Investment of 7.2 Billion! Luxi Chemical to Build New Project

(Source: Energy Knowledge Base)

Luxi Chemical has recently made a big move.

A raw material supply platform project with an investment of 7.2 billion yuan has entered the environmental impact assessment stage with the Shandong Provincial Department of Ecology and Environment. Located in Liaocheng Chemical Industry Park, the new plant will be operated by the First Branch of Coal Chemical Industry.

This project aims to accomplish several major tasks.

It will feature two 3,000-ton/day HT-L pulverized coal gasification furnaces, with a 6.5 MPa quench process, producing an effective gas output of 400,000 m³/h annually. Paired with two air separation units of 65,000 m³/h each, it will produce 900,000 tons of ammonia, 1 million tons of liquid carbon dioxide, along with sulfuric acid and carbon monoxide separation.

Adding up the numbers: 400,000 cubic meters of effective gas, 900,000 tons of ammonia, 1 million tons of carbon dioxide, 640 million cubic meters of carbon monoxide, and 720 million cubic meters of synthesis gas. The air separation units will also produce 65,000 tons of liquid argon, 60,000 tons of liquid nitrogen, and 10,000 tons of liquid oxygen.

The entire process is industry-leading. Gasification uses aerospace-grade furnaces, deep-cold air separation, isothermal shift + waste heat recovery, low-temperature methanol washing for purification, liquid nitrogen washing for refining, and low-pressure ammonia synthesis. For carbon dioxide, the process includes dry desulfurization, catalytic oxidation, temperature swing adsorption, and liquefied distillation, forming a comprehensive system.

This platform is built to supply downstream industries.

Luxi Chemical, located in Liaocheng Industrial Park, has numerous subsidiaries and over 70 production units. They produce a wide range of products including polycarbonate, caprolactam, nylon 6, hydrogen peroxide, polyols, organosilicon, refrigerants, chloromethane, caustic soda, and more—over a hundred products with complex supply chains.

The First Branch of Coal Chemical Industry was reorganized in 2025, merging the West and East Zones. Currently, they operate seven gasification furnaces—four in the West Zone (750, 750, 1300, 1500 tons/day) and three in the East Zone (all 1500 tons/day)—handling a total of 8,800 tons of coal daily.

However, some of these old furnaces are due for retirement.

Once the new project is completed, two 750-ton and three 1500-ton furnaces will be phased out. They will be replaced by two new 3,000-ton furnaces, doubling individual furnace capacity, improving efficiency, and reducing emissions.

Investing 7.2 billion yuan will establish a completely new raw material supply foundation.

Synthesis gas, carbon monoxide, hydrogen, ammonia, and carbon dioxide will all be produced from these two large furnaces and then distributed to downstream companies. For polycarbonate production, carbon monoxide is needed; for caprolactam, hydrogen; for formic acid, carbon monoxide; for hydrogen peroxide, hydrogen; and for fertilizers, ammonia.

This chain is interconnected in this way.

Regarding the carbon dioxide system, it’s worth elaborating. The 1 million-ton liquid CO₂ plant uses a combined process of catalytic oxidation and distillation. It includes dry desulfurization, catalytic dehydrogenation, dehydration, liquefaction, and distillation, resulting in high-purity products. Some of this CO₂ may be used internally, while the rest can be sold externally. The carbon capture and utilization pathway has been successfully established.

Looking back at Luxi Chemical’s layout, it’s quite clear.

Coal is fed in, gasified, purified, separated, and synthesized into intermediate products that supply over a dozen downstream companies, ultimately transforming into hundreds of new chemical materials. From coal to synthesis gas, to intermediates, to new materials—a complete chain.

The 7.2 billion yuan raw material platform marks a new starting point for this chain. The two 3,000-ton furnaces are more efficient, cleaner, and more stable than the seven old furnaces. Downstream units will no longer need to worry about raw material fluctuations.

Environmental impact assessment has been accepted; next steps include approval, design, procurement, and construction.

Another set of units will be added in Liaocheng Chemical Industry Park.