In April 2007, the **National Development and Reform Commission released the 11th Five-Year Plan for energy development**
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In April 2007, the **National Development and Reform Commission issued the ‘11th Five-Year Plan for Energy Development’, outlining a blueprint for China’s energy development over the next five years. This newly unveiled blueprint states, \"We strive to build a stable, economical, and clean energy system, using the sustainable development of energy to support the sustainable development of our country’s economy and society.\" ” Five years: Laying a solid foundation \"Implementing an energy strategy that gives priority to conservation, relies on domestic resources, promotes diversified development, protects the environment, and strengthens mutually beneficial international cooperation.\" ”The plan set such a tone for energy development during the 11th Five-Year Plan period. At the same time, renewable energy is listed as one of the key priorities for energy development in the next five years. This is a significant change compared to the energy-specific plans from the 10th Five-Year Plan period and even earlier. “The 15th Five-Year Plan states: “At present, efforts to save energy and improve efficiency are still weak in terms of mindset, policy guidance, and macro-management,” and “clean energy sources such as coalbed methane, wind power, and solar power are only just emerging, and their importance and role have not yet received the attention they deserve.” In just 5 years of development, conservation and environmental protection have almost become the overarching theme of the entire new plan, and have been designated as a separate chapter for detailed planning. The development of renewable energy has also been given considerable importance. **Jiang Kejun, director of the Center for Energy System Analysis and Market Analysis at the Energy Research Institute of the National Development and Reform Commission, explained the reasons to reporters: “We need to focus not only on the 11th Five-Year Plan but also make long-term preparations for the future.” ” The so-called future brings both new opportunities for energy development and more severe challenges. For example, consumer demand is continuously growing, while resource constraints are becoming increasingly severe ； Structural contradictions are quite prominent, and sustainable development faces challenges ； The international market is experiencing severe fluctuations, with an increasing number of security risks ； Energy efficiency needs to be improved urgently, and the task of saving energy and reducing consumption is arduous, and so on. Under such circumstances, energy development is at a new starting point, and it is now necessary to lay the foundation for the future. From Jiang Kejun’s perspective, the five newly defined key projects for energy development – namely, the energy base construction project, the energy storage and transportation project, the oil substitution project, the renewable energy industrialization project, and the new rural energy project – are all aimed at laying the foundation for future energy development. “The five major projects are comprehensive, but they also have key focuses. Energy bases rank first because, as the foundation of the national economy, the energy industry must establish energy bases to support its development. ”Regarding the construction of energy bases, which has long been a demand among industry professionals, Jiang Kejun shared his views. In accordance with the planning requirements, during the 11th Five-Year Plan period, China is to accelerate or optimize the development of coal, oil and gas, hydropower, coal-fired power, and nuclear power bases. Promote large-scale production and economies of scale through a series of base constructions. “\"Transporting coal from the north to the south, and oil and gas from the west to the east,\" \"transferring oil and gas from the western regions to the east, sending oil and gas from the northeast to the south, and bringing offshore oil and gas onto land,\" \"transporting electricity from the west to the east\"… In the energy development plan for the 11th Five-Year Plan period, China will focus on improving the construction of major transportation routes, as well as connecting lines and transfer hubs, in order to enhance the infrastructure for transporting resources such as coal, oil, gas, and electricity, thereby enabling more efficient allocation of these resources. “The 11th Five-Year Plan was a period of five years during which China’s energy sector developed in a stable and orderly manner, and it was also a time when a solid foundation was laid for future development. There is great potential for the industrialization of renewable energy. “I am pleased to see that **the vigorous development of renewable energy is given a prominent and important place. ”Jiang Kejun told reporters, “We must take a long-term perspective.” The fossil fuels on which humanity relies currently will eventually be exhausted. Based on the actual conditions in various regions, developing renewable energy in a manner suited to those conditions is our inevitable choice. To ensure its healthy and orderly development, it is necessary to pursue an industrialized path. ” It is understood that the renewable energy sources in our country currently include solar energy, wind energy, biomass energy, geothermal energy, and so on. Among them, those that are widely used and have a mature market are concentrated in fields such as solar energy, wind energy, and hydroelectric power. In recent years, **a series of policies and measures have been introduced to promote the development of bioenergy, which is derived from agricultural and forestry products such as straw, sugarcane, and corn, as well as waste materials from livestock farming. Clear legal provisions, favorable tax policies from relevant departments, and a vast market demand all serve as solid foundations for the industrialization and commercialization of renewable energy. However, since this field is still in its early stages of development, most companies are still in the process of exploration and growth, and it will be difficult for them to gain an overall understanding of the market and exert significant influence in the short term. Jiang Kejun told reporters, “It has only taken a few years for renewable energy in our country to progress from having its direction and key areas of development defined, to having legislative measures put in place to ensure support for it, to relevant enterprises actively getting involved, and to widespread participation from all sectors of society.” Therefore, shortcomings and drawbacks will always exist, but this will not affect the future market-based operation and development of renewable energy in our country. ” **According to data from the National Development and Reform Commission, China’s wind power installation capacity currently stands at 1.26 million kilowatts, while the collection area of solar water heaters has reached over 80 million square meters, ranking first in the world. At the same time, the annual production capacity of biomass fuel ethanol reached 1.02 million tons. Jiang Kejun said that the development of renewable energy in our country is progressing quite rapidly; therefore, **relevant policies and regulations must keep up. The plan also sends a signal that our country will increase investment in the exploration of resources such as hydroelectric, wind, and biomass energy, in order to lay a resource foundation for accelerating the development and utilization of new and renewable energy sources ； In addition, **a quota system for renewable energy power generation will be established, preferential electricity pricing policies for renewable energy power generation will be improved, and tax policies conducive to the production and use of renewable energy will be implemented. It can be said that there is great potential for the industrialization of renewable energy in our country. There is still a long way to go in terms of energy conservation and environmental protection. In China’s energy strategy, \"conservation first\" takes top priority. The coal industry, the oil and gas industry, and the power industry became the key sectors for energy conservation and emission reduction during the 11th Five-Year Plan period. Jiang Kejun told reporters, \"In the first quarter of this year, the average growth rate of China’s six high-energy-consuming industries, including oil processing, electricity generation, and heat production, reached 20.6%, which is 2.3 percentage points higher than the average growth rate of industries above a certain scale. The task of saving energy and reducing consumption remains extremely challenging.