On February 21, Shaanxi Yanchang Petroluem Yushen Energy & Chemical Company commenced the design work for the basic engineering of the 500 kt/a coal-based ethanol project. With a total investment of RMB6.4 billion, the project marks the initial run-up of the 800-million-ton CCSI industry demonstration project, using coal-based ethanol technology jointly developed by Yanchang Petroleum Group and Dalian Institute of Chemical Physics, Chinese Academy of Sciences. It is designed to convert 1 500 kt/a of coal and produce 500 kt/a of ethanol and 500 kt/a of methanol, with by-products including alcohol oil, heavy components and sulfur, etc.