Zhonghai Chemical will adopt the \"single-nozzle cold-wall pressurized coal gasification\" technology from East China University of Science and Technology

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On February 11, 2009, a negotiation meeting on cooperation between China National Offshore Oil Corporation and Tongmei Group’s coal-based clean energy project was held at the CNOC headquarters in Beijing. The two sides had in-depth discussions on a coal-to-natural gas project aimed at converting 18 million tons of raw coal per year, with an initial investment of 21 billion yuan, and reached agreements on coal supply guarantees, the project operation model, and short-term work plans. This negotiation meeting is the second round of discussions between the two parties on this project, following the meeting on coal-based clean energy projects held in Taiyuan on January 15, 2009, between Datong City and China National Offshore Oil Corporation. According to statistics from Yaha Consulting, there are currently 7 coal-based SNG projects under construction in China. In addition to the projects planned by CNOOC and Tongmei Group, the other 6 projects are: HuiNeng Coal Chemical Co., Ltd.’s coal-to-SNG project with a capacity of 1.6 billion Nm3/year in Ordos, Inner Mongolia; Huayin Power’s coal-to-synthetic natural gas project with a capacity of 1.5 billion Nm3/year; and Shenhua’s coal-to-synthetic natural gas project with a capacity of 2 billion Nm3/year ； Xinwen Mining’s 2 billion Nm3/a coal-based synthetic natural gas project in Ili, Xinjiang ； The 4 billion Nm3/a coal-based synthetic natural gas projects owned by Datang Group, located in Chifeng City, Inner Mongolia, and Fuxin City, Liaoning Province, respectively. Among them, the Datang Chifeng project will commence construction in 2009. Coal-to-natural gas projects have certain characteristics in terms of energy utilization. Since the methanation unit for coal-to-natural gas produces a large amount of high-pressure steam, this steam is used to drive the air separation turbines, reducing the use of boilers and fuel coal. At the same time, a large amount of excess low-pressure steam can be used for power generation. Tongmei Group has already begun investing in the coal chemical industry; the first phase of a methanol production project with an annual capacity of 600,000 tons, jointly developed by Tongmei and Guangzhou Development Natural Gas Investment Co., Ltd., is currently under construction, with an investment of 2.769 billion yuan. The total capacity of this project will reach 1.2 million tons per year of methanol. CNOOC has also been paying close attention to coal chemical industry in recent years. In November 2007, CNOOC and Jincheng City in Shanxi established a joint venture to build a project for producing 600,000 tons per year of synthetic ammonia and 1 million tons per year of urea. China National Chemical Corporation’s Tianye Chemical Company in Inner Mongolia has a production capacity of 520,000 tons per year of urea and 200,000 tons per year of methanol. It will use the \"single-nozzle cold-wall pressurized coal gasification\" technology developed jointly by East China University of Science and Technology and Sinopec Ningbo Research Institute to build a new methanol plant with a capacity of 300,000 tons per year; in addition, a project for producing 60,000 tons per year of polyoxymethylene is currently under planning.