In engineering construction and production, groundwater environmental impact assessment and prediction serve the protection of the groundwater environment. Building on the groundwater environmental impact assessment in Datang Binzhou combined heat and power (CHP) project undertaken by Geological Environment Monitoring Station of Shandong Province, this paper predicts the groundwater flow and quality impact in project construction and operation by groundwater numerical simulation. The results show that in case of leakage from the steam engine accident oil pool, the particular pollutant petroleum affects an area of 3 096 m² with a maximum migration distance of 63 m in 30 years, and the discharge does not exceed the prescribed limit during the simulation period; in case of leakage from the sewage treatment station, the detectable and excessive range of the particular pollutant COD does not exceed the mesh range of the pollution source in 30 years; in case of accidental leakage from the liquid ammonia tank in the site, the particular pollutant liquid ammonia affects an area of 116 874 m², 84 182 m² beyond the prescribed limit, in 30 years, with a maximum migration distance of 87 m in the pollution plume center, a distance not exceeding the boundary of the site area.