Clean Coal Day in Japan 2017. China’s Strategy in... · 2017. 9. 7. · Challenges –Greater Environmental Constraints Extensive coal production damaged ground water and surface

China’s Strategy in Efficient Development and Use of Coal

And Shenhua’s Exploration and Practice

2017.09

Dr. Ling Wen

President & CEO of Shenhua Group

Member of the Chinese Academy of Engineering

Clean Coal Day in Japan 2017

Outline

I The role of coal in China’s energy mix

and the challenges

II Strategy of clean an efficient

exploration of coal in China

III Practice in the clean and efficient

exploration of coal by Shenhua

Coal Supporting Rapid Economic and Social Growth

China’s total energy consumption in 2016 was 4.36 billion tons of

standard coal, 23% of the world total, the largest consumer in the

world.

Since the Reform and opening-up, energy supported the rapid

growth of the economy. Consumption is estimated to grow steadily

over a long time.

Energy and economic growth since the

Reform and opening-up

Energy Consumption Projection (CAE)

Coal as the Main Source of Energy in China

Proven reserves of 1.3 trillion tons, accounts for 96% of fossil energy

In 2016, coal accounted for 76% of primary energy production and

62% in consumption

Coal will still account for 55% of primary energy by 2030

----Research on the Strategy of Clean, Efficient and Sustainable Exploration

and Use of Coal in China, by CAE

Production of Coal and its Share in Primary Energy

我国煤炭产量及占一次能源消费量比例

占一次能源消费量比例

煤炭产量（亿吨） 0%

50%

100%

19900

10

20

30

40

2000 2010 2016

10.80 12.99

32.35 34.10

76.2% 69.2% 68.0%

62.0%

Fossil Energy Reserves Proportion

Coal is the Basis of China’s Energy Supply

Generates 70% of China’s electricity

Provides 86% of energy for iron and steel,

and 79% for construction

Represents about 50% of feedstock

for chemical production

Contributes to over 15% of China’s GDP

Coal supports China’s fast growth.

Coal the Cheapest and Most Reliable Energy

For the same calorific value, price ratio of coal, gas and

oil is 1:4:8

Coal-fired generation is the cheapest and most reliable

source of power

coal natural

gasdiesel

Challenges – Slowing Demand and Excess Capacity

New normal of the economy: slowing growth and restructuring leads to

weak energy demand, which only grew by 1% in 2016

Excess capacity in coal and downstream industries (coal-fired

generation, iron and steel and construction materials)

1 billion of excess coal capacity, for which rigorous policies are being

implemented

Thermal generation hours dropped from 5294 in 2011 to 4165 in 2016

Challenges – Greater Environmental Constraints

Extensive coal production damaged ground water and surface ecosystem.

West China is the main coal producing area where the destruction of ground water and

surface ecosystem represents the main environmental constraint for coal mining.

Utilization of raw coal results in air pollution.

Share of thermal coal only accounts for 53%, lower than world average (65%). The

large amount of coal burned in small boilers and households is a key contributor to air

pollution.

Challenges – Climate Change

Greater Pressure on CO2 Emission Reduction

Chinese government proposed to peak its carbon emissions as early as possible by 2030.

Coal accounts for over 80% of carbon emissions in China’s energy consumption, and is thus faced with greater mitigation pressure.

President Xi Jinping and President Obama handed over China

and US’s instruments of joining the Paris Agreement to Ban

Ki-moon, Secretary-General of UN, on September 3rd, 2016.

Outline

I The role of coal in China’s energy mix and

the challenges

II Strategy of clean an efficient exploration

of coal in China

III Practice in the clean and efficient

exploration of coal by Shenhua

Content and Goal of Energy Revolution

President Xi proposed “Energy Revolution”, including “Four

Revolutions” and “One Cooperation”, during the 6th Meeting of the

Central Fiscal and Economic Leadership Group.

The goal is to build a modern energy system that is clean, low-carbon,

safe and efficient, to provide clean, green, cheap and convenient

energies and ensure energy security of the state.

