China Trade Information

Shenhua Group had started operation at its first direct coal-to-liquids (CTL) project, the first of its kind in China, the country’s top coal producer said on Monday.

The project, launched on Dec 30, has started to produce fuels and chemical products, all up to standard, the company said at its website. The launch was right on schedule, it added.

Located in Inner Mongolia autonomous region, the 10-billion-yuan ($1.46 billion) CTL facility is reported to be capable of producing one million tons of fuels annually.

The project is also the world’s first major liquefaction plant that employs direct coal liquefaction technology.

Earlier, China Daily cited Ning Chenghao, a researcher with Shenhua CTL institute, as said that the launch of this project might be postponed to early 2009 “for several reasons”.

The cost for generating each barrel of oil, estimated at about $45 in 2007, has changed due to the dramatic fluctuation in the prices of coal and oil in 2008, Ning said.

Tags: coal, Shenhua

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