Coal-to-liquid fuel gets a lift

Coal-to-liquid fuel could make up 4% of China’s total refined oil products by 2015 and 10% by 2020. The country plans to increase annual capacity for turning coal-into-liquid fuel from a very small amount now to 1.5 million metric tons by 2010, 10 million tons by 2015 and 30 million tons by 2020. China plans to spend RMB1 trillion (US$129.1 billion) through 2020 to develop its coal-to-liquid-fuel and chemical industry as it works to reduce the country’s reliance on oil imports. Half of the budget will be used for equipment supply and 10% for technological know-how. China also wants to build the capacity for making dimethyl ether (DME) to five million tons, 12 million tons and 20 million tons by 2010, 2015 and 2020, respectively. DME, produced from methanol made by gasifying coal, is a clean-burning fuel alternative that can be blended with other fuels. (December 15, 2006)