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Approval regarding the Environmental Impact Assessment Report for Su New Energy He Feng Co., Ltd.’s 4 billion standard cubic meters per year coal-to-natural gas project. Su New Energy He Feng Co., Ltd.: We have received your request titled \"Request for Approval of the Environmental Impact Assessment Report for Su New Energy He Feng Co., Ltd.’s 4 billion Nm3/year Coal-to-Natural Gas Project\" (Su He Bao [2015] No. 17). After examination, the approval is as follows: 1. The project is located in the Hefeng Industrial Park of Tobuqsaer Mongol Autonomous County, Tacheng Region, Xinjiang Uygur Autonomous Region. It makes use of local coal resources and employs technologies such as pressurized gasification of coal particles, pressurized gasification of pulverized coal, and methanization to produce 4 billion standard cubic meters of synthetic natural gas per year. The main units of the plant include devices for coal gasification by crushing, coal gasification by pulverization, purification, methanation, gas-water separation, phenol and ammonia recovery, sulfur recovery, air separation, and coal preparation. Auxiliary facilities mainly include coal-fired boilers, tank areas, circular material yards, ash storage areas, desalination stations, and circulating water systems. Environmental protection projects mainly include sewage treatment systems, reclaimed water treatment systems, evaporation crystallization units, waste gas treatment systems, flares, and hazardous waste temporary storage areas. The main product of the project is 4 billion standard cubic meters per year of synthetic natural gas, along with by-products such as crude oil, tar, naphtha, ammonium sulfate, liquid ammonia, sulfur, and crude phenol. The project generally meets the requirements of the \"Environmental Access Requirements for Modern Coal Chemical Industry Construction Projects (Trial)\“. By ensuring stable coal quality, stable operation of the production processes, and strict implementation of all environmental protection measures outlined in the environmental impact report, emissions of various pollutants can be brought within specified limits, with the emissions of key pollutants meeting the requirements for total emission control. After comprehensive consideration, our department principally agrees to the nature, scale, process, location of the construction project, as well as the environmental protection measures outlined in your company’s environmental impact report. II. Key tasks to be addressed in project design, construction, and operation management (1) Strictly implement various measures for air pollution control. Depending on the properties of the pollutants in various process exhaust gases, treatment methods such as washing, incineration, filtration, and recycling are employed. The processing capacity and efficiency of the treatment facilities must meet the required standards, and the height of the exhaust stacks must comply with relevant regulations to ensure that emissions of all types of air pollutants meet both national standards and local requirements. In accordance with the requirements of the \"Environmental Access Conditions for Modern Coal Chemical Industry Projects (Trial)\\", we approve your company’s proposal to conduct research on the technical feasibility of using carbon dioxide for oil displacement and sequestration, based on the nearby oil fields, as an environmental protection demonstration project, and request that you submit the research results to our department. The dust-containing exhaust gas from the coal preparation system is treated using bag filters, with a dust removal efficiency of over 99.9%, ensuring that it meets the secondary standards specified in the \"Integrated Emission Standards for Air Pollutants\" (GB16297-1996) before being released. The crushed gasified coal is depressurized, the entrainment gas is used for dust removal, and the resulting gas is then sent to the gasification torch for further treatment before being released. The exhaust gas from the low-temperature methanol washing of crushed coal is treated using a thermal oxidation process, and after meeting the secondary standards of the \"Emission Standards for Odorous Pollutants\" (GB14554-93) and the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015), it is released into the atmosphere at higher altitudes. The pressure-relief exhaust gas from powder coal gasification, after being washed, meets the secondary standards of the \"Emission Standards for Odorous Pollutants\" (GB14554-93), the secondary standards of the \"Comprehensive Emission Standards for Air Pollutants\" (GB16297-1996), and the standards set out in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015), before being released into the atmosphere. The flue gas from the low-temperature methanol washing of pulverized coal is washed to meet the secondary standards of the \"Emission Standards for Odorous Pollutants\" (GB14554-93) and the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015), after which it is released into the atmosphere. The sulfur recovery unit uses a \"two-stage CLAUS + SCOT hydrogenation reduction\" process to produce sulfur, while the flue gases from combustion are treated using an ammonia-based desulfurization method. The overall sulfur recovery rate should reach 99.9%. The waste gases must meet the emission limits specified in Table 2 of the \"Integrated Emission Standards for Air Pollutants\" (GB16297-1996), the \"Emission Standards for Pollutants in Petroleum Refining Industry\" (GB31570-2015), and the \"Emission Standards for Odorous Pollutants\" (GB14554-93) before being released into the atmosphere. The flue gas from the boiler is treated using a process that combines low-nitrogen combustion, SCR denitration, bag filter dust removal, and ammonia-based desulfurization. The removal rates for dust, sulfur dioxide, and nitrogen oxides should reach 99.5%, 96%, and 81%, respectively. The