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**Progress on Energy Group Ningxia Coal Industry’s Project to Produce 4 Million Tons of Coal-to-Oil per Year Author/Source: Coal Chemical Engineering 114 Forum Date: 2021-01-25 Clicks: 5 Recently, the project undertaken by Energy Group Ningxia Coal Industry Co., Ltd. to produce 4 million tons of coal-to-oil per year successfully obtained the first electronic water use permit issued by the Yellow River Commission, through an online process conducted in a different location. With the advancement of the development of a water-conserving society, the importance of water resources has become increasingly evident. In accordance with relevant regulations such as the \"Regulations on the Administration of Water Withdrawal Permits and Water Resource Fees,\" the \"Administrative Measures for Water Withdrawal Permits,\" and the \"Detailed Rules for the Administration of Water Withdrawal Permits in the Yellow River Region,\" the Coal-to-Oil Branch of Ningxia Coal Industry under the Energy Group is actively going through the necessary procedures to ensure more rational and standardized management of water withdrawal for projects. At the beginning of the project’s construction, the 4 million tons per year coal indirect liquefaction facility adopted water-saving process technologies and measures from the outset, in order to make efficient use of the water resources of the Yellow River and contribute to the management and protection of this river in the new era. This was done to address the water-saving challenges associated with traditional processes, thereby ensuring effective utilization of water resources. After entering the production and operation phase, in order to strengthen the management of the water system as well as the quota-based management of various water-consuming devices, this branch established a comprehensive management system for utility services and developed electronic reports to monitor water usage and wastewater discharge from each device. At the same time, the project actively carries out relevant technical upgrades, including modifications such as the use of spray water to control dust when discharging ash and slag from power boilers, improvements to the membrane recovery systems used for treating oil exhaust gases, adjustments to the cooling water used in boilers, as well as improvements to the water sources used for spraying in gasification scrubbers and for washing filter fabrics. These efforts contribute to further optimizing the operation of the water system and reducing the water consumption of the facility. In March 2020, after more than two months of preparation, the Coal-to-Oil Branch of Ningxia Coal Industry under the **Energy Group submitted a request to the Management Bureau of the Upper and Middle Reaches of the Yellow River for approval regarding the water usage permit for a coal indirect liquefaction project with an annual capacity of 4 million tons. In July of the same year, inspection experts from the Yellow River Committee of the Ministry of Water Resources and related agencies conducted inspections of the water intake facilities for the coal-to-oil project, as well as of the water supply and distribution systems, metering equipment and their operation, the processes used for producing water, water-saving measures, and waste water treatment facilities. They also reviewed the documents related to the project’s water intake permits. Following a unanimous evaluation by the expert team, the project passed this inspection. On December 23, 2020, the Coal-to-Oil Branch of Ningxia Coal Industry under the **Energy Group successfully obtained the first electronic water withdrawal permit issued by the Yellow River Conservancy Commission, through an online process conducted from a different location. The successful issuance of the electronic water withdrawal permit represents a milestone for the 4 million tons per year coal indirect liquefaction project since its commissioning, as it provides a factual basis for the legality and compliance of water withdrawal in this project. The 4 million tons per year coal indirect liquefaction demonstration project of Shenning Group was completed and put into operation at the end of 2016. It is the second coal deep-processing demonstration project following the success of Shenhua Group’s direct coal liquefaction project in Ordos; it is also the largest coal-to-oil project in the world in terms of the scale of its single processing unit. The total investment in the project is estimated at 55 billion yuan. It is located in Area A of the coal chemical industry park within the Ningdong Energy and Chemical Industry Base in Ningxia, covering a total area of 815.23 hectares, of which the main factory area occupies 334.4 hectares. The project uses coal as its raw material, converting 20.36 million tons of coal per year; of this amount, 16.45 million tons are used as raw material coal and 3.91 million tons as fuel coal. It consumes 24.78 million cubic meters of water per year, and produces 4.052 million tons of synthetic oil products annually, including 2.733 million tons of blended diesel, 983,000 tons of naphtha, and 336,000 tons of liquefied petroleum gas ； By-product sulfur: 128,000 tons; mixed alcohols: 75,000 tons; sulfuric acid AN: 107,000 tons. The gasification of the project utilizes the GSP dry coal powder pressurized gasification technology, while the oil product synthesis unit employs the UST slurry-bed Fischer-Tropsch synthesis technology developed by Zhongke Synthetic Oil.