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Nation plans large-scale investment in new energy
By Mai Dou (China Daily)
Updated: 2006-08-23 08:44
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A growing number of energy firms have shown strong enthusiasm for coal-to-fuel projects in China to cash in on the government's willingness to boost the development of oil alternatives.
The nation's biggest coal company China Shenhua Group has teamed up with global technology leaders such as Royal Dutch Shell and South Africa-based Sasol on the joint study of coal-to-liquids projects in China, which aims to convert coal into 30 million tons of oil by 2020.
Its smaller rival China National Coal Group Corp has also announced a partnership with four other energy firms including Sinopec to build a 21-billion-yuan (US$2.6-billion) project in North China to turn coal into methanol, a blending component for petrol, and dimethyl ether, a clean fuel that can replace liquefied petroleum gas and diesel.
To avoid excessive investment boosted by the industry boom, Ni said the government should come up with more regulations and standards on the construction of coal-to-fuel projects in China.
The NDRC earlier last month issued an industry notice to tighten controls on such project building, and its Vice-Minister Zhang Guobao said companies should remain rational in developing more plants.
"The coal-to-fuel technology is a good way (for China) to handle the high oil prices, but we should develop it with good awareness of environmental protection and economic returns," Zhang said last week in Beijing.