Shenhua Group

Shenhua Group Corporation Limited was a Chinese state-owned mining and energy company. Shenhua Group was founded in October 1995 under the auspices of the State Council of the People's Republic of China. It was the largest coal-producing company in China. In 2014 Shenhua Group produced 437 million tons of coal and sold 588 million tons of coal. In 2014, Shenhua Group's revenue was 328.6 billion yuan (~US$53 billion), and the company ranked 196th in the Global Fortune 500. The same year the Shenhua Group's profit was 64 billion yuan (~US$10 billion). On August 28, 2017, SASAC announced that China Guodian Corporation and Shenhua Group would be jointly restructured, with Shenhua Group becoming China Energy Investment Corporation and absorbing China Guodian Corporation.[1][2]

History

The predecessor of the company was a subsidiary of China Huaneng Group, called 华能精煤公司 (sometimes translated as Huaneng Coal Corporation[3]). China Huaneng Group was founded in 1989 as a holding company for a series of companies that were founded in the 1980s for a "coal for petroleum" project, replacing the use of petroleum to coal in power plants.

Operations

Shenhua Group is vertically integrated and, in addition to coal mining, the company also produces electricity from coal and renewable energy, operates railroads, ports, and seaborne shipments, produces polyethylene and polypropylene, and undertakes research, development, and demonstrations activities.

Coal mining

Shenhua Group was the largest coal producer in China, operating both underground and open cut mines. In 2014, the company sold about 588 million tonnes of coal, the vast majority of which was mined by Shenhua subsidiaries. In 2014, Shenhua invested a total of US$37 million in conservation of soil and water and environmental remediation. Afforestation areas were expanded by over 25 km2 in 2014.

Shenhua had implemented smart mining technologies.[9] In 2013, the company was awarded the World Coal Association Award for Leadership on Mining Safety.[10]

In 2014, the company transported coal on its railways at a rate of 224 billion tonnes·km. Shenhua owned three ports and worked with third party ports that were used to transport about 235.8 million tonnes of coal by sea in 2014.

Electricity generation

Shenhua's total power output dispatch was 324.6 TWh in 2014, most of this electricity was generated using coal. The company completed the desulfurization (de-SOx) retrofits to all of its coal-fired power generators. Shenhua Guohua, one of Shenhua Group's largest electricity-generating subsidiaries, implemented a program to achieve near-zero emissions at its coal-fired power plants. The company has committed to emissions of PM, SOx, and NOx that are at or below the standards set for natural gas power plants.[11]

The company held more than 5,000 MW of renewable energy capacity and was the sixth largest producer of electricity from wind in China. Shenhua also planned to build wind farms in Australia.[12]

Fuels and chemicals production

Shenhua owned and operated facilities that convert coal to products through indirect coal liquefaction and direct coal liquefaction. Shenhua's direct liquefaction plant was the largest such facility in the world. In 2014, the facility produced 900,000 tonnes of liquid fuels and products, including diesel, naphtha, and liquefied petroleum gas.

Shenhua owned and operated three coal to olefins projects. The production capacity of these facilities was about 1.6 million tonnes per year.

Innovation

Shenhua has had several research projects related to the water-energy nexus. The company developed and demonstrated the concept of recycling and purifying mine water so that underground mines with distributed reservoirs can become net water producers and provide water to the surrounding community and industries. This has been demonstrated at Shenhua's Daliuta coal mine in the Shendong mining area.[13]

Shenhua researched and developed reducing the water consumption of coal conversion processes.

type	State-owned enterprise
foundation	1995
fate	Merged with China Guodian
predecessor	Huaneng Coal Corporation
successor	China Energy Investment
dissolved	2017
location city	Beijing
location country	China
key people	Chairman: Zhang Yuzhuo
area served	China
industry	Energy
products	Coal, electricity, transportation (rail and ocean), polyethylene, polypropylene
services	Coal production, transportation, Electricity generation
num employees	~210,000
parent	SASAC
subsid	China Shenhua Energy
owner	Chinese Central Government
homepage	shenhuagroup.com.cn

History

Operations

Coal mining

Electricity generation

Fuels and chemicals production

Innovation

Subsidiaries

Issues

Water

Australian mine

External links

References