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The 1.2 million tons per year coal tar hydrogenation project at Xinjiang Xinhuixia (with an initial capacity of 600,000 tons per year) has been successfully commissioned and put into trial operation. Author/Source: Coal Tar Deep Processing and Hydrogenation Technology Collaboration Group. Date: 2020-01-03. Clicks: 8. I. Project Background Through friendly consultations, and in accordance with the principles of voluntariness, fairness, and good faith, Xinjiang Guanghui Coal Clean Refining Co., Ltd. (hereinafter referred to as “Clean Refining Company”), a subsidiary of Guanghui Energy Co., Ltd. (hereinafter referred to as “the Company”), Shandong Huidong New Energy Co., Ltd. (hereinafter referred to as “Shandong Huidong”), and Chongqing Three Gorges Paint Co., Ltd. reached an agreement on leveraging their respective strengths. In February 2017, they signed a Project Cooperation Agreement for a 1.2 million tons per year coal tar hydrogenation project, deciding to establish Xinjiang Xinhuixia Clean Energy Co., Ltd. (hereinafter referred to as “Xinhuixia Company”) through equity cooperation, so as to jointly invest in the construction of this project in the industrial park of Naomaohu Town, Yiwu County, Hami Region, with an initial capacity of 600,000 tons per year. (For specific details, please refer to the company’s announcement No. 2017-009.) II. Basic situation of project operation: The 1.2 million tons per year coal tar hydrogenation project operated by Xinhuixia Company uses the products manufactured by the Clean Refining Company as raw materials. It also utilizes the waste gas generated by that company to produce hydrogen, which is then used for the hydrogenation of coal tar, with the end result being downstream products. The main equipment of this project includes a hydrogen production unit and a hydrogenation unit. 1. The hydrogen production unit uses raw waste gas as input, and through processes such as purification and pre-treatment, pressure increase using screw compressors, CO conversion, and two-stage PSA separation, it produces high-purity hydrogen for use in hydrogenation units; simultaneously, this unit can also generate sulfur products as a by-product. 2. The hydrogenation unit purifies the feedstock through hydrogenation, removing impurities such as metals, sulfur, nitrogen, and oxygen, and carries out saturation reactions to produce qualified products. At the same time, the hydrogenation unit can produce liquefied gas, a small amount of No. 3 light coal tar, and asphalt products as by-products. The product range includes 1# light coal tar, modified naphthalene oil, modified washing oil, and modified anthracene oil; among these, 1# light coal tar can be used as a high-quality low-sulfur reformation feedstock ； Modified naphtha oil, modified washing oil, and modified anthracene oil can be processed further to produce white oil products. As of the date of the announcement, the first phase of Xinhuixia Company’s 1.2 million tons per year coal tar hydrogenation project has completed all civil engineering and installation work; the hydrogen production unit has been fed with waste gas and is now in operation, producing hydrogen of qualified quality that can be used ； The products from the hydrogenation unit have been sent to the qualified production line. Thus, the entire production process for this project has been established; the initial trial run was successful, the system operates smoothly, and the product quality is good, marking the official entry into the trial operation phase. III. Impact of this trial production on the listed company: Xinhuixia Company’s 1.2 million tons per year coal tar hydrogenation project represents the second phase of development in Clean Refining Company’s initiative to improve the quality of coal through its grading process. The focus of this project is to make use of Guanghui Energy’s abundant high-oil-content, high-gas-content coal resources in the Naomaohu area. By leveraging the abundant coal tar, raw gas, and semi-coke resources available after the completion of Guanghui’s clean refining projects, as well as the existing infrastructure in the industrial park, and by drawing on the extensive experience and technology accumulated by Shandong Huidong in the operation of coal tar hydrogenation projects, it is possible to maximize the efficiency of utilizing these existing resources. The feed trial run for this project is in line with the company’s business model for the development of a circular industry. By making full use of the by-product waste gas from the clean refining company, it is possible to convert coal tar resources locally; further processing enhances the added value of these products, thereby expanding the range of the company’s coal chemical products. This approach not only promotes the safe and green development of coal mining as well as its clean and efficient utilization, but also allows the company to take full advantage of its advantages in terms of coal resources. Once the project reaches full production capacity, it will possess strong market competitiveness, which will have a positive impact on improving the company’s overall financial performance. It will bring significant social and economic benefits, further enhancing the company’s core competitiveness and its influence in the industry.