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Greenpeace: Shenhua coal project dumps toxic water in China

Greenpeace: Shenhua coal-to-liquid pilot in near Ordos City in Inner Mongolia is draining groundwater and discharging high levels of toxic wastewater, according to a report released Tuesday by the environmental campaign group. The Greenpeace Shenhua report found that the coal project drained more than 50 million tonnes of groundwater from the Haolebaoji region since 2006.

A photo taken in May shows what Greenpeace says is a pipe discharging factory waste water from the Shenhua coal-to-liquid project into a stream in the hills in Ordos in the Inner Mongolia Autonomous Region. The Greenpeace Shenhua report comes as China's new leadership steps up its focus on pollution amid growing protests over environmental degradation.

Qiu Bo/Greenpeace/Reuters/File

July 23, 2013

A project operated by聽China's largest coal miner, Shenhua聽Group, has reduced groundwater levels in a region of Inner聽Mongolia聽and discharged high levels of toxic wastewater, environmental campaign group Greenpeace聽said on Tuesday.

The report, the first by聽Greenpeace聽to single out and publicly challenge one of China's powerful state-owned companies, comes as the country's new leadership steps up its focus on pollution amid growing protests over environmental degradation.

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Shenhua's coal-to-liquid pilot close to Ordos city is one of three such projects operating in聽China. It has drained more than 50 million tonnes of groundwater from the Haolebaoji region since 2006,聽Greenpeace聽said in the report.

"We are taking these allegations very seriously and we will start our own investigations into the project to ensure that it meets all environment-related regulations," a spokeswoman from聽Shenhua聽Group said.

"We will release our own environmental report on the project after the investigation."

The聽Greenpeace聽investigation, which the group said was based on 11 field trips to the聽Shenhua聽project from March to July this year, found high levels of toxic chemicals in discharged wastewater. It said many other carcinogenic compounds were identified in sediment samples.

"Shenhua聽claims its coal-to-liquid project has 'low water consumption' and 'zero discharge'. Our investigation proves these claims are false,"聽Greenpeace聽East Asiacampaigner Deng Ping said.

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"Shenhua's practices are violating Chinese water resource principles and laws controlling industrial waste water discharge."

Shenhua's coal-to-liquid project has a production capacity of 1.08 million tonnes a year, with plans to expand to 5 million tonnes.

Plans to scale up the project would see its water use triple to 41 million tonnes by 2017, according to聽Greenpeace.

Coal-to-liquid technology聽turns the traditional fuel into petrochemicals. The process has long been controversial due to its high water and energy needs but with slowing growth of coal power generation,聽China's coal companies are seeking new markets. More than 100 coal chemical projects are currently waiting for approval, said聽Li Yan,Greenpeace聽climate and energy manager.

"This is why we chose to stand out against a big iconic project like聽Shenhua聽coal-to-liquid at this time as it's still possible that some major decisions can be shifted because of environmental concerns."

The Ordos city government has also claimed damage caused by聽Shenhua's coal-to-liquid project in two notices published on its website, pointing to reduced groundwater levels, irrigation problems, and a lack of safe drinking water for residents. It cited petitions from residents and warned of the threat to social harmony, recommending the relocation of farmers and compensation for water losses. (Reporting By Dominique Patton; Additional reporting by Fayen Wong; Editing by Michael Urquhart)