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Henan Province has taken a significant step forward in promoting a circular economy, with Hebi City becoming the first prefecture-level city in China to have its "Circular Economy Construction Plan" approved by a national review panel. This milestone marks the official launch of Henan's efforts to build a sustainable and resource-efficient economic model. Among the key sectors driving this initiative is the coal chemical industry, which has become a crucial component of the province’s circular economy chain.
The plan focuses on developing nine core products, including methanol, olefins, acetic acid, formaldehyde, dimethyl ether, urea, melamine, dimethylformamide, and aromatics. To support this, four major coal chemical industry chains are being developed, along with five dedicated coal chemical bases across the province. The "11th Five-Year" coal chemical development plan was also successfully launched, outlining a comprehensive roadmap for growth.
Despite Henan’s rich natural resources, such as coal, soda ash, and various minerals, the level of energy utilization remains low, leading to waste and environmental challenges in certain industries and regions. In response, Provincial Party Secretary Xu Guangchun emphasized the need to move away from traditional resource-driven models and instead focus on efficient resource allocation and strategic industrial planning through a circular economy approach.
Leading chemical companies, including Henan Tianguan Group, Pingmei Group, Yimei Coal Group, Hebi Coal Group, Zhongyuan Dahua Chemicals, and Junma Chemical Industry Group, have actively embraced this new direction. Local governments have also supported these efforts by creating favorable conditions and encouraging enterprises to adopt more sustainable practices.
With Henan ranking 10th in national coal reserves and producing 145 million tons of coal annually—making it the fourth-largest coal producer in the country—the coal chemical industry has strong resource foundations. Given its long processing chain, high value-added potential, and strong industry linkages, the sector has been identified as a cornerstone of the province’s circular economy strategy.
The Henan Development and Reform Commission outlined a detailed "Eleventh Five-Year" plan, focusing on four key coal chemical industry chains: methanol-olefin, methanol-carbon chemical, coal coking and tar deep processing, and coal ammonia synthesis-fine chemical. Five coal chemical bases are being established, each leveraging local strengths and partnerships.
Notable projects include the collaboration between China Shenghua Chemical Group and Zhumadian City, aiming to invest 5.4 billion yuan over three years to develop nine coal chemical projects. Another success story is Yimei Coal Group, which has introduced advanced technology from the Chinese Academy of Sciences to produce clean oil and establish a green coal chemical base.
Additionally, Beijing Biland International Investment Management Co., Ltd. and Hebi Coal Group jointly launched a 600,000-ton methanol project in Hebi, signaling further progress in expanding the coal chemical industry. These developments reflect Henan’s growing commitment to building a sustainable, circular, and economically viable future.
October 03, 2025