Sino-America company promotes coal technology

Leading energy companies from the U.S. and China jointly established a new company in Shanghai on Thursday to promote clean coal and coal gasification power generation technology.

Technology that can generate power via coal gasification will be promoted through the establishment of General Electric (GE) Shenhua Gasification Technology Co., Ltd., according to a press release.

The company was jointly created by China Shenhua Coal to Liquid and Chemical Co., Ltd. and GE China with an investment of six million U.S. dollars, with each side holding 50 percent of the company, the companies said.

The company will focus on research and promotion for coal gasification technology, according to Lu Zhengping, board chairman of the new company and president of China Shenhua Coal to Liquid and Chemical.

Compared to traditional coal power generation, the new technology can reduce emissions of nitrogen oxide and sulfur oxide by 33 and 75 percent, respectively, Lu said.

The technology is expected to form a market with millions of dollars of annual volume, said Paul F. Browning, president of thermal products for GE Energy.

Another goal of the joint venture is to enhance the development of clean coal in China, Browning said.

He said clean coal technology, which is used to transform low-value coal into high-value gas, has a great price advantage in light of the rapidly spiking cost of gasoline.

China's energy structure, with its abundant coal resources and relatively scarce oil resources, has emphasized the importance of the new technology in maintaining energy security, he said.