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China to Invest $128 Billion to Develop Coal-Based Synthetic Fuels

Xinhua. China will invest more than one trillion yuan (US$128 billion) to develop alternative coal-based synthetic fuels 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.

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 Mongolia to the northeastern Liaoning province.

In July 2006, the Chinese government determined that it would not approve coal liquefaction (Coal-to-Liquids) projects with an annual production capacity of less than three million tons; coal to methanol or dimethyl ether (DME) projects of less than one million tons; and coal-to-alkene projects of less than 600,000 tons, according to a circular released by the National Development and Reform Commission (NDRC). (Earlier post.)

Comments

Matt

we are so screwed

allen_Z

Neil,
Northern mainland China has many oil fields, most aging/declining. That is roughly 100-300mi from the coal rich regions. There is already infrastructure in place, for transport of coal, since many eastern cities have coal fired plants that need to be supplied, in order to keep a steady supply of electricity to the booming eastern/coastal areas.


ad,
In fact, they are in a transformation. Shifting from living in areas, with lifestyles that do not require them to travel much (on foot or bike) for day to day living, to a more car/rapid transit based model, many now travel miles to jobs, and to shop. However, many citizens in mainland china, even in wealthier areas, still walk. In larger cities (1+ million urban), sidewalks of main thoroughfares (4 or more lanes) are akin to those of Midtown here in NYC. Many intersections have elevated crosswalks, in the form of a large ring, to alleviate safety and traffic issues.
_Subways, even in the PRC, are expensive (>$1 billion/mile tunnel), and will face earthquake induced liquifaction issues. They do have the financial reserves, but the leadership appears hesitant to invest large chunks of it. Fear of overheating the economy is one reason. Building a rainy day/bailout fund is another. Projects that do get approval/funding often are high visibility megaprojects. This article notes one such high priced/high stakes endeavor. River diversion is another. Creation/expansion of subway/rapid transit systems in the biggest metro areas (>5 million urban) will be a third way to invest the funds.

May Chow

Centre for Management Technology ( CMT )presents a complete and up to date overview of the industry, CTLtec 2007.

Global trends of Coal-to-liquids, Coal Gasification and Coal-to-Chemicals, DME, MTO, Fischer-Tropsch process will be covered + features key organisations and senior decision makers, providing attendees with exceptional networking and business opportunities.

A must attend event for your 2007 calendar. Don’t hesitate!

Register online @ http://www.cmtevents.com/events.aspx?EV=070317&PG=sy&FL=mar with your team

Alternative Fuel Technology

The Chinese are working hard to improve their energy problems. For more information about DME, vist www.altfueltechnology.com

Cheryl Ho

There are developments in DME/MEthanol in China today:
Access to methanol, a key primary input, to manufacture DME , Xinao recognise this and JV with Methanex to grow the DME Business. While there are several technology developments recently for selective production of olefins, especially propylene either from methanol or from DME. UOP and Lurgi are fairly advanced in the technology. In fact Lurgi AG, will be sharing their experience at upcoming North Asia DME / Methanol conference in Beijing, 27-28 June 2007, St Regis Hotel. The conference covers key areas which include:


DME productivity can be much higher especially if
country energy policies makes an effort comparable to
that invested in increasing supply.
By:
National Development Reform Commission NDRC
Ministry of Energy for Mongolia

Production of DME/ Methanol through biomass
gasification could potentially be commercialized
By:
Shandong University completed Pilot plant in Jinan and
will be sharing their experience.

Advances in conversion technologies are readily
available and offer exciting potential of DME as a
chemical feedstock
By: Kogas, Lurgi and Haldor Topsoe

Available project finance supports the investments
that DME/ Methanol can play a large energy supply role
By: International Finance Corporation

For more information: www.iceorganiser.com

Cheryl Ho

China is already most advanced in commercial use of DME as a mixture with LPG. China is mainly interested in DME production from their own coal resources as national policy. South Korea is also interested in DME. As KOGAS is predominant in handling gas in South Korea , MOU for market study in South Korea has been signed between TOTAL and KOGAS quite recently. Their interest of DME is for LPG market as well as fuel for diesel trucks.

If you would like to know more on the latest DME developments, join us at upcoming North Asia DME / Methanol conference in Beijing, 27-28 June 2007, St Regis Hotel. The conference covers key areas which include:


DME productivity can be much higher especially if
country energy policies makes an effort comparable to
that invested in increasing supply.
By:
National Development Reform Commission NDRC
Ministry of Energy for Mongolia

Production of DME/ Methanol through biomass
gasification could potentially be commercialized
By:
Shandong University completed Pilot plant in Jinan and
will be sharing their experience.

Advances in conversion technologies are readily
available and offer exciting potential of DME as a
chemical feedstock
By: Kogas, Lurgi and Haldor Topsoe

Available project finance supports the investments
that DME/ Methanol can play a large energy supply role
By: International Finance Corporation

For more information: www.iceorganiser.com

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