Recently, the State Information Office held a press conference on "promoting the practice of Chinese-style modernization in Xinjiang with high-quality development and new results." Erkentuniazi, deputy secretary of the party committee of the Xinjiang Uygur Autonomous region and chairman of the Xinjiang Uygur Autonomous region, said at the meeting that he would actively build a modern industrial system and create a strategic fulcrum for a new development pattern. Based on Xinjiang's resource endowment and industrial foundation, we will speed up the construction of "eight major industrial clusters" such as oil and gas, coal, power, coal and chemical industry, green mining, and strategic emerging industries, and the industrial system for the integrated development of primary, secondary and tertiary industries has become increasingly perfect. With major projects as the traction, we will promote the implementation of 11 100 billion yuan projects in the region and 11 10 billion yuan projects in southern Xinjiang. Speed up the construction of a number of high-energy innovation platforms such as Huairou Laboratory Xinjiang Base, Photovoltaic Materials and Battery Laboratories, and enable industrial transformation and upgrading. We will actively undertake the industrial transfer in the central and eastern regions and constantly explore effective ways to serve and integrate into the new development pattern.
We will deepen the construction of "three bases and one channel" and build a national strategic guarantee base for energy resources. Based on the needs of the country and what Xinjiang can do, Xinjiang continues to promote the construction of national large-scale oil and gas production, processing and storage bases, large-scale coal, coal, electricity and coal chemical industry bases, large-scale wind power bases, and major land channels for national energy resources. Xinjiang has made contributions to ensuring the security of the country's energy and key mineral resources.
Development of Coal, Coal, Power and Coal Chemical Industry in Xinjiang
In recent years, while based on the advantages of resources and increasing the supply of coal, Xinjiang has actively explored and outlined a new territory for the development of coal chemical industry on the basis of "coal". The development and agglomeration areas of coal chemical industry based on Zhendong, Tuha and Yili and the development pattern of modern coal chemical industry based on coal natural gas, coal olefin, coal classification and quality utilization have been preliminarily constructed. With Xinjiang speeding up the construction of a modern industrial system supported by the "eight major industries", the coal chemical industry with clean and efficient utilization of coal as the core has entered the "fast lane" of development.
Coal
Xinjiang is rich in coal resources, and it is an important undertaking area and strategic reserve area for China's coal productivity to move westward. During the 14th five-year Plan period, Xinjiang will comprehensively speed up the construction of coal mine projects given to Xinjiang by the state to increase production capacity by 160 million tons per year during the 14th five-year Plan period. fully release advanced and high-quality coal production capacity. According to the latest announcement issued by the Xinjiang Development and Reform Commission, by the end of December 2023, there were 74 coal mines in the region with a total production capacity of 420 million tons.
At present, four major coal bases have been formed in Xinjiang, namely, Tuha, Zhendong, Yili and Kubai, which account for 64% of Xinjiang's total coal reserves. Among them, Xinjiang's outward transportation of coal is mainly concentrated in the Tuha base (Hami area), most of which is supplied to the Hexi Corridor in Gansu Province.
◼ Tuha base
Mainly to Xinjiang coal transportation and Xinjiang electricity transmission, including Danan Lake, Naomao Lake, Montenegro, Kebuer Alkali, Sandaoling, Balikun, Shaer Lake, Santang Lake, Aidin Lake and other nine mining areas.
◼ quasi-East Base
Mainly focus on the development of coal power, coal chemical industry and other demonstration projects, rationally optimize the layout of large-scale industrial parks, while participating in Xinjiang coal transportation and Xinjiang power transmission projects, mainly include Wucaiwan, Dajing, West Montenegro, sulfur ditch, Changji Baiyang River, Tacheng Baiyang River, Hestologai, Fukang, Evell ditch, four trees, Shawan, Manas Taxi River, General Temple, Laojun Temple, Karst and other 17 mining areas.
◼ Yili base
Mainly to develop coal chemical demonstration projects, coal power, the implementation of coal in-situ conversion, mainly including Yining, Nilke, Zhaosu three mining areas, focusing on the development of Yining mining area.
