Shenhua commenced a carbon capture research

As China's largest coal producer, Shenhua Group has concluded an agreement on September 27 with the Virginia University to jointly conduct research on technology to cut down the carbon dioxide emission in the coal-to-oil process, which means that Shenhua has formally set foot in the high-end technology field for carbon emission reduction.

Under the terms of the agreement, both sides will build a demonstration project in the feasibility research phase to recycle 100,000 tons of carbon dioxide every year.

The project is to be implemented in Erdos, a city in north China's Inner Mongolia Autonomous Region, to decrease carbon emission for its coal liquefaction projects.

The carbon dioxide capture and storage is a process whereby carbon dioxide is gathered from gases produced by energy or other industries, compressed, transported and injected into deep geologic formations for permanent storage.

According to an official from the National Energy Administration, such a technology is still at the stage of research and experimentation worldwide and China will support enterprises to research in this field.