Global is moving into the coal chemical industry

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This post was last edited by Huajihua Sansu on 2015-12-12 at 20:14. Today’s news reports that on December 8th, Huanqiu, together with its U.S. partner Lanwanling Company, successfully signed an EPC contract for the clean energy project in Texas with the project owner, American Peak Texas Clean Energy Company. I looked up information about this project online; as early as July 10, 2014, during the sixth round of Sino-U.S. Strategic and Economic Dialogue meetings, Huanqiu and Summit Texas Clean Energy signed a framework agreement for a clean energy project in Texas, under the witnessmanship of the National Energy Administration and the U.S. Department of Energy. Following the signing of the front-end design contract by both parties on June 16, the project received official approval from the U.S. Department of Energy on July 3, at which point the project contract came into effect. Under this framework agreement, Global Company will act as the general contractor to be responsible for the EPC construction of the project, and financing support for the project will be provided through the China Exim Bank. The project utilizes advanced international gasification technology to produce 400,000 tons of synthetic ammonia and 700,000 tons of urea per year, along with an IGCC combined power generation facility capable of producing 400 MW of electricity per year. At the same time, world-leading carbon dioxide capture and oil displacement technology is employed to capture, store, and transport the large amount of carbon dioxide generated by coal gasification (100,000 cubic meters per hour, 800 million cubic meters per year), and to inject it into oil fields for oil displacement thereby increasing oil recovery rates. This project is one of the signed outcomes of the efforts to address climate change under the Sino-US strategic cooperation platform in the energy sector; it has received $450 million in financial support from the United States, as well as tax and fee incentives worth over $600 million. This is a 4070+IGCC+CCS project. Based on the above news, the United States is providing **$450 million in financial support and tax credits worth over $600 million, which is equivalent to nearly 3 billion yuan in financial assistance and 4 billion yuan in tax reductions. This project must be quite large in scale. Estimate the scale of this project: back then, Jinxian Chemical in Xinjiang built a project with a capacity of 400,000 tons of synthetic ammonia and 700,000 tons of urea, with an investment of 2.672 billion yuan, which is approximately 400 million dollars. However, this project uses GE’s water-coal slurry gasification technology. Let’s use an analogy for now. A researcher from the China National Coal Research Institute said that the construction cost of IGCC power plants is currently higher; in the United States it is around $2,000–3,000 per kilowatt-hour, and for a plant with a capacity of 400 MW, the cost is approximately $800–1.2 billion. The scale of the CCS project is 800 million cubic meters per year; the specific investment amount for this project is not known. In 2014, Canada implemented a CCS project for Unit 3 of the \"Boundary Dam\" power plant, a coal-fired unit with a generating capacity of 139 MW; after the modification, it was able to produce 110 MW of clean electricity. The project is capable of capturing around 1 million tons of carbon dioxide per year. The construction of the \"boundary dam\" cost approximately $1.3 billion. According to reports in China Energy News at the time, CCS technology is one of the most expensive energy investment projects; the cost of using this technology for clean coal power generation amounted to a staggering $11 million per megawatt. According to this calculation, the CCS project will cost $4.4 billion. Even on a conservative estimate, it should not be lower than the $1.3 billion for the “border dam” project. The core technology of IGCC is pressurized coal gasification technology. Is there only one set of performance data for pink coal gasification in the world? The gasification project for Vietnam’s large fertilizer plant back then used the Shell powder gasification process. It is unclear what kind of gasification technology is referred to in the news as \"this project utilizes internationally advanced gasification technology,\" nor is it known what Global’s engineering capabilities in gasification are.