Huisheng Engineering wins a 5 billion yuan coal cleaning EPC contract from Guoneng

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Huisheng Engineering and China National Energy have secured a 5 billion yuan coal cleaning EPC contract. Author/Source: Date: 2018-12-27 Clicks: 59 Huisheng Engineering (1.08, 0.02, 1.89%) (02236-HK) announced that, in partnership with China National Energy, it has won the project for the clean utilization of semi-coke powder as well as projects related to the advanced processing of tar, all carried out by Hami Tianhe, a subsidiary of China Energy Engineering Group. Among these, they mainly involve contracts for design, procurement, and construction (EPC) on a turnkey basis, with a total value of 5 billion yuan (RMB; the same below), of which the company is responsible for approximately 2 billion yuan. Under this partnership, the company will provide overall design services for the Hami project, as well as basic and detailed design services for the plant’s utility systems and auxiliary facilities ； At the same time, various design institutes will be organized and coordinated to provide high-quality engineering design services for the project. Additionally, the company also undertakes the EPC turnkey contract for two major process units in the project. China Energy Engineering Group Co., Ltd. is affiliated with China National Machinery Industry Corporation, which is under the supervision of the State-owned Assets Supervision and Administration Commission. Its development strategy identifies the Hami region as the most important area for such activities, and it plans projects that will result in an annual production of 18 million tons of clean carbon, around 3 million tons of coal tar, 1 million tons of product derived from continuous reforming, and 1 million tons of LNG. On March 28, 2018, China Energy registered Xinjiang Zhongneng Lvyuan Development Co., Ltd. (hereinafter referred to as Zhongneng Lvyuan) in Hami, with a registered capital of 300 million yuan ； On April 2, 2018, the transfer of equity from Yang Jinxiao, the former controlling shareholder of Hami Trina Investment Co., Ltd., was completed through an increase in capital and share expansion. China Energy holds 70% of the shares, while the former controlling shareholder holds 30%; Cao Bin serves as the legal representative, and the registered capital is 300 million yuan. On June 28, 2018, the share structure of Hami Coal-based Chemicals Research Institute (Co., Ltd.) was revised, with Hami Trina holding 100% of the shares; Cao Bin served as the legal representative, and the registered capital was 300 million yuan. After the entry of Zhongneng Lvyuan, Hami Trina Solar’s business scope was changed to: project investment and technical services in the areas of coal, coal chemical industry, liquefied natural gas, petroleum, and natural gas ； Equipment leasing ； Research and development of coal application technologies ； Consulting on coal production application technologies ； Consulting on coal pyrolysis production and application technologies ； Coal sales ； Production and sales of coal chemical products (excluding hazardous chemicals), semi-coke, and briquetted coal ； Mining investment ； Processing and purchasing of mineral products. **With the support of financial institutions such as the Development Bank of China and the Agricultural Development Bank of China, as well as the participation of strategic partners like Xinjiang Energy, Xintou Group, the Heavy Machinery Research Institute, and Lansi Heavy Equipment, there is a sufficient supply of resources for the industrial raw materials needed for the project, thus laying a solid foundation for the creation of a **-level demonstration platform for the lanthanum carbon industry. Hami Tianhe Investment Co., Ltd. is building a new project at Hongxing No. 4 Site for the deep processing of 200,000 tons of tar per year, along with related facilities. The construction site is located within the Camel Circle Coal, Electricity, and Metallurgy Industry Cluster Park in the 13th Division of Hami City, Xinjiang Uygur Autonomous Region. The project introduces technology for processing coal tar, with a processing capacity of 200,000 tons per year. The corresponding raw materials and fuel sources are coal tar and waste gas produced by the 2.4 million tons per year clean coal project, which is planned to be built using local coal mine resources as raw materials. The project employs advanced and mature domestic technologies for coal tar hydrogenation and waste gas hydrogen production in order to manufacture clean fuel oils, while also producing chemical products as by-products. The excess gas is used to operate a 1 million MW gas power generation plant. Additionally, a 60,000 tons per year ferrosilicon production facility is being established using silica mines in the Hami region; the electricity generated there is used to power these operations, thus achieving a complete integration of all elements in the industrial chain. The main components of the project include: one coal tar hydrogenation unit with a production capacity of 200,000 tons per year (accompanied by a gas pressure swing adsorption hydrogen production unit with a capacity of 1.85×104 Nm3/h) ； A clean coal project with a production capacity of 2.4 million tons per year, comprising 4 production lines and 24 carbonization furnaces, each with a capacity of 100,000 tons per year ； 100MW extraction condensing steam turbine, equipped with 2 x 220t/h gas-fired steam boilers ； For a ferrosilicon plant with a production capacity of 60,000 t/a, 4 electric arc furnaces with a capacity of 25,500 KVA each will be constructed, giving each furnace an annual production capacity of 15,000 t/a.