February 20, 2017, Lu’an Group held a coordination and promotion work meeting for high-sulfur coal clean use of oil and electricity integration demonstration project, to ensure that the project will be started up by the end of July 2017.
Up to now, the total progress of the project is 98.2%; the other 17 projects, such as an output of 300 kt/a of olefin separation projects are speeding up. Lu'an particularly focuses on three key factors.
1. Gasifier safe and stable operation, the premise is to ensure that coal supply for gasifier.
2. System integration, all system programs to be unified development and optimization.
3. High-end products and marketing like basic oil products, marketing through Lu'an Taihang lubricants and open the market.
According to ASIACHEM’s <China CTL Annual Report 2017>, Lu'an’s CTL project was preliminarily approved by NDRC in July 2012. The adjustment of the construction program: 1 Mt/a iron-based oil, and 800 kt/a cobalt-based oil (wax) and ancillary works. Among them, 800 kt/a cobalt-based oil (wax) will employ the technology jointly developed by Lu'an Group and Shanxi Coal Chemical Institute, to provide syngas feedstock through the cooperation of the methanol plants nearby.
In February 2017, it was announced that the state agreed to give preferential policies for CTL demonstration projects -- consumption tax exemption for 5 years. In accordance with the 2016 coal, refined oil prices and tax policy, CTL production is in loss. According to ASIACHEM’s study, after exemption of 5-years CTL consumption tax by Chinese Government, CTL will be profitable. If the consumption tax-free, Lu'an will be reduced levy nearly 2.5 billion CNY annually.
The "World Coal-To-X Conference 2017", jointly organized by World CTX association, ASIACHEM Consulting and the China Coal Chemical Industry Committe, will be held in Beijing from March 28 to 30, 2017. Lu'an CTL executive will be present and share Lu'an CTL integration project progress and future planning.
