Shenhua launches China's first carbon capture and storage program

China Shenhua Coal Liquefaction and Chemical Co., Ltd opened China's first carbon dioxide capture and storage (CCS) industrial model program in Ordos, Inner Mongolia on June 1, 2009.

The project will explore how to cut carbon emissions according to government requirements, said Gu Dazhao, general manager of Shenhua's scientific development department.

The project was designed to capture and store 100,000 tons of carbon dioxide annually, has investments of about 210 million yuan and is expected to go into operation before Dec. 31, 2010, said Wang Heming, deputy general manager of Shenhua's Ordos branch.

Based on the model program, two projects with annual carbon dioxide capture and storage 1 million tons and 3 million tons, respectively, will be completed in two phases. Of those, the project with 1 million tons is currently undergoing feasibility studies.

The cost of model devices for CCS was not clear, but it is estimated to be about 50 U.S. dollars per ton. The project will not have direct profits because CCS has not been involved in the carbon emission index platform and the government did not introduce favorable tax policies on it.

As to the effects, the CCS program with annual carbon dioxide capture and storage of 1 million tons can recycle nearly one-third of carbon dioxide produced in Shenhua coal-liquefaction projects.

By People's Daily Online