◼ Kubai Base
It mainly includes 7 mining areas, such as Okhobulak, Aai, Baicheng, Tashdian, Buya, Yangxia, Karatuzi and so on. Mainly to meet the local power generation, urban heating, industrial production coal and residential coal-based.
In 2023, coal consumption in Xinjiang is still dominated by self-use in Xinjiang. In 2023, 75% of Xinjiang's coal production will be used in Xinjiang, and coal accounts for about 70% of Xinjiang's energy consumption structure. From an industry point of view, coal consumption is mainly concentrated in coal power and coal chemical industries, accounting for about 70% of coal consumption.
Coal-fired electricity
The coal power stations in Xinjiang are mainly distributed around Urumqi, Wucaiwan and Hami. The installed capacity of coal power near Wucaiwan alone is nearly 2000MW, accounting for about 28.8% of the total installed capacity of coal power in Xinjiang, nearly 30%.
Coal power in Xinjiang is mainly for self-use and outward transportation. Xinjiang's power generation is 480 billion kilowatt-hours from January to December 2023, an increase of 4 percent over the same period last year. Among them: thermal power generation is about 370 billion kilowatt hours, accounting for about 77 per cent of the total electricity generation, an increase of nearly 4 per cent over the same period last year.
According to Polaris Power Grid statistics, in 2023, more than 10 thermal power plant projects in Xinjiang have important dynamic updates, involving an installed scale of more than 16 million kilowatts.
Dynamic tracking of Xinjiang Thermal Power Plant Project in 2023
Coal chemical industry
In terms of coal chemical industry, coal chemical industry is a key development industry in the autonomous region. Xinjiang, as one of the four modern coal chemical industry bases, the demand for coal for coal chemical industry is also increasing year by year. Based on coal, Xinjiang continues to extend the industrial chain and build a coal-coal-electricity-coal chemical industry base to contribute to the national energy security.
After several years of development, the modern coal chemical industry in Xinjiang has passed the initial stage and made a breakthrough. The autonomous region to promote new industrialization and high-quality construction of the "eight major industrial clusters" conference pointed out: to build coal-to-oil and gas, coal-to-olefins, new coal-based materials and other industrial chains.
◼ in terms of diversification
Xinjiang coal chemical enterprises have produced dozens of chemical products, among which bulk coal chemical products include olefin, BDO, methanol, chemical fertilizer, ethylene glycol and so on, which provide unlimited possibilities for the extension of downstream industry chain.
◼ coal-based new materials
Xinjiang has laid out the production of polyformaldehyde, MMA (methyl methacrylate) and so on. POM, known as "super steel", can be used in the production of engineering plastics, such as car bumpers, etc.; MMA is mainly used in plexiglass monomers, such as glasses, wind turbine blades and so on.
◼ low carbonization aspect
Some coal chemical enterprises in Xinjiang Zhendong Economic and technological Development Zone and Yiwu County have coupled the coal chemical industry with the CCUS (carbon capture, utilization and storage) project to transport carbon dioxide emitted from coal chemical production to oil fields to drive crude oil exploitation and turn carbon dioxide waste into treasure. At present, the supporting CCUS of new coal chemical enterprises has become a trend, and it is also an important option to pass environmental assessment and energy assessment.
◼ Xinjiang Zhendong Economic Development Zone
In 2017, the National Development and Reform Commission and the Ministry of Industry and Information Technology defined the innovative development layout of modern coal chemical industry and identified four national demonstration areas of modern coal chemical industry, namely, Zhendong in Xinjiang, Ningdong in Ningxia, Yulin in Shaanxi and Ordos in Inner Mongolia. Zhendong Economic Development Zone has the largest integrated coalfield in China, with estimated reserves of about 390 billion tons. It is one of the five major coalfields in Xinjiang and an important part of the 14th large-scale coal base determined by the state.
