Shell, China Shenhua Working on Clean Coal Tech

Companies will develop advanced technology to convert coal into gas

Shell said it has signed an agreement with a unit of China's largest coal company Shenhua Group to jointly develop clean coal technology.

Shell China and Shenhua Coal to Liquid and Chemical will develop advanced technology to convert coal into gas, Shell China said.

The two companies will also discuss the possible application of carbon capture and storage, according to an agreement signed on Sept. 9.

"We will work together to provide China with the cutting-edge clean coal technology in order to help meet the country's growing demand for energy and chemicals in a more sustainable way," said Lim Haw-Kuang, executive chairman of Shell Companies in China.

In a legislative resolution passed last month, China said it must "actively deal with climate change" by encouraging a more efficient, low-carbon economy, but made no mention of any reduction targets.

The resolution is the latest in a series of recent public statements laying out China's position against mandatory emissions cuts as the world prepares for key climate change negotiations in Copenhagen in December.

Copyright Agence France-Presse, 2009

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