CCSU Integrating with Coal Chemical Industry     

Andong Oil Field Service announced in mid-August 2010 that it was awarded a contract by Shenhua Group Corp Limited to supply integrated technology service in drilling work for Shenhua Group's carbon dioxide capture & sequestration (CCS) demonstration unit and related projects in Erdos, Inner Mongolia.
   Shenhua Group laid foundation for its CCS demonstrative unit on June 1st, 2010 at its coal-to-liquids (CTL) plant site in Erdos. The CCS unit is scheduled to come on steam by the end of December 2010. The approximately RMB210 million project will have a carbon dioxide sequestration capacity of 100 000t/a. Carbon dioxide in the supercritical state will be transported via cryogenic liquid tank to the storage location, 17 kilometers far from the capture site, where the gas will be pressurized up to 35 - 40 MPa by a powerful pump, before injecting into brine strata at 1 000 - 3 000 meter depth underground.
   Coal chemical industry has the advantage of lower cost for carbon dioxide capture compared with thermal power plants, according to ASIACHEM. As reduction of carbon dioxide emissions has become a common concern in China, the nation will probably levy carbon duty starting 2012. In response, coal chemical industry shall pay more attention on carbon capture, sequestration & utilization (CCSU).
   First, a larger quantity of carbon dioxide emission comes from the coal chemical industry. Most of modern coal chemical processes, like CTL, CTO or CTSNG etc, will generate more concentrated carbon dioxide emission, which would raise cost for coal chemical players when policy for imposing carbon duty is effective.
   Second, the coal chemical players need to capture the concentrated carbon dioxide at a low cost by its advanced technology and recycle the carbon dioxide resources in EOR (enhanced oil recovery) field and others, as a result, it will cut the carbon emissions, also bring additional incomes to the coal chemical producers.
   According to ASIACHEM, China has constructed five CTL units. Three CTO projects are expected to be on-stream in 2010. Four SNG projects were officially approved. And some coal chemical projects are now at the stage of planning. How to deal with the reduction of carbon dioxide emission in combination with economic consideration is a major challenge facing to Chinese coal chemical industry. Experts suggest that the coal chemical players shall cooperate with oil companies and other stake holders, to explore the collaboration model consisting of carbon dioxide capture, compression, pipeline, oil field injection and EOR etc. The CO2-EOR integrated demonstration project will provide a way for other future CCSU projects in the future.
   The "CO2 Capture, Storage & Utilization 2010" will be held in Shanghai on September 15th - 16th China.