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Sustainability Report 2011
Alternative and Non-conventional Energy
Clean Coal Energy
We are also making our mark in the world of clean coal energy. Capitalising on the vast
stores of coal in China, we have been looking into coal gasification techniques to create
synthesis gas, which can be used in turn to create a range of useful products. Unlike
the traditional burning of coal, which is highly polluting, the process is free from SOx
and NOx emissions and any CO
2
generated is in such pure form that it can be easily
captured and stored for other uses.
In 2010, this vision turned into reality when our coal-based methanol plant was
completed in Inner Mongolia. Currently in its pilot production stage, the facility is
expected to be fully operational by 2012, with an annual production capacity of
200,000 tonnes. Methanol, with its dual applications as a chemical feed as well as a
highly efficient and clean burning fuel, is proving to be a valuable commodity with
excellent market potential.
A second coal-based chemical project is taking shape in Fengcheng, Jiangxi province
to produce coke from coking coal. Due for completion in 2012, the coke produced will
be used in the steel industry while the coke-oven gas, a by-product in the process, will
provide a further source of supply for our city-gas businesses in the vicinity.
These activities in turn are supported by a growing number of coal resource and
logistical projects. These include the completion of a coal-mine in Inner Mongolia,
to serve the needs of our methanol plant, as well as the acquisition of our first open-
face coal mining facility, also in Inner Mongolia. Boosting our burgeoning clean coal
activities, we also acquired a logistics hub in Shandong province for the transportation
of coal. Currently under construction, the facility will link upstream suppliers by rail,
while downstream it will extend all the way to Shanghai and the Yangtze River by canal.
Environmental Performance Clean Energy