Shenhua Ningmei’s coal-to-oil process produces F-T oil and wax
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This post was last edited by liaifeng on 2018-9-10 at 20:10. Production of F-T oil and wax from Shenhua Ningmei’s coal-to-oil process. Author/Source: Date: 2016-12-12. Views: 15. At 22:16 on December 5, 2016, the FTO synthesis reactors in Series I of the synthetic oil plant were fed with raw materials; on December 6, 2016, light FTO oil and stabilized heavy oil were produced. On December 9, at 15:18, stabilized wax was produced, and at 23:03, high-quality wax was obtained. This provided a stable supply of raw materials for the hydrorefining and cracking units to produce blended oil products. Basic Information: Project Name: Shenhua Ningxia Coal 4 million tons/year Coal Indirect Liquefaction Demonstration Project. Location of construction: Ningdong Energy and Chemical Industry Base, Ningxia Hui Autonomous Region. Constructor: Shenhua Ningxia Coal Industry Group Co., Ltd. Production scale and product plan: Annual production of 4.05 million tons of petroleum products and 1 million tons of methanol. The main products include 2.733 million tons of blended diesel, 983,000 tons of naphtha, 333,000 tons of liquefied petroleum gas, and 1 million tons of pure methanol. The by-products mainly include mixed alcohols, sulfur, sulfuric acid, etc. Project investment: 59.311 billion yuan in total, with 6.894 billion yuan allocated to environmental protection efforts, accounting for 11.62% of the total investment. Main process: The coal gasification unit utilizes 24 Siemens GSP furnaces and 4 Ningmei furnaces (pressurized dry coal gasification) ； The conversion process utilizes Qingdao Lianxin’s patented technology of \"waste reactors + a two-stage low-water-vapor-ratio sulfur-resistant conversion process, along with a converter furnace designed for layered charging\" ； The purification process employs the Lurgi low-temperature methanol wash technology ； The sulfur recovery process employs the Claus sulfur recovery process with high-temperature thermal reaction and two-stage catalytic reaction, combined with the ammonia-based desulfurization technology, as developed by Shandong Sanwei ； The F-T synthesis and product processing employ SinoTech slurry-bed F-T synthesis technology, hydrogenation refining, and cracking technologies ； The exhaust gas treatment hydrogen production system utilizes membrane separation technology from Chengdu Saipuixing, hydrocarbon conversion technology from Shanghai Huajihua, and PSA technology from Sichuan Tianyi ； The air separation plant consists of 12 sets of air separation units with a capacity of 100,000 standard cubic meters per hour, arranged in two series – east and west – with each series comprising 6 air separation units and 1 backup system. Six sets of foreign Linde processes and six sets of domestic Hangyang processes are used respectively. Background of the project change: In January 2004, the **National Development and Reform Commission selected the Shenhua Ningxia Coal Industry Group through a bidding process to build a coal-to-oil demonstration project**. At that time, China had not yet made any breakthroughs in coal indirect liquefaction technology. In order to introduce foreign technologies, Shenhua Ningxia Coal Industry Group planned to form a joint venture with South African company Sasol Synthetic Fuels International Ltd., and decided to build a coal indirect liquefaction facility at the Ningdong Coal Chemical Industry Base, with an annual production capacity of 4 million tons of oil products. The main technical approaches for the project, such as gasification, FTO synthesis, and oil processing, all rely on foreign technologies. In August 2008, Shenhua Ningxia Coal Group Company and South African Sasol Synthetic Fuels International Ltd. commenced preliminary feasibility studies for the project in accordance with the requirements set out in the \"Notice from the General Office of the National Development and Reform Commission on Issues Related to the Strengthening of Management of Coal-to-Oil Projects\" (Document No. 1752). During this period, Wuhuan Technology Co., Ltd. was commissioned to prepare the \"Environmental Impact Assessment Report for the Ningxia Sasol Coal Indirect Liquefaction Project\". In July 2011, Shenhua Ningmei Group submitted an application for a water withdrawal permit. In December 2011, the Yellow River Water Resources Commission issued the \"Resolution on Granting Administrative Permission\" (Huang Xu Ke 80); the water withdrawal rights were obtained through water rights transfer, with a validity period of 25 years. During the advancement of the original project, China made breakthroughs in a number of key indigenous coal chemical technologies, including direct and indirect coal liquefaction for oil production, as well as coal-to-olefins production. To promote independent innovation and technological upgrading in China’s coal deep-processing industry, to break foreign technological monopolies by using domestic technologies, to drive the localization of key technologies and equipment, to effectively reduce investment costs and improve efficiency, and for various other reasons, Shenhua Ningxia Coal Industry Group has decided to adopt the medium-temperature slurry-bed Fischer-Tropsch synthesis technology developed by Zhongke Synthetic Oil Company, which possesses independent intellectual property rights in China, in place of the original foreign technologies. The group will also build a coal indirect liquefaction plant with an annual capacity