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On December 26, 2024, the cooperation agreement for the second phase of Ningxia’s 3-million-ton CCUS demonstration project was officially signed. This project was developed jointly by the Management Committee of the Ningdong Energy and Chemical Industry Base, **Energy Group Ningxia Coal Industry Co., Ltd. (referred to as “Ningxia Coal Industry”), and China National Petroleum Corporation’s Changqing Oilfield Branch (referred to as “Changqing Oilfield”). This marks the entry of China’s largest comprehensive demonstration project for carbon capture, utilization, and storage into a phase of accelerated development. The 3 million-ton CCUS demonstration project in Ningxia consists of two components: the “Carbon Source Capture Project at the Ningdong Base,” managed by Ningxia Coal Industry, and the “Oil Displacement and Sequestration Project in the Changqing Oilfield (Ningxia),” handled by Changqing Oilfield. The carbon dioxide emitted by the world’s largest modern coal chemical plant for coal indirect liquefaction, with a capacity of 4 million tons per year, is captured and then transported via pipelines to Changqing Oilfield, China’s largest oil and gas production base, where it is used for oil displacement and sequestration. The project is planned in one overall framework but will be implemented in three phases. Phase 1 of the project commenced in May 2023, with an investment of 940 million yuan already made. It involves the construction of a facility for capturing and liquefying 500,000 tons of carbon dioxide per year, a facility for using carbon dioxide to enhance oil extraction and store it, and a facility for comprehensively utilizing carbon dioxide in coal mines at a rate of 100,000 tons per year. In September 2024, the entire process was successfully operationalized, and qualified products were produced, thereby enabling the Ningdong coal chemical enterprises to supply carbon dioxide to the Changqing Oilfield for oil extraction and storage purposes. To date, approximately 251,800 tons of carbon dioxide have been injected. The second-phase project is the most critical, essential, and important component of Ningxia’s 3-million-ton CCUS demonstration project. The main focus is on rebuilding a CO2 capture and oil displacement storage facility with a capacity of 1 million tons per year; thus, the CCUS capacity will reach 1.5 million tons per year. In addition, a CO2 transmission pipeline with a capacity of 3 million tons per year will be constructed to enable long-distance transportation of CO2. For the carbon source capture phase of the project, high-purity carbon dioxide gas emitted from the facility area of the 4 million tons per year coal-to-oil project in Ningdong has been selected as the carbon source. The pipeline for transporting this carbon source is approximately 130 kilometers long; it passes around the western side of the Haba Lake Nature Reserve, crosses 3 highways, 6 provincial roads, 3 secondary roads, 2 canals, as well as various rural roads. The end point of the pipeline is located at the Changqing Jiyuan oil field in Yanchi County (Ningxia). Supercritical/dense-phase transport technology will be used for this purpose, with a total investment of around 3.73 billion yuan. Construction is scheduled to begin by the end of next year. Ningxia Coal Industry is responsible for the construction of the carbon dioxide capture and compression facilities, while Changqing Oilfield is in charge of the construction of the carbon dioxide pipelines and the systems for oil displacement and sequestration. Next, the Ningdong Base Management Committee will accelerate the preliminary work for the project, urging Ningxia Coal Industry and Changqing Oilfield to complete the approval processes for the second-phase project, as well as handle related matters such as planning and construction permits by the end of 2025. It will also work to resolve key issues such as carbon pricing, with the goal of starting construction early, completing it soon, putting it into operation promptly, and achieving its intended benefits at an early date. At the same time, taking the cooperation on the second-phase project as an opportunity, efforts are being made to develop \"integrated\" cluster projects that combine green electricity with oil and gas in order to advance the modern coal chemical industry in a way that promotes its development toward higher quality, greater diversity, and lower carbon emissions. Green electricity parks are being established at a high standard, with all efforts directed toward achieving the \"dual carbon\" goals on schedule.