\" ” Compared with international advanced levels, there is still a significant gap in energy efficiency in our country. In the coal industry, recovery rate is a key focus in energy-saving efforts. The 2007 China Energy Development Report indicates that the recovery rate of coal resources in our country is very low, at an average of 30%, which is less than half of the world’s advanced levels. Dr. Cui Minxuan, editor-in-chief of the 2007 China Energy Development Report, gave an example: the average resource recovery rate for coal in Shanxi Province is currently around 40%, while the recovery rate for coal mines in the province’s towns and villages is only 10% to 20%. In other words, 5 to 20 tons of resources are consumed for every ton of coal extracted. Therefore, phasing out small coal mines that are technologically outdated, inefficient, cause resource waste, and generate severe pollution; upgrading existing coal mines and coal processing plants using efficient, environmentally friendly new processes, equipment, and materials; building large-scale modern coal mines; and simultaneously promoting the comprehensive utilization of resources in the coal industry are the goals to be achieved during the 11th Five-Year Plan period. It is reported that in 2005, the average recovery rate for coal resources in China’s mines was 46%, while by 2010 this figure rose to 50% ； In 2005, the utilization volume of coal gangue in our country was 1.5 billion tons, and by 2010 it was intended to increase this utilization rate by 27 percentage points. Science and technology are the primary driving force for development, and they are also the source of power for energy conservation and emission reduction. Not only in the coal industry, but also in the oil and gas industry, the value of technology in energy conservation is equally invaluable. Production recovery techniques, energy-saving technologies for thermal recovery of heavy oil, optimized operation techniques for water injection systems, comprehensive energy-saving technologies for sealed transportation of oil and gas… A series of scientific and effective independently developed technologies will go a long way in improving the energy efficiency of China’s oil and gas industry. By 2010, maintain the national crude oil recovery rate at around 32% ； The overall energy consumption in oil and gas field development, particularly the rate of oil and gas used for internal purposes, continues to decline ； The environmental pollution caused by natural gas venting and wastewater discharge has been basically resolved. The plan specifies the proportion of coal, oil, natural gas, nuclear power, hydroelectric power, and other renewable energy sources in China’s total primary energy consumption by 2010. Compared to 2005, the share of coal and oil has decreased, while the share of clean energy sources such as natural gas, nuclear power, hydroelectric power, and other renewable energies has increased. This signal is sufficient to demonstrate **confidence and determination in environmental protection. In terms of the coal industry, coal consumption currently accounts for 69% of China’s total primary energy consumption. The energy structure dominated by coal, along with an extensive pattern of economic growth, has led to numerous environmental problems. To this end, the plan states that during the 11th Five-Year Plan period, China will earnestly strengthen the protection of the ecological environment in coal mining areas. Formulate specific plans, study the establishment of a compensation mechanism for the restoration of the ecological environment in mining areas, and increase financial investment. “During the 11th Five-Year Plan period, new thermal power units in China were required to be equipped with high-efficiency dust removal systems simultaneously, while efforts were made to accelerate the renovation of dust removal systems in existing power plants in order to improve their reliability, stability, and dust removal efficiency. Sulfur dioxide emissions from power plants are strictly controlled through comprehensive measures such as the use of low-sulfur fuel and the installation of desulfurization equipment. In addition, low-nitrogen combustion technologies should be promoted, the scope of flue gas denitrification pilot projects expanded, and thermal power plants encouraged to reduce nitrogen oxide emissions. Jiang Kejun said, “Environmental protection is not something that can be achieved in a short time; it requires sustained efforts from all industries over the long term.” To ensure that the next generation can thrive, we must start with this generation. ”
**Notice from the National Development and Reform Commission on Strengthening the Management of Coal Chemical Industry Project Construction to Promote the Healthy Development of the Industry, Document No. Fa Gai Gong Ye 1350: Ministry of Land and Resources, State Environmental Protection Administration, People’s Bank of China, development and reform commissions and economic and trade commissions of all provinces, autonomous regions, municipalities directly under the Central Government, and cities designated as having separate planning status: China suffers from a shortage of oil and natural gas resources, while coal resources are relatively abundant. Developing the coal chemical industry helps advance the implementation of oil substitution strategies and meet the needs of economic and social development. To ensure coordinated planning, rational layout, scientific guidance, and standardized development of the coal chemical industry, the relevant matters are hereby notified as follows: 1. Several key issues that need to be addressed in the current development of the coal chemical industry. The coal chemical industry includes products such as coal coking, coal gasification, coal liquefaction, and calcium carbide. Through decades of effort, China’s coal chemical industry has achieved significant development. In 2005, China produced 232.82 million tons of coke, 8.95 million tons of calcium carbide, approximately 25 million tons of coal-based fertilizers (in pure form), and about 3.5 million tons of coal-based methanol – all of which placed China among the leaders in the world. The development of the coal chemical industry has played an important role in alleviating the supply and demand imbalance of high-quality energy sources such as oil and natural gas in our country, as well as in promoting the growth of the steel, chemical, light industry, and agricultural sectors. Therefore, it is necessary to accelerate the development of the coal chemical industry. The development of the coal chemical industry places high demands on coal resources, water resources, ecology, the environment, technology, capital, and various social supporting conditions. Recently, as the coal chemical industry has been developing rapidly, it has also encountered concerning problems. In some areas, despite the carrying capacity of resources, ecology, and the environment, there are signs of reckless planning and competitive efforts to build coal chemical projects, which could have a negative impact on the sustainable, healthy, and steady development of the economy and society. (1) There is a severe overcapacity in the production of traditional coal chemical products such as calcium carbide and coke. Since 2004, through strengthened macro-control measures, the unchecked growth of energy-intensive industries such as calcium carbide and coke has been initially curbed, but the trend of capacity expansion has not been fully halted. By the end of 2005, China’s calcium carbide production capacity was twice its annual output. The coking production capacity exceeds domestic market demand by more than 70 million tons. From January to May this year, the production of calcium carbide and coke still increased by 33.9% and 24.2% respectively on a year-on-year basis. Coke prices have fallen significantly. Based on the status of ongoing and planned projects in various regions as well as forecasts for future market demand, the production capacity of calcium carbide and coke in 2010 will still be **higher than market demand. At the same time, many of the existing calcium carbide and coke production capacities are those that do not meet environmental standards – small-scale facilities that lack product recovery systems and cause severe pollution. (II) Driven by the continuous rise and high levels of oil prices, a trend of reckless development of oil substitutes such as coal-based methanol and dimethyl ether is gradually emerging. In 2005, China’s methanol production was 5.36 million tons. According to incomplete statistics, the current capacity for methanol production under construction is approaching 9 million tons, with additional production capacities of over 10 million tons planned or in the process of being developed. If all these projects are put into effect, any delay in the development of methanol downstream processing technologies and application markets will inevitably lead to a massive surplus of production capacity. Coal-based oil products and olefins are still in the stage of industrial testing and demonstration, and there are risks associated with technical and engineering scale-up. In some areas, projects for producing oil products and olefins from coal have been planned and constructed regardless of objective conditions. At present, most of the coal-to-oil and coal-to-olefins plants with a capacity of over 100,000 tons that are under construction do not reach an economically viable scale, and their technologies are not yet mature enough. Once built, they will be similar to small refineries and small ethylene plants and fall under the category of facilities that should be phased out. Moreover, such installations require huge investments, often in the order of several billion, posing significant investment risks. (III) Unilaterally pursuing industrial development speed at the expense of resources. In some areas, in an effort to accelerate local economic development, resources are used as a means to attract investment on a large scale, resulting in unreasonable allocation and utilization of those resources. Some enterprises, under the pretext of building coal chemical projects, actually aim to seize and exploit resources, plundering coal resources on a large scale. In some areas, where the coal chemical industry is just beginning to develop, the existing coal resources have already been exhausted. The aforementioned issues have had an adverse impact on the coal chemical industry, as well as on the sustainable, stable, and healthy development of the economy and society. Specifically: This post was last edited by plmmplmm on 2007-12-27 02:14.]