4

Revolutions

Consumption1

Supply2

Technology3

Regime4

Strengthen International

Cooperation

One Cooperation

China's Transition to Green Energy

5 Concepts: Innovative, Coordinated, Green, Open, and Shared

Cut ineffective supplies & address overcapacity

More quality supplies & a larger proportion of clean energy

Expand effective supplies & facilitate the promotion of clean energy

Supply-Side Reform: Green transition is the key

Make conventional energy cleaner, and scale up clean energy

Institutional reform for a coordinated, coupled, open & shared energy system

Deleverage

Supply-side

reform

Capacity

reduction

Cost

reduction

Inventory

reduction

Shortcoming

compensation

13

Government Attention to the Clean and Efficient Use of Coal

China is a coal-rich country by nature.

We need to concentrate on coal, make

something good out of it and promote

the clean and efficient use of coal

We should improve existing capacity,

take the clean and efficient use of coal

as the foothold in and main task of

energy transition and development

-Xi Jinping, 6th Meeting of the Central Fiscal and Economic

Leadership Group, June 13 2014

-Li Keqiang, Meeting of the State Energy Commission, November 17 2016

14

Though the share will come down, but coal will still be the

cornerstone for China’s energy security

Clean and low-carbon use of coal is the important basis for a

modern energy system, and in the process active green transition of

coal is mandatory

In a Modern Energy System: the Role of Coal

Coal development

facing ecological

environment pressure

public requirement

China promotes clean&

efficient utilization of

coal

policy orientation

Coal industry facing

industrial upgrading

Technological Innovation

Green & clean utilization of coal

is the active choice & ultimate road for coal

industrial transformation & upgrading

Clean development of coal requires Four Major Transitions

Main Pathways

– Green development of coal

– Efficient and low emissions utilization

– Efficient and clean conversion

– Coal-based CCS energy

From resources driven to innovations driven

From fuel to fuel/feedstock

From extensive development to sustainable and smart development

From high emission utilization to “near-zero ”clean and efficient utilization

Clean Coal Transformation Roadmap

Clean and Efficient Coal Exploration

Green Production: protection and use of water resources, mitigation and restoration of surface ecosystem

Clean and Efficient Utilization: ultra-low emissions of major pollutants, high-efficiency coal-fired power generation, and coal-based green polygeneration

Clean Conversion: coal liquefaction, coal gasification, coal-to-olefins and other modern coal chemical industries

Coal-based Energy CCS: coal liquefaction + CCS, coal-fired power generation + CCS

Outline

I The role of coal in China’s energy mix and

the challenges

II Strategy of clean an efficient exploration

of coal in China

III Practice in the clean and efficient

exploration of coal by Shenhua

Shenhua Group was established in 1995

Operate in multiple industries including coal, power, railway,

port, shipping, and CTL with a total of 1000 billion yuan assets

In 2016, Shenhua Group, with revenue up to 247.9 billion yuan,

and the profits up to 36.1billion yuan, ranked 276th on Fortune

Global 500.

Coal

Power Railway

Port

CTL

Shipping

1986

1997

2003

2009

1999

Shenhua Group Profile

1985

Main Business–––Coal

Xinjiang

Ningxia

Zhungeer

Shendong

Baorixile

Baotou

Wuhai

BeidianshengliDayan

9 coal companies in 5 provinces, with a total capacity of 500 million

tons. Production in 2016 was 430 million tons. Safety and technical

indicators is taking the lead in the world

Guohua

Guoshen

Shenwan Energy

Fujian Energy

Sichuan Energy

2016 total installed capacity : 82.99 GW

Installed coal-fired capacity 75.18 GW: 5th largest in China

Main Business–––Power

Shenhua’s coal-fired plants distribution

2nd largest corridor for “Coal from west to east”

2155 km dedicated railway in 2016

Baoshen

Shenshuo

Shuohuang

Dazhun

Main Business–––Railway

Zhuhai Gaolan port: 40mn tons

Main Business–––Port

Huanghua port:200 mn tons

Tianjin coal terminal: 45mn tons

Three ports with 300 million tons throughput

40 vessels in 2016, 3rd largest seaborne volume capacity in China

Main Business––Shipping

The world’s first mega-tonnage DCL and 600kt/a MTO demo project

The world’s first single unit 4 million tonnage indirect coal liquefaction

Main Business–––Modern Coal to Chemicals

1.DCL 2.MTO

Million-ton capacity with independent IPR World’s first 600 kt/a MTO project

3. Indirect Coal Liquefaction 4.MTP

4 million/a indirect coal liquefaction 500kt/a methanol-to-propylene project

Installed capacity of 7.81 GW of renewables in 2016 (wind, solar,

hydro)

