The Chinese state-owned mining and energy company, Shenhua Group, is developing a carbon dioxide capture and storage project that is reported to be the first of its kind in China, in Erdos, Inner Mongolia.
According to Wang Heming, the deputy general manager of Erdos Branch of China Shenhua Coal Liquefaction Corporation, the CCS project features an annual capacity of 100,000 tons with an estimated amount of investment of CNY210 million. The project is expected to be completed and put into operation by December 31, 2010. Wang said that based on the outcome of this project, they will gradually develop two other CCS projects, with storage capacities of one million and three million tons of carbon dioxide respectively.
Gu Dazhao, the general manager of Shenhua Technology Development Company stated that the new project is part of the action that Shenhua has taken in finding ways to reduce carbon dioxide emissions in response to the state's requests for energy conservation and emission reduction.
The operational cost for the CCS project is not yet published, but it is estimated to be about USD50 per ton.