emission concentrations of sulfur dioxide, nitrogen oxides, dust, and mercury in the flue gas must meet the concentration limits specified in Table 1 of the \"Emission Standards for Air Pollutants from Thermal Power Plants\" (GB13223-2011); ammonia, on the other hand, must meet the requirements of Grade 2 standards set out in the \"Emission Standards for Odorous Pollutants\" (GB14554-93) before being released into the atmosphere. The plant area employs equipment leakage detection and repair technologies to strengthen controls over volatile organic compounds and malodorous pollution. Methanol and naphtha are stored in internal floating roof tanks. Tar, middle distillates, crude phenol, etc. are stored in nitrogen-sealed vault tanks. The waste gases are collected and sent to the oil and gas recovery facilities in the loading/unloading area, where they are treated using a process of \"condensation + membrane separation + adsorption\" to ensure that they meet the requirements of the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015) before being released. Waste gas treatment units equipped with the \"alkaline washing + adsorption\" process are installed in the crude phenol loading/unloading area and the tank area; the waste gas is discharged only after it meets the requirements of the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015). The foul gases generated by the wastewater treatment equipment are collected in a sealed manner and treated using biological deodorization and photocatalytic oxidation before being released, in compliance with the secondary standards of the \"Emission Standards for Foul Odor Pollutants\" (GB14554-93) as well as the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015). All accident ponds and sewage holding tanks are covered to effectively control uncontrolled emissions. Strictly implement emission control measures for waste gases in areas and processes such as the solid material storage and transportation systems, coal storage areas, and ash disposal sites, to prevent secondary pollution. (II) Strictly implement various water pollution prevention and control measures. The water supply and drainage system is constructed in accordance with the principles of separating rainwater from wastewater, separating clean water from polluted water, treating water according to its quality, and reusing water. Further increase the reuse rate of water, reducing the consumption of fresh water and wastewater discharge. Further optimize the wastewater treatment and reuse solutions, so that all treated production wastewater is reused according to its specific properties under normal operating conditions. Later, the rainwater is discharged through the rainwater drainage pipelines to the clean wastewater treatment system in Hefeng Industrial Park. In accordance with the requirements of the \"Environmental Access Conditions for Modern Coal Chemical Industry Construction Projects (Trial)\\", your company’s proposed demonstration project for the treatment, reuse, and resource utilization of high-phenol-ammonia wastewater generated from coal crushing under pressure is approved as an environmental protection demonstration project. After gas-water separation and phenol-ammonia recovery, the wastewater from pulverized coal gasification and shift conversion is combined with pretreated wastewater from pulverized coal gasification, rectisolve washing, sulfur recovery, and the ultrafiltration backwash wastewater from the biological wastewater reuse treatment system, as well as domestic sewage. All these streams are then sent to the wastewater treatment plant, where they are treated using the “air flotation + three-stage biological treatment + coagulation sedimentation + ozone oxidation” process. The effluent from the wastewater treatment plant is sent back to the water treatment system, where it is treated primarily using a process of \"pre-treatment + ultrafiltration + reverse osmosis\". The reverse osmosis concentrate is sent to a membrane concentration unit, which uses the \"ion exchange + nanofiltration + reverse osmosis\" process for treatment. The high-concentration brine is sent to the evaporation and crystallization unit, where it is treated using a \"four-effect evaporation + two-effect crystallization\" process. The crystallized mixed salt and the dried crystallization mother liquor are sent to the industrial park’s comprehensive hazardous waste disposal center for solid landfilling. (III) Effectively implement measures to prevent and control groundwater pollution. By taking into account the current distribution of groundwater in the region, the hydrogeological conditions, and anti-seepage measures, the layout of key pollution control areas such as tank farms is further optimized. In strict accordance with the requirements of the \"Technical Code for Anti-seepage Engineering in Petrochemical Industries\" (GB/T50934-2013), anti-seepage measures are implemented in a zoned manner for key pollution control areas and general pollution control areas. The temporary storage tank for concentrated brine and the on-site temporary storage facility for hazardous waste shall be provided with anti-seepage measures in accordance with the “Standard for Pollution Control in the Storage of Hazardous Wastes” (GB18597-2001). Establish a sound groundwater monitoring system. Based on the device layout, the flow direction of groundwater, and the protection targets, groundwater monitoring wells should be installed appropriately for regular monitoring; such wells should also have the capability for emergency pumping. Based on the hydrogeological conditions and the characteristic pollutants of the project, a leak detection system is installed in the key areas for pollution control. Strengthen the monitoring of groundwater to prevent its contamination; in the event of such contamination, immediate activation of emergency plans and response measures is necessary to avoid adverse effects on