Coal-to-oil not suitable as bulk fuel for automobiles
News Archive - Coal & Electric Power -Oct news
(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