(1) The continuously increasing excess capacity in calcium carbide and coke not only results in a large amount of idle social capital and volatile development in the industry, but also triggers fierce competition among enterprises, leading to a sharp drop in product prices and a significant increase in operational risks. At the beginning of this year, China’s coke export prices were only half of those in 2004, resulting in significant economic losses. (II) Water resources are an important constraint on the development of the coal chemical industry, and they are also one of the constraints on China’s economic and social development. Our country’s water resources are far below the world average. The per capita water resources and water resources per unit area in the main coal-producing regions are only 1/10 of the national average. Large coal chemical projects typically consume tens of millions of cubic meters of water per year, with water usage per ton of product exceeding 10 tons – an amount equivalent to the water resources available to a population of hundreds of thousands in some areas, or to the water resources found in an area of over 100 square kilometers. In some areas, large-scale and premature planning for coal chemical projects may lead to overcapacity on one hand, and disrupt the already fragile water balance in those regions on the other, thereby directly affecting the stable economic and social development as well as environmental protection in those areas. At the same time, coal-to-oil and olefin projects that were rushed into implementation without achieving large-scale industrialization not only carry high investment risks but also pose threats to the healthy development of the industry. (III) China has relatively abundant coal resources, but there is a relative shortage of high-quality, clean, and coking coal resources. The coal industry plays a vital role in supporting economic and social development. The short-term, high-intensity, large-scale exploitation of coal resources for the development of the coal chemical industry not only affects the stable development of industries such as electricity generation but also accelerates the consumption of coal resources, which is detrimental to the sustainable development of the coal industry. In light of the above circumstances, all regions and departments, particularly the major coal-producing provinces, must attach great importance to the development of the coal chemical industry, fully recognize the dangers of blind development, understand the current situation, and accurately determine the direction for the industry’s growth. Guided by the scientific development concept, the overall development of industries should be coordinated by taking into account various factors, conducting thorough scientific evaluations, seeking opinions from all stakeholders, and properly balancing the relationship between the speed and scale of industrial development and the carrying capacity of resources and the ecological environment. Decisions regarding the construction of coal chemical projects should be made carefully, with the aim of achieving harmonious economic and social development. Land and resources departments, environmental protection agencies, and banks must also enforce strict entry requirements to prevent loan risks. II. Development directions of the coal chemical industry during the 11th Five-Year Plan period. The coal chemical industry is a technology- and capital-intensive sector with a wide range of applications; its project construction is complex, making it difficult to implement. The coal chemical industry is also an emerging industry, and there are still many uncertainties and risks in its development. “During the 11th Five-Year Plan period, the coal chemical industry should aim to implement the Scientific Outlook on Development and build a harmonious society ； Starting from the need to ensure **oil supply security and meet domestic market demands, planning should be carried out scientifically and with a rational layout ； Take into account both the economic development of resource-producing areas and environmental capacity. In areas with the appropriate conditions, accelerate the development of the coal chemical industry, with a focus on petroleum substitute products ； Following the concept of integrated development along the upstream and downstream chains, large-scale coal chemical industry bases will be established ； Establish the concept of a circular economy, optimize the allocation of production factors, and strive to achieve coordinated development of the economy and society, as well as of the ecological environment and resources. Adhering to the principles of controlling the total production capacity, phasing out outdated manufacturing processes, making rational use of resources, reducing environmental pollution, and promoting consolidation and restructuring, efforts should be accelerated to adjust the structure of the coke and calcium carbide industries. Actively adopt advanced gasification technologies to transform the fertilizer industry, which relies primarily on batch gasification, in order to reduce environmental pollution and promote industrial development and technological upgrading. Guided by the civilian fuel and oil markets, support regions that meet the requirements in adopting advanced gasification technologies and two-step dimethyl ether synthesis techniques to establish large-scale production bases for methanol and dimethyl ether, and carry out thorough testing and demonstration of new types of civilian fuels and vehicle fuels. Advance the construction of industrialization tests and demonstration projects steadily, accelerate the industrialization of coal-based oil products and olefins, and initiate the construction of large-scale coal-based oil product and olefin projects at an appropriate time. This post was last edited by plmmplmm on 2007-12-27 02:15]
III. Further strengthen the management of industrial development. Developing the coal chemical industry is of great significance for implementing the oil substitution strategy. All regions and departments should, from a holistic and long-term perspective, strengthen the management of industrial development, strive to create a harmonious environment for growth, and focus on carrying out the following tasks: (1) Industrial planning. The coal chemical industry involves many sectors of the national economy. **A development plan for the coal chemical industry will be formulated. Each region should, in light of local conditions and in accordance with the requirements of the scientific development concept, earnestly carry out the formulation of regional development plans for the coal chemical industry, and strengthen guidance for its development. Suspension of the approval or registration of coal chemical projects until the planning is completed and approved by the **development and reform department. Regarding coal liquefaction projects, **before the development plan for coal liquefaction is finalized, investment authorities at all levels should suspend the approval of such projects. (II) Industrial layout. China’s coal resources are relatively concentrated, while its consumption markets are spread out over a wide area. To promote balance between coal production and consumption areas, encourage the development of the coal chemical industry in regions with ongoing coal resources, appropriately plan the construction of coal chemical projects in coal-supplying areas, and restrict the development of such industries in areas receiving coal imports (with the exception of projects that use locally available high-sulfur coal or low-quality coal as raw materials, as well as projects involving secondary processing). (III) Key areas of development. Based on the development of the national economy and market supply and demand conditions, in order to meet the needs of agricultural production, alleviate the imbalance in oil supply and demand, and reverse the situation of surplus supply of energy-intensive products, the development of products such as coal-based fertilizers is encouraged ； Steadily develop petroleum alternatives such as coal-based oil products, methanol, dimethyl ether, and olefins; coal liquefaction is still in the demonstration phase and should be promoted only after success is achieved ； Regulate the development of high-energy-consuming products such as calcium carbide and coke. In accordance with the requirements of Document No. 11 issued by the State Council, provinces, autonomous regions, and municipalities directly under the Central Government that have not completed the rectification and consolidation of the coke and calcium carbide industries shall cease to approve or register new projects in these sectors. (IV) Coal use. The coal chemical industry is an industry for the deep processing of coal. The development of the coal chemical industry must take into account both the sustainable development of the coal industry and the demand for coal from related industries. **Implement policies for the classified use and optimized allocation of coal resources. Coking coal (including gas coal, fat coal, coking coal, and lean coal) is primarily used in the coal coking industry, while lignite and bituminous coal with a lower degree of coalification are mainly used in the coal liquefaction industry. High-quality and clean coal resources are preferentially used as fuel for power generation as well as in domestic and industrial furnaces, whereas low-quality coals such as high-sulfur coal are mainly used in the coal gasification industry. Smokeless lump coal is primarily used in the fertilizer industry. (5) Water resource balance. Except in regions such as Yunnan and Guizhou, coal resources and water resources in China are distributed in an inverse pattern. Most coal chemical products require a large amount of water. The development of the coal chemical industry should proceed in a measured manner; it is strictly prohibited to use water intended for domestic use and agriculture to develop this industry. Strictly control the construction of gasification and coal liquefaction projects in water-scarce areas. Restrict the use of water-intensive processes and equipment, encourage the adoption of water-saving processes, and strongly promote coal chemical technologies such as the reuse of wastewater, reclaimed water, and mine water. (VI) Transport safety. China’s coal resources are mainly distributed in the central and western regions, while coal chemical products are primarily consumed in the eastern coastal areas, resulting in a separation between production and consumption areas. Most liquid or gaseous coal chemical products are toxic or flammable and explosive. Coal chemical projects must have high-level safeguards for the safe transportation of their products. Coal chemical projects that do not meet the transportation requirements should not be approved or registered. (7) Environmental protection. China’s coal resources are mainly distributed in areas with relatively fragile ecological environments. The coal chemical industry has a significant impact on the ecological environment, as its production process generates considerable amounts of waste residue, wastewater, and exhaust gases. In line with the requirements of developing a circular economy and building a harmonious society, coal chemical projects must meet the standards for waste reduction, resource utilization, and harmlessness. Coal chemical projects that are unable to achieve comprehensive utilization and harmless treatment of waste should not be approved or registered. (8) Technology policy. All regions should intensify structural adjustments to promote the optimization and upgrading of industries. Strictly enforce industrial policies such as the entry requirements for the coke and calcium carbide industries. The approval or registration of coke projects and calcium carbide projects that do not meet the industry entry requirements, as well as coal gasification projects that utilize fixed-bed batch gasification and direct-current cooling technologies, is prohibited. All consumption indicators for coal chemical projects must meet the **(industry) standards or mandatory regulatory requirements. Enterprises are encouraged to adopt advanced technologies with independent intellectual property rights. In general, coal-to-oil projects with an annual production capacity of less than 3 million tons, methanol and dimethyl ether projects with a capacity of less than 1 million tons, and coal-to-olefins projects with a capacity of less than 600,000 tons should not be approved. (IX) Project management. Strengthen project construction management and conduct strict scrutiny of coal chemical projects. In line with the spirit of the \"Decision on Reforming the Investment System of the State Council,\" coal-to-oil and coal-to-olefins projects, as well as coal chemical projects invested by foreign parties, are subject to a strict approval system in accordance with relevant regulations ； It is strictly prohibited to break tasks into smaller parts, to approve them in violation of regulations, or to delegate approval authority at various levels. For coal chemical projects that are subject to registration, various regions must enforce strict project review procedures in accordance with the implementation measures established by the provincial people’s governments. (X) Risk prevention. The coal chemical industry is characterized by scale, large-scale operations, integration, and centralized production bases ； High technical content and substantial investment requirements ； High requirements are placed on the strength of the project owner and its social support infrastructure. China’s coal resources are mainly distributed in the central and western regions, where the level of economic and social development is relatively low, and the supporting conditions are somewhat inadequate. To develop the coal chemical industry, it is not only necessary to have a strong awareness of risk prevention, but also to possess robust capabilities in this area. Coal chemical projects with weaker owners should be approved and registered with caution. Development and reform departments at all levels should, in accordance with the spirit of the notice, earnestly carry out work related to the development of the coal chemical industry and the review of projects. At the same time, they should conduct a review of projects that are planned to be built or are already under construction, and take prompt action to make necessary corrections. Departments such as those responsible for land and resources, environmental protection, and financial lending can use this to carry out project reviews. National Development and Reform Commission of the People’s Republic of China, July 7, 2006. This post was last edited by plmmplmm on 2007-12-26 at 14:19.]
