Energy / Climate Change

March 15, 2007


Untapped Asian Coal to be Liquefied with Japan's Unique Technology

Keywords: Fossil Fuels Government University / Research institute 

On August 30 and 31, 2006, Japan's New Energy and Industrial Technology Development Organization (NEDO) reported on its feasibility study of coal liquefaction conducted in China from January 2005 through July 2006. In 2006, coal accounted for 70 percent of energy supply in China. Due to recent skyrocketing oil prices, China plans to meet 10 percent of oil demand with coal-liquefied oil by 2020.

According to the study, a coal-to-liquid (CTL) plant to be constructed in a coal field in China will be economically feasible if oil prices remain at current levels. It is anticipated that unique Japanese brown coal liquefaction technologies could be used to tap low-grade coal in China.

Economically minable coal reserves in the world are estimated to be about one trillion tons, of which half is low-grade coal, such as brown coal, that is left untapped.

NEDO has been conducting verification tests jointly with Chinese companies since April 2006 using its unique technologies, with the aim of the commercialization by 2010. The project is estimated to cost around 100 billion yen (US$ 840 million) for plant construction. When the project gets under way, NEDO will receive license fees to use its technology. In Indonesia, which will become a net oil-importing country around 2010, NEDO will start planning and construction of a CTL plant in fiscal 2007.

Posted: 2007/03/15 02:32:31 PM
Japanese version