Wison Engineering Successfully Achieves Qualified Oil Production for the Lu'an Coal Liquefaction Project

Wison Engineering Services Co. Ltd. ("Wison Engineering", SEHK stock code: 2236), one of the leading chemical engineering, procurement and construction (EPC) management service and technology providers in China, announced that Wison Engineering Ltd., an indirect non-wholly owned subsidiary of Wison Group, has successfully got through the overall process flow of 1.8 Mpta high-sulfur coal liquefaction and heating and power integration demonstration project ("180 Project") for Lu'an Group, an EPC project contracted by Wison Engineering.

With the production of the first barrel of qualified blended diesel oil, the facility has successfully entered into a stable production stage with enhanced efficiency. It also marks the establishment of the world's largest independent gasifier and purification plant, achieved through a technological breakthrough in using high-ash melting points and low silica-alumina coal in a large-scale, pulverized coal gasifier. By using waste high-sulfur coal to produce clean oil and highly-refined chemical products, the 180 Project sets an example for the use of high sulfur coal in green, energy conservation and emission-reduction projects.

On 31st December 2017, Lu'an Group held a conference to announce the successful production of qualified oil and celebrated the achievement of this five-year project with its overall contractor, supervisory and construction teams. Wison Engineering extended its congratulations to Lu'an Group during the occasion.

The Project Manager Zhang Xiaofeng from Wison Engineering

The 180 Project is a benchmark project for Shanxi Province's comprehensive economic transformation. The project features "Three Highs and Three Lows", meaning high technological integration, high efficient recycling and high level of demonstration, as well as low water use, low carbon and low energy consumption. The project was listed in the National Key Industrial Productivity Layout and Adjustment Plan by the National Development and Reform Commission (NDRC) in July 2012.

Instead of petroleum-based products, the 180 Project adheres to a differentiated, high-end, scaled and international coal-based chemical industry development strategy that has produced special, coal-based synthesis products of 5 categories, 49 specifications and 180 models, many of which are in the world’s leading position or capable of filling in the technological gap in China.

According to the report from the 19th National Congress of the Communist Party of China, the Chinese government plans to accelerate the development of a green, low carbon and sustainable economy in order to promote energy production and consumption revolution. It will also build a clean, low-carbon, safe and efficient energy system.

With a proven track record of promoting clean coal-to-chemical technology development and industry-leading engineering service, Wison Engineering strives to meet the robust demand for switching to low-carbon energy, turning black coal green, and using clean coal efficiently.

Wison Engineering was awarded the EPC contract of a gasification plant and a PC contract of a purification plant, process technology and external heating pipe for the 180 Project on February 7, 2013. The gasification plant is the world's largest independent-gasifier adopting Shell Coal Gasification Technology. By applying this advanced technology, it can address engineering complexities and process up to 3,200 tons of coal per day. Wison Engineering applied its understanding of the core technology to optimize the fly ash filtration system, ash water system and utilities system during the engineering design stage.

By conducting a comprehensive survey, the Company also successfully localized the technology so as to achieve reduction in investment and elevation of utilization and uptime rates. The project has also achieved the highest standard of efficiency, quality and safety.

The strong technological and project execution capabilities helped Wison Engineering win the recognition of Lu'an Group. In the subsequent EPC contracts of environmental auxiliary facilities, heterogeneous dewaxing devices and olefin separation devices awarded for the same project, Wison Engineering will further pursue its innovation and excellence to help Lu'an Group to achieve safe, efficient and clean energy, through low-carbon development.

Aiming to set a benchmark for the engineering industry, the staff of Wison Engineering and all participating teams followed Lu'an Group's entrepreneurial spirit to work around the clock during the past 40 months in order to help Lu'an to produce its first barrel of oil in 2017.

Chen Huimei, Senior Vice President of Wison Engineering said, "The opening of the plant and its processing system is a testament to our strong technological and project management capabilities. With the project entering into a stable production stage with improved efficiency, Wison Engineering will continue to support the trial operation of the project, ensuring the remaining heterogeneous dewaxing devices and olefin separation devices are completed on schedule while meeting a consistently high standard."

"Lu'an Group's first metallocene PAO (mPAO) demonstration plant in China, for which Wison Engineering was engaged in preparation of the project feasibility study report, process package planning and engineering design, has also commenced construction. We will ramp up our efforts to achieve Lu'an Group's goal: utilize clean coal in green parks with advanced technology," She added.

Liu Haijun, President of Wison Engineering, said, "We are proud to participate in the development of the world's largest gasifying installation and are grateful for Lu'an Group's long-term trust and support in us. From design, procurement, manufacturing, construction to trial run, we worked hand-in-hand with Lu'an Group to overcome all challenges and have now successfully commenced the trial run and produced qualified oil. We are also very honored to join Lu'an Group in opening a new chapter for Shanxi Province's resource-based economic reform, and the green development of China's coal and chemical industry".