"And the country can export the equipment and explore the global market, which has great potential."

However, Jiang was not optimistic when looking into the profit prospects of commercial IGCC power plants. "The main inhibiting factor for IGCC plants is the high costs," Jiang said.

For a conventional coal power plant, the cost, including construction and equipment, for per kilowatt stays at 5,000 yuan (US$625); however, for IGCC power plants, the cost can be double and even reach US$1,400 per kilowatt.

The power generation industry is yet to be convinced about the reliability of IGCC technology, as the demonstration facilities that have gone into operation have not consistently demonstrated capacities comparable to conventional combined cycle gas turbines (CCGTs) or coal-fired power plants.

"But this clean energy technology shows the future orientation of energy development," Jiang said.

Especially for China, a country with huge coal consumption, developing such technology holds great importance to curb its emissions of sulphur dioxide (SO2) and to clean its air.

SO2 emissions have risen 27 per cent since 2000, according to figures from the State Environmental Protection Administration (SEPA).

Each ton of SO2 discharged may cause up to 20,000 yuan (US$2,500) in economic losses.
In the 11th Five-Year Plan period (2006-10), China has promised a 10 per cent cut in the country's total SO2 emissions by 2010, compared with the end of 2005.

In this way, the country now is actively seeking ways of developing clean energy, including clean fuel, solar energy and wind power.

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