Current Progress of China’s CTL Projects

After the successful operation of China’s CTL demonstration projects in 2009-2011, the CTL technology has been proven in operation and will be spread in 2012-2015.  ASIACHEM posted in its fresh report that up to H1 2012, the total capacity of China’s CTL projects under construction or in the essential initial work stage is more than 20 million t/a, with over RMB200 billion of investment, the key investors including Shenhua, Yitai, Lu’An, Shenhua Ningxia Coal (Shenhua Ningmei) and Yankuang.

Shenhua Group

Shenhua Ordos 1 million t/a direct CTL (DCTL) demonstration project was started up in December 2008, through a series of process improvements and rectifications, realized safe and stable operation over three years. Most of performance indices, including operating flexibility, load rate, on-stream rate, oil yield, and energy conversion efficiency etc, all reached the design specifications. In H1 2011, the project produced 467 000 tons of oil products and contributed RMB800 million of profit. In July 2011, the Mega Coal Direct Liquefaction (DCTL) Key Technology & Demonstration project, as a national major energy strategic project, passed expert appraisal.
   The planned total capacity of Shenhua Ordos DCTL project is 5 million tons per year. Currently, Shenhua Group is preparing for the follow-up CTL line operation. Also, In Ordos, Shenhua plans to build the matching indirect CTL (ICTL) units, by blending of ICTL and DCTL oil products, to improve the quality and market competitiveness of CTL products.

Yitai Group

Yitai Ordos 160 000 t/a indirect CTL project started demonstration operation in 2009. In 2011, the plant was kept in effective operation for 328 days and produced 152 000 tons of oil products. Net profit of the project in H2 2011 was RMB27.47 million.
Yitai planned to build additional CTL and coal chemical projects in Yili and Urumqi, Xinjiang. Among these projects, Xinjiang Yili CTL project achieved the fastest progress. The project is to build 5.4 million t/a CTL unit, injected RMB64.5 billion. Yitai Yili Energy Co Ltd is the operator, financed by China Development Bank. The phase I of the project, a 900 000 t/a CTL line, with an investment of RMB15 billion, will employ ECUST water-coal-slurry gasification technology, with an agreement signed at the beginning of 2012, use 5 gasifiers, each with 3000 t/d coal throughput.

Lu’An Group

Shanxi Lu’An Changzhi CTL project, with a capacity of 210 000 t/a (160 000 t/a ferrous slurry bed + 50 000 t/a cobalt fixed bed) was started up in 2009. Also the project includes a 180 000 t/a ammonia unit, a 300 000 t/a urea unit and a 12.8 MW IGCC power plant to realize coal-based poly-generation.
   Currently, Lu’An plans to build a 5.4 million t/a CTL and poly-generation complex in Shanxi Province. Phase I - 1.8 million t/a unit - located in Changzhi uses poor quality coal with high-sulfur content as feedstock and coke oven and gas in mining well as supplement. General engineering works for the project have been started. The phase I is scheduled to come on line in August 2014.

Shenhua Ningxia Coal Group

The joint venture project between Shenhua Ningxia Coal and Sasol, South Africa was finally shelved after near 10 years tough negotiations.
Now, Shenhua Ningxia Coal plans to solely build the indirect CTL plant, with a capacity of 4 million t/a. The approximately RMB55 billion project is located in Ningdong Energy & Chemical Base, Ningxia region. The project will use technology from Synfuels China, which was demonstrated by Yitai and Lu’An at the 160 000 t/a unit. The project passed the evaluation organized by Chine International Engineering Consulting Corp and has started engineering design.

Yankuang Group

Yankuang has developed an indirect CTL process with self-owned intellectual property right and finished 5 000 t/a pilot unit in Lunan Fertilizer Plant, Shandong Province. In January 2011, Yankuang and Yanchang Petroleum jointly set up Shaanxi Future Energy Chemical Co Ltd, in charge of the construction of Yulin-Hengshan clean coal combined use demonstrative project. The RMB16.12 billion project obtained approval by Shaanxi Provincial Development & Reform Commission and Shandong Provincial State Assets Administration Committee in March 2011. Thereafter the company announced construction of the project. In December 2011, Yankuang Group and US based Air Products signed a contract for purchase of gas supply to the project.
   Besides Yulin project, Yankuang Group is also carrying out a joint feasibility study, with US Accelergy, for a 3.4 million t/a DCTL & ICTL combined project and an algae CO2-absorption bio-fertilizer project to be built in Ordos, Inner Mongolia.
   ASIACHEM predicts that by 2015, China would form about 10 million t/a CTL capacity. Mega size (1 million t/a or more), focus on comprehensive use of coal resource and energy efficiency, and CO2 capture is the main tendencies of these upgraded projects.
   Furthermore, combination of DCTL and ICTL for energy efficiency improvement by classified coal utilization, oil/coal mixed co-processing and feedstock diversification such as introduction of coke oven etc, IGCC and other chemical poly-generation are also new trends in China’s CTL industry.