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Page added on July 30, 2006

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China Reins in Fast Growth of Coal-to-Liquid Fuel Projects

China has raised the capital threshold for projects converting coal to liquid fuel to brake a possible overheating in the coal-chemical industry, as excessive development of the fossil fuel pollutes the environment and strains the water supply.

On July 7, the National Development and Reform Commission (NDRC), China’s industrial watchdog, issued a circular requiring local governments to tighten control of new coal liquefaction projects before the national development program for the coal liquefaction industry is complete.

The government will not approve coal liquefaction projects with an annual production capacity under three million tons, said the Commission circular.

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