**Notice from the General Office of the National Development and Reform Commission on Issuing the Minutes of the Symposium on the Development of the Dimethyl Ether Industry To the Development and Reform Commissions, Economic and Trade Commissions (Economic Commissions) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities designated as having separate planning status: In order to promote the development of the dimethyl ether industry, advance the implementation of the oil substitution strategy, and address the challenges posed by high oil prices, our commission held a symposium on the development of this industry in Beijing recently. The meeting reached a broad consensus and put forward specific suggestions for the next steps. The minutes of the meeting are hereby issued to you; please implement them carefully. Attachment: **Minutes of the Symposium on the Development of Dimethyl Ether Industry held by the Development and Reform Commission, July 4, 2006**
Plan scientifically for oil-substituting industries to address the challenges of high oil prices – **Minutes of the Symposium on the Development of Dimethyl Ether Industry held by the Development and Reform Commission. To promote the development of the dimethyl ether industry, advance the strategy of replacing oil, and effectively cope with the era of high oil prices, in accordance with the directives of the commission’s leadership, the Industrial Department of the **Development and Reform Commission held a symposium on the development of this industry in Beijing on June 15th. A total of 35 organizations, including relevant departments of the State Council, industry associations, research institutions, design agencies, as well as enterprises involved in production, distribution, and use, sent more than 80 representatives to the conference. **Comrade Zhang Guobao, Deputy Director of the National Development and Reform Commission, attended the meeting to provide an introduction on the relevant situation. Representatives from 31 organizations carefully prepared written materials and delivered speeches at the conference. The participants had extensive and in-depth exchanges on issues such as the domestic and international development trends of the dimethyl ether industry, resources and the environment, technology research and development, cost accounting, industrial design, large-scale production, market applications, standard setting, as well as the feasibility and practicability of using dimethyl ether as a substitute for petroleum-based products, in order to explore the direction and strategies for the development of this industry. Coal chemical industry includes sectors such as coal coking, coal gasification, coal liquefaction, and calcium carbide production. In recent years, as gasification technologies such as pressurized gasification of water-coal slurry, pressurized gasification of pulverized coal, and pressurized gasification of crushed coal have become increasingly mature, the coal chemical industry has made rapid progress in the production of petroleum substitutes such as coal-based oils, methanol, dimethyl ether, and olefins, in addition to products like coke, calcium carbide, and coal-based fertilizers. South Africa has adopted the Ruhr coal gasification technology to achieve large-scale industrial production of oil products from coal, thereby largely resolving its domestic oil supply issues. China’s Shanghai Coking Plant and Shandong Yankuang Group have adopted water-coal slurry gasification technology to build industrial facilities for coal-to-methanol production. Shandong Jiutai and Sichuan Lutianhua have adopted a two-step process technology to build 100,000-ton-scale industrial plants for the production of dimethyl ether from methanol. Nigeria and Iran are building large-scale industrial facilities for methanol-to-olefins production. The Dalian Institute of Chemical Physics, part of the Chinese Academy of Sciences, has built an industrial-scale pilot plant for the production of olefins from methanol with a capacity of 50 tons per day. Malaysia and New Zealand have each built large-scale industrial facilities for producing petroleum products from methanol. Based on the progress of coal chemical industry and related technologies at home and abroad, from the perspectives of resources, technology, equipment, and market, China’s coal chemical industry now basically possesses the conditions for development. Studies at home and abroad indicate that dimethyl ether has the potential to become a major alternative to petroleum. Dimethyl ether is gaseous at normal temperature and pressure; it can be turned into a liquid by applying a pressure of 5–6 atmospheres. Its physical properties are similar to those of liquefied petroleum gas, and it can be used as a fuel for household use ； The theoretical calorific value is approximately 64% of that of gasoline and diesel ； The applied calorific value is about 80% of that of gasoline and diesel. Dimethyl ether has a cetane number of over 55, which is higher than that of diesel, making it a promising alternative to diesel. Dimethyl ether is low in toxicity and corrosivity, and its emission of conventional harmful gases during combustion is lower than that of gasoline and diesel, which is beneficial to environmental protection. Currently, dimethyl ether has been accepted by consumers as a fuel for domestic use, and relevant authorities are formulating standards for its use as such fuel. In terms of alternatives to diesel, the EU, Japan, as well as institutions in China such as Shanghai Jiao Tong University and Xi’an Jiao Tong University have developed dimethyl ether vehicles ； Shanghai and Linyi in Shandong Province are organizing demonstration projects for the use of dimethyl ether in vehicles. Therefore, studying and exploring the development of the coal-to-dimethyl ether industry is essential for alleviating the oil supply and demand imbalance in our country. At the meeting, Deputy Director Zhang Guobao explained the background, objectives, and significance of the meeting by discussing issues such as the global imbalance between oil supply and demand and future oil price trends, as well as the urgency of developing alternative oil industries in China. He identified the key issues that need to be addressed and monitored in the development of alternative energy sources such as dimethyl ether, and outlined the requirements for subsequent actions.
He pointed out that energy plays a crucial role in economic and social development. In recent years, energy issues have been a focus of global attention, with rising oil prices drawing the concern of countries around the world. In the long term, it is unlikely that oil prices will drop significantly; instead, they are likely to remain at high levels. In the face of high oil prices, under the leadership of the **** and the State Council, and through strengthened macro-control, China’s economy and society have maintained sustained and healthy development ； However, it also faces challenges posed by high oil prices in terms of fiscal revenue, business operations, and people’s livelihoods. On the basis of a thorough analysis of the causes of high oil prices, it is necessary to urgently study measures to address them. To prepare for an era of high oil prices, it is necessary to accelerate the adjustment of the economic and energy structures, formulate practical measures, and take all necessary actions to cope with the situation. Implementing an alternative energy strategy is an important measure to mitigate the impact of high oil prices. Our country has fully launched an alternative energy strategy and achieved certain results. Developing coal-based alcohol-ether fuels such as dimethyl ether helps to quickly alleviate the shortage of petroleum supplies, and it is a key focus in current substitution efforts. **Great emphasis is placed on the development of industries using alternative energy sources such as dimethyl ether. However, with rising oil prices, the coal chemical industry has seen rapid growth in some areas, and signs of blind expansion have emerged in certain regions, drawing significant attention from the leaders of the State Council. In this regard, he emphasized that all localities and departments must earnestly implement the guidance of the State Council leaders; they should not only actively promote the development of alternative energy sources such as dimethyl ether, but also conduct thorough scientific evaluations and make careful decisions, avoiding hasty actions and blind development that could repeat the mistakes made with \"small ethylene\" projects. The development of the dimethyl ether industry needs to be studied comprehensively, systematically, and in depth from a global and strategic perspective. The development of the dimethyl ether industry is a systematic project that encompasses various aspects such as technology research and development, standard setting, industrial layout, and promotion and application. Only through comprehensive assistance and cooperation from all parties can the dimethyl ether industry be developed into an important oil substitute industry. He hopes that the delegates present will pool their ideas and offer suggestions to lay the foundation for future work. Through extensive discussions and exchanges, the conference reached the following consensus: First, under the current energy supply and demand situation in China, dimethyl ether is an alternative energy source with good development prospects, and it is a suitable alternative fuel for China’s energy structure. II. The dimethyl ether industry should pursue a path of scaled and large-scale development. Currently, the two-step process already has the capability to build plants with a capacity of millions of tons. III. Given China’s energy resources, the development of the dimethyl ether industry should be based on coal as the raw material. IV. To standardize the production and use of dimethyl ether, it is necessary to expedite the formulation of relevant standards. The meeting held that the development of the dimethyl ether industry involves aspects such as coal resources, water resources, industrial layout, and interconnections between different industries. In the near term, the following tasks need to be addressed: First, expedite the formulation of development plans and policies for coal chemical products including dimethyl ether, in order to provide proper guidance for the industry’s development and prevent excessive investment and redundant construction. II. Thoroughly carry out testing, trial use, and demonstration of vehicles, ships, and other equipment that utilize dimethyl ether, in order to provide technical support and scientific evidence for the widespread adoption of dimethyl ether. III. Strengthen standardization in the dimethyl ether industry by promptly formulating a series of standards for product production, use, and exhaust emissions, in order to ensure the standardized development of this industry. IV. Promptly study and formulate a work plan for the development of the dimethyl ether industry and implement it, so as to promote the healthy and orderly development of this industry in a proactive and prudent manner. V. Continue to advance research and development in technical equipment, strive to scale up one-step process technologies and industrialize water-saving processes, thereby expanding the technological pathways for the development of the dimethyl ether industry.
