Beibu Gulf Builds Modern Coal Chemical Base, Guangxi Huayi 200,000-Ton BDO Project Accelerates Progress

From July 19 to 20, the 2025 China Industrial Transfer Development Docking Event (Guangxi) was held in Nanning City with the theme "Empowering with AI for a New Chapter, Creating the Future through Industrial Cooperation." During the event, a special docking activity on the modern coal chemical industry in the Beibu Gulf coastal region was conducted, where the feasibility and optimized layout of modern coal chemical projects in the Beibu Gulf coastal area were thoroughly discussed. The meeting concluded that it is feasible and promising to develop coal chemical projects in the Beibu Gulf coastal region, provided that comparative advantages are followed and differentiated development is sought.

The modern coal chemical industry thematic matchmaking event was jointly organized by the Department of Industry and Information Technology of Guangxi Zhuang Autonomous Region and the Coal Chemical Industry Committee of the China Petroleum and Chemical Industry Federation (referred to as "China Petrochemical Federation"). The event aims to enhance the development of clean and efficient utilization of coal in the Beibu Gulf region. By leveraging the coupling development of coal chemical industry with petrochemical and salt chemical industries, it seeks to achieve comprehensive synergy between coal chemical industry and renewable energy, green hydrogen, carbon capture, utilization, and storage. The focus is on building high-end industrial clusters and forming an industrial ecosystem of upstream and downstream collaborative innovation in the coal chemical industry.

According to Wang Xiujiang, Deputy Director of the Science, Technology and Equipment Department of Sinopec and Deputy Secretary-General of the Coal Chemical Industry Committee, profound adjustments and transformations are currently taking place in the energy sector, with coal supply remaining ample and prices continuing to decline. Guangxi is fully leveraging its geographic and transportation advantages along the rivers, coastlines, and borders, as well as its market advantages facing ASEAN and neighboring the Guangdong-Hong Kong-Macao Greater Bay Area. By utilizing coal resources both domestically and in Southeast Asia, Guangxi is developing its coal chemical industry and entering a relatively stable period of opportunity.

In recent years, the Beibu Gulf region, centered around Qinzhou and Beihai cities, has seized opportunities to explore and establish a diversified chemical industry system based on "oil, coal, gas, and salt." It has successively developed industrial chains such as "coal-methanol-olefins," "coal-ethylene glycol," "coal-acetic acid," "coal-synthetic ammonia-nylon," "coal-synthetic ammonia-urea," and coal coking. This has successfully attracted leading enterprises and projects like China Energy, Shanghai Huayi, Hengyi, Tongkun, and Henan Xinlianxin to the region, achieving significant results. For instance, Shanghai Huayi Group invested billions in Qinzhou to build an integrated base for new chemical materials, successfully integrating petrochemicals and coal chemicals, fully validating the feasibility of developing coal chemicals in the Beibu Gulf region. As of now, the area has established key products such as 1.8 million tons per year of methanol, 1.2 million tons per year of acetic acid, 200,000 tons per year of ethylene glycol, and 500,000 tons per year of synthetic ammonia, while accelerating the expansion of the industrial chain and product groups towards downstream deep processing.

Zheng Baoshan, Deputy Director of the Planning Institute of the Petroleum and Chemical Industry, provided an analysis and interpretation of the "Beibu Gulf Coastal Modern Coal Chemical Industry Base Development Plan" at the meeting. This plan was commissioned by the Guangxi Zhuang Autonomous Region Department of Industry and Information Technology and compiled by the Planning Institute. He pointed out that Guangxi, with its coastal, riverine, and border advantages, connects the Guangdong-Hong Kong-Macao Greater Bay Area, the southwest, and central-southern regions, and faces ASEAN countries. It is the only coastal province in China's western region, possessing a unique maritime location advantage described as "One Gulf linking eleven countries, positive interaction between the east, central, and west." The development of the coal chemical industry in the Beibu Gulf should leverage its comparative advantages, identify the right development ideas and directions, and strive to build the nation's first coastal and border-facing modern coal chemical industry base oriented towards ASEAN, aiming to increase the value of added production to the scale of 200 billion yuan by 2035.

