China plans to halt all its efforts to make oil from coal due to its high expense and energy demands, however one plant that is being built by state-owned Shenhua Group Corp. Ltd. would be allowed to proceed with its construction of a 1-million-tonne-per-year plant in Inner Mongolia.
Liquefied coal, although helps to reduce China’s dependence on petroleum, but at the same time liquefied coal projects consume a lot of energy. For such projects it has to fulfill high demands of capital, water and coal.
In past projects China had always encouraged to convert domestic coal into liquid fuels, that is gasoline, diesel or jet fuel, in an attempt to cut down its dependence on imported oil. But now the projects may clash with Beijing’s drive for more green area, because of high water consumption and greenhouse gas emissions.
The (National Development and Reform Commission) NDRC official said:
The country had begun the coal-to-liquids projects without trials for industrial use and that the technologies involved were not yet very sophisticated.
The officials estimate that the project of the Shenhua Group a parent of Shenhua Energy Co. Ltd. will cost them somewhere 50 billion yuan (6.58 billion).
China begun coal-to-liquids projects without any trials for industrial use and the technologies involved were not yet very sophisticated at that moment.
China is the world’s top producer of coal and will keep striving to search for substitutes to petroleum.
Image
Source:Reuters