China Shenhua is mainly specialized in the integrated industrial chain involving coal production, coal transportation (railway, port and shipping) and coal conversion (power generation and coal-to-chemicals). In 2023, China Shenhua actively followed CHN Energy Policy for stable supply and price by holding firm to the corporate mission of “Ballast for Energy Supply and Pioneer in Energy Revolution”. China Shenhua achieved safe and efficient operation in an integrated way and made solid efforts for energy supply. With emphasis over clean and efficient coal use, China Shenhua contributed to strategic emerging industries in full swing, and efficiently realized the annual production and operation goals.
Coal
Thermal coal is the dominating coal product manufactured and sold by China Shenhua. In 2023, China Shenhua insisted on energy security through coal business. Long-acting energy supply mechanism in normal state was consolidated and expanded. High-quantity and stable coal production sustained. The annual commercial coal yield reached 324.5 million tonnes, 3.5% up year on year. China Shenhua vigorously optimized the lay-out of production system and popularized the technology of gob-side roadway retaining without coal pillar, raising mining and tunnelling ratio and making production more efficient. Underground coal mines saw a total roadway development of 404 thousand meters in 2023. Coal resource succession, license application and capacity verification and expansion proceeded in an orderly manner. Licenses were issued to Xinjie Mines No.1-2 in Xinjie Taigemiao Mining Area, Inner Mongolia. Alteration was made in the mining rights scope of Bulianta Coal Mine, Shangwan Coal Mine, Wanli No.1 Mine and Haerwusu Open-pit Mine, followed by the issued mining licenses of new version. Application for annual capacity expansion of Baode Coal Mine from 5 million tonnes to 8 million tonnes was approved by National Mine Safety Administration.
China Shenhua consolidated and improved the application level of intelligent and digital achievements in coal mines. By the end of 2023, China Shenhua operated 35 intelligent coal mining faces and 61 intelligent roadway development working faces at underground coal mines. There were 19 intelligent coal preparation plants. 208 unmanned production vehicles worked in open-pit coal mines. Research, development and application were conducted for more than 200 sets of coal mine robots specialized in tunnelling, mining, coal transportation, safety control and rescue.
In 2023, China Shenhua fulfilled responsibilities of a central SOE by sparing no effort to guarantee coal supply. Performance rate of medium-term and long-term thermal coal contracts exceeded 100%. China Shenhua flexibly adjusted the business strategy and innovated the pricing mechanism. In the context of increased resources and market development, purchase and sale simultaneously gained ground. Year-on-year growth took place in coal sales volume, outsourced coal sales volume and imported coal sales volume.
Electricity
By the end of 2023, installed capacity of generating units totaled 44,634 MW in China Shenhua, including total installed capacity of 43,164 MW from coal-fired generating units, accounting for about 3.1% of total installed thermal power capacity of the whole society. The annual average utilization hours of coal-fired power generation units were 5,221 hours, with an increase by 270 hours year on year, 536 hours higher than the average utilization hours of coal-fired power generation equipment with installed capacity of 6,000 KW and above in the nationwide power plants.
In 2023, China Shenhua gave full play to the role of coal power as the mainstay of energy source. Coal-fired power units achieved “high in-service rate, high load rate and long-cycle continuous operation”. Construction of clean and efficient coal-fired power units made progress. Units No. 1-2 of Yueyang Project in Hunan and Units No. 1-2 of Qingyuan Project in Guangdong have been successively put into operation. By implementing the business philosophy of “intensive management, price, cost and profit” and coordinating efforts in output increase and tariff maintaining, spot trading, and thermal power marketing, China Shenhua has achieved incremental growth in both output and revenue. In the context of further coordinated transformation of energy conservation and carbon reduction, heating and flexibility in coal-fired power units, green and low-carbon transformation and development gained enormous momentum. Coal-fired power units with capacity of 10.2 GW were reengineered towards energy saving and consumption reduction, coupled with 5.58 GW reengineered towards flexibility, and 4.4 GW reengineered towards heating supply. Heating supply capacity and peak regulation capacity rose by 268MW and 525MW, respectively, while coal consumption for power supply decreased to 294.9 g/KWh, down by 1.8 g/KWh year on year.
