Facts:

China’s state-owned energy company Shenhua Group is to operate a commercial-scale carbon capture facility at its $3.58 billion coal-to-liquids (CTL) plant at Ordos, Inner Mongolia. The plant will use pre-combustion capture technology and, by 2020 when operating at full scale, will capture around 1 million tonnes per annum of CO2 to be stored in deep saline formations.

Construction of the Phase one pilot plant was completed in 2010, and was expected to begin capturing at a rate of around 100,000 tonnes per annum of CO2. According to reports in November 2010, the company was on target to begin injecting captured CO2 in January 2011. No further reports are forthcoming.

The transport method is expected to be pipeline, with storage in onshore saline formations. Potential storage sites are being investigated for the second phase of the project.

The CTL plant is the first of its kind in the country, and the Shenhua Group plans to produce 11 million tonnes of oil products and 18.3 billion cubic metres of gas from coal by 2020.

Financing

Shenhua Group is thought to have invested $32 million in the first-phase project. The project is also being supported by government agencies, including the National Development and Reform Commission. International partners are also involved, with the US Department of Energy providing funds through its American Recovery and Reinvestment Act.

More information and press releases

Reuters article, 30 November 2010

Gasworld news article, 21 September, 2010

CaptureReady Forum, July 2010

Reuters article, 8 April, 2009

GCCSI project information

Companies involved

Homepage:

http://www.shenhuagroup.com.cn/english/a