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New joint venture company will promote coal gasification in China

World Coal,

Marking a significant step forward for coal gasification technology, GE and Shenhua have agreed to form an industrial coal gasification joint venture to advance the deployment of cleaner coal technology solutions in China. The new company combines GE’s expertise in industrial gasification technologies with Shenhua’s expertise in coal gasification and coal-fired power generation.

The agreement establishes a joint venture company in which GE and Shenhua will sell industrial coal gasification technology licenses, jointly advocate for and develop integrated gasification combined cycle (IGCC) facilities and conduct research and development to improve cost and performance of commercial-scale gasification and IGCC solutions. This includes industrial coal gasification applications in China, as well as jointly pursuing the deployment of commercial-scale IGCC plants.

Gasification technology has become a critical tool in the expansion of the Chinese economy, allowing a wide variety of industrial products and fuels to be created from China’s low-cost abundant coal resources. GE’s gasification technology is one of the most widely applied technologies of its kind in China, with more than 40 licensed facilities.

Shenhua is one of the world’s largest coal and energy companies, with coal reserves, coal-fired power generation and a national role in the development of new coal-related technologies, such as coal-to-liquids and carbon sequestration. It has significant experience in the development of coal-to-chemicals facilities and in the operation of coal gasification systems over a range of technology configurations.

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