Loading...
See More

Shenhua, Sasol study complete

Apr 14 2010 10:14

Related Articles

Sasol survives Chinese culling

SA firms face downgrade threat

Sasol jobs under threat

Rand is key to Sasol's fortunes

Sasol cautious on outlook

 

Beijing - A feasibility study of the joint coal-to-liquids project between Sasol and China's top coal producer Shenhua Group has been completed, the top executive of Shenhua said on Wednesday.

Zhang Yuzhuo, president and CEO of the group, told a news conference the scale of the project would be 93 000 barrels per day. The project was earlier estimated at equivalent to 80 000 barrels of oil output per day.

Zhang said the project would need government approval and declined to comment on the timeframe.

Shenhua's other coal-to-liquids project in Inner Mongolia has already launched trial production.

The group, which has invested 80 billion yuan in coal conversion, is also developing various coal-to-chemical plants in provinces in northern China.

"If oil prices are like today - $84 to $85 a barrel - coal conversion projects can be very feasible," Zhang said.

Shenhua Group plans to produce over 30 million tonnes of coal-derived liquids and chemicals in the next five years, in addition to 800 million tonnes of coal, Zhang added.

Coal-to-liquids projects have long been controversial due to concerns over their high water consumption. But Zhang argued such projects would not necessarily be water-guzzling monsters.

"Water consumption is very, very low compared to the average industry water consumption in China," he said, arguing that compared to the average water consumption on every 10 000 yuan of added industrial value of 127 cubic metres, coal-to-liquids only consume less than 12 cubic metres of water.

- Reuters

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...