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Successful commissioning of Shenhua’s 350,000-ton/year oil residue extraction project Author/Source: Ordos Municipal Development and Reform Commission Date: July 15, 2020 Clicks: 7 At 13:00 on July 5, the final key process in this major coal-to-oil research project – the spray drying unit for the 350,000-ton/year oil residue extraction process – was successfully commissioned, resulting in the production of the final extract residue. This marked the successful completion of the entire production process for this research project, with qualified coal-based asphalt products of various grades as well as extract residue by-products being produced, thus achieving success in the first commissioning trial. This project represents the world’s first engineered experimental oil residue extraction unit. **Through years of research efforts, the Energy Group has developed a process for the extraction, separation, and comprehensive utilization of oil residues, one that boasts independent intellectual property rights. The project lacks precedents to draw from, and engineering construction as well as production operations are challenging, requiring exploration alongside transformation. During this first trial run, through multiple adjustments to the procedures and continuous optimization of process parameters, various faults and challenges related to the processes, equipment, and instruments were successfully resolved. As a result, feeding of materials was carried out successfully, and the entire process was made operational. The successful commissioning of the entire production line for the 350,000 tons per year oil sludge extraction project is of milestone significance for the development of coal-to-oil technology; it marks the emergence of another new economic growth point for direct coal liquefaction projects. This project represents an effective approach for the sustainable utilization of oil sludge, a major by-product of direct coal liquefaction, and for the development of high-value products. It enables the extension of the product chain related to direct coal liquefaction, provides rare raw materials for high-end carbon products, and offers an excellent solution for optimizing the process technologies of the second and third direct coal liquefaction production lines.