Recently, Xinjiang Baofeng Coal-based New Materials Co., Ltd. was established with the legal representative of Gao Jianjun and a registered capital of 100 million yuan. Its business scope includes: coal mining; coal-based activated carbon and other coal processing; mining machinery manufacturing; high-performance fiber and composite material manufacturing, etc. Equity data shows that the company is wholly owned by Baofeng Energy.

    Recently, Baofeng Energy released its 2024 mid-year report, and the Q2 performance was in line with expectations. Details are as follows:

    Inner Mongolia's first phase of 3 million tons of coal-to-olefins is expected to be gradually put into production in October 2024, and will become the company's main performance growth point in the next two years.

    According to the company's announcement, the first phase of Inner Mongolia includes 2.6 million tons/year of coal-to-olefins and a supporting 400,000 tons/year of implanted green hydrogen coupled olefin production project. This project is by far the largest coal-to-olefins project in a single plant in the world, and it is also the world's largest large-scale project to use green hydrogen to replace fossil energy to produce olefins. It has a good industry demonstration effect and is an important measure taken by the company to actively respond to the national "double carbon" strategy and will help lead the coal chemical industry to achieve the "double carbon" goal as soon as possible.

    The project officially started construction in March 2023. As of July 2024, the main civil engineering and design work have all been completed, the installation of steel structures is nearing completion, each unit has entered the sprint stage of equipment and process piping installation, and multiple units have ushered in a key milestone. The project will complete the ignition of the first boiler at the end of June and early July this year. It is expected that the first series of polyolefin products will be produced in October, and the entire process will be opened by the end of 24. In 25 years, it will officially reach the performance growth point of production contribution.

    The third base, Zhundong, Xinjiang, plans to deploy 4 million tons of coal-to-olefins, and is firmly optimistic about the company's medium and long-term growth.

    On July 19, Xinjiang Baofeng Coal-based New Materials Co., Ltd. was established, with Baofeng Energy (15.520, 0.43, 2.85%) holding 100%;

    On July 30, according to the official website of the national-level Xinjiang Zhundong Economic and Technological Development Zone, the demonstration project of clean and efficient coal conversion coupled with the implantation of green hydrogen to produce low-carbon chemicals and new materials in Xinjiang Baofeng entered the first public announcement stage for public participation in environmental impact assessment.

    The project is located in No. 5 Chemical Industrial Park in Kuangqu, including 4× 2.8 million tons/year of methanol, 4× 1 million tons/year of methanol to olefins, 4 × 1.1 million tons/year of olefin separation, 3 × 650,000 tons/year of polypropylene, 3× 650,000 tons/year of polyethylene, 1 set of 250,000 tons/year of C4 - 1-butene production plant, 1 set of 290,000 tons/year steam cracking plant, and 1 set of 30,000 tons/year of ultra-high molecular weight polyethylene plant. 1 set of 250,000 tons/year EVA device, 1 set of 50,000 tons/year MMA/PMMA device, etc. The biggest advantage of Xinjiang's coal-to-olefins lies in the low-cost raw material coal. It is expected that the profit per ton of this project will further increase, and the company's growth space will once again open up. Source: Modern Coal Chemical Industry