GE, Shenhua partner on cleaner coal technology in China

Shanghai, May 10, 2012 – GE opened the GE Shenhua Gasification Technology Co., a 50-50 joint venture with Shenhua Group to advance the development and 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 JV will sell industrial gasification technology licenses in China, conduct research and development to improve cost and performance of commercial-scale gasification and integrated gasification combined cycle solutions and work to advance to distribution of commercial-scale IGCC.

Gasification is a technology that converts coal into a synthesis gas (or syngas) that can then be used to produce chemicals or other products. 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 low-cost abundant coal resources.

Shenhua is one of the world’s largest coal and energy companies, with integrated coal production, power generation, railway, port and shipping infrastructure. Shenhua also has a national role in the development of new coal-related technologies such as coal-to-liquids and carbon sequestration.

The company established the first demonstration projects for direct coal liquefaction, coal-to-olefins and coal-to-polypropylene, using gasification technology. Through these efforts, the company has built significant expertise in the development of coal-to-chemicals facilities and in the operation of coal gasification systems over a range of technology configurations. Shenhua also has developed deep expertise in carbon use and management through CCS research and development.

China and the U.S. are the two biggest energy consumers in the world. With rising concerns about oil prices (now above $90 per barrel), energy security and global warming, the world’s largest developed country along with the biggest developing country have much to learn from each other. Progress can be made by collaborating on technologies that improve efficiency, reduce harmful emissions and contribute to the development of a more diverse and secure energy future.

The collaboration between GE and Shenhua demonstrates increasing efforts in the U.S. and China on working together for cleaner energy solutions, with a focus on cleaner coal.

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