The world’s first coal-to-oil project that utilizes second-generation technology for direct liquefaction, with a total investment of 56 billion yuan, has launched public tenders for long-duration and large-scale stationary equipment

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On April 10, 2026, **the Energy Group’s Hami Energy Integration and Innovation Base Project (Phase I: Coal-to-Oil Project) issued a notice regarding a single-source procurement process. The supplier to be invited for technical licensing, process package development, training, and technical services for coal liquefaction plants has been finalized: Guoneng Jishiji Chemical Technology (Shanghai) Co., Ltd. This means that this super-project, with a total investment of 55.97 billion yuan, has entered a phase of substantive progress on its core technological route. Located in the Santanghu Industrial Park in Bariqun, Hami, Xinjiang, this project is the world’s first coal-to-oil project to utilize second-generation technology for direct liquefaction. The main project includes coal direct liquefaction facilities with a capacity of 3.2 million tons per year and coal indirect liquefaction facilities with a capacity of 800,000 tons per year, totaling 19 process units. Guoneng Jishike Chemical Technology, the entity selected through this single-source procurement, is primarily responsible for providing patent licenses and process packages for coal liquefaction facilities. This project will achieve efficient conversion of the oil-rich coal in Hami, with a focus on verifying the operational stability of the second-generation reactor under specific temperature and pressure conditions as well as the yield of distilled oil. Since March 2026, the project has entered a period of intensive equipment bidding, and preparations have begun on site for the arrival of large-scale equipment. On March 9, public bidding was held for long-cycle indirect liquefaction and oversized static equipment. The purchase list includes 26 pieces of equipment such as F-T synthesis reactors and reduction reactors. The estimated total weight of the two sets of equipment is close to 10,000 tons. On March 19, competitive bidding was launched for the hydrogenation stabilization reactor, which is a core high-pressure device in the oil processing unit. On March 31, an open tender was issued for construction project quality inspection services, with a service period of 4 years covering civil engineering monitoring throughout the entire construction cycle. The preliminary design framework for the project has been finalized by Sinopec Engineering Construction Co., Ltd. (SEI). In the tender result announcement in December 2025, SEI secured contracts for certain engineering design work, overall project management, and related technical services. The environmental protection investment for this project amounts to 7.8 billion yuan, accounting for 13.94% of the total investment. It is equipped with green hydrogen production units and CCUS (carbon capture) facilities, aimed at reducing pollution and carbon emissions. According to the plan, the total construction period for the project is approximately 46 months, with delivery scheduled for mid-October 2027.