Biggest Chinese coal mining company plans huge coal to liquids programme

[jpak]

http://www.mineweb.net/energy/596887.htm

LONDON (Mineweb.com) --Climate change is high on the programme for Davos this week and even George Bush has just announced his desire for a 20% cut in the consumption of gasoline. In China, China Shenhua Energy Co (CSEC) is setting the pace and looks like becoming the world leader in coal-to-liquids (CTL). It started developing its CTL programme at a pilot plant in Shanghai, which now has successfully achieved sustainable output of diesel oil and gasoline from a feed of 6 t/d of coal. This facility has allowed CSEC to become comfortable with the technology and to accumulate know-how on cost control and operations management.

CSEC subsidiary Shendong is currently developing the first commercial project in Inner Mongolia. Project construction was 50% complete at the beginning of 2007, with the coal liquefaction reactors (each weighing 2,250 t) successfully installed. Full production is expected by the end of this year, some 20,000 barrels per day of oil from coal. However, the plans go far beyond this one plant. CSEC plans to operate eight liquefaction plants by 2020. Together they will yield in excess of 30 million tons a year of CTL oil, which is estimated to be sufficient to replace over 10% of China’s projected oil imports.

These CTL plans are not only fascinating in their sheer size; they also involve very interesting technology. Up to now, all the world’s CTL has involved the Fischer-Tropsch (FT) process, which requires coal to be turned into synthetic gas, and then to be liquefied. CSEC is using a process developed by Friedrich Bergius, a decade before the FT process, which takes the coal directly to liquids.

It is certainly not unproven technology as it was well used in wartime Germany. The China Coal Research Institute in Beijing estimates that the Bergius process yields significantly more fuel from each tonne of coal. It expects the process to capture more than 55% of the coal’s energy, compared to just 45% for FT.

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[havocmom]

1. Will be interesting to see how this goes

[BayCityProgressive]

2. is this a private

company or a state run enterprise?

[havocmom]

3. Don't know. Is there a difference, really, in China? Hell, any real difference here?

The corporations run most governments in the world. And a bush uncle makes $$ on everything going from China to the US or back.

Our governor is looking toward the older method of coal to liquid fuel for the NOW. We have lots of coal and Big Oil is hurting our farmers/ranchers major with the fuel prices to run tractors and trucks.

Montana coal is generally VERY CLOSE to the surface, in fact, there are lots of places around where I live where I can show you veins and layers without using a shovel. To get the coal and then reclaim the land is not that expensive (nor as deadly) as in those deep mines back east. The soil gets disturbed then resettled and reseeded. It is a pretty fast process. I can also show you places that look pristine to those not well schooled on what plants grow in disturbed soil as opposed to what ones need long periods of undisturbed land. Grass and trees grow in both places, but some of the less common plants are picky.

Using a method that works better to get diesel fuel from coal is probably already being looked at by our Gov, but he is pushing the better tested method for now. He is a soils scientist by schooling, a farmer by choice and NOT a fan of the House of Saud by experience of working in Arabia making things grow.
He KNOWS America is not served (and will never be safe) by our dependence on foreign oil. And he knows we have lots of really good coal that is easy to get at here.

This will be most interesting to follow.

[Ghost Dog]

4. Listed public company, floated in Hong Kong:

http://stocks.us.reuters.com/stocks/overview.asp?symbol=1088.HK

--> http://www.chinadaily.com.cn/bizchina/2006-11/27/content_743277.htm
China Shenhua Energy Company Limited (CSEC) is the leading integrated coal-based energy
company focusing on coal and power businesses in China. We are one of the largest coal
companies in the world.

The company is the second largest publicly listed coal company in the world as measured by
proved and probable reserves as of 31 December 2005 and the fourth largest publicly listed
coal producer in the world as measured by coal output in 2005. The company is also the
largest coal producer and coal exporter of China.

The company is the only coal-based energy company in China that owns and operates a large-
scale integrated coal transportation network, which consists of dedicated rail lines and
port facilities. CSEC also has a sizeable and rapidly growing power generation business,
which is complementary to the company¡¯s coal business and develops harmoniously with it.

--> http://www.sullcrom.com/firm/news/news_detail.aspx?news=206
"China Shenhua Energy's Big IPO Makes Debut. . . ."

Associated Press
June 16, 2005

Summary: China Shenhua Energy Co., China's largest coal producer, raised US$ 2.95 billion in the world's largest public offering so far this year. Shenhua Energy, which operates 21 mines, primarily in western and northern China, is among four Chinese companies aiming to raise US$ 8 billion in total from listings in Hong Kong.



But, if interested, do be aware of potential 'market conditions', eg: "gov't officials and some analysts concerned that a bubble is forming that could burst at any moment"

[Moby Grape]

5. the hydrogen economy, in action

dig up coal, add hydrogen