Synthetic Gas from Coal


Siemens to supply eight 500 MW coal gasifiers to China

Siemens Energy has received an order from China to deliver eight coal gasifiers. The units, with a thermal rating of 500 megawatts each, are for a coal gasification plant in Yili City in Xinjiang province. The plant converts locally mined subbituminous coal into synthetic natural gas (SNG) with the aim of reducing imports of natural gas for power and heat generation. In its first stage of completion, the plant is to produce around two billion cubic meters of synthetic natural gas per year. The customer is the power provider CPI Xinjiang Energy Co. Ltd, a subsidiary of China Power Investment Corporation, one of the five biggest power generators in China. The coal gasification plant is scheduled to go on line by the end of 2014.

"This order is a great success for us on the hotly contested Chinese market. We see it as a sign of confidence in our technology and of high regard for our company," says Roland Fischer, CEO of the Fossil Power Generation Division of Siemens Energy. Siemens' 500 MW coal gasifiers stand out thanks to their robust design and high degree of availability, low servicing requirements and fast startup and shutdown.

"Five Siemens 500-MW gasifiers are already in operation in China, and we appreciate Siemens as a competent and reliable partner for projects of this scale," says Wang Haimin, General Manager of the CPI Yinan SNG Project, CPI Xinjiang Energy Co. Ltd. "We look forward to co-operating with Siemens and jointly realizing the successful operation of the project."

Energy and its sufficient supply for China is a topic that is paramount in the public discourse. Coal will continue to play an important role in China's energy mix. "Siemens works continuously on introducing innovative technologies to China for producing clean energy, especially the ways to make coal environmentally compatible," says Dr. Wang Baoli, General Manager, Fossil Power Generation Division of Energy Sector, Siemens Ltd., China. "We are fully committed to the Chinese market and will continue to be the highly reliable partner for China's power industry."

With a length of 18 meters, an inside diameter of 3 meters and weighing more than 200 tons, Siemens coal gasifiers are among the biggest and most powerful currently in large-scale industrial applications anywhere in the world. They can process up to 2,000 tons of coal per day. In this project, locally mined subbituminous coal is used to generate a synthesis gas which is then cleaned, de-sulfurized and converted into natural gas in a downstream methanization stage. This synthetic natural gas meets the stringent requirements of the pipeline operators, enabling it to be readily transported via existing natural gas lines.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2010 (ended September 30), the Energy Sector had revenues of approximately EUR25.5 billion and received new orders totaling more than EUR30.1 billion and posted a profit of more than EUR3.3 billion. On September 30, 2010, the Energy Sector had a work force of more than 88,000. Further information is available at: http://www.siemens.de/energy.

Siemens AG

Corporate Communications and Government Affairs

Wittelsbacherplatz 2, 80333 München

Germany

Media Relations:

Gerda Gottschick

Phone: +49 9131 18-85753

E-Mail: gerda.gottschick@siemens.com

Siemens AG

Energy Sector - Fossil Power Generation Division

Freyeslebenstr. 1,

91058 Erlangen

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