SUPCON Secures $180M Industrial AI Contract for World's Largest Clean Coal Conversion Plant

Chinese automation giant to build intelligent factory systems for massive coal-to-chemicals project as part of national carbon neutrality strategy

SHENZHEN, China - In a landmark deal underscoring China's push toward intelligent energy transformation amid its carbon neutrality commitments, industrial automation leader SUPCON Technology Co., Ltd. (688777.SH) has secured a 1.31 billion yuan ($180 million) contract with Shaanxi Coal and Chemical Industry Group's Yulin Chemical subsidiary.

The framework agreement covers the distributed control system (DCS) and safety instrumented system (SIS) for the olefin, aromatics, and downstream processing segments of a massive 15-million-ton-per-year coal grading and clean conversion demonstration project. The collaboration represents the deepest integration yet of industrial AI technology with China's strategic energy infrastructure.

source: SUPCON

Strategic National Project

The Shaanxi Coal Yulin Chemical project represents a 176 billion yuan ($24.2 billion) national strategic initiative designed to establish an integrated "coal grading utilization - chemical synthesis - energy recovery" industrial chain. The venture aims to transform China's coal chemical industry through a comprehensive "resources-feedstock-materials-manufacturing" integration model.

The project addresses critical bottlenecks in traditional coal chemical processes, particularly in automation and intelligent manufacturing capabilities, facilitating the transition from coal as mere fuel to high-value chemical feedstock.

Proven Track Record

SUPCON's selection builds on its successful deployment at the project's Phase I facility—a 1.8-million-ton-per-year coal-to-ethylene glycol plant that was designated a National Intelligent Manufacturing Demonstration Factory in 2023. The company developed an integrated "production-equipment-energy-safety" data intelligence system that served as the foundation for this expanded partnership.

For the Phase II 15-million-ton demonstration project, SUPCON will implement its proprietary "1+2+N" industrial AI-driven enterprise intelligent operation architecture, creating a comprehensive "perception-assessment-decision-execution" intelligent closed loop spanning coal pyrolysis, chemical synthesis, and energy recovery processes.

Advanced Technology Integration

The solution integrates distributed control systems, safety instrumented controls, advanced alarm management, and intelligent advanced process control technologies. This comprehensive approach enables end-to-end intelligent management from project design through operational maintenance, supporting Shaanxi Coal Yulin Chemical's development of an autonomous facility with "self-perception, self-diagnosis, and self-decision-making" capabilities.

This full-lifecycle intelligent solution aligns with China's dual carbon goals while delivering significant cost reduction and efficiency improvements for industrial operators. The technology's innovation potential and commercial sustainability position it as a benchmark for the sector.

Economic Impact

Upon full commissioning of Phase II operations, the project is projected to generate annual sales revenue of 134 billion yuan ($18.4 billion) and profits exceeding 30 billion yuan ($4.1 billion), while creating over 7,000 jobs. The initiative exemplifies the transformation of coal from a combustion fuel to high-value industrial feedstock.

Industry Implications

The SUPCON-Shaanxi Coal partnership demonstrates the viability of intelligent factory models in complex coal chemical environments, representing a significant milestone in the convergence of industrial AI, automation technology, and national-scale energy projects.

Looking ahead, both companies plan to deepen their collaboration on autonomous intelligent factory development, exploring AI applications in carbon capture and hydrogen coupling technologies. These initiatives aim to address clean coal utilization challenges while strengthening China's energy security foundation.

Broader Context

As energy transformation accelerates globally, the SUPCON-Shaanxi Coal collaboration illustrates how technology innovation drives the deep integration of information technology with traditional industries. This approach opens new pathways for intelligent and environmentally sustainable development in the energy sector.

The project stands as a testament to China's strategy of leveraging advanced automation and AI technologies to modernize its vast coal chemical industry while meeting stringent environmental targets. For international observers, it represents a significant case study in large-scale industrial AI deployment within the energy transition framework.