By January 2024, the Zhendong Economic Development Zone had approved 16 coal mines with an approved production capacity of 208 million tons, leading the country in the intelligent level of open-pit coal mines, and the approved installed scale of coal power was 28.57 million kilowatt-hours, accounting for 1/3 of the total installed capacity in Xinjiang. to make important contributions to ensuring national energy security. As a national strategic base for coal-to-oil and gas, Zhendong Economic Development Zone has been planning to distribute the coal-to-gas industry since 2013, with a planned production capacity of 30 billion cubic meters. In recent years, the enthusiasm of enterprises committed to the development of coal-to-gas in Zhendong Development Zone has been unprecedentedly high. More than 10 central, state-owned and private enterprises, including Tianchi Energy, Henan Energy, Qiya Group, National Energy Group, Shandong Energy, and so on, have docked with Zhendong Development Zone to carry out preliminary work. To strengthen the industries with distinctive advantages, the Zhendong Development Zone will promote the construction of three hundred billion industries and four ten billion industrial clusters during the 14th five-year Plan period. By the end of 2024, the planned coal output will be more than 200 million tons, the installed scale of coal power will reach 25 million kilowatts, the generating capacity will reach 130 billion kilowatt hours, the industrial silicon production capacity will reach 420000 tons, the polysilicon production capacity will reach 570000 tons, and the industrial added value is expected to reach 62 billion yuan.
◼ Hami
Hami is an area rich in coal resources, with large reserves, many varieties and easy mining. The forecast resources are 570.8 billion tons, accounting for 12.5% of the national forecast resources, ranking first in Xinjiang. In particular, the coal in Santanghu and Namaohu mining areas has the characteristics of "three low and three high" (low ash, low sulfur, low phosphorus, high calorific value, high oil content, high volatile content), and oil-rich coal accounts for more than 90%. The oil content is more than 10%, and the highest is 16.3%. It is a rare oil-rich coal resource in the world, and its quality is far better than the national standard of direct liquefied coal, and it is an ideal raw material for coal-to-gas and coal-chemical development.
Hami modern coal chemical industry has completed a total investment of more than 120 billion yuan and an output value of more than 40 billion yuan, bringing the number of direct employment to 12000. During the 14th five-year Plan period, Hami is based on the advantages of energy resources and follows the multi-dimensional development idea of "horizontal qualitative utilization, vertical cascade transformation, cross-domain industrial integration and flexible development plan". Starting with the national coal-to-oil and gas strategic base, Hami modern energy and chemical industry demonstration zone major coal chemical projects, Hami modern energy and chemical industry demonstration zone as the platform Build an agglomerated, high-end, diversified and low-carbon coal chemical industry cluster, and strive to find a way for the development of coal-based industries with ecological priority and green environmental protection.
◼ Yili Kazakh Autonomous Prefecture
Yili prefecture is rich in coal resources, sufficient water resources, coupled with the convenient conditions of the "west-to-east gas transmission" pipeline, the development of coal-made natural gas occupies the "right time and geographical location". In recent years, Yili Prefecture has firmly grasped the strategic position of Xinjiang in the overall national situation, firmly grasped the primary task of high-quality development, focused on the construction of "eight major industrial clusters", accelerated the release of advanced and high-quality coal production, and vigorously promoted the increase of oil and gas reserves and production. we will enhance the scale and quality of development, and constantly improve the support and contribution of Yili modern energy economy to ensuring national energy security and promoting high-quality economic development.
There are three coal chemical enterprises in Yili River Valley, mainly from coal to gas and coal to oil. Among them, Xinjiang Qinghua Energy Co., Ltd. is the representative of two coal-to-gas demonstration projects in Xinjiang (only four projects have been completed and put into production in the whole country). According to statistics, in 2023, the river valley produced 3.523 billion cubic meters of coal-made natural gas, accounting for 55.7 percent of the country's total output value, with a total industrial output value of 11.453 billion yuan.
Other development advantages
◼ policy has outstanding advantages.
