GE, Shenhua team up on 'cleaner' coal technology

Shanghai (CNS) -- A 50-50 joint venture between U.S. energy giant General Electric (GE) and state-owned Shenhua Group that aims to advance research and development for "cleaner" coal technology was established in Shanghai on Thursday.

The company called GE Shenhua Gasification Technology Co Ltd has registered capital of $6 million, and all patents and proceeds will be shared evenly, said Lu Zhengping, president of Shenhua Coal to Liquid and Chemical Co Ltd, a subsidiary of Shenhua Group.

Gasification is a technology that converts coal into a synthesis gas (or syngas) that can be used to produce chemicals and other products. With more than 50 licensed facilities in China, GE's gasification technology is one of the most widely deployed in the industry.

The new company combines GE's expertise in industrial gasification technologies with Shenhua's expertise in coal gasification and coal-fired power generation, according to a press release.

The joint venture will sell industrial gasification technology licenses in China and conduct R&D to improve cost and performance of commercial-scale gasification.

The sound collaboration for both parts in technology R&D, production, operation and so on will create a series of reliable, efficient, low-cost and clean technology solutions to the market, said Wang Xiaolin, deputy general manager of Shenhua Group.

Coal plays a key role in both the U.S. and China's economic growth, said Paul Browning, chief of GE's thermal products division, and the joint venture will set up a win-win cooperation model between the U.S. and Chinese energy enterprises.