China's direct coal liquefaction mass production project has reached its final construction stage. Set to be finished by year-end, this innovative production line will be the first in the world.

Coal liquefaction is a chemical procedure whereby oil products and petrochemicals are manufactured through the use of coals as raw materials.

The project, headed up by Shen Hua Group Corporation Limited, was launched in August 2004 as a cornerstone of China's energy security strategy. An important technological innovation, this is the first time coal liquefaction theories have been put into industrialized production application. Reportedly prior to the project, Shen Hua Group already conducted successful experiments to industrialize coal liquefaction production in Shanghai.
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The soon-to-be-completed project will optimize China's energy structure, relieve its oil shortage and secure its economic safety.

The estimated ratio stands at 3.5 tons of coals to be liquefied into each ton of oil products. If oil prices remains at above US$ 35 per barrel, industrialized coal liquefaction production could prove immensely profitable.

For more details, please read the full story in Chinese. (http://jjckb.xinhuanet.com/yw/2007-08/02/content_60375.htm)

(China.org.cn August 2 2007)