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China Shenhua coal-to-liquids plant passes trial-Xinhua

Wed Jan 7, 2009 5:22am EST

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SHANGHAI, Jan 7 (Reuters) - The coal-to-liquids plant of Shenhua Group in Inner Mongolia has gone through a successful trial run, the official Xinhua News Agency reported on Wednesday.

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The trial run started on Dec. 30, and has produced naphtha and diesel, among other products, Xinhua said.

The project, based in the coal-rich Erdos region, uses a direct liquefaction technology that has been developed by Shenhua.

Xinhua did not provide details on when the plant would be operational.

It is one of the only two coal-to-liquids (CTL) projects that have won approval from the country's top economic planner, while the others have been asked to be suspended.

Shenhua Group is the parent of China Shenhua Energy Co Ltd (601088.SS)(1088.HK). (Reporting by Rujun Shen, Editing by Jacqueline Wong)

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