Sinocem Synthetic Oil signs a letter of intent for 500,000 tons of coal-to-diesel production with Russia
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According to a report on the official website of the Russian company AMRZ on October 8, a meeting on cooperation in the coal sector between China and Russia was held recently in Beijing, with coal-to-diesel projects being included in the roadmap for their cooperation. The Russian entity responsible for implementing this project is the Near Argunsk Mining and Chemical Production Complex, which is part of AMRZ Company. AMRZ began working on this project last year and signed intent agreements with companies such as China National Machinery Import and Export Corporation and Zhongke Synthetic Oil Technology Co., Ltd., deciding to use Chinese technology to implement a coal-to-diesel production project with an output of 500,000 tons. The project will be implemented in Krasnoyarsk, the Khabarovsk Krai, an area with abundant coal deposits as well as easy access to hydrothermal resources at moderate costs. **According to a report on the NDRC’s website on November 11, the fourth meeting of the China-Russia coal working group was held in Beijing recently. Nur Bekri, the Chinese head of the working group, Deputy Director of the National Development and Reform Commission and Director of the National Energy Administration, and Alexei Novak, the Russian head of the working group and Minister of Energy of Russia, jointly presided over the meeting and delivered speeches. During the meeting, Nur Bekri also signed the Minutes of the Fourth Meeting of the China-Russia Coal Working Group and the Roadmap for Cooperation in the Coal Sector between China and Russia together with Novak. Among them, the coal-to-diesel project is included in the roadmap for Sino-Russian coal cooperation projects. The Russian entity responsible for implementing this project is the Near Argunsk Mining and Chemical Production Joint Enterprise, which is part of AMP3 Company. AMP3 has already begun working on this project and has signed preliminary agreements with companies such as China National Machinery Import and Export Corporation and Zhongke Synthetic Oil Technology Co., Ltd., deciding to use Chinese technology to implement a coal-to-diesel production project with an output of 500,000 tons. The project will be implemented in Krasnoyarsk, the Khabarovsk Krai, an area with abundant coal deposits as well as easy access to hydrothermal resources at moderate costs. Representatives from departments such as the Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Commerce, as well as enterprises and associations including the People’s Bank of China, **Development Bank, the Coal Industry Association, and Shenhua Group, along with relevant Russian departments and enterprises, totaling over 30 people, attended the meeting.
This post was last edited by slowstar on 2015-11-12 at 20:57. 500,000 tons corresponds exactly to the production capacity of a single iron-based slurry-bed coal indirect liquefaction unit manufactured by Sinocat Synthetic Oil; at present this is only an intent agreement, and it’s unclear when the actual implementation will take place.
Around 2011, Russia approached Shenhua regarding coal direct liquefaction technology, but it seems there’s no news on that front now. There were previous discussions in Haichuanli. http://bbs.hcbbs.com/thread-788637-1-1.html
The coal-to-oil (CTL) project, a joint venture between two large coal enterprise groups from China and the United States, is planned to have an annual production capacity of 1.2 million tons, with each party contributing 50% of the funding for its construction in the United States. It is understood that for gasification technology, this project has chosen the multi-nozzle opposed water-coal slurry gasification technique, while for synthesis technology, it has adopted the F-T synthetic oil processing technology owned by Zhongke Synthetic Oil Technology Co., Ltd. At present, Zhongke Synthetic Oil has completed the feasibility study for its core facilities. “Since the United States has conducted thorough preliminary technical and economic evaluations for coal chemical projects, it will still take 6 to 8 years before such projects can actually be built. ”Cao Liren, chief engineer at Zhongke Synthetic Oil Technology Co., Ltd., said. Apart from the United States, countries such as India, Indonesia, Mongolia, and Russia are also in talks with Zhongke Synthetic Oil Technology Co., Ltd. regarding CTL technology cooperation. (Source: China Coal Chemicals Magazine | Date: 2014-02-26)
China is trying to export its technology in order to gain a say in relevant discussions, while also obtaining resources in return – killing two birds with one stone~~
They can only serve as a technical reserve; under the current circumstances, there is no room for them to exist
In China, coal-to-oil production is no longer merely a technical capability; by next year, the total production capacity will be around 8 million tons. Once the production scale increases, it is necessary to carry out more refined processing of the products in order to improve economic efficiency.
The oil price is 40 yuan per barrel – isn’t that also the break-even point?
Supporting Chinese coal chemical technology to go global – awesome! :)