(Yicai Global) Aug. 15 -- Beijing-based Shenwu Environmental Technology Co. [SHE:300156] has signed a CNY2.86-billion (USD429million) contract for a coal pyrolysis project in China's western Xinjiang Uygur Autonomous Region.
The contract's value is equivalent to almost 91.6 percent of the firm's 2016 revenue, it said in a statement on Aug. 14, adding that the plant is expected to handle 10 million tons of coal a year. The first phase, with a capacity of three million tons, is due to be completed in September 2019.
Shenwu and its wholly-owned subsidiary signed the deal with Xinjiang Energy Group Toksun Jiejing Environmental Protection Technology Co, which is 81 percent-owned by state-owned Xinjiang Energy Group Co. and its holding subsidiary Xinjiang Runtian Technology Development Co. Shenwu own the remaining 19 percent.
The project will use Toksun county's rich supply of low- and medium-grade coal to keep resources clean, the statement said, adding that the project will include a coal pyrolysis device, coal tar hydrogenation equipment, supporting utilities and auxiliary facilities.
Shenwu will use its unique pyrolysis process which involves a pre-heated furnace, the statement said.