China will invest over one trillion yuan (about US$127 billion) in developing
an alternative coal-based energy source to ease the country's dependence on oil
imports, according to the National Development and Reform Commission (NDRC).
The
project aims to produce 30 million tons of liquefied coal and 20 million tons of
dimethyl ether (DME) by 2020.
Coal-to-olefin (CTO) output is expected to
hit 8 million tons and coal methanol to reach 66 million tons.
Traditional coal-chemical industries that have been guilty of
overproduction, such as calcium carbide and coke, will be kept under control.
The money will also be spent on building seven industrial bases
nationwide to produce coal-based energy source on a massive scale, including the
biggest alternative fuel production base in the lower reaches of the Yellow
River.
Xinjiang is projected to produce 10 million tons of liquefied
coal, and the eastern region of Inner Mongolia will become the major methanol supplier, with
an annual capacity of 10 million tons.
A pipeline, at a cost of five
billion yuan, will be built to transport 10 million tons of methanol a year from
Inner Mogolia to the northeastern Liaoning province.
As the technology is still in the
experimental phase, the NDRC said in July that coal liquefaction projects should
not be approved until a national development program for the industry is
completed.
Coal-chemical projects must meet environmental requirements
and those that fail to meet the safety requirements in transportation should not
receive the green light, said the NDRC.
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