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

　　China’s first “low-concentration coal-bed methane purification for LNG production” project—the 50,000-ton-per-year oxygen-enriched coal-bed methane liquefaction facility of Shanxi Ruiyang Coalbed Methane Company—along with the Phase I “low-concentration coal-bed methane purification for CNG production” project, recently achieved successful single-run commissioning at the Sijiazhuang Mine in Xiyang County, Shanxi Province, with all performance indicators meeting or exceeding design specifications.

　　According to reports, Shanxi Ruiyang Coalbed Methane Co., Ltd. was established in January 2011 as a technology-driven joint venture formed through the joint investment of Shanxi Guorui New Energy Co., Ltd., Yangquan Coal Industry (Group) Co., Ltd., and Sichuan Dacote Energy Technology Co., Ltd.—a strategic alliance of industry leaders.

　　The project was groundbreaking in Xiyang County in March 2011 and officially commenced construction in June 2011. It is an innovative initiative by Yangmei Group for the development and utilization of low-concentration coalbed methane, and was designated as a key provincial-level project under the supervision of the Provincial State-owned Assets Supervision and Administration Commission in 2012.

　　The total investment for this project is RMB 210 million, with RMB 130 million allocated to Phase I. The total floor area is approximately 100,000 square meters. The project is under general contracting by Sichuan Dacote Energy Technology Co., Ltd., which exclusively employs the company’s independently developed specialized adsorbents and proprietary process technologies. In Phase I, raw coalbed methane with a concentration of about 35% and a flow rate of 12,500 cubic meters per hour will be enriched, deoxygenated, and denitrified to achieve a methane concentration of over 95%, producing compressed natural gas (CNG). 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 liquefied natural gas (LNG) annually.

　　Since the commencement of Phase I of the project, the contractors—Sichuan Dakete Energy Technology Co., Ltd. and Yangmei Group Co., Ltd.—have attached great importance to its execution. Senior management has repeatedly visited the site to provide on-site guidance and oversight, ensuring safety, quality, schedule adherence, and cost control. The companies have strived for continuous refinement in design, meticulous budgeting, rigorous and standardized management, and safe, high-quality construction. After more than a year of construction, all tasks—including equipment installation and pre-job training for employees—were completed on time and to the required standards. This ensured the successful first-time commissioning of the project on September 10, 2012, and the facility is now poised to enter normal production. Meanwhile, preparations for Phase II of the LNG production project are currently underway in full swing.

　　Upon completion and commissioning of the project, it is expected to generate annual sales revenue of RMB 316.4 million, profits of RMB 144.74 million, and tax payments of RMB 81.25 million. In addition, the project will annually substitute 90.4 million cubic meters of coalbed methane for coal combustion, resulting in reductions of 208,000 tons of carbon dioxide, 500 tons of sulfur dioxide, 600 tons of nitrogen dioxide, and 18,300 tons of coal dust.

　　The completion of this project will set a precedent for the development and utilization of low-concentration coal mine gas and oxygen-bearing coalbed methane, with the resulting products finding wide application in industrial and residential fuel markets, as power fuels for vehicles and vessels, and as chemical feedstocks, thereby offering substantial market potential. The project is of great significance for optimizing China’s energy structure, promoting energy conservation and emission reduction, and enhancing workplace safety in coal mines. By pioneering the nationwide—and indeed global—development and utilization of low-concentration coal mine gas, it serves as a highly exemplary model for guiding future efforts in coalbed methane development and utilization, while delivering exceptionally significant economic and social benefits.