Shenhua to press ahead with carbon capture program

Shenhua Group, China’s largest coal producer, is on course to launch the country’s first carbon capture and storage (CCS) project, Reuters reported, citing a statement from the State-Owned Assets Supervision and Administration Commission. The CCS facility will be built at Shenhua’s US$3.58 billion coal-to-liquids plant at Ordos in Inner Mongolia, which is expected to go into full operation later this year. While CCS is seen as vital to China’s efforts to reduce greenhouse gas emissions, there are doubts about the commercial and environmental viability of the technology, particularly the long-term safety of underground storage sites. The technology has yet to be ratified by the UN Framework Convention on Climate Change. Beijing put its coal liquefaction program on hold last year due to concerns about pollution and excessive water consumption. The Ordos plant is one of only two major facilities that is being allowed to progress.