(EnergyAsia, October 10 2011, Monday) — Accelergy Corporation, a US-based global leader in the production of clean, high-grade, synthetic liquid fuels, said it is teaming up with China’s Yankuang Group to build a large-scale, low carbon, hybrid coal-to-liquids (CTL) plant in Inner Mongolia province.

The partners expect to soon begin feasibility study of the 68,000 b/d plant in Erdos city that will utilise a hybrid configuration of Accelergy’s micro-catalytic coal liquefaction (MCL) system and Yankuang’s proprietary Fischer Tropsch indirect liquefaction system.

Accelergy said that by incorporating its TerraSync(R) terrestrial sequestration system for carbon capture and recycle, the integrated project will achieve a thermal efficiency in excess of 60% and achieve a 100% reduction in carbon dioxide emissions.

Accelergy said its first commercial coal-to-liquids facility in China will produce gasoline, diesel and jet fuel. Accelergy recently began fuel production at its pilot facility at the Beijing Research Institute for Coal Chemistry (BRICC), which is the only testing facility that can certify coals for the Houston, Texas-based large-scale coal-to-liquids projects.

Timothy Vail, CEO of Accelergy, said: “As China’s economy continues to grow, so does the demand for high quality synthetic fuels needed to power its fleets. Our partnership with Yankuang will provide domestically sourced fuels with a low carbon footprint to meet this market need.

“Accelergy’s technologies, combined with Yankuang’s execution skills, bring next-generation coal-to-liquids plants online in China.”

Zhang Minglin, vice general manager of Yankuang Group Company Limited, said:

“We aim to increase coal utilisation efficiency, reduce carbon dioxide emission and add to the development of an integrated circular economy. This is in line with China’s high-tech coal chemical development trend, and complies with China’s energy saving and environmental protection policies as well.”

Yankuang Group, one of the largest coal companies in China, will be leading the feasibility study effort. The company is engaged in various sectors, but focuses its coal operations on production, sales and coal-to-chemicals. Its subsidiary company, Yanzhou Coal Mining Company Limited, is listed on the stock exchanges of New York, Hong Kong and Shanghai.

Currently the world’s largest producer and consumer of coal, China’s output for coal-to-liquids is expected to jump from 1.5 million tons in 2010 to 30 million tons in 2020, according to a recent report on the global CTL market from Market Avenue.