Shenhua, Sinopec to discuss possible cooperation

Shenhua Group Corp. is in talks with Sinopec Group on a coal-to-liquid project in China’s northern Shaanxi Province. The facility will produce fuel and chemical products using indirect liquefaction technology, Ren Xiangkun, director of Shenhua’s liquefaction research, said. Direct liquefication and indirect process are two main technologies used in coal conversion. A one-million-ton-a-year plant using the direct process costs RMB10 to 12 billion (US$1.29 to US$1.55 billion). Those using the indirect process could cost 20 to 30% more. (April 5, 2007)