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China Institute
Coal-to-liquid projects being developed in China

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5 June 2007
Reuters News


June 5 (Reuters) - China, the world's top coal producer and consumer, is encouraging coal-to-liquid projects (CTL) to reduce the country's dependence on imported oil.

Beijing raised the capital threshold for such projects in July 2006, to prevent overheating in the industry. There are also some coal-to-chemical projects in the pipeline.

Here are main projects currently being developed:

1) PROJECT: Majiata, Erdos in Inner Mongolia
PARTNERS: Shenhua Group, parent of Shenhua Energy Co. Ltd.
TECHNOLOGY: direct coal liquefaction (DCL) technology developed by Shenhua
COST: n/a
COAL VOLUME: n/a
OUTPUT VOLUME: 1 million tonnes (LPG, naptha, diesel, phenol)
EXPECTED START DATE: 2008
DETAILS: Shenhua plans to expand its capacity to 5 million tonnes in the second phase.

2) PROJECT: Yulin in Shaanxi
PARTNERS: Shenhua Group, Sasol from South Africa
TECHNOLOGY: Sasol's low temperature Fischer-Tropsch technology
COST: $5 bln
COAL VOLUME: n/a
OUTPUT VOLUME: up to 6 mln tonnes per year
EXPECTED START DATE: 2012
DETAILS: Being planned (a feasibility study).

3) PROJECT Ningxia
PARTNERS: Shenhua Ningxia Coal Ltd, a unit of Shenhua Group, Sasol from South Africa
TECHNOLOGY: Sasol's low temperature Fischer-Tropsch technology
COST: $5 bln
COAL VOLUME: n/a
OUTPUT VOLUME: 3 mln tonnes per yr (80,000 barrels per day)
EXPECTED START DATE: 2012
DETAILS: Being planned (a feasibility study).

4) PROJECT: Ningxia
PARTNERS: Shenhua Ningxia Coal Industry Co Ltd, Royal Dutch Shell
TECHNOLOGY: n/a
COST:$5-$6 billion
COAL VOLUME: n/a
OUTPUT VOLUME: 3 million tonnes per year (70,000 barrels per day)
EXPECTED START DATE: 2012
DETAILS: n/a

5) PROJECT: Yulin area of Shaanxi
PARTNERS: Yankuang Group, parent of Yanzhou Coal Mining
TECHNOLOGY: its own indirect CTL technology.
COST: 100 billion yuan.
COAL VOLUME: n/a
OUTPUT VOLUME: 1-million-tonne-per year (including diesel, naptha, LPG and special wax)
EXPECTED START DATE: 2012
DETAILS: It is a demonstration plant. But its capacity is to reach 5 million tonnes per year by the end of the first phase and 10 million tonnes in the second phase.
It is seeking approval for the demonstration plant. It said in April 2007 that it hoped to test-run the plan within three years of the project approval.

6) PROJECT: Tunliu in Shanxi
PARTNERS: Lu'an Group, another coal producer
TECHNOLOGY: n/a
COST: n/a
COAL VOLUME: n/a
OUTPUT VOLUME: 160,000 tonnes per year
EXPECTED START DATE: 2008
DETAILS: n/a 7) PROJECT: Inner Mongolia
PARTNERS: Yitai Group
TECHNOLOGY: n/a
COST:n/a
COAL VOLUME: n/a
OUTPUT VOLUME: 160,000 tonnes per year.
EXPECTED START DATE: 2008
DETAILS: n/a

OTHER COAL RELATED PROJECTS

1) PROJECT: Coal-to-chemical complex in Shaanxi
PARTNERS: Shenhua Group, Dow Chemical Co
TECHNOLOGY: Convert coal to methanol for ethylene and propylene, which are used for making various plastics and chemical products
COST: n/a
COAL VOLUME: n/a
OUTPUT VOLUME: n/a
EXPECTED START DATE: n/a
DETAILS: They plan to finish a feasibility study by end-2008

2) PROJECT: Coal-to-gas, power and chemicals in Shaanxi
PARTNERS: Xiwan a venture between Anglo American and Shaanxi Coalfields Geological Bureau
TECHNOLOGY: n/a
COST: $4 bln
COAL VOLUME: n/a
OUTPUT VOLUME: n/a
EXPECTED START DATE: 2009
DETAILS: Being planned (a feasibility study) Sources: Information provided by China's top two coal-two-liquids players Shenhua and Yankuang group at a coal conference, and announcements from the companies involved in the projects


 
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