May I ask, what exactly are the reasons for the high cost of converting coal into oil?
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Sir, do you have any information on cost analyses of coal-to-oil processing, so that I can understand what the main reasons for high costs are? Some people say that 60% is for fixed asset depreciation – is that true? Why do raw materials and energy account for over 70% of the cost of synthetic ammonia? I have seen cost analysis reports on synthetic ammonia, and indeed the potential for reduction is already very small. Fixed asset depreciation accounts for only a few percent. And the synthetic oil is part of the fixed assets; are its equipment more complex than those used in ammonia synthesis? Judging from the synthesized air pressure. The synthetic ammonia amount is often only a fraction of that, is it due to other reasons? What exactly is the reason?
What is the investment cost for coal-to-oil production? What is the investment cost for ammonia synthesis?
It says it’s reversed. Judging from the synthesized air pressure. Synthetic ammonia is often only one-tenth or so of that – it should be: “Based on the pressure used in synthesis.” Synthetic ammonia is often still ten to several times higher”
High investment means higher consumption tax, 15%
Investment in annual 4 million tons coal indirect liquefaction project exceeds 55 billion yuan
There is another reason: coal is primarily composed of C, while oil is mainly made up of CH2. Converting C into H is a process that results in a loss of mass, which means that a large amount of raw material is required to produce only a small amount of product; this leads to high investment costs, low output, and high overhead expenses