| China moves forward to find substitutes for oil |
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| Thursday,July 13,2006 Posted: 15:50 BJT(0750 GMT) www.chinanews.cn |
Chinanews, Yinchuan, July 12 – China has moved a step forward in its efforts to find substitutes for oil energy resources. The Shenhua Ningxia Coal Group signed a cooperation agreement with the Shell Gas & Power Development Co., Ltd. on Tuesday, which will allow the two companies to conduct a research that aims to develop the indirect coal liquefaction project in the Ningxia Hui Autonomous Region.
Under the agreement, the two companies will jointly conduct a research to test the technical and commercial feasibilities of setting up an indirect coal liquefaction plant in the Ningdong Coal Production Base, one of the thirteen large coal production bases approved by the Chinese government. The plant is expected to produce 70,000 barrels of oil and chemical products a day.
Indirect coal liquefaction refers to a technology by which coal can be first liquefied by indirect process and under the influence of catalyst, the synthesized gas will then be made into oil and other chemical products. This technology is suitable to be applied in China under the state's national situation and the situation in the western region. It has a huge potential market prospect and is promoted in China's national industrial policies and the nation's long-term development plan.
At present, coal accounts for two-thirds of the total non-recyclable energy consumption in China. The coal resources in Ningxia are among the biggest in China. The Ningdong Coal Production Base is one of the large coal production bases in China. The coal resources already confirmed there amount to 27.3 billion tons. Establishing an indirect coal liquefaction project in Ningxia is in line with China's energy development strategy.
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