New Energy
China Shenhua vigorously broadened renewable energy business channels and added investments. In 2023, land resources were utilized to the utmost extent, such as waste dump of open-pit mines, reclamation areas and idle land along the railways, where photovoltaic projects were invested and built. Grid-connected power generation was made by a 150MW centralized photovoltaic power station based on waste dumps of open-pit mines run by Shengli Energy, as well as such distributed photovoltaic projects as Baorixile Open-pit Coal Mine and Guojiawan Power Plant.
By the end of 2023, 77 photovoltaic power generation projects, with total installed capacity of 512 MW, had been put into operation. M&A and investment of 37 new energy projects in the fields of photovoltaic power, wind power and hydrogen energy equipment manufacturing were undertaken by Beijing Guoneng New Energy Industrial Investment Fund and Beijing Guoneng Green and Low-carbon Development Investment Fund, with China Shenhua as one of sponsors.
Coal-to-chemicals
China Shenhua Baotou Coal Chemical Coal-to-olefin Project mainly rolls out polyethylene (PE, with annual capacity of about 300 thousand tonnes), polypropylene (PP, with annual capacity of about 300 thousand tonnes) and by-products in small quantities, including sulfur for industrial use, mixed pentane, propane for industrial use, mixed butane, methanol for industrial use, refined methanol, etc.
In 2023, safe and stable operation was witnessed in coal-to-olefin project equipment of Baotou Coal Chemical, characterized by continuous production and high yield. Polyolefin yield totaled 702.9 thousand tonnes, 1.3% up year on year. Efforts were made to advance the research and development of premium coal-to-olefins, diversify product categories and develop new products (including high-transparency polypropylene resin and low-density high-melt-index polyethylene), further enhance market competitiveness. Thanks to optimized process technology and effectively reduced energy consumption and water consumption, the annual comprehensive energy consumption and water consumption per unit product dropped by 3.0% and 8.6% year on year, respectively.
Railway
In 2023, China Shenhua efficiently devoted to coal transportation with energy supply task at the core. Practical actions were taken to improve the management of railway dedicated lines and synergize the management of railway dedicated lines and transportation resources in a more effective manner. The professional, intensive and integrated support capacity of railway equipment scaled to new heights. The capacity expansion and renovation project of Wochang Station of Zhunchi Railway was completed. 20-thousand-tonne heavy haul trains are now in service across sections along Zhunchi Railway and Shuohuang Railway, further achieving higher efficiency of coal transportation. Self-owned railways achieved the annual transportation turnover of 309.4 billion tonne-kilometers, registering a year-on-year increase of 4.0%. Impetus was given to the development of non-coal logistics business. 22.3 million tonnes of iron ore, manganese ore, chemicals and other non-coal cargoes were transported, up by 13.8% year on year, including 16.9 million tonnes of cargoes for reverse transportation.
Port
In 2023, China Shenhua scheduled production plan in a more scientific way and made every effort for the efficient and unimpeded integrated industrial chain. Huanghua Port achieved coal shipment volume of 209.5 million tonnes, up by 2.1% year on year, ranking first among domestic coal ports in terms of coal shipment volume. Coal shipment volume reached 45.8 million tonnes in Tianjin Coal Terminal, up by 1.3% year on year.
The pace of port handling capacity building was accelerated. By earnestly implementing General Secretary Xi Jinping’s important instructions during his inspection tour for Huanghua Port, China Shenhua promoted the reverse railway-port-shipping transportation in all aspects. Under the integrated bidirectional heavy-load multimodal transportation, Huanghua Port succeeded in offering bidirectional navigable waterways for 70-thousand-tonne ships. As large logistics business of ports developed rapidly, the annual transportation volume of non-coal cargoes totaled 12.5 million tonnes, up by 62.3% year on year.
China Shenhua endeavored to realize the intelligent and green development of ports. With more efforts for research, development and application of automatic loading technology, Huanghua Port has become the first coal port featuring intelligent coal loading in China. Pilot project of “Green Port Development” in the initiative of developing China into a transport power has passed the acceptance by Ministry of Transport. Shore power connection facilities have been available in all self-owned terminals and vessels, demonstrating the notable effects of pollutant mitigation and carbon reduction.
Shipping
In 2023, China Shenhua achieved integrated operation on a firm footing. By scientifically unleashing transportation capacity and safeguarding safe coal transportation to the full, China Shenhua saw the increase in both import volume and transit trade volume. The annual shipping volume was 152.9 million tonnes and shipping turnover was 164.7 billion tonne nautical miles, up by 12.2% and 23.3% year on year, respectively.