environmentally sensitive areas dependent on groundwater. (IV) Strictly implement measures to prevent and control solid waste pollution. In accordance with relevant national and local regulations, solid waste is collected, processed, and disposed of in a classified manner, following the principles of \"reduction, resource utilization, and harmlessness\". Spent catalysts and waste protectants among hazardous wastes are recycled by manufacturers. Biochemical sludge from wastewater treatment plants, crystallization mother liquor, and mixed crystalline salts are disposed of separately at the hazardous waste treatment center. The mixed crystalline salts and dried crystallization mother liquor are subjected to secure landfilling to prevent any secondary pollution. The chemical sludge from the reclaimed water plant is temporarily treated as hazardous waste; once the project is operational, appropriate disposal or recycling measures will be taken based on the results of its hazard assessment, to ensure that no secondary environmental problems arise. Strictly implement the \"three-way receipt\" system for the transfer of hazardous waste, strengthen environmental protection measures during its transportation, and ensure that no environmental safety incidents occur during the transport process. General solid waste such as gasification ash and slag, as well as boiler ash and slag, are partially sent to nearby cement plants and building material factories for comprehensive utilization, while the remainder is sent to landfill sites within the industrial park for disposal. The project shall not commence production until the hazardous waste disposal center and slag dump on which it relies are put into operation. (5) Implement various environmental risk prevention measures to effectively avert environmental risks. Strengthen the management of the storage, transportation, and use of chemical raw materials and hazardous substances; install automatic monitoring, alarm, emergency shutoff, and emergency shutdown systems in accordance with standards, as well as systems for dealing with accidents such as fires, explosions, and poisonings. Set up the combustible gas and toxic gas detection and alarm systems as well as the online analysis systems in accordance with the specifications. In the event of an accident, the process exhaust gases from various units are sent to the flare system for treatment. A three-level prevention and control system is established, including cofferdams in the equipment area, fire dikes in the tank area, initial rainwater ponds, and emergency accident ponds, to ensure that untreated wastewater and accident sewage do not escape outside. Wastewater temporary storage facilities and accident prevention and control facilities at the third level should be designed and constructed separately, and must not be used interchangeably in normal conditions. Optimize the collection and transportation routes for accident-related wastewater, strictly manage the construction of rainwater and sewage pipelines, implement separation of the two types of water flows, and prevent accident-related wastewater from contaminating the rainwater system. Formulate emergency response plans for environmental risks and coordinate with the park and local authorities for emergency response. Specify details regarding emergency evacuation procedures, and regularly conduct drills for responding to environmental risks associated with accidents. (VI) Improve management and operational standards, and strengthen environmental protection efforts during abnormal operating conditions. Develop comprehensive inspection, maintenance, and operation procedures to further reduce the frequency of abnormal operating conditions such as startup and shutdown, as well as pollutant emissions, and to prevent the surrounding environmental quality from exceeding acceptable levels due to prolonged abnormal operations. Further optimize the process routes and design schemes, and take necessary coal blending measures to ensure the stability of the quality of raw coal, thereby reducing the frequency of abnormal operating conditions and the amount of pollutants generated at the source. During abnormal operating conditions such as startup, shutdown, and maintenance, the exhaust gas is sent to a flare for treatment. Operational management of sulfur recovery units should be strengthened to prevent device failures from resulting in large amounts of acidic gas being sent to flares for combustion. Strengthen the management and monitoring of ammonia-based desulfurization units to effectively control ammonia leakage. Under abnormal operating conditions, wastewater is temporarily stored in gas and water storage tanks of sufficient capacity, sewage holding tanks, and brine holding tanks. The wastewater in the temporary storage pool will be sent back to the wastewater treatment plant for processing once the system is operating normally. Establish a comprehensive management and dispatch system for water systems, and take measures such as limiting production or shutting down operations when necessary to ensure that wastewater is not discharged. (7) Strengthen measures for noise environmental protection. Give priority to the selection of low-noise equipment, and implement noise reduction measures such as sound insulation, vibration damping, and noise cancellation to ensure that the noise level at the factory boundary meets Class 3 standards stipulated in the “Emission Standards for Environmental Noise at the Boundaries of Industrial Enterprises” (GB12348–2008). (VIII) Implement various environmental protection measures during the construction period; strengthen environmental protection management throughout the project construction to prevent adverse effects on the surrounding environment caused by wastewater, dust, and noise generated during construction. Strictly control the land occupied during construction, and land restoration and greening should be carried out promptly after