China Shenhua's New Coal-to-oil Project Starts

China Shenhua Coal to Liquefaction & Chemicals Company Limited Ordos Coal to Liquefaction Branch, a wholly-owned subsidiary of China National Energy Group, was established in 2008 and is located in Ulanmulun Town, Yijinholo Banner, Ordos City, Inner Mongolia Autonomous Region.

The company currently operates China's first one-million-ton coal direct liquefaction production line, with an annual production capacity of up to 1.08 million tons. In addition, the company has a coal indirect liquefaction production line with an annual capacity of 180,000 tons, a carbon dioxide capture and storage project with an annual processing capacity of 100,000 tons, and a 350,000-ton coal direct liquefaction oleo-slag extraction industrial demonstration plant with independent intellectual property rights.

These facilities reflect the Company's technological strength and innovation capability in the field of coal-to-liquids. In order to further promote the development of coal-to-liquid technology, the company is promoting a large-scale upgrading demonstration project. The total planned investment of this project reaches RMB 3,677,209,000, and the construction site is located in Ulanmulun Industrial Park of Shengyuan Coal Chemical Industry Base, Yijinholo Banner, Ordos City, Inner Mongolia.

The main construction content of the project includes a coal direct liquefaction production line with an annual capacity of 2.2 million tons and a coal indirect liquefaction production line with an annual capacity of 800,000 tons. The upgrade project is not only aimed at expanding production capacity, but will also enhance product quality and production efficiency through technological transformation, further consolidating the Company's leading position in the coal-to-liquids industry.