Shenhua’s coal-to-oil project achieved remarkable results in 2011
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After nearly a decade of efforts, Shenhua Coal-to-Oil Chemical Company achieved success in 2011: producing 780,000 tons of oil products, 500,000 tons of polyolefins, and 560,000 tons of refined methanol； Operating revenue amounted to 12.1 billion yuan, with profits reaching 1.367 billion yuan.
This post was last edited by kinge2000 on 2012-1-2 at 10:37. Is this message true? Congratulations. However, if the sales revenue is 12.1 billion and the profit is only 1.3 billion, and considering the average international crude oil price in 2011 of around 96 dollars per barrel, the break-even point for Shenhua Coal-to-Oil Company’s facilities based on this international crude oil price would be 86 dollars per barrel. If coal is priced according to the market rate in Baotou, Inner Mongolia, it can be inferred that when Shenhua Coal-to-Oil Company’s facilities are operating at full capacity, the international crude oil price at which the company reaches break-even will not be lower than 86 dollars per barrel. How should we view this appearance?
Is the 500,000-ton capacity for olefins owned by a company in Baotou?
Sometimes it’s really hard to determine this cost – where exactly is it calculated from, and how much does the cost of coal amount to?
Yes, logically, the carbon utilization efficiency of coal-to-oil conversion is very low, with a large amount of carbon being released in the form of carbon dioxide. If the price of coal is low, it might be profitable; but at market prices, given the current level of crude oil prices, the competitiveness of coal-to-oil conversion is questionable.
What is the cost of coal? If it’s not even enough to cover the cost of selling it, then it makes no sense.
Could you be more specific? What are these achievements?
How are CO2 emissions calculated? Heat is conserved, but what about thermal efficiency?
This post was last edited by 654262293 on 2012-1-2 at 15:55. Will Shenhua Coal-to-Oil Company still have 500,000 tons of polyolefins and 560,000 tons of refined methanol in 2011? No way, they must have included the production volume of Shenhua Baotou’s coal-to-olefins plant as well. Coal-to-oil production does not yield methanol or polyolefin products.
It’s probably just self-praise! However, Shenhua has many coal mines, so the price of coal should be relatively low
How are the two Shell hydrogen production units at Shenhua Coal-to-Oil Company performing?