Axens’ T-Star^SM Technology has been selected by the Shenhua Group Corporation of China for their coal liquefaction project in Inner Mongolia. This will be a first-of-a-kind direct coal liquefaction plant and will produce about 19,000 barrels per day of oil from coal in a single train plant. Axens was selected based on their extensive experience with heavy oil conversion and coal liquefaction, including the commercially demonstrated

H-Oil^Ò Process and the H-Coal^â Large Pilot Plant demonstration program at Catlettsburg, Kentucky in the 1980’s. The T-Star Technology is being designed to hydrotreat 10,400 metric tons per day of recycle liquid from the Direct Liquefaction Unit. This single train, single reactor T-Star Unit is well adapted because of its ability to handle small amounts of coal particles and maintain constant product quality. Additional coal liquefaction trains are planned in the future. Plant start-up is set for fourth quarter 2005.

Axens was previously selected by Shenhua Group Corporation to provide the Basic Engineering Design and technical support services for the project. The T-Star Technology is an outgrowth of the highly successful H-Oil Technology which has been in commercial operation for 40 years. Recent advances made by Axens to the T-Star Process have made this technology a leading candidate for hydrotreating and mild hydrocracking difficult distillate feedstocks.

Shenhua Group

Shenhua is China’s largest coal company with production capacity approaching 60 million tons per year and coal reserves exceeding 220 billion tons. Shenhua’s business line includes energy and transportation including coal mines, power plants, a railway, coal terminal and shipping fleet. Coal testing has been conducted since 1997. The feasibility study was completed in April 2002 and the Chinese government formally approved the Coal Liquefaction Unit in September 2002.