Shenhua Group

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Shenhua Group
State-owned enterprise
IndustryEnergy
FateMerged with China Guodian
PredecessorHuaneng Coal Corporation
SuccessorChina Energy Investment
Founded1995 (1995)
Defunct2017
HeadquartersBeijing, China
Area served
China
Key people
Chairman: Dr. Zhang Yuzhuo
ProductsCoal, electricity, transportation (rail and ocean), polyethylene, polypropylene
ServicesCoal production, transportation, Electricity generation
OwnerChinese Central Government
Number of employees
~210,000
ParentSASAC
SubsidiariesChina Shenhua Energy
Chinese name
Simplified Chinese神华集团有限责任公司
Traditional Chinese神華集團有限責任公司
Chinese short name
Simplified Chinese神华集团
Traditional Chinese神華集團
Websiteshenhuagroup.com.cn

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.[citation needed] In 2014 Shenhua Group produced 437 million tonnes of coal and sold 588 million tonnes 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 will be jointly restructured, with Shenhua Group becoming China Energy Investment Corporation and absorbing China Guodian Corporation. [1]

History[edit]

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[2]). China Huaneng Group was found in 1989 as a holding company for a series of companies that were found in 1980s for a "coal for petroleum" project, replacing the use of petroleum to coal in power plant.[3][4] In 1993, China Huaneng Group was under the dual directorship of the Ministry of Power Industry [zh] and the State Planning Committee [zh], both departments of the State Council of the People's Republic of China. Previously China Huaneng Group was under the sole directorship of the State Planning Committee.[5] In 1995, Shenhua Group was founded as a separate corporation that under the provisional directorship of the State Planning Committee.[6] After the formation of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), Shenhua Group was under the direct supervision of SASAC until the 2017 merger, which the new China Energy Investment was under direct SASAC supervision instead.

Shenhua Group had a major subsidiary and listed company China Shenhua Energy. However, some of the assets were remained unlisted.

Activities[edit]

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.

An electric locomotive operated by the Shenhua Group.

Coal mining and transportation[edit]

Shenhua Group is the largest coal producer in the PRC, 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.

Shenhua, like other coal producers in the PRC, is required to meet reclamation standards set by the government for its mining projects. In 2014, Shenhua invested a total of US$37 million in conservation of soil and water and environmental remediation. For example, afforestation areas were expanded by over 25,000,000 square meters in 2014.

Shenhua has recently highlighted its progress in implementing smart mining technologies to improve mining efficiency and safety.[7] In 2013 the company was awarded the World Coal Association Award for Leadership on Mining Safety.[8]

Shenhua also largely transports the coal it produces. For example, in 2014, the company transported coal on its railways at a rate of 224 billion tonnes·km. Shenhua also owns three ports and works with third party ports that were used to transport about 235.8 million tonnes of coal by sea in 2014.

Electricity generation[edit]

Shenhua’s total power output dispatch was 324.6 billion kWh in 2014, most of this electricity was generated using coal. The PRC’s standards for coal-fired power plants require emissions control technologies for particulate matter (PM), sulfur oxides (SOx), and nitrogen oxides (NOx). Therefore, emissions control equipment was necessary for all power plants operated by Shenhua. The company has completed the desulfurization (de-SOx) retrofits to all of its coal-fired power generators, and is in the process of adding controls to reduce NOx emissions. Shenhua Guohua, one of Shenhua Group’s largest electricity-generating subsidiaries, has implemented a program to achieve near-zero emissions at its coal fired power plants. In essence, the company has committed to emissions of PM, SOx, and NOx that are at or below the standards set for natural gas power plants.[9] The PRC standards for key areas are shown in the table below.

Particulate Matter (mg/Nm3) SO2 (mg/Nm3) NOx (mg/Nm3)
Limits for coal-fired power units (O2=6%) 20 50 100
Limits for gas turbines (O2=15%) 5 35 50
Shenhua Guohua target for coal-fired units (O2=6%) 5 35 50

Based on the PRC’s 12th Five-Year Plan, the proportion non-fossil installed electricity capacity in the country is being increased from 26.7% in 2010 to 33% in 2015. As a large electricity producer, Shenhua is also transitioning its energy mix. The company currently holds more than 5 GW of renewable energy capacity and is the PRC’s sixth largest producer of electricity from wind. Shenhua is also working to expand its renewable portfolio, with an announcement to possibly invest US$1.7 billion by the end of the decade to build wind farms in Australia.[10]

Fuels and chemicals production[edit]

Because of its relatively small oil and gas reserves, compared to coal, the PRC is a leader in coal conversion to liquid fuels, synthetic natural gas, and chemicals. Shenhua owns and operates facilities that convert coal to products through indirect coal liquefaction and direct coal liquefaction.

Shenhua’s direct liquefaction plant is the largest such facility in the world. In 2014 alone, the facility produced 900,000 tonnes of liquid fuels and products, including diesel, naphtha, and liquefied petroleum gas. Other than the energy security benefits of domestically produced synthetic diesel, the sulfur content is less than 1 ppm, which is much lower than the national standard of 10 ppm.

Shenhua owns and operates three coal to olefins projects. The production capacity of these facilities is about 1.6 million tonnes per year. The company is also building the largest single unit coal to liquids project (4 million tonnes per year based on indirect coal liquefaction) in the Ningxia province. The facility is scheduled to begin operation in 2017.

