Lu’an’s CTL pilot project produces synthetic fuel

Lu’an Group, one of three major players in China to develop large-scale coal-to-liquid (CTL) projects, has successfully produced synthetic fuel from its pilot CTL project in Shanxi, marking a first for the country. The indirect CTL plant, with a total investment of around four billion yuan (US$584.3 million), will have a design capacity of 160,000 metric tons of annual synthetic fuel output, including liquefied petroleum gas and gasoline, when fully online in the first half of 2009. The Chinese government roped in global pioneer South Africa’s Sasol Ltd. (SSL) for the project. It had stopped approving CTL projects in 2008, allowing only a plant built by Shenhua Group and one belonging to its subsidiary Ningxia Coal Industry Group and South Africa’s Sasol Ltd. to operate in the country. (December 22, 2008)