of 4 million tons on its own. In September 2013, the **National Development and Reform Commission approved the project via the “Reply of the **National Development and Reform Commission on the Approval of the 4-million-ton/year Indirect Coal Liquefaction Demonstration Project by Shenhua Ningxia Coal Industry” (Document No. FGNY [2013] 1837). The report states that in order to improve the environment in the Ningdong mining area of Ningmei Group, alleviate the pressure associated with the accumulation of coal slurry, promote the comprehensive utilization of coal slurry resources, and supply methanol as a raw material for Ningmei Group’s coal-to-olefins plants, the project developer has decided to implement a coal slurry utilization project within the scope of the 4 million tons per year coal indirect liquefaction demonstration project. This will allow full use of the excess capacity of the gasification, shift, purification, and sulfur recovery units included in this demonstration project. The utility systems, external facilities, and auxiliary systems will all be based on those available in the coal indirect liquefaction demonstration project. The scale of this project is 1 million tons per year of methanol production, to be used as a raw material for Shenhua Ningmei’s coal-to-olefins plants. Environmental impact assessment (modification) process: In April 2011, the **Ministry of Environmental Protection approved the Environmental Impact Assessment Report for the Ningxia Shasuo Coal Indirect Liquefaction Project via Document No. Huan Shen 88. Due to changes in the construction entity and the process technologies used, Shenhua Ningxia Coal Industry Group Co., Ltd. commissioned China Wuhuan Engineering Co., Ltd. in October 2014 to carry out assessments related to the changes in the environmental impact assessment for Shenhua Ningxia’s 4 million tons per year coal indirect liquefaction demonstration project, as well as an environmental impact assessment for the comprehensive utilization of coal slurry. On March 11, 2016, the **Ministry of Environmental Protection officially accepted the environmental impact assessment application for the \"Shenhua Ningmei 4 million tons per year coal indirect liquefaction demonstration project – environmental impact assessment revisions and comprehensive utilization of coal slurry project\". On October 31, 2016, the Ministry of Environmental Protection approved the \"Environmental Impact Assessment Amendment for the Shenhua Ningxia Coal 4 million tons per year Coal Indirect Liquefaction Pilot Project, as well as the Environmental Impact Report for the Comprehensive Utilization of Coal Slurry Project.\"
59.3 billion invested: Shenhua Ningmei’s coal-to-oil project produces qualified diesel. Author/Source: Date: 12-19-2016. Clicks: 43. At 3:06 a.m. on December 18, 2016, the hydrogenation unit at Shenhua Ningmei’s coal-to-oil plant began to process stable heavy oil; after several adjustments to the operating conditions, qualified diesel was produced at 8:00 a.m. on the same day. At 22:16 on December 5, 2016, feeding was initiated to the FTO synthesis reactors in Series I of the synthetic oil plant. On December 6, 2016, FTO light oil and stabilized heavy oil were produced; on December 9, at 15:18, stabilized wax was produced, and at 23:03, qualified wax was produced. This provided a stable supply of raw materials for the hydrorefining and cracking units to produce blended oil products, marking the completion of a key stage in the coal-to-oil project. This is the control room for Shenhua Ningmei’s demonstration project for the indirect liquefaction of coal, with an annual production capacity of 4 million tons of coal. As the project has entered the final stages of hydroprocessing and cracking, technicians and experts are carefully and systematically adjusting various equipment such as synthesizers. Liu Jiping, Deputy Head of the Production Management Department at Shenhua Ningmei Group’s Coal-to-Oil Division: As the FTO synthesis units come online one after another and produce light oils, heavy oils, and high-quality waxes, FTO synthesis serves as a core and crucial unit in this project. Once these three types of products are produced, they are sent to the oil processing units where they are mixed in certain proportions; through further processing, qualified diesel is produced. Cao Liren, Chief Engineer at Zhongke Synthesis Technology Co., Ltd.: The process of converting coal into oil involves several steps: starting with coal, which is gasified and then purified; followed by synthesis, and finally the refining of the oil products. The end products are diesel and naphtha. At present, the initial stages of this process have been completed – 7 gasification units have been put into operation, and two purification systems are also in use. The FTO synthesis technology is the key to producing oil from 4 million tons of coal, and the successful implementation of this technology means that the production of synthetic oil is now feasible. The Shenhua Ningmei 4 million tons coal indirect liquefaction demonstration project is the world’s largest coal-to-oil facility by scale, with numerous technical indicators that are at the leading level globally. The project has an annual production capacity of 4.05 million tons of oil products and 1 million tons of methanol. Its main products include 2.73 million tons of blended diesel, 980,000 tons of naphtha, 330,000 tons of liquefied petroleum gas, and 1 million tons of pure methanol. The by-products mainly include mixed alcohols, sulfur, sulfuric acid, etc.
