This project is planned to be located in the Jingbian Economic and Technological Development Zone Energy Chemical Park, with an overall plan for 5 million tons/year of coal-based clean fuels and chemical products. The initial phase will start the construction of a 2.4 million tons/year coal-based clean fuel and high-end new materials project, accompanied by the construction of three coal mines: Wusuhaize No.1, Xihongdun, and Haice Tan in the Yuheng mining area.

The initial project covers an area of 9,954 mu with a total investment of 52.9 billion yuan. The project includes the construction of 13 sets of process facilities and supporting utility works, auxiliary facilities, and comprehensive plant systems, specifically: 6×100,000 Nm³/h air separation (including air compressor station), 9×220,000 Nm³/h coal gasification, 2×850,000 Nm³/h syngas purification, 3×60,000 tons/year sulfur recovery, 3×800,000 tons/year oil synthesis, 900,000 tons/year alkane conversion, 200,000 tons/year polymethyl methacrylate (MMA-PMMA), 300,000 tons/year polypropylene (PP), 2×100,000 tons/year POE, 2×25,000 tons/year ultra-high molecular weight polyethylene (UHMWPE), 30,000 tons/year polybutylene succinate (PBS), 30,000 Nm³/h water electrolysis hydrogen production, and 4 million tons/year CO₂ capture.

It is understood that on February 28, at the Yulin-E'nan-Ning modern coal chemical industry and Bao-Han-Tian industrial machine tools national advanced manufacturing cluster construction work promotion meeting co-hosted by the Shaanxi Provincial Department of Industry and Information Technology and the Shaanxi Provincial Development and Reform Commission, Shaanxi Yanchang Yunneng Clean Energy Co., Ltd. and Jingbian County Economic and Technological Development Zone officially signed a cooperation agreement, marking the entry of the Yulin coal-to-clean fuel upgrade demonstration project into a new phase.

Party Secretary and Chairman of Yanyu Energy Company, Feng Chenghai, represented the enterprise to sign the cooperation agreement at the meeting. According to the content of the agreement, both parties will cooperate to advance key aspects of the project such as land use approval, environmental impact assessment, energy evaluation, and safety assessment, laying the foundation for the project's approval submission and comprehensive preliminary work.

It is reported that the Yulin coal-to-clean fuel upgrade demonstration project adopts the new generation of coal indirect liquefaction complete technology and engineering plan with independent intellectual property rights from the Synfuels China Company. The overall planning and construction aim for 5 million tons/year of coal-to-clean fuel and chemical products, coordinating with the layout of refining, oil, gas, and coal comprehensive utilization, CCUS, as well as renewable energy power generation, hydrogen production, and oxygen production in the same industrial park. This will develop ultra-clean coal-based fuels, special fuels, biodegradable materials, and new energy materials, reducing investment intensity and carbon emission intensity to achieve green, low-carbon, and circular development.

Currently, the project has completed the initiation and feasibility study preparation, and the next step will be to actively promote the project submission while simultaneously advancing the preliminary work such as environmental impact assessment, energy evaluation, and safety assessment.

The implementation of the project will strongly promote the upgrading of Shaanxi Province's modern coal chemical industry, injecting new momentum into the creation of a world-class high-end energy and chemical base in the Yulin region.