The coal-to-liquid (CTL) technology is a strategic response to the shortage of oil and gas resources in China and a guarantee for national energy security. Thanks to heavy investment in CTL research and development, China Energy has realized localized, clean and efficient coal conversion. The company now operates the world’s biggest single indirect liquefaction demonstration project with an annual output of 4 million tons in Ningxia and the world’s only direct liquefaction demonstration project with a production capacity of 1 million tons of liquid fuels in Inner Mongolia. In 2020, China Energy produced 16.56 million tons of coal-derived chemicals (excluding main intermediate products) and 1.66 million tons were sold, outstripping the annual targets by 4.8 percent and 5.1 percent, respectively.
Case Study: Ningxia Coal Industry Group CTL Branch — CTL Products Upgrade Project
China Energy’s indirect liquefaction demonstration project with an annual output of 4 million tons in Ningxia, the biggest single project of its kind in the world.
In September 2020, the CTL Branch of China Energy Ningxia Coal Industry Group succeeded in producing two high-end products—C12 and C14-rich normal paraffin products, anther breakthrough in the month after the production of the white mineral oil. So far, all the planned products of the company’s CTL Products Upgrade Project have been delivered and meet standards, which is important for China Energy to get further into the high-end market of downstream chemicals, promote the resilience of the company’s CTL business in the face of volatile international oil price, and enhance operational efficiency.
China Energy’s National-level Green Plant in Xinjiang
In 2020, Xinjiang Energy and Coal Chemical Industry Ltd., China Energy’s national-level green plant, was again awarded as a benchmark enterprise in China’s petroleum and chemical industry for its high efficiency in producing key high energy-consuming products last year.