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Shenhua and Sasol in Joint CTL Project

Xinhua. The Shenhua Group, China’s largest coal company, will establish two joint projects with South Africa’s Sasol to produce fuels from coal beginning in 2016.

Feasibility studies of two Coal to Liquids (CTL) projects in northwest China, jointly invested by Sasol and Shenhua, are going smoothly and expected to be completed by the end of 2009, said Sasol’s chief executive officer Pat Davies at a press conference in Beijing.


The two projects, one in Shaanxi Province and the other in Ningxia Hui Autonomous Region, will each be able to produce 80,000 barrels per day, or 3.4 million tons annually of diesel, naphtha, liquefied petroleum gas (LPG) and jet fuel.


The feasibility research of Shenhua and Sasol’s joint projects was launched in 2006 and will cost US$ 300 million. The Front End Engineering Design (FEED) and the Final Investment Decision (FID) will be made within two years after the feasibility studies are finished. A Sasol CTL project costs between US$5-7 billion; Shenhua and Sasol will each hold 50%.

Shenhua has other coal-to-liquids projects underway, using both direct liquefaction and indirect liquefaction (Fischer-Tropsch) technologies.



twice more CO2 spewed in the atmosphere per mile , yheaaaa

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