Shell announces three new clean coal technology licenses in China

The new deals include an agreement with two-time licensee Yunnan Yuntianhua Co. Limited (YYTH), Shell’s third repeat SCGP user. The licensing agreement between Shell and YYTH was registered with the Chinese Government on 10 November 2008.  YYTH is expected to deploy the Shell technology for its Shuifu project, a 260ktpa (Kilo-Tonnes Per Annum) methanol plant using coal as feedstock. YYTH signed its first SCGP licensing agreement with Shell in 2003 to set up its Tianan project, a 500ktpa ammonia plant that is now in operation.

In September 2008, Shell’s 18th SCGP licensing agreement in China became effective with Datong Coal Mine Group (DCMG). The agreement paved the way for DCMG to commence its 600 ktpa methanol project using SCGP.

In July 2008, Shell reached a licensing deal with Yongcheng Longyu Coal Chemical Co. Ltd, another repeat SCGP user in China. Under the new license, Yongcheng Longyu was able to build its Phase II 500 ktpa methanol plant adjacent to its Phase I plant, which also uses the Shell technology.

Lim Haw Kuang, Executive Chairman of Shell Companies in China, said: “China is one of the most coal-rich countries in the world and we are pleased to help the country meet its energy and petrochemical needs in a more sustainable way, through our leading coal gasification technology. We are delighted to see more repeat SCGP users, reconfirming our clients’ confidence in our technology.”

Shell’s coal gasification technology offers a way of using coal to produce fertilisers and chemicals, or to produce synthesis gas for use in power generation. Among the 19 licensees to Shell’s coal gasification technology, 12 gasifiers of 11 companies have started up, including the Dongting fertiliser plant in Yueyang, Hunan province in which Shell is an equity partner with Sinopec.

Shell Companies in China have established a dedicated Clean Coal Service Group in Beijing. The service arm has nearly 30 engineers to support local coal gasification clients. The Shell team supports SCGP licensing and equity projects in China, from commissioning and start-up support, technical support for operating plants, to enhancing plant efficiency.

ENDS

For enquiries, please contact:

Shell Companies in China   

Li Lusha  

+ 86 10 65054501 ext. 2685

Royal Dutch Shell plc

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