Mining Magazine > Panorama > GE and Shenhua form cleaner coal technology joint venture in China

Marking a significant step forward for coal gasification technology, GE and Shenhua announced they are to form an industrial coal gasification joint venture to advance the deployment of “cleaner coal” technology solutions in China. The new company combines GE’s expertise in industrial gasification technologies with Shenhua’s expertise in coal gasification and coal-fired power generation.

The agreement was signed at a ceremony at the Strategic Forum on U.S.-China Clean Energy Cooperation in Washington D.C. It establishes a joint venture company in which GE and Shenhua would sell industrial coal gasification technology licenses, jointly advocate for and develop integrated gasification combined cycle (IGCC) facilities and conduct research and development to improve cost and performance of commercial scale gasification and IGCC solutions. This includes industrial coal gasification applications in China as well as jointly pursuing the deployment of commercial scale IGCC plants.

”Shenhua has deep experience in developing and operating coal gasification and coal-fired power generation facilities in China, including the Shenhua Baotou coal to olefins facility which uses GE’s gasification technology,” said Mr. Zhang Xiwu, chairman of Shenhua Group Corporation Ltd. “Collaboration between our two companies in this joint venture will create a gasification technology business in China with significant local presence, focus, resources and expertise.”

“Coal plays an important role in the economies of the U.S. and China, and gasification technology allows us to use this abundant and low cost resource in a much cleaner way,” said Keith White, general manager, gasification, GE Power & Water. “This joint venture company is an evolution of the strong gasification business GE has in China today; today’s announcement represents an important investment by GE and Shenhua in the future of gasification in China and the deployment of cleaner coal technologies. Each business intends to contribute existing technology, operational and service expertise to create a comprehensive gasification and cleaner coal technology and service provider in China.”


Gasification technology has become a critical tool in the expansion of the Chinese economy, allowing a wide variety of industrial products and fuels to be created from low-cost abundant coal resources. GE’s gasification technology is one of the most widely applied technologies of its kind in China, with more than 40 licensed facilities.