China’s Shenhua Baotou ordered to shut coal-to-olefins facility

22 January 2013 08:42  [Source: ICIS news]

SINGAPORE (ICIS)--Shenhua Baotou Coal Chemical’s coal-to-olefin (CTO) facility in Inner Mongolia failed to meet emission rules and must be shut, according to China’s Ministry of Environmental Protection (MEP).

In a notice posted on MEP’s website late on Monday, it said that the company would have to pay a fine of yuan (CNY) 100,000 ($16,051) for the violation.

The CTO complex consists of a 1.8m tonne/year coal-to-methanol plant; a 600,000 methanol-to-olefins plant; a 300,000 tonne/year polyethylene unit; and a 300,000 tonne/year polyethylene plant.

The company has been operating the CTO complex since June 2010 without passing MEP’s emission-control standards, it said.

The MEP notice was dated 15 January, in which it ordered the immediate shutdown of the CTO complex. Resumption of operations will be contingent with obtaining an MEP permit.

As of Tuesday, however, operations are normal at the methanol-to-olefins unit, a company source said.

($1 = CNY6.23)

By: Fanny Zhang
+65 6780 4359

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