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Oil's not well
By Wan Zhihong (China Daily)
Updated: 2008-06-16 10:52 Alternatives High oil prices have forced Chinese companies to seek alternative energy to fuel the country's development. Shenhua Group, China's largest coal company, plans to start its first mega coal-to-oil project in Erdos in Inner Mongolia this year. It is expected to convert 3.5 million tons of coal per year into 1 million tons of oil products such as diesel. Shenhua has also joined forces with South Africa's Sasol and Royal Dutch Shell to study the feasibility of three coal-to-oil projects. Analysts say China's coal industry will be able to produce 50 million tons of oil products every year by 2020, which could help the country reduce its oil imports. But since coal-to-oil projects are not environmentally friendly, many say China should go easy on such projects. The country should take a more cautious approach in developing the sector, says Han Xiaoping, senior vice-president of Beijing Falcon Pioneer Technology Co Ltd. Other energy sectors have also been booming as China diversifies its energy structure to reduce its reliance on oil and coal. Among them, nuclear and wind energy is developing the fastest. The country is set to expand the installed capacity of nuclear power, making it account for more than 5 percent of the national total installed power capacity by 2020, according to the NDRC. China has 11 nuclear power plants with a combined installed capacity of 9,080 MW. The country has vowed to put in place 40,000 MW of operating installed capacity by 2020. The wind energy industry saw almost 100 percent growth in 2007 and will continue to grow as robustly in coming years, according to Chinese Wind Energy Association. According to HSBC statistics, wind energy is the most cost-effective energy resource when crude price cross $49 a barrel. (For more biz stories, please visit Industries)
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