Shenhua awards project management contract to ABB

BLOOMFIELD, NJ, December 12 – Shenhua Group Corporation has awarded ABB the project management contract of their direct coal liquefaction project to be located in Majiata, Inner Mongolia, People’s Republic of China. The project management will be performed by ABB Lummus Global who will lead an integrated project management team with the owner. Start-up is expected in the latter half of 2005.

The project is the first commercial scale plant incorporating direct coal liquefaction, a process that involves the conversion of coal to hydrocarbon liquids via hydrogenation. This strategically important project will enable China’s abundant coal reserves to be utilized to produce clean liquid fuels at a low production cost.

This project represents the first train of several currently being planned by Shenhua.
Although ABB Lummus Global has over 30 years experience working in China, however ABB Lummus Global considers this project management contract a significant project award in China.

Shenhua Group Corp. is China’s largest coal – based energy company with coal production capacity exceeding 70 million ton in 2001. Its business spans over coal mining, power generation, coal processing, railway transportation, ports and shipping. It is a cross-regional and multi-industrial conglomerate.

ABB Lummus Global is part of the ABB Oil, Gas and Petrochemicals Division that focuses on systems, products and services for oil and gas exploration and development, refineries and petrochemical plants worldwide. The division employs approximately 13,000 people. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering their environmental impacts. ABB operates in more than 100 countries and employs about 146,000 people worldwide.