Article 13: In cogeneration projects, back-pressure cogeneration units shall be given priority. The power generation capacity of back-pressure units is not included in the controlled scale for power construction. Where back-pressure type units are insufficient to meet heating demands, the construction of large-scale, high-efficiency heating units with a capacity of 200,000 kilowatts or more per unit is encouraged. Article 14: In remote areas with smaller power grid scales, and in line with the local electricity balance requirements, extraction-type heating units can be planned based on heat load demands, giving priority to cogeneration units that utilize renewable energy sources such as biomass ； Restrict the construction of new units and phase out coal (oil) extraction-condensing units with sub-high voltage parameters and below. Article 15: The heating radius covered by cogeneration projects that use hot water as the heating medium is generally set at 20 kilometers; no such cogeneration projects shall be planned and constructed repeatedly within a radius of 10 kilometers ； For systems that use steam as the heating medium, a range of 8 kilometers is generally considered; no such cogeneration projects are planned again within this 8-kilometer area. Chapter 3 Approval Article 16 Except for back-pressure type units, the project approval authority shall examine both the cogeneration construction plan and the separate heat and power generation construction plan. A cogeneration project may only be approved if its annual energy consumption and total amount of pollutants emitted locally are lower than those of separate heat and power generation. The project applicant shall provide the information required in the previous paragraph in the project application report. Article 17: The special plan for cogeneration and comprehensive utilization of coal gangue for power generation serves as the basic basis for project approval. Project approval should be carried out under the guidance of specific plans, and proposed projects should be finalized after scientific evaluation and expert review. Article 18: When applying for approval for a cogeneration project, in addition to submitting the same supporting documents as those required for conventional coal-fired power plants, it is also necessary to provide a feasibility study report on the associated heat distribution network infrastructure and a plan for integrating the local heating areas. Plans for upgrading existing generating units and shutting down small power plants (small boiler rooms) must be submitted, along with corresponding commitment documents. The local price regulatory authority shall issue an approval document regarding the heat price in accordance with Article 23. Information on the applicant entity, the operation of other local cogeneration projects, and the verification results over the past three years is also required. Article 19: When applying for approval for a coal gangue comprehensive utilization power generation project, in addition to submitting the same supporting documents as those required for conventional coal-fired power generation projects, it is also necessary to provide the order agreement for the boiler equipment to be used in the project, documents demonstrating and approving the local fuel sources, information on the applicant entity and the operation of other local coal gangue comprehensive utilization power generation projects, as well as records of inspections over the past three years. Chapter 4 Support and Guarantee Measures Article 20 **Support should be provided for using various methods to address the seasonal heating problems in small and medium-sized towns. The use of renewable energy sources such as biomass, solar energy, and geothermal energy should be promoted, and areas with the necessary conditions are encouraged to utilize resources such as natural gas, coal gas, and shale gas for distributed cogeneration. Seasonal heating in small and medium-sized towns should follow the principles of adapting to local conditions, rational planning, and the use of advanced and appropriate technologies. Article 21 **Various measures shall be taken to vigorously develop technologies for the clean and efficient utilization of coal. Active efforts should be made to apply efficient and clean combined heat and power generation technologies, with a focus on developing integrated gasification combined cycle power generation and other multi-product technologies that involve coal gasification, heat supply (cooling), and power generation. Article 22: The on-grid electricity price for cogeneration and power generation projects that make use of coal gangue comprehensively shall be in accordance with the **Interim Measures for the Management of On-Grid Electricity Prices issued by the Development and Reform Commission. In areas where competitive bidding for electricity access is in use, it is determined through market competition ； In areas where competitive bidding for grid access is not in place, the feed-in tariff for new projects is set at the **published benchmark feed-in tariff for newly commissioned coal-fired power units. Article 23: The ex-plant price of heat for cogeneration projects shall be uniformly determined by the provincial price authorities or the authorized municipal or county people’s governments, in accordance with the principles of reasonable cost compensation, fair profit determination, promotion of energy conservation, and equitable burden-sharing. This price is set based on the local heating pricing costs verified by the price authorities through cost audits, along with the specified cost profit margin or return on net assets. In addition, coal and heat pricing are linked in accordance with relevant regulations. The selling prices for heat supplied through cogeneration and through other methods are gradually being set at the same rate. Article 24: Cogeneration and coal gangue comprehensive utilization power generation projects shall be given priority in connecting to the grid for power generation. When operating in heating mode, cogeneration units prioritize power generation for grid supply based on the real-time heating load curve, following the principle of generating electricity according to the heat demand. When not in heating mode or when the amount of electricity generated exceeds that specified by the heating load curve, their order of power generation is determined according to the energy consumption levels of similar condensing steam generators.
Chapter 5 Supervision and Inspection Article 25 The project approval authority shall take into comprehensive consideration relevant regulations on urban planning, land and resources, environmental protection, banking supervision, work safety, etc., and improve the systems for project inspection and verification. CCHP projects must be equipped with real-time online monitoring devices for thermal load, and connected to the power generation dispatching agency. Article 26: After the project is completed and put into operation, the project approval authority shall organize, or entrust relevant units to conduct a completion inspection to determine whether the project construction meets all the requirements specified in the project approval documents. The entity responsible for conducting the completion inspection of the entrusted project shall submit the inspection findings to the **Development and Reform Commission. Only projects that pass the completion inspection can apply for the tax incentives or subsidies stipulated by **. Cogeneration enterprises and other heating enterprises should enjoy the same local heating incentives or subsidies. Article 27 During the production and operation phase of a project, the provincial development and reform departments (economic commissions, economic and trade commissions) shall, in conjunction with relevant departments, conduct regular annual inspections. For those that do not meet the **relevant regulations and project approval requirements, they shall be ordered to make corrections within a specified time frame; all preferential policies they are entitled to shall be revoked, and the matter shall be reported to the **Development and Reform Commission. **The Development and Reform Commission will organize special inspections as appropriate. If fraud is confirmed, it shall be ordered to cease operating online, and dealt with in accordance with **relevant regulations. Article 28 The project approval authority shall, in conjunction with relevant departments, strengthen supervision over cogeneration and power generation projects that make comprehensive use of coal gangue. For projects that should have been submitted for **approval but were not, those that started construction without approval despite having been submitted, and those that were not built in accordance with the requirements specified in the project approval documents, once discovered, the project approval authority shall order them to cease construction and impose legal and administrative penalties on the relevant responsible persons in accordance with the law. Chapter 6 Supplementary Provisions Article 29 The project approval authority referred to in these provisions refers to the administrative agency designated in the **List of Approved Investment Projects** as having the authority to approve enterprise investment projects. Article 30: The approval and authorization of projects that utilize coal gangue and low-calorific-value coal with a lower calorific value of less than 12,250 kJ/kg shall be managed in accordance with the regulations applicable to coal-fired projects; these projects are subject to the provisions of these rules as well as other relevant project management regulations for coal-fired projects. Article 31 These provisions shall be interpreted by the **Development and Reform Commission. Article 32 These provisions shall come into force as of the date of issuance.
