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Another milestone has been reached in China’s first project for the hydrogenation of the entire fraction of 500,000 tons of coal tar to produce naphthenic oils. Author/Source: Coal Tar Deep Processing and Hydrogenation Technology Collaboration Group. Date: June 16, 2020. Clicks: 28. On June 7, the desalination unit of the second phase of Shenmu Coal Chemical’s oil-rich product production facility – the project aimed at producing naphthenic oils through the hydrogenation of 500,000 tons per year of coal tar – began producing qualified desalinated water, marking another milestone since the start of this project. The desalination plant for the Phase II project was designed by Sinopec Engineering Construction Co., Ltd. and constructed by China National Chemical Engineering Corporation Sixth Construction Company. The system adopts a process of pretreatment + primary mixed bed + mixed bed. Starting from April 15, the desalinated water station went through various stages such as filter media filling, system flushing, leak testing, pressure testing, and resin filling. With over 20 employees working round the clock on site, they manually adjusted each valve, motor, and water pump, inspected every meter of pipeline, the internal components and rubber linings of tanks, as well as each bolt, to complete all the required tasks. Following the final analysis and testing, parameters such as conductivity, silica, sodium ions, and hardness were all within acceptable limits, thus completing the milestone of producing qualified desalinated water at the desalination station of Phase II. It is reported that the 500,000 tons per year project for the hydrogenation of the full distillate of coal tar to produce naphthenic oils is a major project funded and constructed by Fuyou Company. This project has been included in the **\"Innovation Action Plan for Energy Technology Revolution (2016-2030)\)” as an industrial demonstration project, as well as in the \"13th Five-Year Plan for Demonstration Projects in the Deep Processing of Coal Industry\" as a demonstration project. Using coal tar as raw material, and employing the technology for the hydrogenation of the entire coal tar fraction developed by Fuyou Company to produce naphthenic oils, a range of light white oils, and various naphthenic-based base oils, this process offers numerous advantages such as a wide variety of products, high degree of refinement, and high added value. It opens up a new pathway for producing high-value specialty oils and fine chemical products through the hydrogenation of the entire coal tar fraction. The project is located in the Jinjie Industrial Park in Shenmu, Shaanxi, with a total investment of 2.511 billion yuan. The main construction components include a coal tar full fraction hydrogenation unit with an annual capacity of 500,000 tons, one naphthenic oil hydrogenation unit with an annual capacity of 510,000 tons, one naphthenic oil separation unit with an annual capacity of 250,000 tons, one hydrogen production unit with a capacity of 75,000 cubic meters per hour, one acidic water stripping unit with a capacity of 40 tons per hour, one sulfur recovery unit with an annual capacity of 5,000 tons, one solvent regeneration unit with a capacity of 10 tons per hour, as well as various supporting utility systems. It is expected that once it is completed and put into operation in 2020, it will address the shortage of naphthenic crude oil resources in the country, open up a pathway for producing naphthenic oil from coal, and enable the hydrogenation of coal tar to produce fuel oils that can be used as specialty oils and fine chemical products. This will lead to more refined, high-value, and diversified products. It is also expected to create 450 new job opportunities, generate annual revenue of 3.094 billion yuan, and annual profits of 1.029 billion yuan, thereby facilitating the transformation and upgrading of the enterprise as well as its rapid development. The project uses coal tar as raw material and employs the technology for the hydrogenation of the entire coal tar fraction to produce naphthenic oils, developed by Shenmu Fuyou Energy Technology Co., Ltd., in order to manufacture chemicals such as aromatics, aviation kerosene, light white oils, and various naphthenic-based base oils. This approach opens up a new pathway for producing high-value specialty oils and fine chemical products through the hydrogenation of the entire coal tar fraction, thereby facilitating the transformation and upgrading of the industry.