Strategic cooperation with Shanghai Electricity and MANZ to invest

in CIGS research and industrialization, and actively promote the

application of integrated CIGS solar buildings

Main Business–––New Energies

Shenhua’s wind farms distribution

‘

Shenhua CIGS distribution

Staged Coalmine Water Underground Treatment

Technology

Multi-layer Distributed Underground Reservoir Cluster of

Shenhua's Daliuta Coalmine

Green Production – Ground Water Conservation

Pre-entry

depositionMine water

Incoming mine water

Internal

purificationOutgoing clear water

Treatment of heavily

contaminated mine

water

Water treatment

plant

Power plant

Surface

production Work and living Landscaping

No.1

underground

reservoir

No.2

underground

reservoir

No.3

underground

reservoir

No.4 underground

reservoir (under

construction)

Coal mine underground reservoir stores water and supplies the

whole mining area with mine water

35 underground reservoirs built in Shendong, supplying over 60

million m3 of water annually to mines, neighbouring power plants

and coal chemical facilities, turning mines from big water

consumers to water supply bases .

Ecological restoration technology for

subsidence area

Guided Restoration Modes for Different Areas

Superlarge-working face Coal Mining Technology Based on

Surface Ecology Damage Reduction

(Shenhua's Shendong Mining Area)

Subsidence

boundary

S t a b l e

subsidence areaR e p e a t e d l y

disturbed area

Conventional Working

Face's Subsidence

Stable subsidence area Stable subsidence area

S t a b l e

subsidence area

Sta

ble

su

bsid

en

ce

are

a

Superlarge Working Face's

Subsidence

Subsid

ence a

rea

boundary

Non-uniform subsidence area – artificially guided restoration

Uniform subsidence area

-Natural closure

restoration Dynamic

fractures

Work

ing face b

oundary

Surface Ecology Self-restoration

Promotion

Before mining

After mining

Shendong Mining Area's vegetation coverage was

3~11%.

Shendong Mining Area's vegetation coverage was up

to 70%.

Stable subsidence area

Green Production – Mitigation and Restoration of

Surface Ecosystem

Better-than-before ecological environment

thanks to innovation

Coal Mining Process Based on Active Surface Ecosystem Mitigation

Surface Ecosystem Restoration and Microorganism Growth Promotion Technologies

Green Exploration of Coal——Key National Lab

Key National Lab in coal exploration and protection of water

resources

Established in October 2015 on the approval of the Science Ministry,

being the only key lab that engages in the green exploration of coal

Three focuses: water protection in coal mining, treatment and use of

mine water and the restoration of surface ecology

Water Protection Treatment and Use Surface Restoration

Smart Coal Mining——Intelligent Mines

Created an unmanned intelligent coal mining interface and

integrated intelligent mine control technology

An intelligent demonstration mine in Shenhua Jinjie coal area, first

in the world, has 57,000 real-time control points, enables intelligent

control of 2,000 equipments

Intelligent System of

Integrated EquipmentJinjie Intelligent Demo Coal Mine

Pollutants

(mg/Nm3)Dust SO2 NOx

Standard for Coal

(General ) 30 100 100

Standard for Coal

(Key Areas of China) 20 50 100

Standard for Coal

(US) 20 184 135

Standard for Gas

(China) 5 35 50

Emission Standards for Coal and Gas-fired Power Generation in

China and US (newly built)

Coal-fired power generation with ultra-low emissions: pollutants emission

equivalent to or lower than that of gas-fired generation.

Clean and Efficient Utilization- Ultra-Low Emissions

In 2014, China's first ultra-low emission coal unit wascommissioned in Shenhua's Zhoushan Power Plant

Shenhua's ultra-low emission upgrading cost is just ¥ 0.01/kWh.

