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The Japan Bank for International Cooperation (JBIC) has signed an untied loan agreement totalling up to US$80mn with the government of the People’s Republic of China for the Anhui Coal Gasification Project in China. The loan was co-financed with four private banks (Mizuho Corporate Bank being the lead bank), with JBIC guaranteeing to cover the portion financed by the private banks.

The project draws on clean coal technology to upgrade the production line at an ammonia manufacturing plant in Huainan City, Anhui Province in China. The proceeds of the loan will be used to replace the present equipment, which uses coke gas as a raw material in the production of ammonia, with new equipment that instead uses coal gas.

Japan relies on China for nearly 20% of its coal imports. The demand for coal has been increasing significantly, mainly in China, but also in other Asian countries, and it is expected that coal will be in short supply in the Asian region during the coming years. By installing equipment that increases the combustion efficiency of coal, this project is expected to reduce wasteful use and increase the efficiency of coal-related resources. This will help secure a stable supply of energy resources for Japan.
The project will also contribute to improving the environment in China as it will reduce the water and air pollutants that are generated in the ammonia production process.