2009 Media Release

Beijing, 9 September 2009: Shell Global Solutions International B.V. (Shell) has qualified three Chinese companies for the manufacture of key equipment for the Shell Coal Gasification Process (SCGP), in order to make the Shell technology more competitive in the Chinese market.

Dongfang Boiler Group Co., Ltd., Suzhou Hailu Heavy Industry Co., Ltd., and Wuxi Huaguang Boiler Co., Ltd. signed qualification contracts with Shell which allow them to manufacture internal components of coal gasifiers and syngas coolers. This equipment is key to Shell’s coal gasification technology and Shell will work with the qualified manufacturers to ensure their product quality.

Shi Xiaoli, Clean Coal Director for Shell Companies in China, said: “This demonstrates our long-term commitment to growing clean coal business in China. The localization will help speed up project delivery, and enable us to provide Chinese clients with technical services efficiently and rapidly. The locally manufactured equipment may also be available at lower cost.”

The qualification contracts were signed alongside government meetings between China and the Netherlands on sustainable energy cooperation. Officials from the National Energy Administration of China and the Ministry of Economic Affairs of the Netherlands witnessed the signing, after their meeting concluded with a memorandum of understanding on cooperation in the field of energy between the two government departments.

For inquiries, please contact:

Li Lusha
Shell Companies in China
Tel: (86-10) 6505 4501 ext. 2685
Email: lusha.li@shell.com

Notes to Editors

About Shell Coal Gasification Process (SCGP)

Shell has over 30 years of experience worldwide in developing and commercializing coal gasification technology, which turns coal into syngas to produce chemicals, or for use in power generation.

Shell has 19 coal gasification technology licensing agreements with Chinese users. Among the licensees, 11 plants have started up, including the Yueyang coal gasification plant in Hunan province in which Shell is an equity partner with Sinopec.

Shell has established a dedicated clean coal service team in Beijing to provide Chinese clients with technical services supporting their plants’ commissioning, start-up, operation, and efficiency enhancement.

Shanghai Marine Diesel Engine Research Institution (SMDERI) of China Shipbuilding Industry Corporation was qualified in May to produce the coal burner, a core component of Shell coal gasification applications.

Shell has also partnered with Chinese institutes and universities on 15 joint clean coal technology research and development projects.

About the three local manufacturers

Dongfang Boiler Group Co., Ltd. (DBC), established in 1966 and based in Zigong city of Sichuan Province, is a subsidiary of Dongfang Electric Group Company Limited, which is held by Dongfang Electric Corporation. DBC’s main business scope covers designing and manufacturing thermal power equipment, auxiliaries for power plant, large chemical vessels, and environmental protection equipment for power plants as well as large nuclear power equipment for clients at home and abroad. Over the last 40 years, DBC has developed into one of China’s largest export and manufacturing bases for thermal power equipment, a national first class enterprise and a key state-owned enterprise with an annual turnover of more than RMB10 billion.

Wuxi Huaguang Boiler Co., Ltd. in Wuxi city, Jiangsu Province, was reformed from its predecessor Wuxi Boiler Works founded in 1958. It is listed on the Shanghai Stock Exchange, and specialises in manufacturing boilers for power plants, industry boilers, pressure vessels, flue gas desulphurisation and purification equipment，heat recovery steam generators, boilers for garbage treatment, and water treatment equipment.

Suzhou Hailu Heavy Industry Co., Ltd. was reformed from its predecessor Shazhou Marine Boiler Factory founded in 1956. Now the company is listed on the Shenzhen Stock Exchange. It is the only company in China that can produce both marine and land-based boilers. The company produces ten series of equipment with more than 180 categories including industry boilers, electric heating atmospheric boilers, waste heat boilers, marine boilers, nuclear containers, pressure vessels, engineering machines, and seal mechanical equipment.