The plant, which is being constructed at Ordos City in Inner Mongolia, is expected to capture 100.000 tons of carbon dioxide yearly using pre-combustion CO₂ capture technology. Its construction will cost about $30 million, while capture costs are estimated at around $50 per ton. The construction of two more units with a total estimated annual capture capacity of 4 million tons of CO₂ is projected in the future.

The captured CO₂ will be stored in saline formations in the Ordos basin. The geology in the region appears especially favourable, with an estimated 4.4 billion tons of CO₂ storage capacity.

The Ordos plant will employ direct coal liquefaction (DCL) technology (download PDF document at right). The combination of DCL with CCS seems promising (download PDF document at right) rendering the capture of CO₂ simpler. Indeed, in a DCL process over 80 percent of CO2 produced can be captured and stored directly. The heavy reliance of China on coal to sustain its rate of development has led this country to seriously examine the potential of CCS. The success of the Shenhua CCS plan is crucial towards determining the potential of CCS as one of the essential CO₂ mitigation options for China.

For further information on the Shenhua CCS project click here.