China’s first Coal Industry Policy was issued and implemented, raising the entry barriers for the coal industry. Attachment: Coal Industry Policy – Date of issuance: 20071130. According to a report in the Economic Reference News on November 30, 2007, “84% of China’s electricity generation relies on coal.” In recent years, international oil prices have been rising, making coal increasingly important in China’s energy mix. The promulgation and implementation of the Coal Industry Policy will help ensure the healthy development of the national economy, facilitate the establishment of a new coal industry framework, and promote safe, efficient, and clean production in the coal industry. ”**Zhang Guobao, deputy head of the National Development and Reform Commission, said on the 29th. On the 29th, China’s first Coal Industry Policy was issued and implemented by the **National Development and Reform Commission. The Policy establishes guiding policy provisions of encouragement, restriction, and prohibition in aspects such as layout, access, technology, safety, trade, energy conservation, environmental protection, and labor protection, and proposes safeguard measures for the implementation of the Policy. The entry barriers for the coal industry have been further raised. At present, the scale of coal mine construction in China is relatively large, with too many small coal mines; it is therefore necessary to raise the industry’s entry barriers. The Policy stipulates that the scale of newly built, renovated, or expanded mines in provinces (regions) such as Shanxi, Inner Mongolia, and Shaanxi should be no less than 1.2 million tons per year ； The scale of newly built, renovated, or expanded mines in provinces (cities) such as Chongqing, Sichuan, Guizhou, and Yunnan shall be no less than 150,000 tons per year ； The scale of newly built, renovated, or expanded mines in provinces (regions) such as Fujian, Jiangxi, Hubei, Hunan, and Guangxi is not less than 90,000 tons per year. The scale of newly built or expanded mines in other regions should be no less than 300,000 tons per year. However, the Policy emphasizes that given the large number of small coal mines at present, their unreasonable distribution, and the fact that the damage to resources and the environment has not yet been fundamentally reduced, the situation regarding safe coal mining remains severe; therefore, during the 11th Five-Year Plan period, the approval of new coal mining projects with a capacity of 300,000 tons per year or less shall be completely halted. Due to the low threshold for establishing coal mines in our country, a large number of small and medium-sized coal mines have poor production conditions, low management levels, and inadequate safety measures, resulting in an unregulated order in coal exploitation. The Policy states that to establish coal mines or engage in the exploration of coal and coalbed methane resources, as well as to carry out tasks such as design, construction, supervision, and safety assessment for coal mine projects, it is necessary to possess the appropriate qualifications and to meet other conditions stipulated by laws and regulations. Wang Hong, assistant inspector of the Henan Provincial Development and Reform Commission, said that Henan Province will continue to enforce strict regulations on coal mine access, pursue resource consolidation, regulate the distribution of coal production and the overall scale of construction, encourage the concentration of coal resources among the province’s key coal-producing enterprises, restrict the development of small coal mines, and accelerate the construction of large and medium-sized mines. Thirteen large-scale coal bases will be established. Regarding the layout of coal production, the policy proposes to stabilize the scale of coal production in the eastern region, strengthen the development of large-scale coal bases in areas rich in coal resources in the central region, and accelerate the exploration and moderate development of coal resources in the western region. Thirteen large-scale coal bases will be established in Shendong, Northern Shanxi, Central Shanxi, Eastern Shanxi, Northern Shaanxi, Huanglong (Huating), Western Shandong, Lianghuai, Henan, Yunnan-Guizhou, Eastern Mongolia (Northeast), and Ningdong, in order to enhance the sustainable and stable supply capacity of coal. Qu Jianming, deputy director of the Coal Industry Bureau of Shanxi Province, told reporters that by 2010, through the reorganization of resources and the merger of enterprises, Shanxi Province would establish two large coal groups with revenues in the tens of billions, as well as three to five groups with production capacities of 50 million tons each. These groups would feature a significant proportion of non-coal industries, with annual sales amountsing to several hundred billion yuan. For some time now, in many areas, multiple entities have been involved in the development of the same mining area, which has led to problems such as chaotic coal development practices, low resource recovery rates, poor safety conditions, low utilization of infrastructure, and uneven production technologies. To this end, the Policy states that \"within large coal bases, one mining area should in principle be developed by one entity, while one entity may develop multiple mining areas.\" ” At the same time, considering that modern coal chemical industry is still in the stage of demonstration project construction and there are signs of a building boom in some areas, the Policy proposes to develop coal chemical industries to an appropriate extent in regions with abundant water resources and rich coal reserves, to restrict such development in areas where coal is imported and in regions with scarce water resources, and to prohibit its development in areas with insufficient environmental capacity. ” Encouragement of the formation of large coal enterprise groups: To help coal enterprises grow and become stronger, the policies propose encouraging the use of existing large coal enterprises as cores, breaking down barriers related to geography, industry, and ownership. By using resources and assets as links, these large enterprises can merge with and restructure smaller coal mines, thereby developing large coal enterprise groups. Encourage and develop large-scale, internationally competitive enterprise groups that operate in an integrated manner in sectors such as coal, electricity, railways, and ports. Encourage large coal enterprises to participate in joint ventures with companies in the metallurgy, chemical industry, building materials, and transportation sectors. Support small and medium-sized coal mines in integrating their resources, carrying out joint renovations, and adopting intensive management practices. Hua Wei, chairman of Shaanxi Coal and Chemical Industry Group Company, said that the company will meet the requirements for increasing industrial concentration by leveraging its own resource advantages, using resources and assets as a link to acquire and restructure related small and medium-sized coal enterprises, thereby improving production safety levels and promoting industrial upgrading. The Policy also supports coal enterprises in establishing technology development centers to enhance their independent innovation capabilities. “Coal companies can set aside a certain percentage of the revenue generated from coal product sales to fund technological innovation and upgrades” ； “Support coal enterprises in separating their social functions, and accelerate the separation of core and auxiliary operations within these enterprises. Coal mining enterprises are supported in drawing funds for the transformation and development of the coal industry, which are earmarked for the development of successor and alternative industries. ” In addition, environmental protection requirements are further increasing. The Policy states that the development and utilization of coal resources must undergo environmental impact assessments in accordance with the law. Environmental protection facilities must be integrated into the main construction projects in compliance with the \"three simultaneities\" principle, which means that the main components of a construction project and the water-saving measures related to it should be designed, constructed, and put into use simultaneously ； Establish an assessment system and evaluation index framework for the environmental carrying capacity of mining area development.
Coal is the main energy source and an important industrial raw material in our country. The coal industry is an important basic industry in our country, and its sustainable development is related to the healthy growth of the national economy as well as **energy security. To fully implement the Scientific Outlook on Development, develop coal resources in a rational and orderly manner, improve resource utilization rates and productivity levels, and promote the healthy development of the coal industry, this policy is formulated in accordance with laws and regulatory documents such as the Coal Law of the People’s Republic of China, the Mineral Resources Law of the People’s Republic of China, and the Several Opinions of the State Council on Promoting the Healthy Development of the Coal Industry (Guo Fa [2005] No. 18). Chapter 1: Development Objectives Article 1: Adhere to relying on scientific and technological progress, and pursue a sustainable development path for the coal industry characterized by high resource utilization efficiency, safety, good economic benefits, and minimal environmental pollution, in order to provide energy support for the comprehensive construction of a moderately prosperous society. Article 2: Deepen the reform of the system for the paid use of coal resources, accelerate the consolidation of coal resources, and establish a system for their development and utilization that emphasizes rational exploitation, enhanced conservation, and recycling, while ensuring production safety, environmental friendliness, and coordinated development. Article 3: Strictly control industry entry, standardize development practices, and improve exit mechanisms, in order to establish an industrial layout that is centered around large-scale coal bases, adapted to external conditions such as the environment and transportation, and in line with regional economic development. Article 4: Deepen the reform of coal enterprises, advance their transformation into joint-stock companies as well as mergers and reorganizations, increase industrial concentration, and establish an industrial organizational structure in which large coal enterprise groups play a key role while small and medium-sized coal mines develop in coordination. Article 5: Promote the development of a system for coal technology innovation, establish and improve a coal technology innovation mechanism that is market-oriented, with enterprises as the main actors and combines industry, academia, and research, so as to develop a number of key industry technologies with independent intellectual property rights. Develop the technology market, build service institutions, and establish a comprehensive technology innovation service system. Article 6: Strengthen **supervision, enforce the primary responsibilities of enterprises, rely on scientific and technological progress, focus on preventing and controlling disasters such as gas, water, fire, coal dust, roof failures, and mine pressure, and establish a sustainable mechanism for investment in and management of safe coal mining operations. Article 7: Strengthen the comprehensive utilization of coal resources, promote clean production, develop a circular economy, establish a compensation mechanism for the restoration of the ecological environment in mining areas, build resource-efficient and environment-friendly mining areas, and foster harmonious development between humans and these mining areas. Article 8: Advance market-oriented reforms, improve the mechanism for determining coal prices, strengthen the