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Sembcorp to invest in Chinese coal to diesel project

World Coal,

Sembcorp Industries has announced its plans to invest 932 million yuan (S$ 190 million) to develop the first total water management plant to support a coal-to-diesel project in China.

The total water management plant, located in Changzhi city in China’s Shanxi province, will offer the most comprehensive range of water products and solutions of among Sembcorp’s water projects in China. The water management plant will provide up to 57 600 m3/d of industrial and potable water, 81 600 m3/d of demineralised water and 984 000 m3/d of cooling water, and treat up to 24 000 m3/d of high concentration industrial wastewater and 9600 m3/d of high salinity industrial water.

The plant will serve Shanxi Lu’an Group’s coal-to-diesel project in Wangqiao industrial park, under a 15 year service agreement secured by Sembcorp. Under the agreement, Sembcorp will be the first to build, own and operate a total water management plant to provide such solutions to large-scale coal-to-diesel projects in China. Lu’an’s project is the first such project to be approved by China’s relevant authorities and has strong support from the Chinese government as it is part of the national energy strategy.

The main products from the coal-to-diesel facility will be liquefied petroleum gas, naphtha and high quality diesel. The plant is expected to be completed between late 2014 and 2015.

Tang Kin Fei, Sembcorp CEO commented: “We are pleased to bring our expertise in total water management and integrated industrial water solutions to support Shanxi Lu’an Group in their coal-to-diesel facility. Besides serving their water requirements, we also help them protect the environment and conserve water resources”.

“We are honoured to be selected by Shanxi Lu’an Group for this important project as it is testament to our total water management capabilities and the strong reputation that Sembcorp has built in China. This project also gives us our first foothold to tap into the coal-to-chemical sector, which includes coal-to-diesel, coal-to-gas and coal-to-alkene facilities, and we look forward to securing more projects in this sector”, he continued.

Adapted from press release by Katie Woodward

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