Beijing is researching coal-to-oil as a substitute for gasoline

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Supporting the development of the coal-to-oil industry is conducive to the transformation and upgrading of the traditional coal industry, contributes to energy security, and offers significant environmental benefits. It is reported that Beijing is currently studying how to use coal-to-oil technology as a substitute for gasoline. Deputy REN Huang Yangxu said that in 2014, the Chinese Academy of Environmental Sciences and the Beijing Environmental Protection Bureau conducted systematic tests on demonstration vehicles that used coal-based oil as a substitute for diesel in Huairou District, Beijing. The results show that coal-to-oil can not only replace diesel as a fuel for vehicles, but also has better energy consumption and emission performance than diesel; it holds great potential for development and possesses high value for widespread adoption. Huang Yangxu said that vigorously developing the coal-to-oil industry has several advantages: first, it helps to promote the transformation and upgrading of the traditional coal industry and address the issue of excess coal production capacity ； Secondly, coal-to-oil products can replace petroleum-based energy sources, reducing dependence on foreign oil and contributing to **energy security ； Thirdly, China’s coal-to-oil technology is currently at an internationally advanced level. Indirect coal liquefaction technology can produce oil products that meet standards exceeding those of \"National Standard 5\", and it also enables the production of various high-value chemical products. This not only enhances the economic efficiency of coal utilization but also helps to reduce smog by serving as a substitute for gasoline and diesel, thereby offering significant environmental benefits. Since the coal industry’s \"golden decade\" came to an end in 2012, coal prices declined, and losses for coal companies worsened sharply. As coal prices continue to fall, converting excess coal resources into coal chemical products has become a common strategy adopted by many large coal companies. In China, the overall situation of the coal-to-oil industry, which produces petroleum-based products, is not optimistic. The problem faced by Chinese coal-to-oil companies is that those already in operation are losing money, while those not yet operational have also consumed large amounts of capital; if they proceed with completion, their profitability will depend on oil prices. If one can withstand a period of time and see oil prices rise, profits can be made; however, if oil prices stay low for an extended period, cash flow problems may arise. Although challenging, coal chemical industry remains one of the main future paths for coal. The overall environment in the coal industry is currently unfavorable, but in the short term, China’s reliance on coal will not diminish. Coal-to-oil conversion can reduce dependence on imported oil; from a long-term perspective, coal chemical processing remains an effective means for coal companies to transform and overcome difficulties. **An official from the Energy Bureau said that the development of modern coal chemical industry plays a significant role in ensuring energy security and reducing emissions in polluted areas. During the 2014 APEC meeting, pilot applications were carried out in the Huairou area of Beijing. After the meeting, the Beijing Environmental Protection Bureau expanded the scope of these tests to conduct further research, and found that the efficiency of coal-to-oil conversion could be increased by 60%, while all key indicators related to pollutants decreased by 30%. The official said that the main source of PM2.5 in Beijing is not coal, but vehicle exhaust fumes. Currently, Beijing is exploring how to use coal-to-oil technology as a substitute for gasoline.