Oil Change International

Exposing the true costs of fossil fuels

China: Coal to Oil in 2008

Stupid Idea One. China’s largest coal company Shenhua Group will produce China’s first barrel of oil fuel from coal in 2008 using technology known as direct coal liquefaction.

“We have finished 95 percent of the engineering projects at the first production line in Erdos of north China’s Inner Mongolia Autonomous Region. The line will start making liquid products next year in trial operation,” said Zhang Yuzhuo, who is in charge of Shenhua’s coal liquefaction business.

Zhang said the first production line would use 3.45 million tons of coal every year to make 1.08 million tons of liquids including diesel oil, plus liquefied petroleum gas (LPG) and naphtha, a volatile, flammable liquid hydrocarbon mixture.

So three and a half tones in and one tonne out. Doesn’t make much sense to me..

Comments (5)

  1. Robert says:

    Better than buying it at $200.00 a barrel… and paying $10.00 a gallon… aren’t you a moron

  2. William Deans says:

    Dear Mr Rowell:

    Stupid???? If you could turn 3.5 units of lead into 1 unit of gold would you do it? Oil is black gold and coal is as cheap as dirt. This is why America is complaining about its economy while China is experiencing double digit growth. Our political convictions and culture are getting in the way of progress and ultimately we all suffer for it.

    William Deans

  3. Scott Crawford says:

    Seems like a great idea, it is a great idea, the reason the chinese are doin it is because they don’t give a damn about emmisions or the enviroment. The process to change coal into fuel lets out alot of carbon dioxide, alot more than traditional oil refineries let out making gasoline, however, american companies are working hard to develop new technologies to reduce the carbon dioxide emmissions, they are just lacking funds, and our gov. isn’t helping them out much.

  4. baiyao says:

    I work in this refinery!
    it has been started successfully in 2008.Direct liquefaction has lower dioxide emmissions than indirect liquefaction which has build in South Africa XD!

  5. Smart people the Chinese both America and Australia should be into this technology as we both have heaps of coal and shale oil. We mothballed a new $100 million shale to oil refinery in Queensland because of pressure from Greenpeace.
    I wonder who the biggest funder of Greenpeace is, not big oil of course? Even the Greens would have to admit it’s safer for the environment to have a bit more Co2 in the air then ship oil half way around the world or have to depend on states that support terrorists?

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