Shenhua Coal-to-Oil
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This post was last edited by jordan569 on 2013-1-6 at 22:43. Shenhua’s coal-to-oil plant started using coal on December 30, 2008, and began producing oil on the 31st (oil production started immediately after the use of coal); it operated for 20 days in total. The products produced were residue oil, diesel, and gasoline. Residue oil and diesel were then reused in the production of coal slurry, so the main product at this stage is gasoline. But it was originally designed to produce diesel primarily. This post was last edited by 3218zhu on 2009-2-16 20:17. Note: $ # , $ $
The coal feeding time is correct; the operating time isn’t that long, at 303 hours in total. The main products are diesel, naphtha, and liquefied gas, with diesel accounting for 70% of the total output
As long as oil is produced, it will do; whatever type of oil it is, can it help alleviate China’s oil shortage? This year, I talked with the leaders of the planning departments for other projects; they conducted research and found that, in the future, China’s oil reserves can be exploited for at most 20 years! At the current rate of extraction, the coal mines currently existing in China can be mined for at most 150 years! So, over the course of 150 years, the coal chemical industry will not change. China’s current development needs fresh momentum to drive it forward, and that is where the coal chemical industry comes in; it will also contribute to China’s rise
It’s true that oil is produced; what kind of oil it is isn’t important, as this process is quite flexible – both gasoline and diesel, or jet fuel, can be used, and the process parameters can be adjusted according to actual needs. The most important thing at the moment is to organize all the data and seek the optimal process conditions. Renovation is necessary. Any new process requires a long period of modification and adjustment in order to maximize its benefits.
Although coal-to-oil is beneficial and strategically necessary, the initial investment is too high for ordinary companies to afford, which will inevitably lead to monopolies.
The key is to determine at what level the cost of coal can balance with that of oil, when compared to the costs of petrochemical refining; don’t rely on petrochemical companies for inflated cost figures. Oil is classified into different grades, and coal is also graded; the refining costs vary depending on the grade of the raw material.
The quality of coal in Dongsheng seems to be the best in the country
Firstly, coal-to-oil projects require substantial investment； Second, the environmental capacity is heavily utilized ； Third, at current oil prices, there is no possibility of making a profit at all ； Fourth, the technology is not yet fully mature ； Fifthly, from an energy perspective, it involves converting one form of energy into another, resulting in significant waste. In short, it can serve as a strategic consideration; however, as an investment direction it is not appropriate. I think coal-to-oil could be a transitional product. At present, efforts are being made to develop engines that use alcohol-ether fuels, and once such engines are developed, they will eventually replace those fueled by alcohol-ethers.