Shenhua Group Corporation Limited was a Chinese state-owned mining and energy company. Shenhua Group was founded in October 1995 under the auspices of the

State Council of the People's Republic of China The State Council of the People's Republic of China, also known as the Central People's Government, is the chief administrative authority and national cabinet. It is constitutionally the highest administrative organ of the country and the e ...

. It was the largest coal-producing company in China. In 2014 Shenhua Group produced 437 million tons of coal and sold 588 million tons of coal. In 2014, Shenhua Group's revenue was 328.6 billion yuan (~US$53 billion), and the company ranked 196th in the Global Fortune 500. The same year the Shenhua Group's profit was 64 billion yuan (~US$10 billion). On August 28, 2017, SASAC announced that China Guodian Corporation and Shenhua Group would be jointly restructured, with Shenhua Group becoming China Energy Investment Corporation and absorbing China Guodian Corporation.

History

The predecessor of the company was a subsidiary of China Huaneng Group, called (sometimes translated as Huaneng Coal Corporation). China Huaneng Group was founded in 1989 as a holding company for a series of companies that were founded in the 1980s for a "coal for petroleum" project, replacing the use of petroleum to coal in power plants. In 1993, China Huaneng Group was under the dual directorship of the and the , both departments of the

. Previously China Huaneng Group was under the sole directorship of the State Planning Committee. In 1995, Shenhua Group was founded as a separate corporation under the provisional directorship of the State Planning Committee. After the formation of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), Shenhua Group was under the direct supervision of SASAC until the 2017 merger, where the new China Energy Investment was under direct SASAC supervision instead. Shenhua Group had a major subsidiary and listed company China Shenhua Energy. However, some of the assets remained unlisted.

Operations

Shenhua Group is vertically integrated and, in addition to

coal mining Coal mining is the process of resource extraction, extracting coal from the ground or from a mine. Coal is valued for its Energy value of coal, energy content and since the 1880s has been widely used to Electricity generation, generate electr ...

, the company also produces electricity from coal and renewable energy, operates railroads, ports, and seaborne shipments, produces polyethylene and

polypropylene Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer Propene, propylene. Polypropylene belongs to the group of polyolefin ...

, and undertakes research, development, and demonstrations activities.

Coal mining

Shenhua Group was the largest coal producer in China, operating both underground and open cut mines. In 2014, the company sold about 588 million tonnes of coal, the vast majority of which was mined by Shenhua subsidiaries. In 2014, Shenhua invested a total of US$37 million in conservation of soil and water and

environmental remediation Environmental remediation is the cleanup of hazardous substances dealing with the removal, treatment and containment of pollution or contaminants from Natural environment, environmental media such as soil, groundwater, sediment. Remediation may be ...

. Afforestation areas were expanded by over in 2014. Shenhua had implemented smart mining technologies. In 2013, the company was awarded the World Coal Association Award for Leadership on Mining Safety. In 2014, the company transported coal on its railways at a rate of 224 billion tonnes·km. Shenhua owned three ports and worked with third party ports that were used to transport about 235.8 million tonnes of coal by sea in 2014.

Electricity generation

Shenhua's total power output dispatch was 324.6 TWh in 2014, most of this electricity was generated using coal. The company completed the desulfurization (de-SOx) retrofits to all of its coal-fired power generators. Shenhua Guohua, one of Shenhua Group's largest electricity-generating subsidiaries, implemented a program to achieve near-zero emissions at its coal fired power plants. The company has committed to emissions of PM, SOx, and NOx that are at or below the standards set for natural gas power plants. The company held more than 5,000 MW of renewable energy capacity and was the sixth largest producer of electricity from wind in China. Shenhua also planned to build wind farms in Australia.

Fuels and chemicals production

Shenhua owned and operated facilities that convert coal to products through indirect coal liquefaction and direct coal liquefaction. Shenhua's direct liquefaction plant was the largest such facility in the world. In 2014, the facility produced 900,000 tonnes of liquid fuels and products, including diesel, naphtha, and

liquefied petroleum gas Liquefied petroleum gas, also referred to as liquid petroleum gas (LPG or LP gas), is a fuel gas which contains a flammable mixture of hydrocarbon gases, specifically propane, Butane, ''n''-butane and isobutane. It can also contain some ...

. Shenhua owned and operated three coal to

olefins In organic chemistry, an alkene, or olefin, is a hydrocarbon containing a carbon–carbon double bond. The double bond may be internal or at the terminal position. Terminal alkenes are also known as α-olefins. The International Union of P ...

projects. The production capacity of these facilities was about 1.6 million tonnes per year.

Innovation

Shenhua has had several research projects related to the water-energy nexus. The company developed and demonstrated the concept of recycling and purifying mine water so that underground mines with distributed reservoirs can become net water producers and provide water to the surrounding community and industries. This has been demonstrated at Shenhua's Daliuta coal mine in the Shendong mining area. Shenhua researched and developed reducing the water consumption of coal conversion processes.

Subsidiaries

The company has more than 30 subsidiaries, including: * Shenhua Shendong Coal Group Co., Ltd * Shenhua Railway Development Co., Ltd. * Shaanxi Guohua Jinjie Energy Co., Ltd. * Shenhua Trading Group Ltd. * Guangdong Guohua Yudean Taishan Power Co., Ltd. * Zhejiang Guohua Zheneng Power Generation Co., Ltd. * Shenhua Zhunge’er Energy Co., Ltd. * Shenhua Railway Transportation Co., Ltd. * Hebei Guohua Cangdong Power Co., Ltd. * Hebei Guohua Dingzhou Power Generation Co., Ltd. Shenhua Group's subsidiary China Shenhua Energy Company is listed at the

Hong Kong Stock Exchange The Stock Exchange of Hong Kong (, SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. It is one of the largest stock exchanges in Asia and the List of major stock exchanges, 9th largest globally by market ...

and Shanghai Stock Exchange.

Issues

Water

According to

Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by a group of Environmental movement, environmental activists. Greenpeace states its goal is to "ensure the ability of the Earth to nurture life in all its biod ...

in July 2013 Shenhua Group reduced groundwater levels in an

Inner Mongolia Inner Mongolia, officially the Inner Mongolia Autonomous Region, is an Autonomous regions of China, autonomous region of China. Its border includes two-thirds of the length of China's China–Mongolia border, border with the country of Mongolia. ...

region and discharged high levels of toxic wastewater.

Australian mine

The group planned to build the A$1 billion Shenhua Watermark coal mine in the Liverpool Plains in

New South Wales New South Wales (commonly abbreviated as NSW) is a States and territories of Australia, state on the Eastern states of Australia, east coast of :Australia. It borders Queensland to the north, Victoria (state), Victoria to the south, and South ...

, Australia. The Liverpool Plains are primary agricultural land and the mine has sparked controversy within Australia.The coal mine in NSW farmland that no one wants to claim responsibility for approving
news.com.au, published: 11 July 2015, accessed: 12 July 2015

References

External links

Company websiteChina Coal Production - Location and Major Companies 2016
{{authority control Coal companies of China Defunct government-owned companies of China Electric power companies of China Companies established in 1995 Companies disestablished in 2017 Re-established companies Defunct energy companies of China 1995 establishments in China 2017 disestablishments in China