The management team for Shaanxi’s 4.4-billion-yuan coal chemical project has arrived, with construction set to begin in March

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This post was last edited by liaifeng on 2018-8-3 at 22:36. Shenwu Environmental Protection recently announced that it has signed an EPC contract worth nearly 4.4 billion yuan with Shaanxi Lianggu Clean Environmental Protection Technology Co., Ltd. The purpose of this contract is to carry out the \"fractionated and graded utilization of coal\" in order to produce high-value chemical products, thereby improving the overall level of coal utilization in Shenmu, Shaanxi. According to Shenwu Environmental Protection, the project is progressing smoothly at present; work is underway on the overall layout planning, environmental impact assessment, energy assessment, and water resource evaluation, as well as on site surveys. Construction is set to begin officially in March this year. According to the project schedule, handover of the project is to be completed by September 30, 2020 ； Commence feeding and trial operation by October 8, 2020. It is reported that the project has received support from Shenmu City **. As early as May 2017, ** in Shenmu City, Shaanxi Province, held several in-depth discussions with Shenwu Environmental Protection. Through inspections and evaluations, it fully recognized Shenwu Environmental Protection’s preheating furnace pyrolysis technology for processing the local powdered long-flame coal, thereby producing high-value products such as semi-coke and needle coke, and addressing the issue of capacity upgrading in the local traditional coal chemical industry. In September 2017, the **Committee of Shenmu City assigned relevant leaders to lead a team from the enterprise to conduct research on Shenwu Environmental Protection, thereby determining the final technical solution. In September 2017, senior executives from Shenmu JinKong and Hongxin Chunshi visited Shenwu Environmental Protection to discuss the shareholder structure and investment agreement for a collaborative project. The joint venture company was established in November 2017; within two months, the company’s board of directors, supervisors, and senior management team were in place. To date, a team of 35 people has been assembled, including a chief engineer, as well as members from the engineering department, technology department, and general administration department ； The project manager, design manager, planning manager, cost control manager, construction manager, procurement manager, and document control manager from the general contractor Shenwu Environmental Protection’s project team have all arrived, and the capital required to initiate the approval processes and the operation of the joint venture company is also in place. Regarding the shareholder background of the joint venture, Shenwu Environmental Protection stated that it was established with capital contributions from Shenmu JinKong – a large state-owned enterprise directly under the municipal government with a registered capital of 2.8 billion yuan – Hongxin Chunshi Investment, and Shenwu Environmental Protection itself. Hongxin Chunshi Investment holds 51% of the shares, Shenmu JinKong holds 30%, while Shenwu Environmental Protection, as the technology provider, holds 19% of the shares. However, it has been revealed that in order to further streamline the shareholder relationships, there will be changes in the shareholder structure around the Spring Festival. Shenmu JinKong, Hongxin Chunshi, along with other strategic investors, will jointly fund the establishment of a Shenmu JinKong Energy Industry Investment Fund Company. This fund company will then use industrial funds to increase its investment in Shaanxi Lianggu Clean Technology Co., Ltd., thereby taking over a total of 81% of the shares held by Shenmu JinKong and Hongxin Chunshi. At that time, Hongxin Chunshi will act as the management company for this fund, while Shenwu Environmental Protection’s shareholding in the joint venture will remain unchanged. In December 2017, the joint venture project passed the evaluation by a review committee headed by Du Minghua, the former director of Shenhua Research Institute, which deemed the project to have good economic and social benefits. During that period, the Shaanxi Provincial Development and Reform Commission and the Environmental Protection Department approved the energy consumption and environmental capacity targets, and the project was registered on December 8 (registration number: 2017-610821-25-03-045450). Meanwhile, the project was designated by the Shenmu Municipal Party Committee and Government as a key chemical project within the Shaanxi North Energy and Chemical Industry Base, and a project promotion team headed by the executive vice mayor was established to oversee the progress of implementing this project. Some analyses suggest that deep cooperation between “resources” and “environmental protection technologies” is a key feature of this project. The Shenmu area in Yulin, Shaanxi Province, is an important coal-producing region in China, with an annual output of around 240 million tons. Of this amount, about 140 million tons are in the form of lump coal, while 100 million tons are pulverized coal. Lump coal can be used in coal chemical processes such as pyrolysis; it commands a high price and has broad market demand ； However, coal dust can only be used for burning and power generation; it is inexpensive, often remains unsold, and also pollutes the environment. The Shenmu Municipal Party Committee and government have been seeking ways to utilize coal dust in a clean and efficient manner, in order to optimize the industrial structure, increase the added value of coal, and address environmental pollution issues. This partnership with Shenwu Environmental Protection will open up new avenues for the use of pulverized long-flame coal in Shenmu. In addition, this project will use the long-flame coal resources available in Shenmu as the main raw material to produce high-value-added products such as semi-coke, natural gas, blended oil, and needle coke. It will facilitate a major industrial upgrade by shifting from a single-focused coal chemical industry to one that incorporates high-end materials, enable the clean and efficient utilization of coal, promote the upgrading of the traditional coal chemical industry, and advance reforms in the energy supply side. Once completed, this project will bring new achievements to Shenwu Environmental Protection in terms of technology application in coal pyrolysis, and have a positive impact on the company’s efforts to secure orders both domestically and internationally in the future. Shenwu Environmental Protection Technology Co., Ltd. (referred to as “Shenwu Environmental Protection”) was established in 2004 with a registered capital of 1.01 billion yuan. It successfully listed on the GEM board of the Shenzhen Stock Exchange in January 2011, under the stock code 300156. The controlling shareholder of Shenwu Environmental Protection is Shenwu Technology Group Co., Ltd. (referred to as “Shenwu Group”). As a GEM-listed company in the field of energy conservation and environmental protection, Shenwu Environmental Protection possesses the capability and advantages to provide comprehensive solutions for energy conservation and environmental protection to clients in the coal chemical and petrochemical industries. Shenwu Environmental Protection is one of the first batch of high-tech enterprises to be re-recognized in Beijing. It has been designated as a \"China Expert in Energy Conservation and Emission Reduction Technology\" and an \"Enterprise with Independent Innovation\" by the Beijing Science and Technology Expo. It is also a company included in Beijing’s Torch Program, and it is a member of various industry associations such as the Environmental Protection Association, the Calcium Carbide Association, and the Lime Association. In addition, it has obtained ISO9001:2008 quality management system certification.