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As the rising of the oil price, people have been positively researching the alternatives of the petrochemicals. China Coal Group and DICP(Dalian institute of chemical physics, Chinese Academy of Sciences) signed a strategic cooperation agreement in Beijing today, in which China Coal Group is going to produce ethylene via coal instead of oil using new technology with whole independent intellectual property rights. In the agreement, China Coal Group will use DICP’s DMTO process to construct the largest coal to ethylene project which is a 600kta-scale ethylene project in three years in China. Conventionally, ethylene is produced from oil. Producing ethylene from coal using DICP’ DMTO technology could greatly decrease the cost of the chemicals such as ethylene. Zhang Guobao who is vice chairman of National Development and Revolution Commission said: “Recently, we took on series projects about alternative energy against the high oil price. I thought the DMTO project is greatly of concern. Compared with coal chemical project, this project is very close to the industrial demonstration and is a very attractive direction to exploring coal deep-processing against the high oil price.” National Development and Revolution Commission is drafting the industry policy of coal chemical. According to the primary planning, the industry distribution of coal to chemical for alternative of petroleum will be formed in 2010, which the production of methanol and DME will be more than 15000kta and 4000kta, respectively.

Source：17th 8, 2006  CCTV-2