THE government has warned operators against “blindly” developing projects to turn coal into synthetic fuel, underlining the requirements needed for regulatory approval as companies rush into investments that are costly and might harm the environment.
The warning, published by the National Energy Administration (NEA) on its website Tuesday, came days after plans to produce billions of cubic meters of gas from coal were described by a top government researcher as “irrational.”
The government bans coal-to-gas plants that would produce less than 2 billion cubic meters a year and coal-to-oil projects smaller than 1 million tons a year, according to the NEA document.
Even projects meeting those guidelines must get approval from the State Council, China’s Cabinet, before construction can begin, it added.
Natural gas is set to play a crucial role in China’s war on pollution to reduce heavy reliance on coal, with the government aiming to boost total gas supplies to 420 billion cubic meters by 2020, which is 2.5 times the consumption last year.
But production from conventional gasfields has struggled to keep up with demand and China increasingly relies on supplies piped in from Central Asia plus long-term supply deals for liquefied natural gas. It hopes non-conventional sources like synthetic natural gas will help plug the gap.
The Central Government has been cautious in approving coal-to-gas investment, having given final approval to just four plants by the end of 2012, due to concern about coal supply, strain on already scarce water resources and large emissions of carbon dioxide.
(SD-Agencies)
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