In recent years, the state has issued a series of major policies to support the great development of Xinjiang, especially in the modern coal chemical industry. The state has proposed to support Xinjiang to focus on the development of coal-to-olefins and natural gas, and to support the construction of coal-to-oil demonstration projects.
Excerpt of preferential tax and fee policies for coal, coal, power, coal and chemical industry clusters
1. The value-added tax of coalbed methane extraction enterprises shall be levied first and then refunded by ordinary taxpayers who extract and sell coalbed methane.
-- Circular of the State Administration of Taxation of the Ministry of Finance and Reform on tax policies related to speeding up coalbed methane extraction (Finance and Taxation (2007) No. 16)
2. The input tax of the following items purchased by coal mining enterprises is allowed to be deducted from the output tax:
(1) roadway ancillary equipment and its related taxable goods, services and services
(2) taxable goods, services and services used for the construction and advance of roadways other than open roadways, or for roadway backfilling and ecological restoration of open-pit coal mines.
-- Circular of the State Administration of Taxation of the Ministry of Finance on matters relating to the deduction of VAT input tax for Coal Mining Enterprises (Finance and Taxation (2015)
3. Taking the resources specified in the preferential catalogue of Enterprise income tax on Comprehensive Utilization of Resources (2021 Edition) as the main raw materials, the income derived from the production of products that are not restricted or prohibited by the state and meet the relevant standards of the state and industry, it shall be counted as 90% of the total income of the enterprise in the current year.
-- the Enterprise income tax Law of the people's Republic of China
Regulations of the people's Republic of China on the implementation of the Enterprise income tax Law
-- Circular of the State Administration of Taxation of the Ministry of Finance on issues related to the implementation of the preferential catalogue of Enterprise income tax for Comprehensive Utilization of Resources (Finance and Taxation (2008] No. 47)
-- announcement of the Ministry of Ecological Environment of the Development and Reform Commission of the Ministry of Taxation of the Ministry of Finance on the publication of the preferential catalogue of Enterprise income tax on Environmental Protection, Energy Saving and Water Saving projects (2021 Edition) and the preferential catalogue of Enterprise income tax on Comprehensive Utilization of Resources (2021 Edition) (notice No. 36 of the Ministry of Taxation Development and Reform Commission Ecological Environment Department of the Ministry of Finance)
4. Coal-forming (bed) gas extracted by coal mining enterprises due to safe production shall be exempted from resource tax.
Resource tax Law of the people's Republic of China
5. 30% resource tax shall be reduced for mineral products mined from mines during the exhaustion period.
Resource tax Law of the people's Republic of China
6. From December 1, 2014 to December 31, 2027, the resource tax will be reduced by 50% for the coal replaced by filling mining.
-- announcement of the State Administration of Taxation of the Ministry of Finance on the continued implementation of preferential policies on resource tax (announcement No. 32 of 2020)
-- notice of the State Administration of Taxation of the Ministry of Finance on extending the preferential policy of reducing resource tax on coal replaced by filling mining (announcement No. 36 of the State Administration of Taxation of the Ministry of Finance 2023)
7. Gangue hills, dump sites, drainage prevention sites, mining area offices, roads outside living areas, special railway lines and light access roads and power transmission and transformation lines of coal enterprises, land for safety areas outside explosive depots, parks and public green belts open to the public shall be temporarily exempted from land use tax.
-- provisions of the National Xiangxiang Taxation Bureau on the issue of levying exemption of land use tax on the land used by coal enterprises (figure tax [])
◼ has vast land and large total water resources.
Xinjiang has the conditions for water supply and land use for the construction of large-scale coal chemical projects. The total amount of water resources in Xinjiang is 83.2 billion cubic meters, the average annual precipitation is 254.4 billion cubic meters, and the total available water resources is 59.6 billion cubic meters. Many alpine glaciers, lakes and rivers have created favorable conditions for the development of the project. Xinjiang is rich in land resources, most of which are unused land, which is suitable for the site selection of large-scale coal chemical industry base. Source: Sinochem New Network