China's Shaanxi Coal and Chemical Industry Group has recently launched production at its 500,000 mt/year coal tar processing plant in Shenmu in northwestern Shaanxi province, the Chinese coal producer said May 16.

Using technology developed by Shaanxi Coal and Chemical, the Yuan 1.7 billion ($249 million) Shenmu plant produces oil products such as gasoil and gasoline from hydrocracking coal tar.

The project is designed to convert 2.1 million mt/year of coal and process 500,000 mt/year of coal tar. It is capable of producing 1.35 million mt/year of semi coke, 380,000 mt/year of light coal tar, 80,000 mt/year of petroleum coke and by-products such as sulfur and liquid ammonia with annual production value over Yuan 3 billion ($439.24 million).

Shaanxi Coal and Chemical Industry Group has targeted producing 100 million mt of coal worth about Yuan 32 billion ($4.69 billion) this year.