coordination among coal production, transportation, and demand, promote overall balance, and establish a modern coal market system that features sound mechanisms, openness, and orderly competition. Chapter 2 Industrial Layout Article 9 In accordance with the overall plans for national economic and social development, and in line with the development plans for the coal industry, mineral resources, coal production and development, coal mine safety production, as well as the overall plans for mining areas, coal resources shall be developed and utilized in a rational and orderly manner. Article 10: Stabilize the coal production scale in the eastern region, strengthen the development of large-scale coal bases in areas rich in coal resources in the central region, and accelerate the exploration and moderate development of coal resources in the western region. Build thirteen large-scale coal bases in Shendong, Northern Shanxi, Central Shanxi, Eastern Shanxi, Northern Shaanxi, Huanglong (Huating), Western Shandong, Lianghuai, Henan, Yunnan-Guizhou, Eastern Mongolia (Northeast), and Ningdong, in order to enhance the sustainable and stable supply of coal. Article 11: Vigorously promote the coordinated development of resources such as coal and coalbed methane, as well as the efficient use of infrastructure. Within large coal bases, in principle, one mining area is developed by one entity, while one entity can develop multiple mining areas. The scale and intensity of coal development in a region are determined based on factors such as resource endowments, transportation, water resources, and environmental carrying capacity; large and super-large modern coal mines are given priority in development in large integrated coalfields and areas with abundant resources. Article 12: The construction of pithead power stations is encouraged, with priority given to the development of coal and electricity integration projects, as well as to projects related to circular economy and comprehensive resource utilization. New large and medium-sized coal mines should be equipped with coal washing plants of corresponding scale, and the construction of collective coal washing plants in areas where small and medium-sized coal mines are concentrated is encouraged. Article 13: Coal chemical industries shall be developed in a moderate manner in areas with abundant water resources and rich coal reserves; their development shall be restricted in areas where coal is imported and in regions with scarce water resources. The development of coal chemical industries is prohibited in areas with insufficient environmental capacity. **Protective development should be implemented for special and scarce coal types, while the exploitation of coal resources with high sulfur and ash content should be restricted. Chapter 3: Industry Access Article 14: To establish coal mines or engage in the exploration of coal and coalbed methane resources, as well as to carry out design, construction, supervision, and safety assessment work for coal mine projects, it is necessary to possess the appropriate qualifications and to meet other conditions stipulated by laws and regulations. The recovery rate of coal mine resources must meet **specified standards, and safety measures, production equipment, and environmental protection measures must comply with relevant laws and regulations. Article 15: The scale of newly built, renovated, or expanded mines in provinces (regions) such as Shanxi, Inner Mongolia, and Shaanxi shall be no less than 1.2 million tons per year. The scale of newly built, renovated, or expanded mines in provinces (cities) such as Chongqing, Sichuan, Guizhou, and Yunnan shall be no less than 150,000 tons per year. The scale of newly built, renovated, or expanded mines in provinces (regions) such as Fujian, Jiangxi, Hubei, Hunan, and Guangxi is not less than 90,000 tons per year. The scale of newly built or expanded mines in other regions should be no less than 300,000 tons per year. Given the large number of small coal mines at present, their unreasonable distribution, and the fact that the damage to resources and the environment has not been fundamentally addressed, the situation regarding safe coal mining remains severe. During the 11th Five-Year Plan period, the approval (authorization) of new coal mining projects with a capacity of 300,000 tons per year or less will be completely halted.
Article 16 Coal mining enterprises shall, in accordance with **provisions, assign professional personnel in the field of geology and minerals; special operation personnel must obtain the corresponding qualifications in line with **relevant regulations. Coal mining enterprises are encouraged to recruit workers from technical schools. Chapter 4 Industrial Organization Article 17 Illicit coal mines shall be shut down, as well as those with an unreasonable layout, those that do not conform to industrial policies, those that lack safety production conditions, those that cause resource depletion through reckless mining, those that pollute the environment, and those that result in severe soil erosion. Article 18: It is encouraged to take existing large-scale coal enterprises as the core, break down barriers based on region, industry, and ownership, use resources and assets as links, and develop large coal enterprise groups through strategic alliances, mergers, and reorganizations of small and medium-sized coal mines. Encourage the development of large, internationally competitive enterprise groups that operate in an integrated manner in sectors such as coal, electricity, railways, and ports. Large coal enterprises are encouraged to participate in joint ventures with enterprises in the metallurgy, chemical industry, building materials, and transportation sectors. Small and medium-sized coal mines are encouraged to integrate resources, carry out joint renovations, and adopt intensive management. Article 19 Coal enterprises are encouraged to further improve their corporate governance structures, actively pursue shareholding system reforms in line with the requirements of modern enterprise systems, transform their management mechanisms, and enhance their management levels. Article 20: Actively guide the economic transformation of mining areas with depleted resources, and support state-owned coal mines that have exhausted their resources and are suffering heavy losses in shifting to other forms of operation. Establish an exit mechanism for small and medium-sized coal production enterprises. Encourage and support coal mines with depleted resources to leverage their advantages in talent, technology, and management to develop coal resources in other locations. Chapter 5: Industrial Technology Article 21: Development of geophysical exploration and high-precision 3D seismic exploration technologies is encouraged. Development of thick alluvial layer drilling methods, freezing methods, and rapid deep well construction techniques is encouraged. Article 22: The use of high-tech and advanced, applicable technologies is encouraged to build high-yield and efficient mines. Developing open-pit mining technologies is encouraged. Encourage the development of comprehensive mechanized coal mining technologies and the adoption of wall mining. Develop complete sets of technologies for small-scale coal mines, as well as mining technologies that improve resource recovery rates, such as mechanization for thin coal seams, underground backfilling, mining in areas beneath roads, railways, and buildings, and the recovery of marginal coal. Research on the technology of horizontal sectional fully-mechanized caving mining for extremely thick coal seams with steep dips is encouraged. Encourage the construction of demonstration projects such as underground gasification for low-grade and difficult-to-mining ores. Article 23: Accelerate the reform of coal mining techniques and support methods in small-scale coal mines, promote the use of bolt support and metal support in mining faces, and phase out wooden support. Accelerate the development of safe and efficient underground auxiliary transportation technologies, as well as technologies and equipment for relocating fully mechanized mining equipment. Article 24: Develop automatic control and centralized control technologies and equipment for coal sorting. Develop high-efficiency dry coal washing technologies, water-saving coal washing technologies, large-scale screening equipment, and desulfurization technologies to recover sulfur resources. Encourage the development and application of water-coal slurry technology. Article 25 Coal enterprises are encouraged to carry out technological upgrades aimed at industrial upgrading. Encourage the research and development, integration, and domestic production of key technologies and major equipment for coal exploration, mining, washing and processing, conversion, etc., through various approaches. Article 26: Promote the informatization of coal enterprises by utilizing modern control technologies and mine communication technologies to achieve automation and digitization of the production process. Advance the development of safety monitoring and control systems for coal mines, coal production monitoring systems, and underground personnel positioning management systems. Chapter 6 Safety in Production Article 27 Adhere to the safety production policy of giving top priority to safety, focusing on prevention, and adopting comprehensive management approaches; implement the enterprise’s primary responsibility for safety in production as well as the responsibility of the legal representative as the main person accountable for safety. Coal enterprises should strictly abide by laws, regulations, as well as relevant **standards or industry standards, strengthen on-site management, and strictly prohibit carrying out production beyond capacity, beyond safe limits, or with more workers than permitted, in order to prevent accidents. Coal production enterprises that have not obtained a safety production license shall not engage in coal production activities. Article 28: Establish and improve systems for mine ventilation, gas prevention, outburst prevention, fire prevention, dust control, water prevention, and flood control. Adhere to the gas management policy for coal mines, which emphasizes pumping gas before mining, carrying out monitoring and control, and determining production levels based on wind conditions. Implement regional measures to prevent outbursts, such as prioritizing the extraction of protective layers and pre-pumping of gas from coal seams, in order to increase the gas extraction rate. Adhere to the principles for preventing and controlling water hazards in coal mines, which include making predictions and forecasts, investigating any doubts that arise, conducting explorations before excavation, and addressing issues before mining begins. Implement comprehensive control measures such as prevention, blocking, drainage, and interception. Strengthen the monitoring and control of coal mine rockburst, as well as the prevention of roof accidents. Article 29: Establish and improve systems for the identification, rectification, and reporting of major accident hazards in coal mines. Establish and improve disaster prevention and emergency rescue systems. Adhere to the system requiring coal mine supervisors and production management personnel to go down into the mines to oversee operations. Article 30: Strictly implement the system of simultaneous construction of safety facilities and the main project in coal mine construction projects. All stages of coal production must be equipped with the necessary safety and health protection facilities. In production and operation sites with high levels of risk, as well as on related facilities and equipment, clear safety warning signs must be installed. The use of processes and equipment that do not meet safety standards is prohibited. A safety marking management system shall be implemented for coal mine underground areas as well as related equipment and apparatus.
