10 Sep 2009 11:31

Shell to cooperate with Shenhua unit on developing clean coal technology

Shanghai. September 10. INTERFAX-CHINA - Shell (China) Ltd. and Shenhua Coal to Liquid and Chemical Co. Ltd. have signed a memorandum of understanding to jointly research and develop clean coal technology, Shell China announced in a newsletter on Sept. 9.

The two companies intend to set up a team to work on clean coal research. They will also discuss the possible application of carbon capture and storage technology, according to the newsletter.

Royal Dutch Shell Plc has signed 26 coal gasification license contracts worldwide, 19 of which have been with Chinese clients.

On the same day, Shell China also announced that it had authorized three Chinese companies, Dongfang Boiler Group Co. Ltd., Suzhou Hailu Heavy Industry Co. Ltd. and Wuxi Huaguang Boiler Co. Ltd., to manufacture coal gasifiers and syngas coolers, key components of Shell's coal gasification technology.

In this July, the China Petroleum and Chemical Industry Association (CPCIA) suggested that the Chinese government limit the adoption of Shell's coal gasification technology, because the association believed that it could not be adapted well to the coal produced in China.