The first set of Shell oil-to-coal plant will save millions of investment monthly Hubei Hubei Shuanghuan
Since May 17th, the first coal gasification ammonia production plant at Hubei Shuanghuan Science and Technology Co., Ltd. successfully commenced operations, marking a significant turning point for the company. The facility has helped save approximately RMB 1.09 million per day. After suffering a loss of RMB 10 million in April, the company managed to break even in May, and by June, it turned profitable. This marked a complete reversal of the operational challenges caused by rising oil prices, significantly enhancing the company’s core competitiveness and its ability to withstand market fluctuations.
The coal gasification ammonia plant introduced by Shuanghuan is based on Shell's advanced pulverized coal gasification technology. Designed by China Wuhuan Chemical Engineering Company, this was the world’s first such project. According to the head of the Technical Department, the total investment amounted to 700 million yuan. Key equipment includes the Shell pulverized coal gasifier, ammonia synthesis tower, steam boiler, filter, and scrubber tower. The coal gasification furnace was manufactured by Dalian Jinzhou Heavy Machinery Factory, with a daily input of 1,000 tons and an average output of 1,800 tons of soda ash and ammonium chloride products.
This advanced system features high technological content and automation, capable of using almost all types of raw coal. It offers clear advantages over similar technologies in terms of material consumption, carbon conversion rate, and thermal efficiency. Additionally, the fly ash and residue from the coal gasification process are of high quality, serving as excellent raw materials for cement production. The system also includes a desulfurization unit with high efficiency, meeting European environmental standards and effectively addressing long-standing issues with carbon black emissions.
The successful commissioning of this facility is expected to serve as a model for the industry and provide valuable reference for raw material selection in synthetic ammonia production across China. In recent years, due to soaring international oil prices, many domestic synthetic ammonia plants relying on oil as a feedstock have been forced to shut down due to heavy losses. In 1997, Shuanghuan decided to transition from oil to coal, partnering with Shell and Wuhuan Technology for nearly a decade to establish the world’s first coal gasification ammonia plant. This was also the first installation of Shell’s coal gasification technology in China.
The economic benefits of the plant are mainly attributed to the substantial reduction in both raw material and pollution control costs. Producing one ton of ammonia using an oil-based route requires 0.84 tons of oil, while a coal-based route needs 1.45 tons of coal. This results in a cost saving of approximately 2,000 yuan per ton of synthetic ammonia. Moreover, the plant meets European environmental standards, achieving zero wastewater discharge and eliminating the need for additional pollution control measures.
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