Innovation[edit]

Shenhua Group carries out significant research, development, demonstration, and commercialization of new technologies. In 2014, Shenhua’s research and development expenditures amounted to nearly . The focus of this research was throughout the entire energy life cycle chain, including environmental improvements for of coal mines as well as the initiation of a series of major projects, including heavy-haul railway technology.

Shenhua’s has several research projects related to the water-energy nexus. For example, the company has 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 surround community and industries and has been demonstrated at Shenhua’s Daliuta coal mine in the Shendong mining area.[11]

Both indirect and direct coal conversion are water-intensive processes that exist in water-scarce regions in the PRC. Therefore, Shenhua has extensive research and development focused on reducing the water consumption of these processes. To date, the direct coal liquefaction facility has decreased water consumption from 10 to 5.8 tonnes of water per tonne of product with additional focus being on water treatment and recycling. For the coal to olefin facility, water consumption has been decreased from 30 to 22 tonnes of water per tonne of olefin product.

Subsidiaries[edit]

The company has more than 30 subsidiaries, including:

  • Shenhua Shendong Coal Group Co., Ltd
  • Shenhua Railway Development Co., Ltd.
  • Shaanxi Guohua Jinjie Energy Co., Ltd.
  • Shenhua Trading Group Ltd.
  • Guangdong Guohua Yudean Taishan Power Co., Ltd.
  • Zhejiang Guohua Zheneng Power Generation Co., Ltd.
  • Shenhua Zhunge’er Energy Co., Ltd.
  • Shenhua Railway Transportation Co., Ltd.
  • Hebei Guohua Cangdong Power Co., Ltd.
  • Hebei Guohua Dingzhou Power Generation Co., Ltd.

Shenhua Group's subsidiary China Shenhua Energy Company is listed at the Hong Kong Stock Exchange and Shanghai Stock Exchange.

Equity investments[edit]

Issues[edit]

Water[edit]

According to Greenpeace in July 2013 Shenhua Group has reduced groundwater levels in an Inner Mongolia region and discharged high levels of toxic wastewater.[15][16]

Australian mine[edit]

The group plans to build the A$1 billion Shenhua Watermark coal mine in the Liverpool Plains in New South Wales, Australia. The Liverpool Plains are primary agricultural land and the mine has sparked controversy within Australia.[17]

References[edit]

  1. ^ "China Is Creating the World's Largest Power Company". Bloomberg News. 28 August 2017. Retrieved 29 August 2017.
  2. ^ "JPRS Report, Science & Technology China: Energy". Foreign Broadcast Information Service. 23 June 1987. Retrieved 29 June 2018 – via archive.org.
  3. ^ "1989 nián dà shì jì" 1989年大事记 (in Chinese). China Huaneng Group. Retrieved 26 June 2018.
  4. ^ 王传剑; 沈小波 (25 December 2014). "Lǐ Péng tóng yì huán éng jí tuán chéng lì bèi hòu: Gōng sī yǒu hěn duō zī jīn" 李鹏同意华能集团成立背后:公司有很多资金. 能源 (in Chinese). Retrieved 29 June 2018 – via Sina.
  5. ^ "Guó wù yuàn bàn gōng tīng guān yú yìn fā diàn lì gōng yè bù zhí néng pèi zhì, nèi shè jī gòu hé rén yuán biān zhì fāng'àn de tōng zhī" 国务院办公厅关于印发电力工业部职能配置、内设机构和人员编制方案的通知 (Press release) (in Chinese). General Office of the State Council of the People's Republic of China. 6 August 1993. Retrieved 29 June 2018.
  6. ^ "Guó wù yuàn guān yú tóng yì chéng lì shén huá jí tuán yǒu xiàn zé rèn gōng sī hé shén huá jí tuán de pī fù" 国务院关于同意成立神华集团有限责任公司和神华集团的批复 (Press release) (in Chinese). State Council of the People's Republic of China. 8 August 1995. Retrieved 29 June 2018.
  7. ^ "Shenhua's Development of Digital Mines". cornerstonemag.net. Retrieved 8 December 2017.
  8. ^ "Resources". worldcoal.org. Retrieved 8 December 2017.
  9. ^ "Shenhua Guohua's Application of Near-Zero Emissions Technologies for Coal-Fired Power Plants". cornerstonemag.net. Retrieved 8 December 2017.
  10. ^ "Shenhua, Partner Plan $1.7 Billion in Australian Wind Projects". 11 April 2013. Retrieved 8 December 2017 – via www.bloomberg.com.
  11. ^ "Water Resource Protection Technology for Coal Mining in Western China". cornerstonemag.net. Retrieved 8 December 2017.
  12. ^ "中国国有企业结构调整基金股份有限公司". www.cctfund.cn. Retrieved 8 December 2017.
  13. ^ http://www.gov.cn/xinwen/2016-09/27/content_5112412.htm
  14. ^ "中国国有企业结构调整基金成立 总规模达3500亿元". China Securities Journal (in Chinese). 27 September 2016. Retrieved 26 August 2017.
  15. ^ Chinese coal company releasing toxic wastewater, Greenpeace says The Guardian 23 July 2013
  16. ^ Greenpeace reveals Chinese state coal company's ruthless water grab Archived 2013-07-26 at the Wayback Machine. July 23, 2013
  17. ^ The coal mine in NSW farmland that no one wants to claim responsibility for approving news.com.au, published: 11 July 2015, accessed: 12 July 2015

External links[edit]