Shenhua Ningxia Puts 4 Million T/A CTL Demonstration Project into Operation

On December 28, 2016, Shenhua Ningxia Coal Industry Group Co., Ltd. (SNC) announced that its 4 million t/a coal to liquids (CTL) (indirect liquefaction of coal to oil) demonstration project came on line in Yinchuan, Ningxia region.
Domestic coal to liquids projects are significant for China to solve the shortage of oil and gas resources, balance energy structure, reduce dependence on imported oil and gas, and guarantee energy security.
With a total investment of around RMB55 billion, the CTL project in Ningxia is designed to convert 20.46 million tons of coal into 4.05 million tons of oil products per year, containing 2.73 million tons of diesel, 980 000 tons of naphtha and 340 000 tons of liquefied gas. In adition, it has capability of producing by-products of 200 000 tons of sulphur, 75 000 tons of mixed alcohol and 145 000 tons of ammonium sulfate.
The CTL project adopts Fischer-Tropsch synthesis technology and oil product processing technology, 100 000 standard m3/h air separation technology and dried coal powder pressurized gasifier technology.
In China, exploitation and utilization of coal have brought significant pressures on the environment. Hence, the clean use of coal is necessary. Oil products from coal to liquids projects have advantages of ultra-low sulphur, low aromatics and high cetane value, superior to national V and Euro V standards. Therefore, they are capable of reducing urban air pollution effectively.
“Using products made by coal to liquid projects is a good way to deal with automobile pollution and haze, if these products can be widely applied in enormous cities such as Beijing and Shanghai,” SNC manager said.