Ningxia Baofeng Energy Co., Ltd. sources coal primarily from Inner Mongolia, Shaanxi, Shanxi, Xinjiang and the Ningxia Hui autonomous region, the company said on an investor interaction platform.

The company purchases two main categories of raw coal. The first is coking coal, used to produce coke, which is classified by coking properties such as primary coking coal, fat coal and gas coal rather than calorific value. The second is thermal coal, mainly weakly caking coal used as feedstock for methanol and olefins production, with calorific values around 5,000 Kcal/kg NAR. The company also procures thermal coal for power boilers generating steam, typically around 4,500 Kcal/kg NAR.

In terms of technology, Baofeng Energy said raw coal consumption for coal-to-olefins is directly linked to the conversion process. Based on equipment suppliers' test standards, DMTO-I technology consumes 3.00 tonnes of methanol per tonne of olefins, DMTO-II (with C4+ recycling) consumes 2.67 tonnes, and DMTO-III consumes 2.66 tonnes. Calculated under coal-water slurry gasification design conditions (1.70 tonnes of raw coal per tonne of methanol), the corresponding theoretical raw coal consumption per tonne of olefins is approximately 5.10 tonnes, 4.54 tonnes and 4.52 tonnes respectively, excluding fuel coal.

Raw coal consumption is mainly affected by ash content in feed coal, which determines effective carbon share and gasification efficiency, Baofeng Energy said. Coal reactivity, ash fusion temperature, volatile matter and moisture also influence gasification and syngas quality, thereby affecting coal consumption.

The company's Ningdong Phase I, II and III bases and Inner Mongolia base use DMTO-II and DMTO-III technologies respectively, with actual coal consumption at each base bettering the above levels through process optimization and refined management.

Baofeng Energy emphasized it maintains strict coal blending controls to ensure efficient unit operation, with consumption per unit at a leading level in the industry.

The company also operates green methanol businesses, having built a world-leading solar-powered water electrolysis hydrogen production project. It produces "green hydrogen" through electrolysis powered by wind and solar power, integrating it with modern coal chemical operations to produce green methanol, which serves as an intermediate for green olefins. The company plans green methanol capacity of 1.45 million tonnes per annum (Mtpa).

Baofeng Energy also has metallocene polyethylene production capability. Given relatively limited domestic demand for high-end products, the company dynamically adjusts output of various products based on market profitability and has not recently produced this grade.

The company added that with units running at full capacity and ample orders, it strictly upholds production safety standards, strengthens safety training and on-site hazard inspections, and maintains safe and stable unit operations.