Coal conversion projects face stricter rules
Print Edition
CHINA has moved to regulate coal conversion projects after the industry expanded blindly in some areas, causing harm to the environment.
Using coal to produce oil and natural gas has become part of a central government strategy to enhance the nation’s energy security. The country has abundant coal resources but is short of oil and gas.
Various demonstration projects have achieved good results in recent years but some projects were built without considering the environment, water resources, technology and economic strength, the National Energy Administration said in a statement posted on its website yesterday.
“Development of coal conversion projects can not be stopped but they cannot proceed recklessly,” the NEA said, adding that projects should be built with a high conversion rate in areas with abundant water resources.
It urged local authorities to tighten approval of new projects. Coal-to-oil projects with an annual capacity below 1 million tons and coal-to-gas projects below 2 billion cubic meters per year will be prohibited, it said.
Projects larger than those will be subject to regulatory approval from the State Council, China’s Cabinet, the NEA said.
According to the statement, coal conversion projects will be banned in provinces that have a net import of coal. The excessive or improper use of water will also be strictly prohibited.
The administration said coal should be used first to meet demand for power generation and coal conversion projects should never affect residential and agricultural water use. All projects violating industry policies will face curbs in land and loan approvals, it said.
The NEA also said it is working with the National Development and Reform Commission on documents to guide the development of coal conversion projects.
Cities hoped to gradually increase the use of natural gas and other clean energy as an alternative to coal, which is one of the main contributors to heavy air pollution in China.
The country started construction of its first coal gasification project in 2009 in the Inner Mongolia Autonomous Region, planning to supply Beijing with 4 billion cubic meters of natural gas, nearly half of the city’s annual gas demand. The first phase of the project was completed at the end of last year.
Several major coal-to-gas projects are also under way in the Xinjiang Uygur Autonomous Region and the provinces of Shanxi and Liaoning, according to earlier reports.
In April, the natural gas supply target was raised to 420 billion cubic meters per year by 2020, compared with 170 billion cubic meters last year.
A 2007 analysis by the US Department of Energy’s Argonne National Laboratory said liquid fuels from coal, even with carbon capture and storage employed, would produce about 20 percent more carbon dioxide compared with gasoline and diesel made from oil.
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