Mr. Liang Quanyong, Chairman of Guangxi Huayi Energy Chemical Co., Ltd., shared practical experience and performance results of modern coal chemical projects in the Beibu Gulf, using the Huayi Qinzhou Base as an example, which attracted widespread attention from participants. The Huayi Qinzhou Chemical New Materials Integrated Base Project is the largest single industrial project in Guangxi, with a total planned investment of over 90 billion yuan. Its first and second phases have already been completed and put into operation, including the production of industrial gases such as hydrogen and synthesis gas from coal as a raw material, as well as chemical products such as methanol, ethylene glycol, and acetic acid, thus filling the gap in coal chemical and basic chemical raw materials in Qinzhou. The third phase of the project is currently being accelerated. Centered on methanol-to-olefins, it aims to develop high-end new materials such as polymerization inhibitors, bisphenol A epoxy resin, specialty epoxy and organosilicon materials, PBAT biodegradable materials and supporting products such as 1,4-butanediol, polyurethane, hydrogen peroxide propylene oxide (HPPO), and polyether polyols. The project focuses on high-end new material products and promotes the diversification and differentiation of downstream olefin products. Once fully completed and put into operation, the project is expected to achieve an annual output value of 100 billion yuan.

Huayi Qinzhou Chemical New Materials Integrated Base

Phase I of the project was completed and put into operation in June 2021, filling the gap of industrial gases in the park and producing chemical products such as methanol, acetic acid, and ethylene glycol.

The Phase II project was successively put into operation from December 2022 to March 2023. It mainly involves the construction of an integrated project for 750,000 tons/year of propylene and downstream deep processing, with a total investment of 12.8 billion RMB. The main construction contents include: a 400,000 tons/year acrylic acid and ester unit, a 300,000 tons/year butanol unit, a 750,000 tons/year propane dehydrogenation unit, a 280,000 tons/year phenol and acetone unit, and a 200,000 tons/year bisphenol A unit.

The Phase III project is planned to be constructed in three stages, with a total planned investment of approximately 55 billion yuan. Construction will commence successively starting from 2023. The main construction projects include:

Guangxi Huayi New Materials Co., Ltd. 20,000 tons/year Polymerization Inhibitor Project

Guangxi Huayi New Materials Co., Ltd. 200,000 tons/year Bisphenol A Epoxy Resin Project

Guangxi Huayi New Materials Co., Ltd. 38,000 tons/year special epoxy and organosilicon new materials project.

Guangxi Huayi New Materials Co., Ltd. PBAT Supporting 1,4-Butanediol Project: The total construction scale is 320,000 tons/year of maleic anhydride and 200,000 tons/year of 1,4-butanediol, implemented in two phases. Each phase has a construction scale of 160,000 tons/year of maleic anhydride and 100,000 tons/year of 1,4-butanediol. Investment: 5.876 billion yuan.

Guangxi Huayi New Materials Co., Ltd. Biodegradable Materials Project: Construction of a 300,000 tons/year PBAT production facility (Phase I: 60,000 tons/year, Phase II: 240,000 tons/year), with a total investment of 1.991 billion RMB.

Guangxi Huayi Chlor-Alkali Chemical Co., Ltd. Huayi Qinzhou Chemical New Material Integrated Base Phase III Polyurethane Industry Supporting and Waste Salt Recycling Project.

Guangxi Huayi Energy Chemical Co., Ltd. Methanol-to-Olefins and Downstream Deep Processing Integration Project: Construction of a 1 million tons/year methanol-to-olefins unit, a 300,000 tons/year vinyl acetate unit, a 200,000 tons/year tubular EVA unit, and, in the second phase, a 100,000 tons/year autoclave EVA unit, along with supporting auxiliary facilities. Investment: 11.824 billion yuan. The project commenced on March 28, 2023.

Guangxi Huayi Chlor-Alkali Chemical Co., Ltd. Huayi Qinzhou Chemical New Materials Integrated Base Phase III Hydrogen Peroxide Propylene Oxide (HPPO) and Polyether Polyol Integrated Project.

The first phase includes five projects, including the methanol-to-olefins and downstream deep processing integrated project, the hydrogen peroxide propylene oxide (HPPO) and polyether polyol integrated project, the 320,000 tons/year epoxy resin new materials project, and the 320,000 tons/year butanol and acrylate project, with a total investment of approximately 25.7 billion yuan.