The application for approval of the second phase of Shenhua Ningxia’s coal-to-oil project is scheduled to be submitted in June 2018. Author/Source: Date: 2017-03-09. Clicks: 45. On March 7, 2017, during the National Committee of the Chinese People’s Political Consultative Conference, Qi Tongsheng, a member of the Ningxia Autonomous Region’s CPPCC, submitted a proposal recommending that support be provided for the construction of the second phase of this project, which involves processing 4 million tons of coal into oil per year. It is reported that Shenhua Ningmei Group has currently commissioned China Global Engineering Corporation to prepare the feasibility study report for the second phase of the project. Currently, work is underway on site selection and process scheme optimization. **The Energy Bureau has included this project in the reserve list for the **13th Five-Year Plan for advanced coal processing**, with plans to submit an application for approval by June 2018. Qi Tongseng said that once the second-phase project is completed, it will greatly leverage Shenhua Ningmei’s technical and industrial advantages in coal processing and conversion, promote structural reforms on the supply side of the coal industry, and drive the development of related industries. At the same time, it is possible to optimize the allocation of resources at the Ningdong base, improve the industrial chain, enable mutual supply of materials, and leverage each other’s strengths to maximize the efficiency and effectiveness of the coal-to-oil demonstration project at the Ningdong base. This will accelerate the revolution in energy production and consumption, and help alleviate fog in the Beijing-Tianjin-Hebei region. “One more ton of oil is produced in Ningxia, reducing haze in Beijing. ”This is the construction slogan for Shenhua Ningmei’s 4 million-ton coal-to-oil project. The first phase of this project was completed on December 28, 2016, and trial operations produced qualified oil products. A five-year exemption from consumption tax has been granted. On February 10, 2017, according to the State-owned Assets Supervision and Administration Commission of Ningxia Autonomous Region, following efforts by the relevant regional departments, **a preferential policy was approved granting a five-year exemption from consumption tax for coal-to-oil demonstration projects. To help enterprises reduce the production costs of coal indirect liquefaction projects, the Political Consultative Conference of Ningxia Autonomous Region took the lead in submitting a proposal to **the relevant ministries and commissions titled \"Proposal on Introducing Tax Policies Related to Coal-derived Oil Products to Promote the Clean and Efficient Use of Coal\"\" (hereinafter referred to as the \"Proposal\"); it recommends that a specific consumption tax be established for the industry producing coal-derived oil products. The \"Proposal\" suggests exempting consumption tax when crude oil prices fall below a certain level; once crude oil prices rise, a tiered taxation policy can be implemented based on the overall profitability of the coal-to-oil industry, in order to enhance its market adaptability. At present, after consideration by 7 ministries and commissions including the National Development and Reform Commission and the State Taxation Administration, the recommendations put forward in this key proposal have been approved to grant coal-to-oil demonstration projects a preferential policy of exemption from consumption tax for 5 years. Recently, the **Energy Bureau issued the ‘13th Five-Year Plan’ for the development of advanced coal processing industries; it is estimated that by 2020, the capacity for coal-to-oil production will be 13 million tons per year. Key coal-to-oil projects: Ningxia Shenhua Ningmei Phase II, Inner Mongolia Shenhua Ordos Lines 2 and 3, Shaanxi Yankuang Yulin Phase II, Xinjiang Ganquanbao, Xinjiang Yili, Inner Mongolia Yitai, Guizhou Bijie, and eastern Inner Mongolia.