Technological innovation, not only providing necessary technology supports for Shenhua in studying a series of major technological problems, which constrains the development thereof and seeking for high-speed, sound, and sustainable development, but also makes breakthroughs in some technological areas and gains tremendous economic profits for the Group. According to statistics, in recent years, technological innovation creates more than RMB10 billion of direct economic benefits for Shenhua annually. And the indirect economic and social benefits created thereby are incalculable.

(1) Construction of modern Shendong Mining Area and production technology thereof. The Shendong Mining Area studies and implements rapid well construction technology. Yujialiang Mine with the designed production capacity of 8 million tons / year only costs 10 months for completion of construction and putting into production, which creates the world miracle of rapid construction of super-large mining well. It firstly creates the comprehensive mining working surface multi-channel fast moving technology. Shendong Hala Gou Coal Mine boasts the first 100-person 10 million-ton coal mine in the world. Shendong mining area, in terms of safety, environmental protection, efficiency and so on, has achieved a world-class level. The direct economic benefit created by the application and promotion of the technology in recent three years amounts to RMB16.3246 billion. It has won the First Prize of National Scientific and Technological Progress.

(2) Localization research and development of coal mining equipment. Shenhua Group takes the lead in carrying out various forms of the key technologies researches. It has achieved success in localization of 2.4 meters - 6.3 meters series of hydraulic roof support, breaking international monopoly and breaking through the mechanism problem of the “first-machine performance”. Shenhua has saved RMB6.644 billion of equipment investment in 3 years thanks to its procurement of domestic hydraulic roof support and brings the profit nearly to RMB10 billion to related manufacturing enterprises.

(3) Technology for the coordinated development of resource and environment in Shenhua mining area. Shenhua Group has achieved “ benefiting the people in the mining area and conducting environmental protection while developing one coal area”, and has gradually realized the optimized utilization of coal, water, land and other natural resources as well as improvement of the quality of the ecological environment. The vegetation covering rate in the Shendong mining area has been increased from 11% at the early period of development to 63% currently, which enables it win the 2005 “China Environment Prize”.

(4) Technological research and application for thermal power plants fueled with coal of Shenhua. The technology outcome provides technological support for clean and high-efficient burning of 80,000MW power plants fueled with coal of Shenhua. From 2006 to 2008, the consumption amount of Shenhua’s coal were newly increased by 179 million tons and net benefits was newly added by RMB13.8 billion, making the coal of Shenhua become one of the most important coal categories both at home and abroad.

(5) Shenhua direct coal liquefaction technology. It has mastered direct coal liquefaction technology with independent intellectual property right. The first production line in the world with the annual production capacity of 1 million tons of oil successfully produced oil on December 31, 2008, marking that China has become the only country which has mastered mega-ton direct coal liquefaction technology in the world.

(6) Technology of construction and operation for Shuohuang heavy-loaded railway. It is the first time to have the pattern of majority-holding by a company to construct and operate the heavy-loaded coal transportation railway. The saline soil roadbed construction technology for heavy-loaded railway has reached the world advanced level. In 2006, Shuohuang Railway was awarded one of the top ten “Environment-friendly Projects” in China. In the past three years, it has created direct economic profits of RMB10.887 billion. Moreover, it won the Second Prize of National Scientific and Technological Progress.

(7) Abrupt Silt Control Technology for Channel of Huanghua Port. It is the first time to invent “The Abrupt Siltation Control Technology for Channel of Huanghua Port”, which integrates several technologies. The technology has successfully solved the siltation in the channel of sludge sandy Huanghua Port, which is the most difficult issue to solve in the world. The application of the technology has completely solved the transportation “bottleneck”, which constrains the development of Shenhua, and has actually brought RMB1.991 billion of direct economic profits.