China’s biggest coal trader to produce coal-based petroleum
Shen Hua Group Corporation Limited plans to put
three liquefied coal projects into production in 2011 and 2012 with a capacity
of producing 10 million tons of petroleum a year. Will eventually replace 20%
of imported oil.
I’ve posted articles about these processes before. This is 80-year-old technology that has been used in many nations in the past — including our own.
Shen Hua Group Corporation Limited plans to put three liquefied coal projects into production in 2011 and 2012 with a capacity of producing 10 million tons of petroleum a year.
The three projects, in Yulin city of West China’s Shaanxi Province and two in Yinchuan, capital of northwestern Ningxia Hui Autonomous Region, will each be able to produce 3.2 million tons of petroleum a year or 75,000 to 80,000 barrels per day, said Zhang Yuzhuo, vice president of Shen Hua.
Three tons of coal can produce one ton of oil from both the direct and indirect coal liquefaction method.
Zhang said the cost of producing coal by direct liquefaction will not exceed 30 U.S. dollars per barrel, adding that environmental protection costs will account for over 15 percent of the total investment.
According to Zhang, China’s annual liquefied coal could reach 50 million tons in 2020, equaling 20 percent of their total imports, said Zhang.
Even though the Oil Patch Boys are somewhat invested in coal, they’re raking in dollars by the boatload from oil, right now. It’s going to take investment and commitment from forward-looking investors — and, uh — do we still have any of those?
Posted: Wed - August 2, 2006 at 07:19 AM