In the first phase of the Coal-Chemical Plant, 0.5 million tons/year of coal will be gasified and synthesized to produce methanol. 300 thousand tons of synthetic gas-based household and gas fuel (such as sulfur-free, odorless, and environmentally friendly dimethyl ether) will be produced from methanol and supplied to the market as an import-substituting product. According to the Mongolian State Customs Service, 45.9 thousand tons of gas fuel worth 18.9 million US dollars were imported in 2022, and 61.8 thousand tons of gas fuel worth 17.7 million US dollars were imported in 2023.
In addition, synthetic gas-based fuel (such as dimethyl ether) produced from coal can be used as a source of heat for households in ger districts, thereby making a significant contribution to reducing greenhouse gas emissions.
With the commissioning of the second phase of the plant, it will be possible to produce 500 thousand tons of methanol-based polypropylene (PP) and 190 thousand tons of gasoline from 2.5 million tons of coal per year, including various basic chemical elements for plastic production, as well as 190 thousand tons of gasoline. Private enterprises will use the products from the production in the form of raw materials in accordance with market demand and process them in the next stage to produce a variety of final products. This will create a basic condition for supporting the production of domestic value-added products, and will allow manufacturers to produce a variety of products such as cleaning agents, adhesives, paints, food containers, packaging, wallpaper, carpets, ropes, linings, and building materials using the olefins and polypropylene produced as a result of deep processing. As a result, chemical elements that exceed the needs of domestic production will be exported in the form of products and the type of composite products will be diversified.