The Shenhua Coal-to-liquids Project is located in Ulan Mulun Town, which is built by Shenhua Ordos Coal-to-liquids Subsidiary Company (a wholly-owned company of China Shenhua Coal to Liquid and Chemical Co. Ltd). This project adopts the Shenhua coal direct liquefaction process (independent intellectual property rights). With coal as raw material, in the use of nano-scale catalyst and under the effect of hydrogen-based solvent, clean oils are produced through high temperature, high pressure liquefaction reaction and refining processing. It is the world's only one commercial chemical plant engaged in Direct Coal Liquefaction at the scale of million tons. The Phase I of this project maintains a design capacity of 4 million tons/year, in which the first production line possessing design capacity of 1.08 million tons with total investment of RMB 13.7 billion. This production line went into feed production in 2008. In 2016, the Company cumulatively produced 849,000 tons of various types of oils, registered an output value of RMB 3.25 billion and sales income of RMB 3.08 billion, and paid taxes of RMB 190 million. The second and third production lines attract total investment of RMB 40 billion. These are designed with annual output of 2.86 million tons of oils. Currently, supporting documents on environmental assessment, energy conservation and other aspects (pending for content adjustment) and the pre-construction procedures are being dealt with as required by the State. The supporting living zone has been put into use and 80% of aggregate field-leveling workload has been completed. The second and third production lines of coal-to-liquids attracted cumulative investment of RMB 1.47 billion during 2015-2016; a further RMB 500 million investment is expected in 2017.