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, constitutionally synonymous with the Central People's Government since 1954 (particularly in relation to local governments), is the chief administrative authority of the People's Republic of China. It is chaired by the p ...

. It was the largest coal-producing company in China. In 2014 Shenhua Group produced 437 million tonnes of coal and sold 588 million tonnes 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 The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special commission of the People's Republic of China, directly under the State Council. It was founded in 2003 through the consolidation of vario ...

announced that China Guodian Corporation and Shenhua Group would be jointly restructured, with Shenhua Group becoming

China Energy Investment Corporation China Energy Investment Corporation, more commonly known as China Energy (), is a state-owned mining and energy company administrated by the SASAC of the State Council of the People's Republic of China. History On August 28, 2017, SASAC announce ...

and absorbing China Guodian Corporation.

History

The predecessor of the company was a subsidiary of

China Huaneng Group China Huaneng Group Co., Ltd., abbreviated as CHNG or Huaneng Group, is one of the five largest state-owned electricity generation enterprises in China, administrated by the State Council. It engages in the investment, construction, operat ...

, called (sometimes translated as Huaneng Coal Corporation). China Huaneng Group was found in 1989 as a holding company for a series of companies that were found in 1980s for a "coal for petroleum" project, replacing the use of petroleum to coal in power plant. 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 that 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, which the new

China Energy Investment China Energy Investment Corporation, more commonly known as China Energy (), is a state-owned mining and energy company administrated by the SASAC of the State Council of the People's Republic of China. History On August 28, 2017, SASAC announce ...

was under direct SASAC supervision instead. Shenhua Group had a major subsidiary and listed company

China Shenhua Energy China Shenhua Energy Company Limited, also known as Shenhua, China Shenhua, or Shenhua Energy (), is the largest state-owned coal mining enterprise in Mainland China, and in the world. It is a subsidiary of Shenhua Group. It mines, refines, and se ...

. However, some of the assets were remained unlisted.

Operations

Shenhua Group is vertically integrated and, in addition to coal mining, the company also produces electricity from coal and renewable energy, operates railroads, ports, and seaborne shipments, produces polyethylene and polypropylene, 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. 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 Coal liquefaction is a process of converting coal into liquid hydrocarbons: liquid fuels and petrochemicals. This process is often known as "Coal to X" or "Carbon to X", where X can be many different hydrocarbon-based products. However, the most ...

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 (LPG or LP gas) is a fuel gas which contains a flammable mixture of hydrocarbon gases, specifically propane, propylene, butylene, isobutane and n-butane. LPG is used as a fuel gas in heating appliances, cooking e ...

. Shenhua owned and operated three coal to olefins 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 China Shenhua Energy Company Limited, also known as Shenhua, China Shenhua, or Shenhua Energy (), is the largest state-owned coal mining enterprise in Mainland China, and in the world. It is a subsidiary of Shenhua Group. It mines, refines, and se ...

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. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...

and

Shanghai Stock Exchange The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...

Issues

Water

According to

Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...

in July 2013 Shenhua Group reduced groundwater levels in an

Inner Mongolia Inner Mongolia, officially the Inner Mongolia Autonomous Region, is an autonomous region of the People's Republic of China. Its border includes most of the length of China's border with the country of Mongolia. Inner Mongolia also accounts for a ...

region and discharged high levels of toxic wastewater.

Australian mine

The group planned to build the A$1 billion

Shenhua Watermark coal mine The Shenhua Watermark coal mine was a proposed coal mine in the Liverpool Plains of New South Wales, Australia. The project was to be located approximately 25 km south-east of the town of Gunnedah, near the village of Breeza and carried out ...

in the

Liverpool Plains The Liverpool Plains are an extensive agricultural area covering about of the north-western slopes of New South Wales in Australia. These plains are a region of prime agricultural land bounded to the east by the Great Dividing Range, to the s ...

New South Wales ) , nickname = , image_map = New South Wales in Australia.svg , map_caption = Location of New South Wales in AustraliaCoordinates: , subdivision_type = Country , subdivision_name = Australia , established_title = Before federation , es ...

, 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