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On December 10, the approval opinions regarding the environmental impact assessment document for the project aimed at the engineering application and modification of the second-generation coal direct liquefaction technology at the Ordos Coal-to-Oil Branch of China Shenhua Coal-to-Oil Chemical Co., Ltd. were made public. In May 2002, the former **State Environmental Protection Administration issued the \"Approval on the Environmental Impact Assessment Report for Shenhua Group Co., Ltd.’s Direct Coal Liquefaction Project\" (Huan Shen [2002] No. 128). Due to adjustments in the coal liquefaction technology, in March 2005, the former **State Environmental Protection Administration issued the \"Approval on the (Supplementary) Environmental Impact Report for Shenhua Group Co., Ltd.’s Direct Coal Liquefaction Project\" (Huan Shen [2005] No. 264), approving a coal liquefaction production capacity of 3.24 million tons per year. The construction unit will implement the construction of 3 production lines in phases, with 1 production line being built first. This includes 13 main production units such as coal liquefaction, hydrodesulfurization, hydroprocessing, and coal gasification, along with the corresponding utility and auxiliary facilities; the capacity of the coal liquefaction unit is 1.08 million tons per year. In December 2015, the former **Ministry of Environmental Protection issued the \"Letter on the Approval of the Environmental Protection Inspection for the Completion of the Shenhua Direct Liquefaction Project (Phase I)\\" (Huan Yan [2015] No. 226), granting approval for the project to pass the environmental protection inspection upon completion. The other two production lines (Line 2 and Line 3) have not yet been built. Due to the use of first-generation coal liquefaction technology in the first phase of the project, the processing capacity of the facility has never reached the designed level; as a result, the overall operation of the plant only achieves 85% of the designed capacity. To increase the actual operating load of the first-phase project, this technical upgrade aims to modify the coal liquefaction unit, hydrogenation and stabilization unit, and oil sludge molding unit of the first-phase project. In the coal liquefaction unit, the internal circulation pump at the bottom of the liquefaction reactor is removed, as well as internal components such as the internal circulation cup and central tube in the reactor. A large circulation pump is added to the bottom system of the high-temperature and high-pressure separator; the material circulated is drawn out from the bottom of this separator and returned to the inlet of the first reactor, thus creating a large-scale circulation reaction system that includes both the reactor and the high-temperature and high-pressure separator. This approach eliminates the vapor-liquid interface within the reactor, prolongs its operational cycle, and makes it possible to replace the high-temperature and high-pressure separator, among other things ; One additional fixed-bed reactor has been added to the hydrogenation stabilization unit ; The oil residue shaping equipment has been upgraded with two additional shaping machines, two water pumps, and two circulating water pipeline pumps. Upon completion of the technical upgrades, an annual production capacity of 1.08 million tons of coal-to-oil products can be achieved. The total investment in this technical upgrade is 987.28 million yuan, of which 7.245 million yuan is allocated to environmental protection measures. On November 29, the groundbreaking ceremony for the **Energy Group’s second-generation coal direct liquefaction technology development project was held. At the inauguration ceremony, Fan Haiping from China National Nuclear Fifth Corporation said that the reactor-high temperature and high pressure separator large-cycle reaction system developed as part of the project for the engineering application of second-generation coal direct liquefaction technology represents a significant upgrade to this technology; it is also a key breakthrough in terms of the world’s first commercially viable coal direct liquefaction technology. The company will go all out to turn this project into a benchmark example.