Sichuan DKT Energy Technology Co., Ltd.( A subsidiary of Hydrexia (China))

　　Recently, the results of the “National Development and Reform Commission’s Low-Carbon Technology Innovation and Demonstration Project for the Coal, Power, Construction, and Building Materials Industries” were announced. The 50,000-ton-per-year oxygen-enriched coalbed methane liquefaction project of Shanxi Ruiyang Coalbed Methane Co., Ltd.—in which Sichuan Dacote Energy Technology Co., Ltd. holds a stake and serves as the general contractor—was recognized as a low-carbon technology innovation and demonstration project and has been included in the National High-Tech Industrial Development Program and its corresponding investment plan.

　　This project is an innovative initiative for the development and utilization of low-concentration coal mine gas by Shanxi Yangmei Group, and was designated as a key project for 2012 under the supervision of the State-owned Assets Supervision and Administration Commission of Shanxi Province.

　　The total investment for this project is RMB 249 million, with RMB 140 million allocated to Phase I. The total floor area is approximately 100,000 square meters. Construction is being undertaken by Sichuan Dacote Energy Technology Co., Ltd., which is fully utilizing its independently developed proprietary adsorbents and process technologies. In Phase I, oxygen-enriched coal-mine drainage gas with a concentration of 20–35% and a flow rate of 12,500 cubic meters per hour will be enriched, deoxygenated, denitrified, and compressed to achieve a methane concentration of over 95%, thereby producing CNG (compressed natural gas). In Phase II, the feed gas flow rate will increase to 33,000 cubic meters per hour; after purification and liquefaction, the plant is expected to produce 50,000 tons of LNG (liquefied natural gas) annually.

　　The Phase I CNG unit was installed and commissioned successfully in early September 2012 on the first attempt, with all performance indicators meeting or exceeding the design specifications. The unit was officially put into operation on September 20, 2012. Over the past year and more of operation, the unit has demonstrated safe and reliable performance, with all key parameters remaining stable and within normal operating ranges.

　　This project is currently the world’s first system to produce CNG from low-concentration coal mine gas and has been successfully put into operation. The resulting product can be used in a wide range of applications, including industrial fuel, residential fuel, propulsion fuel for vehicles and vessels, and chemical feedstock, with broad market prospects.

　　The success of this project is of great significance for optimizing China’s energy structure and for energy conservation and emissions reduction. It has set a national—and indeed global—precedent in the development and utilization of low-concentration coal mine gas, serving as a highly exemplary model for future coalbed methane development and utilization. Moreover, it delivers substantial economic and social benefits, making it highly worthy of widespread promotion.