construction is completed. (IX) Strictly control the emission of pollutants specific to the project; establish an environmental monitoring system that covers both such specific pollutants and conventional pollutants. Conduct environmental monitoring in accordance with the established plan, and if emissions exceed the allowed levels, further measures should be taken to reduce pollutant emissions. Set up standardized pollutant discharge outlets and solid waste disposal sites in accordance with ** and relevant local regulations, and install signboards. Install online monitoring systems for wastewater (including rainwater from the facility) and exhaust gas pollutants, and connect them to the environmental protection authorities. Chimneys shall be provided with permanent monitoring ports in accordance with regulatory requirements. (10) During the project construction and operation phases, a smooth platform for public participation should be established, publicity and communication efforts should be strengthened, environmental issues that cause public concern should be addressed promptly, and the public’s legitimate environmental demands should be met. Regularly release corporate environmental information and proactively accept social oversight. III. Your company should assist the people’s governments at all local levels as well as the relevant departments in carrying out their work properly. (1) This project is a key project in the Hefeng Industrial Park, and it will drive the development of the downstream industrial chains in the park and its surrounding areas. It is necessary to work together with the Tarim Prefectural Administration to make a rational overall plan for water resource allocation based on the regional capacity to carry water resources. Regional development plans should be further optimized and adjusted, with the improvement of environmental quality as the core of environmental protection. Chemical and other construction projects should be planned appropriately, the scale of development in these industrial parks controlled, strict requirements applied to project approvals, and efforts accelerated to build infrastructure for environmental protection within these parks. (II) Actively cooperate with local authorities to ensure proper planning and control; no residential, educational, medical, or other environmentally sensitive buildings shall be planned or constructed within the protection distance of the project. (III) Collaborate with the Feifeng Industrial Park to establish an industrial park environmental monitoring system for characteristic pollutants such as non-methane total hydrocarbons, volatile organic compounds, hydrogen sulfide, ammonia, and benzene derivatives, as well as conventional pollutants, and carry out regular monitoring. IV. In the construction of this project, it is imperative to strictly implement the environmental protection “three simultaneities” principle, whereby the environmental protection facilities to be built in conjunction with the project are designed, constructed, and put into use at the same time as the main project. Environmental supervision during the construction period shall be carried out; environmental protection provisions and responsibilities shall be specified in the construction tender documents, construction contract, and project supervision tender documents. The project’s environmental supervision report shall be made public to the public prior to its commissioning. In accordance with the Measures for the Post-Evaluation of Environmental Impact of Construction Projects, a post-evaluation of the environmental impact shall be conducted within 3 to 5 years after the project goes into operation. V. Once the environmental impact assessment report is approved, if there are significant changes in the nature, scale, location, production processes, or environmental protection measures of the project that could lead to substantial changes in the environmental impact (in particular, an increase in adverse environmental impacts), the environmental impact assessment report for that project must be submitted for approval again. If it takes more than 5 years from the date of approval of the environmental impact assessment report before construction of the project is commenced, the environmental impact assessment report shall be submitted to our department for re-examination. VI. Our department has entrusted the Northwest Environmental Protection Inspection Center and the Environmental Protection Department of Xinjiang ** Uygur Autonomous Region to carry out supervision and inspection, as well as management tasks related to the \"three simultaneities\" principle for this project. VII. Within 20 working days after receiving this approval, your company shall send copies of the approved Environmental Impact Report to the Northwest Environmental Protection Supervision Center of our Ministry, the Environmental Protection Department of the Xinjiang Uygur Autonomous Region, the Environmental Protection Bureau of Tacheng Prefecture, and the Environmental Protection Bureau of Hoboksar Mongol Autonomous County. Additionally, it must comply with the regular supervision and inspections conducted by environmental protection authorities at all levels as required. Ministry of Environmental Protection April 25, 2016 CC: National Development and Reform Commission, Ministry of Environmental Protection of Xinjiang Uygur Autonomous Region, Administrative Office of Tacheng Region, Environmental Protection Bureau of Tacheng Region, People’s Government of Hoboksar Mongol Autonomous County, Environmental Protection Bureau of Hoboksar Mongol Autonomous County, Beijing Feiyan Petrochemical Environmental Protection Technology Development Co., Ltd., Northwest Environmental Protection Inspection Center of the Ministry of Environmental Protection, and Environmental Engineering Assessment Center. Issued by the General Office of the Ministry of Environmental Protection on April 25, 2016