China’s coal-to-oil industry is seeing a competition among four key players.

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This post was last edited by jordan569 on 2013-1-6 at 22:38. Author/Source: China Securities Network. Date: 2009-3-25. -------------------------------------------------------------------------------- It turns out that companies such as Shenhua, Lu’an, and Yitai are all actively pushing forward with \"coal-to-oil\" projects. On March 23, reporters learned from Inner Mongolia Yitai Group that the industrial demonstration project for coal indirect liquefaction, carried out in collaboration with Zhongke Synthetic Oil Technology Company – a partnership established by the company with the core technology team from the Institute of Coal Chemistry, Chinese Academy of Sciences – began producing oil at 9:38 a.m. on March 20 in Jungeer Banner, Ordos City, Inner Mongolia. 　　 It is understood that the first phase of Yitai Group’s coal indirect liquefaction project has an annual production capacity of 160,000–180,000 tons, with an investment of nearly 2.7 billion yuan; construction on this project began in 2006. It is reported that the main products of this project are diesel, naphtha, LPG, and a small amount of sulfur; 4 tons of raw coal can be used to produce 1 ton of oil products. 　　 “This project encompasses all the core technologies for advanced indirect coal liquefaction, and its success marks the official transition of China’s coal-to-oil technology, backed by independent intellectual property rights, into industrial application. ”Experts from Shanghai Yahua Consulting told reporters. 　　 In response, Li Yongwang, the technical advisor for this project, deputy director of the **Key Laboratory of Coal Conversion at the Chinese Academy of Sciences, and the lead scientist on the ’863’ project related to coal indirect liquefaction, said that this is China’s first industrial-scale facility for the indirect production of oil from coal that has been successfully put into operation. The diesel produced meets the Euro IV standards, indicating a significant breakthrough in this technology. 　　 The reporter learned that the Yitai coal indirect liquefaction project was approved in 2005 and construction began in 2006. The designed production capacity of the project is 480,000 tons per year, with a total investment of 4.975 billion RMB. The designed production capacity for the first phase is 160,000 tons per year, with an investment of 2.176 billion yuan. 　　 “In reality, the actual investment in this project has increased, but it remains under control. ”A securities analyst told reporters that if international oil prices remain around $50, the economic viability of the project is fully guaranteed. 　　 It is understood that Yitai Group has stated that, building on the successful operation of the demonstration plant, and in line with the development plans for the coal-to-oil industry, it intends to work together with domestic and international companies to establish a coal-to-oil production facility with an annual capacity of 5 million tons by around 2015. 　　 The reporter noted that the Yitai project is the third coal-to-oil project in China to achieve successful commissioning, following Shenhua and Lu’an. Not long ago, the coal-to-oil project of Yankuang Group received approval from the Ministry of Environmental Protection, indicating that the project will be implemented in Shaanxi Province in the near future. As a result, China’s coal-to-oil industry is now seeing competition among four key players. 　　 Although the temporary decline in international oil prices has raised doubts about the economic viability of coal-to-oil production, China possesses relatively abundant coal resources. As international oil prices rise, the economic viability of coal-to-oil projects will improve significantly, suggesting a promising future for this industry. ”Experts from Shanghai Yahua Consulting said. 　　 **A senior advisor at the Energy Research Institute of the National Development and Reform Commission also told reporters that the profitability of coal-to-oil projects depends primarily on international oil prices; it is generally believed that coal-to-oil is attractive when crude oil prices are above $40 per barrel. 　　 In fact, China’s coal-to-oil industry is showing signs of accelerating growth despite adverse market conditions. 　　 It is understood that the Lu’an Shanxi 160,000-ton/year coal-to-oil project, which also utilizes the technology of Zhongke Synthetic Oil Company, will begin trial operations in mid-April this year. Meanwhile, the Shenhua Ordos 180,000 tons per year indirect liquefaction coal-to-oil project will be completed by the end of this year. 　　 In addition, the Yankuang Group’s coal-to-oil project with an annual capacity of 1 million tons in Yulin, Shaanxi, which relies on independent intellectual property, has all the necessary documents prepared and has been submitted for approval ； The 3.6 million tons per year coal-to-oil project via indirect liquefaction, a collaboration between Shenhua and Sasol in Ningxia, is expected to have its feasibility study completed by 2010. This post was last edited by Zhenzhen Youci on 2009-3-28 00:47. Note: $ # , $ $