Xinhuanet news agency, Taiyuan August 11th  The principal of China Petroleum and Chemical Industry Association (CPCIA) said on 11th that China should cautiously plan the development of coal chemical industry and take the strategy of cautious development for the hotspot Coal-to-Liquids of present coal chemical industry.

    The vice-chairman of China Petroleum and Chemical Industry Association (CPCIA), Yang Weicai, indicated at the "High-level Forum for China petroleum and chemical Economy 2006" held during the period that the development of coal chemical industry should take layout planning, resources configuration and other aspects into full consideration and then confirm development stress, but not follow the herd.

    The coal chemical industry comprises coal charring, coal gasification, coal liquefaction and calcium carbide etc. In recent years, the increase of international oil price has pushed the development of China coal chemical industry. At the same time, the symptom of blind planning and project contest neglecting carrying capacity for resource, zoology and environment appeared in some regions. Take calcium carbide, coke and other highly energy-consuming industries as examples, according to data provided by National Development and Reform Commission, the production capacity of calcium carbide in China doubled the output of that year, the production capacity for coke towered more than 70,000,000 tons above the market demands at home. From January to May of this year, the output of calcium carbide and coke has increased 33．9% and 24．2% than the same time of last year respectively.

    Moreover, the tendency of blind development of methanol from coal, DME and other substitutes for petroleum is shown gradually. According to statistics, the output of methanol that are under construction , proposed to build and plan in China has reached about 20,000,000,000 tons, while coal liquefaction and olefin are still on the stage of industrial test and demonstration, some regions plan to launch projects one after another which hides great investment risks.

    National Development and Reform Commission recently issued "Notification on Strengthening Project Management of Coal Chemical Industry & Encouraging Healthy Development of the Industry", which gives proposals for the planning, layout and development stress of the coal chemical industry. The Notification call for encouraging development of fertilizer from coal and other products, steadily developing coal liquefaction, methanol, DME, olefin and other substitutes for petroleum, and normatively developing calcium carbide, coke and other highly energy-consuming products. Due to coal liquefaction is still on demonstration stage, it is suggested to popularize after success.

    Yang Weicai said that Coal-to-Liquids is a diversified feasible approach in solving the long-term supply of energy with strategy significance.  may it is ofgreat risk to liquefy coal directly into oil since there is no industry production equipment being operated in the world at present. Therefore, it is not suitable to launch new direct liquefaction equipment before successful operation of 100,000,000 tons level Coal-to-Liquids direct liquefaction equipment of Shenhua Group.

    As for indirect Coal-to-Liquids, Yang Weicai indicated that there have been mature technology and industrialization abroad, and there have been obvious progress in techniques research in China. It is now at the stage of industrialization development and demonstration, so it should be popularized after success achieved.

    It is released that, Shenhua Group is planning 3 indirect Coal-to-Liquids projects and is joining venture with and introducing technology from South Africa Shasuoer Company and Kepai respectively. The annual production capacity of the 3 projects is 3,200,000 tons and is estimated to reach 10,000,000 tons commercial production capacity after 2011.