene, propylene, butylene, and liquefied petroleum gas (LPG).
The Zhundong coalfield is China’s largest contiguous coal deposit, with an estimated 3.9 trillion tons of reserves. It primarily contains non-caking coal, along with long-flame coal and weakly caking coal, making it highly suitable for power generation, chemical processing, and synthetic fuel production. Capitalizing on its vast coal resources, Zhundong has developed six major industrial clusters, including coal mining, coal-fired power, and coal-based chemicals. Looking ahead, the region is accelerating the development of two trillion-yuan industrial clusters and three billion-yuan industrial clusters, with 152 projects set to roll out under a ¥443.7 billion ($61 billion) investment plan by 2025.
The momentum in Zhundong’s coal chemical industry continues to build, with several large-scale projects launched in recent months: February 23，Groundbreaking for the Shandong Energy Yankuang Xinjiang Energy and Chemical Zhundong Coal Chemical Integration Project, with a planned investment of ¥33.8 billion ($4.6 billion). March 19，Start of construction on the Zhundong Coal-to-Natural-Gas Pipeline Branch Project, with an investment of ¥16.8 billion ($2.3 billion). March 22，Launch of the China Energy Zhundong Coal-to-Natural-Gas Project, which will produce 2 billion cubic meters of natural gas annually. As these projects take shape, Zhundong is strengthening its position as a key hub for China’s energy sector, combining traditional coal resources with advanced processing technologies to drive industrial growth and energy transformation.