China's Clean Coal-to-Oil Industry Set to Substitute Significantly Amounts of Crude Oil

A recent joint study by the China Coal Information Institution (CCII) and Centric Austria International has predicted that China's clean coal-to-oil industry will substitute a substantial amount of crude oil by 2015 and 2020. According to the study, by 2015, the industry will substitute 37.79 million tons of crude oil, accounting for 16 per cent of China's crude production. By 2020, this number is expected to increase to 83.52 million tons, accounting for 30 per cent of China's crude production. The study concludes that the clean coal-to-oil process is a crucial strategy for China to secure national energy security and achieve sustainable development of the coal industry.

Key Takeaways:

• The clean coal-to-oil industry is expected to substitute 37.79 million tons of crude oil by 2015, accounting for 16 per cent of China's crude production.
• The industry will substitute 83.52 million tons of crude oil by 2020, accounting for 30 per cent of China's crude production.
• In a low growth scenario, China's clean coal for oil businesses will substitute 46.56 million tons of crude oil by 2020, accounting for 18.8 per cent of the national crude output.
• In a high growth scenario, the industry will substitute 136.75 million tons of crude oil by 2020, accounting for 40.5 per cent of the national crude output.
• The clean coal-to-oil process refers to the substitution of fossil oil by utilizing coal based methanol, dimethyl ether, methanol to olefin/methanol to propylene, and coal liquefaction.
• China's clean coal for oil businesses will consume about 300 million tons of coal by 2020.
• Emits 350 million tons of carbon dioxide by 2020.
• The production capacity of China's coal liquefaction plants will top 12 million tons by 2015 and 33 million tons by 2020.
• The government is expected to unveil incentive policies and proactive capacity expansion plans somewhere between 2011 and 2015.
• Xinjiang Uygur Autonomous Region is seen as a land of opportunities due to its enormous coal reserves, supportive policies, and insufficient railway transport capacity.

Statistics:

• 37.79 million tons: Substitute amount of crude oil by 2015
• 16%: Proportion of China's crude production substituted by clean coal-to-oil industry by 2015
• 83.52 million tons: Substitute amount of crude oil by 2020
• 30%: Proportion of China's crude production substituted by clean coal-to-oil industry by 2020
• 46.56 million tons: Substitute amount of crude oil by 2020 in a low growth scenario
• 18.8%: Proportion of national crude output substituted by clean coal-to-oil industry in a low growth scenario by 2020
• 136.75 million tons: Substitute amount of crude oil by 2020 in a high growth scenario
• 40.5%: Proportion of national crude output substituted by clean coal-to-oil industry in a high growth scenario by 2020
• 300 million tons: Coal consumption by China's clean coal for oil businesses by 2020
• 350 million tons: Carbon dioxide emissions by China's clean coal for oil businesses by 2020
• 12 million tons: Production capacity of coal liquefaction plants by 2015
• 33 million tons: Production capacity of coal liquefaction plants by 2020

Sources:

• "China's Clean Coal-to-Oil Industry Set to Substitute Significantly Amounts of Crude Oil"
• Asia Pulse, September 24, 2023
• (XIC) Maz 24-09 1823