Its on-grid tariff is ¥ 0.3-0.4 per kWh, much lower than the tariffof ¥ 0.7-0.8 per kWh for gas-fired power plants.

Dust SO2 NOx

(mg/Nm3) (mg/Nm3) (mg/Nm3)

Zhoushan Unit No.4 2.46 2.76 19.8

Emission Standard for Gas 5 35 50

Emission Standard for Coal

(Key Area) 20 50 100

Pollutant Emissions of No.4 Unit of Shenhua's Zhoushan Power Plant

Clean and Efficient Utilization- Ultra-Low Emissions

Clean and Efficient Use of Coal-Ultra-Low Emission

94 ultra-low generator sets by August 2017, altogether 51.25 GW,

70% of total installed capacity of Shenhua

The Standing Committee of the State Council requires ultra low

emission for all generators by 2020, when the emission of main

pollutants will decrease by 90% in 2013

Clean and Efficient Utilization —Efficient Coal-fired Generation

High-parameter 2×1000MW ultra-supercritical units, it is the first time that China adopts units with

parameters of 28MPa/600/620℃

High efficiency: coal consumption 273g/kWh; power supply efficiency higher than 46%.

Low emission: ultra-low emission, which is 14% lower than China's CO2 emission average.

Low cost: static unit investment is only ￥3000/kW.

Shenhua's Anqing Power Plant - World's leading high-

efficiency and low-emission (HELE) power plant

Shenhua's Anqing Power Plant Coal Generator at Anqing

Clean and Efficient Utilization – CFB Technology

600MW Supercritical CFB (Baima)，CFB Unit of

Largest Scale and Highest Parameter in the World350MW Supercritical CFB (Hequ)

CFB is an important technology to realize efficient utilization of low CV coal. Shenhua

now operates the world’s largest CFB unit (8.92 GW).

Shenhua owns 600 MW supercritical CFB technology and runs the world’s only

demonstration project.

Shenhua is working on the 660 MW USC CFB technology, with an estimated gross

efficiency of 42%.

High-Efficiency CFB Technology

Clean and Efficient Utilization – Coal-Based Green Polygeneration

Given China’s conditions, using electricity generated by coal rather than burning coal as

an end-use energy source can increase efficiency and reduce emissions through large-

scale centralized utilization and pollutants treatment .

To build CCHP units in areas such as cities with central heating and industrial parks,

realizing high efficiency coal use via cascade energy use.

To introduce distributed energy and a complementary energy mix; build integrated utility

pipelines to ensure end-to-end supply; full replacement by clean energy on the

consumption side.

Clean and Efficient Utilization – Fuping Model

2×350 MW supercritical unit realized ultra-low-emission polygeneration, with 76% energy efficiency.

Use renewable energies to supplement the coal-fired power; establish regional smart energy system to balance off large power grid.

Provide EV and smart chargers to consumers, replace oil and natural gas with electricity, replace small boilers with cogeneration systems.

Bird view of Fuping project

Clean Conversion – Modern Coal Chemical Industry

Coal

Direct CTL

Natural Gas

DME

Ethylene

Glycol

Methanol

Indirect CTL

Aromatics

Gasification Olefins

Final

Consumption

or Chemical

Uses

Oil & Chemicals

Oil & Chemicals

Modern Clean Conversion and Processing of Coal

Technical Process of Modern Coal to Chemicals

(Shenhua involved in green area）

Clean Conversion – Direct Coal Liquefaction Project

Completed the world's first 1Mt/a DCL demo project with own IP

rights

Energy conversion efficiency increases continuously.

Oil products 5mn tons, conversion efficiency 58.0%.

Waste water treatment and water saving technologies improved

greatly. Water consumption per ton of oil dropped from 10t to 5.8t

with zero waste water discharge.

Replace groundwater with mine water as the source

Clean Coal Conversion -Indirect CTL

The largest single unit of 4mn tons indirect CTL, with total

investment of 55 billion yuan

Industrial scale-up by 25 times; integrated 71 units of the process

and 13000 equipments. First domestic production of 2,000

tons/day pulverized coal gasifier and 100,000 Nm3/h air

separation unit

Line A commissioned successfully in the end of 2016, produced

on-spec oil and has reached production targets. Line B has started

commissioning.

