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| Coal-to-oil not suitable as bulk fuel for automobiles |
| News Archive - Coal & Electric Power -Oct news | |
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(Interfax, Oct 26, 2006) Coal-to-oil is not suitable as a bulk fuel for automobiles in China because of efficiency and pollution problems, said Feng Fei, the Director of the Economic Research Department under the Development Research Center (DRC), the State Council think-tank. China could develop coal-to-oil projects on the back of its abundant coal supplies and mature technologies if oil prices stand at more than USD 28 a barrel. A big problem is that the oil produced from coal is 100%-200% less efficient than conventional automobile fuel, Feng was quoted by state news agency Xinhua as saying. Moreover, the oil derived from coal emits 50%-100% more carbon dioxide. Therefore, coal-to-oil technology can serve as a strategic industry to help improve China's oil security but it cannot serve as bulk fuel for automobiles in the future, the DRC official said. Xiao Hui, a senior energy analyst with United Securities said that coal- to-oil projects also consume too much energy and water themselves. "All coal-to-chemical projects, including coal-to-oil, consume a lot of energy themselves, resulting in disputes among industry experts whether or not they are economical enough," Xiao said. "Moreover, all coal-to-chemical projects are very dependent on water resources. But unfortunately, China's coal-producing regions are mostly in the west, where water is scarce even for residential consumption". "The large-scale promotion of coal-to-oil still remains doubtful in China at the moment and making it a bulk fuel for automobiles is not very likely, at least in the short-term," Xiao said. Source:Interfax |
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