The Construction Project of Shanxi Shenhua Hequ Low Calorific Value Coal Power Plant of China Shenhua Energy Company Limited has been approved by the National Development and Reform Commission. The NDRC has approved the construction of the Project with a view to preserving the environment of the mining area, enhancing the efficiency of energy use and saving transportation capacity and land resources. The Project, located in Hequ County of Xinzhou City, Shanxi Province, is to be operated by a project company jointly established by Shenhua Shendong Power Co.

Ltd. Shendong Power holds 51% interests in the project company. The Project is to build two domestic air-cooled coal-fired generators, each with a capacity of 300 MW. Upon operation, the water for usage by the power plant will be sourced from the local sewage treatment plants and coal mine drainages; while coal-fired consumption is mixed with coal gangue and coal ash.

The total dynamic investment of the Project is approximately RMB 2.59 billion with a capital fund accounting for approximately 20%. The remaining shall be funded by bank loans.