July 2016, Visit by President Xi

Clean Conversion of Coal—MTO

The first 600,000-ton MTO demonstration project in the world. x 110

scale-up of core process, integrating 46 units and 4108 equipment

Success in the trial running, turning into commercial operation after 6

months, with annual profits over 1 billion yuan

680,000-ton MTO project using Shenhua’s proprietary process was built

in Xinjiang and commissioned successfully

CCS - China’s Roadmap

China’s CCUS Roadmap Jointly Released by NDRC and ADB

(2015.11 Paris)

China’s CCUS is still in demonstration stage, striving to reduce emissions

by 10 mn tons (EOR mainly) by 2020 with commercialization by 2040.

CCS – Coal Liquefaction

Shenhua’s CCS Technologies

CO2 emission’s concentration is above 80%, capture cost 1/3-1/4 of

that of power plants.

Shenhua implemented a 100,000t/a CCS demo project, mastered

core technology of storing CO2 in saline acquifer. 302,600 tons CO2

store so far.

The whole-process CCS cost for Mt scale project is about ¥ 150/ton.

Shenhua's Direct Liquefaction CCS Demo ProjectDCTL ICTL SNG MTO

CO2 Emissions of Main Coal Chemical Processe

CCS – Coal-Fired Power Generation

Post-combustion: New generation of CCS process development with MOST

subsidies

Oxy-Combustion: Joint 2MW platform trial with HUST

Whole-process Project: Shenhua started a 150,000 t/a whole-process demo project

combining post combustion & geological storage, to be commissioned in 2018

Plans in the future: cooperation with oil companies; pilot project of 1 m

tons/year post-combustion CCS + EOR at Jinjie Plant

Shenhua Jinjie Power Plant150,000ton/a whole process CCS technology

Development Trend - Hydrogen

Coal-to-

Hydrogen

Hydrogen Fuel CellsHydrogen EV

Material Coal Natural Gas Heavy Oil Curtailment

Cost (RMB/m3) 0.6～0.7 1.21 1.66 0.9～1.2

Hydrogen Production Cost

Hydrogen is the cleanest energy, Coal-to-hydrogen and CCS together can realize near-zero CO2 emission

To produce hydrogen with curtailed wind and solar power can provide cheap

and zero-carbon-emission hydrogen, greatly reducing CO2 emission from coal

chemical production.

+

Focus in the future—Extracting Aluminum and Gallium from Coal Ash

4 bn tons of aluminum resources in Junger coal field, 7 times of the basic resources of

aluminum oxide in China; 0.86 mn tons of gallium, 80% of total proven gallium resources

in the world

4,000 tons/year pilot scale factory is built, successfully recovering aluminum oxide,

purity＞99.35%, gallium purity ≥ 99.99%

500,000 tons of aluminum extracting from fly ash and 1 mn tons of high-purity gallium

demonstration projects are being planned

Development Trend -IGFC

IGFC Distributed Power Generation Technologies

SOFC Power Generation System: using MOST’s fund, Shenhua will demonstrate

China’s 1st 100KW IG-SOFC power generation system, with 50% efficiency.

Generation with efficient and low-cost CCS of CO2

Future-Coal-Based Smart Polygeneration

Solar + Wind + Nuclear

Biomass

Coal

Garbage

Power OutputHydrogen Power

New-Type Coal-Based

Polygeneration + Internet

of Things

Fuel

ChemicalsShale Gas

Smart energy system integrating coal-based energy and non-fossil fuels to

maximize efficiency, minimize emissions and cost.

2030 Key Projects—Clean and Efficient Use of Coal

To become a leading state of innovation by 2030, China implements 2030

projects focusing on the key needs

Clean and efficient use of coal is one of the first 16 2030 projects, with

research, development and demonstration in green exploration of coal,

clean generation, clean conversion of coal and CCS of coal-based energy

Shenhua as leader of the project will continue to lead innovation and

contribute to green and sustainable development of coal

Thank You