Chapter 7 Trade and Transportation Article 31: Strictly examine the qualifications of coal trading enterprises, promote the optimization of their structure, and establish a coordinated development pattern in which coal production enterprises and large-scale coal trading enterprises play a key role, with small and medium-sized coal trading enterprises serving as a complement. Article 32: Actively promote market-oriented reforms in coal trade, establish and improve the coal trading market system, refine the mechanism for determining coal prices in the market, and formulate fair trading rules. Establish national and regional coal trading centers and information dissemination platforms, encourage long-term cooperative relationships among coal suppliers, transporters, and consumers, and guide rational production, orderly transportation, and balanced consumption. Steadily develop international coal trade, optimize the structure of coal imports and exports, and encourage enterprises to invest abroad in coal mining. Article 33: Actively develop coal transportation by rail and waterway, accelerate the construction and renovation of coal export routes in Shanxi, Shaanxi, and western Inner Mongolia, as well as coal shipping ports in the north, in order to increase coal transportation capacity. Restrict the long-distance transportation of low calorific value coal and high-ash coal. Measures should be taken to prevent dust and spills during coal transportation. Chapter 8: Conservation and Environmental Protection Article 34: Implement a development strategy that gives priority to conservation, accelerate the comprehensive utilization of resources, reduce energy consumption in the processing of coal, and improve the recovery rate and efficiency of coal resource utilization. Article 35: Strengthen energy conservation and energy efficiency management, and establish and improve systems for energy conservation management, evaluation and assessment, incentives and penalties related to energy conservation, emission reduction, and clean production in the coal industry. Coal enterprises are encouraged to develop advanced and suitable energy-saving technologies. New construction projects, as well as renovation and expansion projects carried out by coal enterprises, must be built in accordance with energy-saving design specifications and energy consumption standards. Outdated, energy-intensive processes, equipment, and products must be phased out, while energy-saving products that meet **energy efficiency standards and have been certified should be promoted for use. Article 36: In accordance with the principles of reduction, reuse, and resource utilization, coal-associated resources and coal mine waste shall be comprehensively developed and utilized. Enterprises are encouraged to use coal gangue and low-calorific-value coal for power generation and heating, as well as to produce building materials from coal gangue, use it for underground backfilling, land reclamation, and road construction. Mine water should be utilized comprehensively to foster a circular economy. Support the construction of long-distance pipelines for coalbed methane (coal mine gas), and encourage its use in civilian applications, power generation, and the production of chemical products. Article 37: The development and utilization of coal resources must undergo environmental impact assessments in accordance with the law, and environmental protection facilities must be installed in strict compliance with the \"three simultaneities\" principle for project construction. In accordance with the principle that those who develop are responsible for protection, those who cause damage are responsible for restoration, those who pollute are responsible for cleanup, and those who carry out cleanup benefits from it, comprehensive environmental management in mining areas is promoted, thereby establishing mechanisms for soil and water conservation, rehabilitation of mined land, and restoration of the ecological environment in mining areas that operate in tandem with production. Article 38: Pollutants generated during the mining, processing, storage, and loading/unloading of coal must be discharged in compliance with standards to prevent secondary pollution. Strengthen the extraction and utilization of coal mine gas and reduce emissions. The coal washing water should be used in a closed-loop system. Optimize the layout of roadways to reduce the amount of waste rock generated underground. Article 39: A system for assessing the environmental carrying capacity of mining area development and an evaluation index system shall be established. Strictly enforce the systems for environmental impact assessment in coal mines, soil and water conservation, land reclamation, and pollution discharge fees. Coal mining is restricted to areas with a high risk of geological disasters, important zones for groundwater recharge, and areas with fragile ecosystems; mining is prohibited in protected areas, key water source protection zones, and areas at risk of geological disasters and other zones where mining is forbidden. Strengthen the comprehensive management of abandoned mines. Article 40: Strengthen the investigation, monitoring, forecasting, and early warning of disasters that may arise during mine development, and take effective preventive and control measures in a timely manner. Establish an information network system and develop disaster prevention and mitigation plans.
Chapter 9 Labor Protection Article 41 Coal production enterprises shall participate in the social pooling system for work-related injury insurance, and establish and improve a work-related injury insurance system that combines prevention, compensation, and rehabilitation. Implement the allowance system for difficult positions in coal mines to gradually raise the income levels of coal mine workers. Article 42: Strengthen the management of labor employment and staffing quotas, and promote a six-hour workday system in underground workplaces with four shifts. Promote the standardization of mine quality to improve the working environment underground. Equip underground workers with personal protective equipment that meets **standards or industry standards. Article 43 Coal production enterprises are encouraged to increase investment in the prevention and control of safety hazards and occupational diseases such as pneumoconiosis. Develop and promote the research and application of technologies for the prevention of occupational diseases, occupational safety, and labor protection. Establish and improve systems for occupational health management and control of occupational disease hazards. Chapter 10: Safeguard Measures Article 44: Improve tax and fee policies that contribute to raising the level of safe coal mining operations and the efficiency of coal resource utilization, as well as to fostering the healthy development of the coal industry; enhance the tax incentives for resource exploration, development, and comprehensive utilization. A strict regulatory system for the utilization of coal resources is implemented, with annual inspections and ongoing monitoring of the recovery rate of coal resources. Those that fail to meet the specified standards are subject to penalties in accordance with relevant laws and regulations. Article 45: The development of coal resources shall adhere to the principle of planning first and then development. **A unified system should be established to manage the market for primary exploration rights related to coal resources. **Investments should be made to carry out coal exploration, surveys, and any necessary detailed investigations; overall development plans for the mining areas as well as plans for assigning mining rights should be formulated. Primary exploration rights and mining rights should then be transferred to enterprises in a planned manner, thereby creating a positive cycle of investment in coal resource exploration. The Central Geological Exploration Fund (working capital) provides key support for the exploration of coal resources in the **designated key mineralization areas (zones)**. Article 46 Support coal enterprises in establishing technology development centers to enhance their independent innovation capabilities. Coal mining enterprises can set aside a certain percentage of the revenue generated from coal product sales for use in technological innovation and upgrades. Advance the reform toward full cost accounting in coal production, and tighten the regulations regarding the allocation and use of costs for coal mine streamlining, safety expenses related to coal production, as well as the system of safety risk deposits. In accordance with the principles of enterprise ownership, earmarked use of funds, separate account storage, and **supervision, coal mining enterprises shall deposit environmental remediation and restoration bonds as required. Encourage social capital to be invested in environmental remediation in mining areas. Article 47: Implement a program for updating the knowledge of professional and technical talents in the coal industry, strengthen the development of continuing education programs and training centers for coal industry professionals as well as the cultivation of such professionals; carry out programs to train skilled personnel who are in short supply in this industry, and improve systems for targeted recruitment and order-based training. Standardize the management of professional qualifications for coal mine workers, and encourage enterprises to carry out comprehensive and multi-level safety and technical training for their employees. Article 48: Support coal enterprises in separating social functions from their core operations, and accelerate the separation of primary and auxiliary activities within these enterprises. Coal mining enterprises are supported in drawing funds for the transformation and development of the coal industry, which are earmarked for the development of successor and alternative industries. Article 49: For construction projects that do not conform to the planning and industrial development guidelines, the land and resources department will refuse to handle mineral rights registration and land use procedures; the environmental protection department will refuse to approve environmental impact assessment documents or issue emission permits; the water resources department will refuse to approve soil and water conservation plans; the industry and commerce administration department will refuse to carry out business registration; financial institutions will refuse to provide loans or any other form of credit support; and the investment authorities will refuse to grant approval for such projects. Article 50 Give play to the role of intermediary organizations. Coal industry associations should establish and improve systems for the regular release of information on coal market supply and demand, as well as technical and economic indicators, along with industry early-warning systems. These systems should help to reflect industry developments in a timely manner and provide policy recommendations, thereby strengthening industry self-discipline and guiding the development of enterprises. This policy is interpreted by the **Commission for Development and Reform. The relevant regulatory authorities in the coal industry may formulate corresponding technical standards and specifications based on this policy. This policy shall come into effect as of the date of issuance.
The much-anticipated **11th Five-Year Plan for coal chemical industry just won’t see the light of day; why is it so difficult to formulate such a plan? What is causing the delay in releasing the plan for the coal chemical industry?**